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STOCKHOLDERS’ EQUITY
 9 Months Ended
Sep. 30, 2023
Equity [Abstract]  
STOCKHOLDERS’ EQUITY

NOTE 10 – STOCKHOLDERS’ EQUITY

 

Common Stock

 

On July 27, 2023, the Company’s shareholders approved an amendment to the Company’s articles of incorporation that increased the amount of common stock authorized for issuance to 500,000,000 with a par value of $0.0001 per share.

 

Shelf Registration Statement on Form S-3 and At-The-Market Offering Agreement

 

On February 11, 2022, the Company entered into an At-The-Market Offering Agreement, or sales agreement, with H.C. Wainwright & Co., LLC relating to shares of the Company’s common stock. In accordance with the terms of the sales agreement, the Company may offer and sell shares of its common stock having an aggregate offering price of up to $750,000 from time to time through Wainwright acting as its sales agent. As of September 30, 2023, the Company has sold 74,447,287 shares of common stock for an aggregate purchase price of $627,272, net of offering costs, pursuant to this At-The-Market Offering Agreement.

 

In February 2022, the Company commenced an At The Market offering program with H.C. Wainwright & Co., LLC, as sales agent, which allowed it to sell and issue shares of up to approximately $750,000 of its Common Stock from time-to-time. During the first three quarters of 2023, the Company issued 32,305,554 shares of Common Stock under the 2022 At The Market offering program for total proceeds of $265,786, net of commissions and other offering related expenses.

 

Common Stock Warrants

 

A summary of the Company’s issued and outstanding stock warrants and changes during the period ended September 30, 2023 is as follows:

 

SUMMARY OF OUTSTANDING STOCK WARRANTS

   Number of Warrants   Weighted Average Exercise Price   Weighted Average Remaining Contractual Life (in years) 
Outstanding as of December 31, 2022   324,375   $25.00    2.5 
Issued   —    0.00    0.0 
Expired   —    0.00    0.0 
Exercised   —    0.00    0.0 
Outstanding as of September 30, 2023   324,375   $25.00    2.0 

 

 

Restricted Stock

 

A summary of the restricted stock award activity (represented by restricted stock units (“RSUs”)) for the nine months ended September 30, 2023 is as follows:

 

SUMMARY OF RESTRICTED STOCK AWARD ACTIVITY

   Number of Units   Weighted Average Grant Date Fair Value 
Nonvested at December 31, 2022   1,255,648   $22.60 
Granted   3,350,763    8.33 
Vested   (679,947)   20.02 
Forfeited   

(173,033

)  $

9.42

 
Nonvested at September 30, 2023   3,753,431   $10.93 

 

Series A Preferred Stock

 

On June 5, 2023, the Company entered into a securities purchase agreement for the purchase of 15,000 shares of Series A redeemable convertible preferred stock. On June 8, 2023, upon closing of the offering, the Company issued 15,000 shares of Series A Preferred Stock for total gross proceeds of $14,286 before deducting the placement agent’s fees and other estimated offering expenses. Each share of Series A Preferred Stock had a purchase price of $952.38, representing an original issue discount of approximately 5% of the $1,000 stated value of each share. Each share of Series A Preferred Stock was convertible into shares of the Company’s common stock at an initial conversion price of $14.52 per share, at the option of the holder, at any time following the Company’s receipt of stockholder approval for an increase in its authorized shares of common stock.

 

The Series A Preferred Stock was recorded outside of stockholder’s equity as mezzanine equity. At June 30, 2023, the Company increased the carrying value of Series A Preferred Stock to its redemption value and recorded the difference to additional paid-in capital.

 

During the third quarter ended September 30, 2023, all of the outstanding Series A Preferred Stock were redeemed at 105% of the $1,000 stated value per share for $15,750.