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Common Stock Warrants
 9 Months Ended
Sep. 30, 2021
Stockholders' Equity Note [Abstract]  
Common Stock Warrants

Note 9 — Common Stock Warrants

 

On March 16, 2021 the Company made a down payment to ShareIntel-Shareholder Intelligence Services, LLC for anticipated services connected to the Company’s planned offering, which was in the form of issuing 9,865 warrants to purchase common stock at $4.10 per share, with an expiration date of June 30, 2024. The warrants are exercisable starting at their issuance dates. As of September 30, 2021, the weighted average exercise price of warrants outstanding was $2.65 per share. The warrants were accounted as equity based on the US GAAP guidance applicable to the instruments indexed to an entity’s own stock.

 

On August 31, 2021, the Company sold an aggregate of 3,060,000 units at a price to the public of $4.25 per unit, each unit consisting of one share of the Company’s common stock and a Warrant to purchase one share of common stock at an exercise price of $4.25 per share.

 

In addition, pursuant to the Underwriting Agreement, the Company granted the Underwriter a 45-day option to purchase up to 459,000 additional shares of common stock, and/or 459,000 additional Warrants, to cover over-allotments in connection with the Offering. The Underwriter partially exercised this option and purchased 459,000 Warrants on the closing date at $0.01 per Warrant, for the total proceeds of $4,590.

 

The Warrants are exercisable at any time from the issuance date at $4.25 for common stock shares and have a five year term. The Warrants may be exercised for cash or through cashless exercise.

 

The Company may redeem the outstanding Warrants, in whole and not in part, at $0.001 per warrant if, after thirteen months from the issuance date, (i) the daily volume weighted average price of the Common Stock for each of 10 consecutive trading days (Measurement Period) exceeds $12.75 (subject to adjustment for forward and reverse stock splits, recapitalizations, stock dividends and the like after the issuance date), (ii) the average daily volume for such Measurement Period exceeds $1,000,000 per Trading Day and (iii) the holders of Warrants are not in possession of any information that constitutes, or might constitute, material non-public information which was provided by the Company, any of its Subsidiaries, or any of their officers, directors, employees, agents or Affiliates.

 

Pursuant to the Underwriting Agreement, on August 31, 2021 and September 29, 2021, the Company also issued to the Underwriter warrants to purchase up to a total of 162,450 shares of common stock. The Underwriter warrants are exercisable at any time from the issuance date at $4.675 per share of common stock and have a term of five years through August 26, 2026.

 

The total fair value of the Underwriter Warrants was $1,642,486 at the issuance date. The Company estimated the fair value of the warrants using the Black-Scholes option pricing model based on the following assumptions:

 

Risk-free interest rate  0.77%-1.01%
Expected life  5 years
Dividend yield  0%
Volatility  67%

 

The following table summarizes information with regard to outstanding warrants to purchase common stock as of September 30, 2021.

 

Issuance Date  

Number of

Shares Issuable Upon

Exercise of

Outstanding

Warrants

    

Exercise

Price

    

Expiration

Date

5/4/2017     3,860     $ 3.10      5/3/2022
6/14/2017     1,351     $ 3.10      6/13/2022
8/30/2018     3,088     $ 3.10      8/29/2023
9/30/2018     60,506     $ 3.10      9/29/2023
9/30/2018     486,486     $ 2.16      9/29/2023
10/17/2018     1,157     $ 3.10      10/16/2023
11/2/2018     964     $ 3.10      11/1/2023
11/9/2018     964     $ 3.10      11/8/2023
11/16/2018     964     $ 3.10      11/15/2023
11/29/2018     964     $ 3.10      11/28/2023
12/21/2018     964     $ 3.10      12/20/2023
12/27/2018     964     $ 3.10      12/26/2023
1/31/2019     1,930     $ 3.10      1/30/2024
2/7/2019     1,640     $ 3.10      2/6/2024
2/21/2019     1,640     $ 3.10      2/20/2024
3/20/2019     3,378     $ 3.10      3/18/2024
4/8/2019     1,930     $ 3.10      4/6/2024
11/19/2020     53,333     $ 4.10      11/19/2023
11/19/2020     8,533     $ 4.10      11/19/2023
1/8/2021     13,333     $ 4.10      6/30/2024
1/11/2021     26,666     $ 4.10      6/30/2024
2/13/2021     13,333     $ 4.10      6/30/2024
3/16/2021     10,665     $ 4.10      6/30/2024
3/16/2021     13,333     $ 4.10      6/30/2024
8/31/2021     3,519,000     $ 4.25     8/30/2026
8/31/2021     153,000     $ 4.675     8/30/2026
9/29/2021     9,450     $ 4.675     8/30/2026
      4,393,396