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Equity
 9 Months Ended
Sep. 30, 2022
Equity [Abstract]  
Equity

Note 12 - Equity

 

On August 27, 2021 the Company’s Board of Directors approved a one-for-four reverse stock split such that every holder of the Company’s common stock would receive one share of common stock for every four shares owned. The reverse stock split was effective as of 6:00 p.m. Eastern Time on March 7, 2022, immediately prior to the Company’s listing of its common stock on the NYSE American. All share amounts have retrospectively been stated at post-reverse split amounts and pricing.

 

During February and March 2021, the Company issued to a group of accredited investors 2,248,464 shares of its common stock and warrants to purchase 2,248,464 shares of its common stock for $2.00 per share with an original expiration date of December 31, 2022 that would be accelerated should certain performance criteria be met. Proceeds from the sale were $3,147,850. The value allocated to the warrants was the fair value determined using the Black-Scholes option valuation with the following assumptions:  no dividend yield, expected annual volatility of 180%, risk free interest rate of 0.14% and a term of 21 months. The fair value of the warrants of $2,350,407 was allocated to Additional Paid-in Capital. The performance criteria triggering early maturity occurred in April 2022, accelerating the warrant maturity date to July 2022. During the nine months ended September 30, 2022, 1,782,347 shares of common stock were issued as a result of warrant exercises. As of July 10, 2022, all such warrants were fully exercised.

 

In September 2022, a former director of the Company exercised warrants granted in November 2017 to purchase 250,000 shares of common stock for $1.00 per share.

 

Earnings Per Share

 

The computation of diluted shares outstanding for the three months ended September 30, 2022, excluded 2,379,700 stock options, 1,000,000 warrants, and 124,477 outstanding RSUs, as their effect would have been anti-dilutive, while the computation of diluted shares outstanding for the nine months ended September 30, 2022, excluded 2,706,887 stock options and 73,476 outstanding RSUs, as their effect would have been anti-dilutive. There were no such anti-dilutive shares outstanding for the three- and nine-months ended September 30, 2021.