XML 18 R16.htm IDEA: XBRL DOCUMENT
v3.20.1

Stockholders' Equity | 3 Months Ended
--- | ---
Mar. 31, 2020
Stockholders Equity Note [Abstract] |
Stockholders' Equity | NOTE 9 – STOCKHOLDERS’ EQUITY The Company’s amended and restated certificate of incorporation filed on December 14, 2017, authorizes the Company to issue 10,000,000 shares of preferred stock and 50,000,000 shares of common stock. Common Stock The voting, dividend and liquidation rights of the holders of the common stock are subject to rights of preferred stockholders, if any, as designated by the Board of Directors. Common stockholders have voting rights at all meetings of stockholders and are entitled to one vote for each share held subject to certain limitations otherwise required by law. Dividends may be declared and paid on the common stock as and when determined by the Board of Directors subject to any preferential dividend or other rights of preferred stockholders. The Company does not anticipate declaring any dividends in the foreseeable future. Upon the dissolution or liquidation of the Company, common stockholders are entitled to receive all assets of the Company, subject to any preferential or other rights of preferred stockholders. On June 26, 2019, the Company filed a prospectus supplement relating to its common stock, par value $0.0001 per share, whereby under the prospectus supplement, the Company may offer and sell common stock having an aggregate offering price of up to $10,000,000 through Noble Capital Markets, Inc., (“Noble”) acting as the Company’s agent. As such, the Company entered into an Equity Distribution Agreement with Noble dated as of June 26, 2019. In July 2019, the Company sold 1,554,832 shares of common stock through this offering for total gross proceeds of $2,700,714, which resulted in net proceeds to us of $2,488,148, after deducting compensation payable to Noble of $55,127 and other expenses of $157,439. The Equity Distribution Agreement with Noble was terminated on August 26, 2019. Exercise of Stock Options and Warrants During the three months ended March 31, 2020, the Company issued 354,914 shares of common stock for proceeds of $57,000 in cash related to the exercise of stock options and warrants. Of the total shares issued, 279,914 shares of common stock were issued as a cashless exercise of stock options. During the three months ended March 31, 2019, the Company issued 54,098 shares of common stock for proceeds of $14,201 in cash related to the exercise of stock options and warrants. Of the total shares issued, 17,598 shares of common stock were issued as a cashless exercise of stock. Preferred Stock Preferred Stock may be issued from time to time in one or more series, each of these series to have such terms as stated or expressed in resolutions providing for the issue of such series adopted by the Board of Directors. Since February 1, 2018, there has been no outstanding preferred stock. Regarding unissued preferred stock, the Board of Directors is authorized to determine or alter any or all of the rights, preferences, privileges and restrictions granted to or imposed upon wholly unissued series of preferred stock, and to fix or alter the number of shares comprising any such series and the designation thereof, or any of them, and to provide for rights and terms of redemption or conversion of the shares of any such series. Stock Options A summary of stock option activity under each of the Company’s stock option plans during the three month period ended March 31, 2020:
|  | Stock Options Outstanding |
|  | Number of Shares |  |  | Weighted Average Exercise Price |  |  | Weighted Average Remaining Contractual Life (in years) |  |  | Aggregate Intrinsic Value |
Outstanding at January 1, 2020 |  |  | 1,686,444 |  |  | $ | 1.32 |  |  |  | 4.84 |  |  | $ | 1,416,279 |
Granted |  |  | 20,000 |  |  | $ | 2.70 |  |  |  |  |  |  |  |  |
Forfeited / Cancelled |  |  | (6,500 | ) |  | $ | 2.12 |  |  |  |  |  |  |  |  |
Exercised |  |  | (686,250 | ) |  | $ | 0.79 |  |  |  |  |  |  |  |  |
Outstanding at March 31, 2020 |  |  | 1,013,694 |  |  | $ | 1.69 |  |  |  | 5.08 |  |  | $ | 287,953 |
Exercisable at March 31, 2020 |  |  | 866,837 |  |  | $ | 1.49 |  |  |  | 5.08 |  |  | $ | 287,953 |
Vested and expected to vest at March 31, 2020 |  |  | 1,009,288 |  |  | $ | 1.69 |  |  |  | 5.55 |  |  | $ | 287,953 |
The following table presents details of the assumptions used to calculate the weighted-average grant date fair value of common stock options granted by the Company:
|  | For the Three Months Ended March 31, |
|  | 2020 |  |  | 2019 |
Expected term (in years) |  | 5.87 |  |  | 4.65 - 5.87 |
Expected volatility |  | 43.5 - 47.8% |  |  | 43.7 - 44.4% |
Risk-free interest rate |  |  | 1.41 | % |  |  | 3.00 | %
Weighted average grant date fair value per share |  | $ | 2.70 |  |  | $ | 1.09 |
Grant date fair value of options vested |  | $ | 720,095 |  |  | $ | 1,441,371 |
Intrinsic value of options exercised |  | $ | 463,800 |  |  | $ | 56,369 |
As of March 31, 2020, the amount of unearned stock-based compensation estimated to be expensed from 2020 through 2029 related to unvested common stock options is $158,871, net of estimated forfeitures. The weighted-average period over which the unearned stock-based compensation is expected to be recognized is 1.57 years. If there are any modifications or cancellations of the underlying unvested awards, the Company may be required to accelerate, increase or cancel any remaining unearned stock-based compensation expense or calculate and record additional expense. Future stock-based compensation expense and unearned stock-based compensation will increase to the extent that the Company grants additional common stock options or other stock-based awards. Restricted Stock Units Restricted stock units may be granted at the discretion of the compensation committee of the Board of Directors under the Company’s 2017 Equity Incentive Plan that was adopted on October 10, 2017 (the “2017 Plan”) in connection with the hiring and retention of personnel and are subject to certain conditions. Restricted stock units generally vest quarterly or semi-annually over a period of one to three years and are typically forfeited if employment is terminated before the restricted stock unit vest. The compensation expense related to the restricted stock units is calculated as the fair value of the common stock on the grant date and is amortized to expense over the vesting period and is adjusted for estimated forfeitures. The Company’s restricted stock unit activity for the three months ended March 31, 2020 is as follows:
|  | Restricted Stock Units |
|  | Number of Shares |  |  | Weighted Average Grant Date Fair Value |
Unvested at January 1, 2020 |  |  | 216,670 |  |  | $ | 3.02 |
Granted |  |  | 80,000 |  |  | $ | 2.31 |
Vested |  |  | (91,669 | ) |  | $ | 2.94 |
Cancelled |  |  | (12,500 | ) |  | $ | 2.43 |
Unvested at March 31, 2020 |  |  | 192,501 |  |  | $ | 2.80 |
As of March 31, 2020, there was $423,077 of unrecognized compensation cost related to unvested restricted stock units which is expected to be recognized over a weighted average period of 1.51 years. Stock-based compensation expense for the three month periods ended March 31, 2020 and 2019 was comprised of the following:
|  | For the Three Months Ended March 31, |
Stock-based compensation classified as: |  | 2020 |  |  | 2019 |
General and administrative |  | $ | 159,680 |  |  | $ | 125,206 |
Production |  |  | 17,969 |  |  |  | 14,898 |
Marketing and selling |  |  | 17,292 |  |  |  | 14,393 |
Research and development |  |  | 12,820 |  |  |  | 12,977 |
|  | $ | 207,761 |  |  | $ | 167,474 |
Warrants The following table summarizes the Company’s warrant activity during the three months ended March 31, 2020:
|  | Number of Warrants |  |  | Weighted Average Exercise Price |
Warrants outstanding – January 1, 2020 |  |  | 630,947 |  |  | $ | 4.16 |
Warrants granted |  |  | - |  |  | $ | - |
Warrants exercised |  |  | - |  |  | $ | - |
Warrants outstanding – March 31, 2020 |  |  | 630,947 |  |  | $ | 4.16 |

X
- Definition The entire disclosure for shareholders' equity and share-based payment arrangement. Includes, but is not limited to, disclosure of policy and terms of share-based payment arrangement, deferred compensation arrangement, and employee stock purchase plan (ESPP). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -URI http://asc.fasb.org/topic&trid=2208762 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 + Details
Name: | us-gaap_ShareholdersEquityAndShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_StockholdersEquityNoteAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration