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Stockholders’ Equity
 9 Months Ended
Sep. 30, 2021
Equity [Abstract]  
Stockholders’ Equity

Note 10. Stockholders’ Equity

 

During the nine months ended September 30, 2021, we issued 539,998 options to purchase our common stock to employees. The exercise price of the options were $0.38-$0.59 per share, with a combination of both cliff and graded vesting over 3 years and are exercisable for a period of 8 years.

 

The fair value of the options issued ($177,751, in the aggregate) was calculated using the Black-Scholes option pricing model, based on the criteria shown below.

 

 

Expected life (in years)   5.5-8  
Volatility (based on a comparable company)   85.05%-89.37 %
Risk Free interest rate   .725%-1.32%
Dividend yield (on common stock)   - 

 

For the nine months ended September 30, 2021, the Company issued 148,810 options for board director compensation, and 460,000 options were cancelled. The total amount of equity-based compensation included in additional paid in capital was $41,574 and $45,692 for the three months ended September 30, 2021 and 2020, respectively. The total amount of equity-based compensation included in additional paid in capital was $51,857 and $240,216 for the nine months ended September 30, 2021 and 2020, respectively.

 

The following is a summary of outstanding stock options issued to employees and directors as of September 30, 2021:

 

 

   Number
of Options		   Exercise
price per share $		   Average
remaining term
in years		   Aggregate
intrinsic value
at date of
grant $		 
Outstanding January 1, 2021   7,640,959    .34 - .87    2.97    - 
Issued - Employees   539,998    .43 - .46    7.69    - 
Issued - Directors   148,810    .42    7.56      
Cancelled/Expired   (460,000)               
Outstanding September 30 2021   7,869,767    .34 - .87    3.21    - 
                     
Exercisable, September 30, 2021   6,693,669    .34 - .87    3.10          - 

 

 

Barfresh Food Group Inc.

Notes to Condensed Consolidated Financial Statements

September 30, 2021

(Unaudited)

 

As of September 30, 2021, the Company has $192,500 of total unrecognized share-based compensation expense related to unvested options, which is expected to be amortized over the remaining weighted average period of 3.21 years.

 

The following is Changes in Stockholders’ Equity as of September 30, 2020 and September 30, 2021:

 

 

           Additional         
   Common Stock   paid in   Accumulated     
   Shares   Amount   Capital   (Deficit)   Total 
                     
Balance January 1, 2020   130,341,737   $130   $47,030,716    (46,747,122)  $283,724 
Issuance of stock for capital raise, net of offering costs of $27,200    12,955,725    8    3,797,792    -    3,797,800 
Conversion of debt    4,778,043    5    1,333,757    -    1,333,762 
Interest paid in shares    632,251    -    379,350    -    379,350 
Issuance of stock for services    263,946    -    105,000    -    25,000 
Equity based compensation    -    -    240,216    -    194,524 
Warrants issued to management    -    -    167,892    -    167,892 
Warrant Modification    -    -    18,899    -    18,899 
Warrant issued for note extension    -    -    75,184    -    75,184 
Restricted stock issuance    121,527    -    -    -    - 
Net (loss) for the year    -    -    -    (2,800,843)   (2,800,843)
Balance September 30, 2020    149,093,829   $143   $53,148,806    (49,547,965)  $3,600,984 

 

 

Barfresh Food Group Inc.

Notes to Condensed Consolidated Financial Statements

September 30, 2021

(Unaudited)

 

           Additional         
   Common Stock   paid in   Accumulated     
   Shares   Amount   Capital   (Deficit)   Total 
                     
Balance January 1, 2021   149,133,372   $149   $53,223,665    (50,899,628)  $2,324,186 
Issuance of stock for capital raise,   16,666,666    17    5,999,983    -    6,000,000 
Conversion of debt and accrued interest   1,489,976    2    685,388    -    685,390 
Interest paid in shares   251,897    -    151,138    -    151,138 
Issuance of stock for services   59,524    -    75,000    -    75,000 
Equity based compensation   -    -    51,857    -    51,857 
                          
Net (loss) for the year   -    -    -    (1,395,419)   (1,395,419)
Balance September 30, 2021   167,601,435   $168   $60,187,031    (52,295,047)  $7,892,152 

 

On June 1, 2021, the Company completed a private placement of 16,666,666 shares of its common stock at $0.36 per share, resulting in gross proceeds of $6,000,000. In addition, holders of debt converted a total of $399,000 in principal and $234,410 in interest into 1,741,873 shares of common stock, and debt in the amount of $840,000 was retired.