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Stockholders’ Equity
 12 Months Ended
Dec. 31, 2021
Stockholders' Equity Note [Abstract]  
Stockholders’ Equity
8. Stockholders’ Equity

 

Common Stock

 

At the Annual Meeting of our Company held on September 29, 2020, stockholders approved a proposal to increase the number of authorized shares of our common stock to 25,000,000 shares. Accordingly, on November 5, 2020, we filed an amendment to the Neonode Inc. Restated Certificate of Incorporation, as amended (our “Certificate of Incorporation”), with the Secretary of State of the State of Delaware to increase the number of authorized shares of our common stock to 25,000,000 shares.

 

On December 29, 2020, we issued 37,288 shares of our common stock to key employees pursuant to our 2020 long-term incentive program (“2020 LTIP”) (see Note 9).

 

On August 12, 2021, we issued 12,830 shares of our common stock to key employees pursuant to our 2020 LTIP (see Note 9).

 

On December 29, 2021, we issued 14,735 shares of our common stock to key employees pursuant to our 2020 long-term incentive program (“2020 LTIP”) (see Note 9).

 

During the twelve months ended December 31, 2021, we sold an aggregate of 235,722 shares of common stock under the ATM Facility, resulting in net proceeds to us of approximately $1,984,000 after payment of commissions to B. Riley and other expenses of $66,000.

 

On October 21, 2021, we entered into a placement agency agreement with Pareto Securities Inc. and Pareto Securities AB pursuant to which we sold to certain Swedish and other European investors an aggregate of 1,808,000 shares of our common stock at a price of $7.75 per share in a registered direct offering that closed on October 26, 2021 (the “Offering”). We received net proceeds of approximately $13.1 million from the Offering after deducting placement agent fees and offering expenses.

 

Warrants and Other Common Stock Activity

  

During the year ended December 31, 2021, no warrants expired and no warrants were exercised. During the year ended December 31, 2020, 325,000 warrants expired and no warrants were exercised.

 

A summary of all warrant activity is set forth below:

 

Outstanding and exercisable  Warrants   Weighted
Average
Exercise
Price		   Weighted
Average
Remaining
Contractual
Life		 
January 1, 2020   756,368   $14.98    1.47 
Expired/forfeited   (325,000)   20.00    
-
 
December 31, 2020   431,368   $11.20    1.13 
Issued   
-
    
-
    
-
 
Expired/forfeited   
-
    
-
    
-
 
Exercised   
-
    
-
    
-
 
December 31, 2021   431,368   $11.20    0.13 

 

Outstanding Warrants to Purchase Common Stock as of December 31, 2021:

 

Description  Issue Date   Exercise
Price		   Shares   Expiration
Date		 
                 
August 2016 Purchase Warrants  08/17/16   $11.20    431,368   02/17/22 

 

Preferred Stock

 

During the year ended December 31, 2019, the only shares of our preferred stock issued and outstanding were Series B Preferred Stock. Effective July 1, 2019, all outstanding shares of our Series B Preferred Stock were converted into shares of our common stock.

  

On August 6, 2020, in connection with the closing of the Private Placement, the Company designated (i) 365 shares of its authorized and unissued preferred stock as Series C-1 Preferred Stock by filing a Series C-1 Certificate of Designation of Preferences, Rights and Limitations with the Secretary of State of the State of Delaware and (ii) 4,084 shares of its authorized and unissued preferred stock as Series C-2 Preferred Stock by filing a Series C-2 Certificate of Designation of Preferences, Rights and Limitations with the Secretary of State of the State of Delaware.

 

On September 24 and 29, 2020, respectively, the Series C-1 Preferred Stock and Series C-2 Preferred Stock (together, the “Series C Preferred Shares”) were converted into 684,378 shares of Neonode common stock.

  

The holders of the Series C Preferred Shares were entitled to receive dividends at the rate per share of 5% per annum, totaling $33,000. As of December 31, 2020, all of the preferred dividends had been paid.

 

On December 7, 2020, we filed Certificates of Elimination with the Secretary of State of the State of Delaware to eliminate the Series A Preferred Stock, Series B Preferred Stock, Series C-1 Preferred Stock and Series C-2 Preferred Stock.

 

No shares of preferred stock were issued and outstanding as of and during the year ended December 31, 2021.

 

Details of the preferred stock activities for the year ended December 31, 2020 are set forth below:

 

   Series B
Preferred
Stock
Shares
Issued		   Series B
Preferred
Stock
Amount		   Series C-1
Preferred
Stock
Shares
Issued		   Series C-1
Preferred
Stock
Amount		   Series C-2
Preferred
Stock
Shares
Issued		   Series C-2
Preferred
Stock
Amount		 
Balances, January 1, 2020    -   $
-
    
-
   $
-
    
-
   $
-
 
                               
Issuance of Preferred Shares for cash   
-
    
-
    365    365    3,567    3,567 
                               
Series C-2 Preferred Stock issued for repayment of short-term borrowings and accrued interest   
-
    
-
    
-
    
-
    517    517 
                               
Conversion of Preferred Shares to common stock   
-
    
-
    (365)   (365)   (4,084)   (4,084)
                               
Balances, December 31, 2020   
-
   $
-
    
-
   $
-
    
-
   $
-