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

 

10. STOCKHOLDERS’ EQUITY

 

Stock Issued For Acquisition

 

The Company issued 1,055,000 shares of its common stock upon acquiring certain assets of All Cell during the nine months ended September 30, 2022. See further discussion in note 3. Business Combination.

 

Committed Equity Facility

 

On September 2, 2022, the Company entered into a Common Stock Purchase Agreement (the “Purchase Agreement”) and a Registration Rights Agreement with B. Riley Principal Capital, LLC (“B. Riley”). Pursuant to the Purchase Agreement, the Company has the right, in its sole discretion, to sell to B. Riley up to $30.0 million, or a maximum of 2.0 million shares of the Company’s common stock at 97% of the volume weighted average price (“VWAP”) of the Company’s common stock on the trading day, calculated in accordance with the Purchase Agreement, over a period of 24 months subject to certain limitations and conditions contained in the Purchase Agreement. Sales and timing of any sales are solely at the election of the Company, and the Company is under no obligation to sell any securities to B. Riley under the Purchase Agreement. As consideration for B. Riley’s commitment to purchase shares of the Company’s common stock, the Company issued 10,484 shares of its common stock and will issue an additional 10,484 shares of its common stock or a cash payment of $150,000, at the Company’s sole discretion, when the first VWAP purchase occurs.

 

Other than the issuance of the initial commitment shares of the Company’s common stock to B. Riley, the Company had not issued any shares of its common stock to raise capital under the Purchase Agreement as of September 30, 2022.

 

The Company incurred an aggregate cost of approximately $0.4 million in connection with the Purchase Agreement, including the fair value of the 10,484 shares of common stock issued to B. Riley upon the execution of the agreement, which was recorded to prepaid expenses and other current assets on the Balance Sheet to be offset against future proceeds from the sale of the Company’s common stock under the Purchase Agreement.

 

Awards Under Stock Incentive Plans

 

Stock Options

 

Option activity for the nine months ended September 30, 2022 is as follows:

        
       Weighted 
       Average 
   Number of   Exercise 
   Options   Price 
Outstanding at December 31, 2021   263,433   $11.56 
Granted   21,000    16.72 
Exercised   (1,750)   6.67 
Forfeited   (3,025)   37.68 
Outstanding at June 30, 2022   279,658   $11.69 

 

The Company’s stock option compensation expense was $0.1 million and $0.3 million for the three and nine months ended September 30, 2022, respectively, and $0.1 million and $0.2 million for the three and nine months ended September 30, 2021, respectively. There was $1.0 million of total unrecognized compensation costs related to outstanding stock options at September 30, 2022 which will be recognized over 3.6 years. Number of stock options vested and unvested as of September 30, 2022 were 198,016 and 81,642, respectively.

 

Restricted Stock

 

A summary of activity of the restricted stock awards for the nine months ended September 30, 2022 is as follows:

          
       Weighted- 
   Nonvested   Average Grant- 
   Shares   Date Fair Value 
Nonvested at December 31, 2021   13,669   $20.45 
Granted   7,436    20.17 
Vested   (15,050)   21.03 
Nonvested at September 30, 2022   6,055   $18.67 

 

As of September 30, 2022, there were unreleased shares of common stock representing $0.1 million of unrecognized restricted stock grant expense which will be recognized over approximately 2.3 years.

 

Warrants

 

A summary of the number of shares of common stock underlying warrants outstanding for the nine months ended September 30, 2022 is as follows:

          
  

Number of

Common Stock

   Weighted Average Exercise Price 
Outstanding at December 31, 2021   519,658   $6.30 
Exercised   (50,353)   6.30 
Outstanding at September 30, 2022   469,305   $6.30