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SHAREHOLDERS’ EQUITY
 3 Months Ended
Mar. 31, 2022
Equity [Abstract]  
SHAREHOLDERS’ EQUITY

9. SHAREHOLDERS’ EQUITY

 

Warrants

 

In December 2016, the Company completed a registered direct offering of 100,000 shares of common stock at a net gross price of $15.00 per share. Concurrently, the investors received warrants to purchase 100,000 shares of common stock of the Company at an exercise price of $20.05 per share, for a period of five years from the final closing date of June 21, 2017. The warrants include anti-dilution rights. The total net proceeds received by the Company were approximately $1.32 million. The fair value of the warrants upon issuance were $1.24 million, with the remaining $0.08 million being attributed to common stock. On September 29, 2020, the Company received proceeds of $565 thousand related to the exercise of warrants to purchase 50,000 shares of common stock and on March 9, 2022, the Company received proceeds of $195 thousand related to the exercise of the remaining 50,000 warrants.

 

Pursuant to the original warrant agreement, as a result of common stock issuances at various prices, the warrant exercise price was reduced from its original $20.50 exercise price to the floor price of $3.92, which was the exercise price of the warrants when the remaining 50,000 warrants were exercised in March 2022.

 

Stock Options

 

From time to time, the Company may grant stock options under its incentive plan covering shares of common stock to employees of the Company. Stock options, when exercised, are settled through the payment of the exercise price in exchange for new shares of stock underlying the option. These awards typically expire ten years from the grant date.

 

For the three months ended March 31, 2022 and 2021, there was no compensation expense related to stock options. As of December 31, 2019, all stock options had vested. No stock options were granted or exercised during the three months ended March 31, 2022 or 2021. Stock options to purchase 750 shares expired during the three months ended March 31, 2022. No stock options expired during the three months ended March 31, 2021. Presented below is information about stock options outstanding and exercisable as of March 31, 2022, and December 31, 2021:

 

   March 31, 2022   December 31, 2021 
   Shares   Price   Shares   Price 
                     
Stock options outstanding and exercisable   30,285   $60.11    31,035   $62.79 

 

The following table summarizes information for stock options outstanding and for stock options exercisable at March 31, 2022. All shares and prices per share have been adjusted for a one share-for-ten shares reverse stock split that took effect on January 6, 2020:

 

Options Outstanding   Options Exercisable 
    Exercise    Weighted   Remaining       Weighted 
Number of   Price
Range		  

Average
Exercise

  

Contractual
Term

   Number of  

Average
Exercise

 
Shares   Low   High   Price   (years)   Shares   Price 
                          
 16,500   $7.20   $11.60   $10.00    5.5    16,500   $10.00 
 10,622    90.00    124.80    106.20    2.1    10,622    106.20 
 2,163    139.20    139.20    139.20    0.3    2,163    139.20 
 1,000    226.20    226.20    232.48    2.5    1,000    232.48 
                                 
 30,285   $7.20   $226.20   $60.11    3.8    30,285   $60.11 

 

Restricted Stock

 

The Company grants restricted stock under its incentive plan covering shares of common stock to employees and directors of the Company. The restricted stock awards are time-based awards and are amortized ratably over the requisite service period. Restricted stock vests ratably on each anniversary following the grant date provided the grantee is employed on the vesting date. Restricted stock granted to employees, when vested are net settled through the issuance of shares, net of the number of shares required to pay withholding taxes.

 

 

The following table presents the changes in non-vested time-based restricted stock awards to all employees and directors for the three months ended March 31, 2022:

 

   Shares   Weighted-Avg.
Grant Date
Fair Value
per Share		 
     
Non-vested restricted stock as of December 31, 2021   174,000   $4.75 
Granted   986,500   $3.70 
Vested   (373,500)  $4.02 
Non-vested as of March 31, 2022   787,000   $         3.78 

 

For the three months ended March 31, 2022 and 2021, the Company recognized $1.5 million and $79 thousand, respectively of stock compensation expense related to restricted stock grants. Total compensation cost related to non-vested time-based awards and not yet recognized in the Company’s condensed consolidated statements of operations as of March 31, 2022 was $2.6 million. This cost is expected to be recognized over a weighted average period of one year.