XML 33 R23.htm IDEA: XBRL DOCUMENT v3.22.2.2
EQUITY
 9 Months Ended
Sep. 30, 2022
Equity [Abstract]  
EQUITY

NOTE 16 – EQUITY

 

Common Stock

 

On January 3, 2022, the Company authorized the issuance of an aggregate of 1,200,000 shares of common stock in connection with the cashless exercise of the Pre-Funded Warrants. Pursuant to the terms of the Pre-Funded Warrants a total of 1,200,215 warrants were exercised.

 

 

MUSCLE MAKER, INC. AND SUBSIDIARIES

 

Notes to Unaudited Condensed Consolidated Financial Statements

 

NOTE 16 – EQUITY, continued

 

Common Stock, continued

 

On January 6, 2022, the Company authorized the issuance of an aggregate of 39,573 shares of common stock to the members of the board of directors as compensation earned during the fourth quarter of 2021. The Company accrued for the liability as of December 31, 2021.

 

On January 18, 2022, the Company issued an aggregate of 30,000 shares of common stock of the Company to a consultant that assisted with the acquisition of SuperFit Foods and Pokemoto, with an aggregate fair value amount of $15,600. The Company accrued for the liability as of December 31, 2021.

 

On February 24, 2022, the Company authorized the issuance of an aggregate of 1,209,604 shares of common stock in connection with the cashless exercise of the Pre-Funded Warrants. Pursuant to the terms of the Pre-Funded Warrants a total of 1,210,110 warrants were exercised.

 

On March 31, 2022, the Company authorized the issuance of an aggregate of 53,961 shares of common stock to the members of the board of directors as compensation earned during the first quarter of 2022.

 

On April 4, 2022, the Company authorized the issuance of 20,000 shares of common stock to a member of the executive team per the employment agreement. The stock was not fully earned until April 4, 2022.

 

On June 8, 2022, the Company authorized the issuance of 5,000 shares of common stock to a contractor for work done at a Company owned location

 

On June 30, 2022, the Company recognized 30,910 shares of common stock for book purpose to reconcile the shares outstanding to the transfer agent report.

 

On July 14, 2022, the Company authorized the issuance of an aggregate of 74,019 shares of common stock to the members of the board of directors as compensation earned during the second quarter of 2022.

 

Options

 

On May 2, 2022, the Company, pursuant to the employment agreements, issued options to purchase an aggregate of 312,500 shares of the Company’s common stock. The options had an exercise price of $0.41 per share and vest over ratably twenty quarters with the first vesting occurring on June 30, 2022. There were 25,000 shares forfeited upon the departure of an officer.

 

A summary of options activity during the nine months ended September 30, 2022, is presented below:

 

           Weighted 
       Weighted   Average 
       Average   Remaining 
   Number of   Exercise   Life 
   Options   Price   In Years 
Outstanding, December 31, 2021   100,000   $5.00    1.92 
Issued   312,500    0.41    4.62 
Exercised   -    -      
Forfeited   (25,000)   0.41    4.62 
Outstanding, September 30, 2022   387,500   $1.59    3.73 
                
Exercisable, September 30, 2022   114,375   $4.42    1.60 

 

 

MUSCLE MAKER, INC. AND SUBSIDIARIES

 

Notes to Unaudited Condensed Consolidated Financial Statements

 

NOTE 16 – EQUITY, continued

 

Warrants

 

A summary of warrants activity during the nine months ended September 30, 2022, is presented below:

  

           Weighted 
       Weighted   Average 
       Average   Remaining 
   Number of   Exercise   Life 
   Warrants   Price   In Years 
Outstanding, December 31, 2021   20,284,016   $1.66    3.99 
Issued   -   -   - 
Exercised   (2,410,110)   0.01      
Forfeited   -    -      
Outstanding, September 30, 2022   17,873,906   $1.89    3.77 
                
Exercisable, September 30, 2022   17,873,906   $1.89    3.77 

 

Stock-Based Compensation Expense

 

Stock-based compensation related to restricted stock issued to employees, directors and consultants, warrants and warrants to consultants amounted to $31,648 and $82,186 for the three and nine months ended September 30, 2022, respectively, of which all was recorded in selling, general and administrative. Stock-based compensation related to restricted stock issued to employees, directors and consultants and warrants issued to consultants amounted to $51,702 and $17,779,248 for the three and nine months ended September 30, 2021, respectively, of which $50,488 and $1,774,876, respectively, was recorded in general and administrative expenses and $1,215 and $4,372, respectively, was recorded in labor expense within restaurant operating expenses.