17.	STOCKHOLDERS' EQUITY

Preferred Stock

Within the limits and restrictions provided in the Company's Certificate of Incorporation, the Board of Directors has the authority, without further action by the shareholders, to issue up to

5,000,000

shares of preferred stock,

$.0001

par value per share, in

one

or more series, and to fix, as to any such series, any dividend rate, redemption price, preference on liquidation or dissolution, sinking fund terms, conversion rights, voting rights, and any other preference or special rights and qualifications.

Common Stock

Effective

November 20, 2020,

the Company implemented a reverse stock split of its outstanding common stock at a ratio of

-for-

The number of authorized shares and the par value of the Company's common stock and preferred stock were

not

affected by the reverse stock split. Stockholders who otherwise would be entitled to receive fractional shares were rounded up to the nearest whole share. The reverse stock split became effective at the opening of trading on

November 20, 2020.

Holders of common stock have equal rights to receive dividends when, as and if declared by the Board of Directors, out of funds legally available therefor. Holders of common stock have

one

vote for each share held of record and do

not

have cumulative voting rights.

Holders of common stock are entitled, upon liquidation of the Company, to share ratably in the net assets available for distribution, subject to the rights, if any, of holders of any preferred stock then outstanding. Shares of common stock are

not

redeemable and have

preemptive or similar rights. All outstanding shares of common stock are fully paid and nonassessable.

Issuances of Common Stock

March 30, 2020,

the Company issued

121,500

shares of common stock upon exercise of warrants at

$12.00

per share, resulting in proceeds of

$1,458,000

to the Company.

See Note

Convertible Notes Payable for common stock issuances related to conversion of convertible notes payable and shares of common stock issued for fees in connection with the agreements during fiscal

2020.

Issuances of Nonvested Stock

Nonvested stock consists of shares of common stock that are subject to restrictions on transfer and risk of forfeiture until the fulfillment of specified conditions. The fair value of nonvested shares is determined based on the market price of the Company's common stock on the grant date. Nonvested stock is expensed ratably over the term of the restriction period.

The Company issued

1,250

shares of restricted common stock during the

three

-month period ended

March 31, 2021

to certain employees of the Company. These shares vest in equal annual installments over a

three

-year period from the date of grant, and had a fair value on the date of issuance of

$4,550.

Nonvested stock compensation for the

three

-month period ended

March 31, 2021

was

$17,375.

Issuances to Directors, Executive Officers & Consultants

During the

three

-month period ended

March 31, 2021,

the Company issued

2,091

shares of common stock to its directors in lieu of payment of board and committee fees valued at

$7,510.

There were

shares of common stock issued to directors in the

three

-month period ended

March 31, 2020.

Employees

exercise options

During the

three

-month periods ended

March 31, 2021

and

2020,

employee stock options were exercised.

Warrants

There were

warrants issued during the

three

-month periods ended

March 31, 2021

and

2020.

Securities Purchase Agreement dated

September 23, 2015

September 23, 2015,

the Company issued warrants (the

“2015

Warrants”) to purchase

8,681

shares of common stock in connection with the issuance of a promissory note. The warrants were immediately exercisable at an initial exercise price of

$28.80

per share and had a term of

five

years. The

2015

Warrants expired in

September 2020.

The

2015

Warrants had a “full ratchet” anti-dilution adjustment provision. The anti-dilution adjustment provision was triggered in the

first

quarter of

2020

from the

February 2020

Note and amendments to the Original Note. As a result of the forgoing transactions, the number of shares of common stock issuable upon the full exercise of the

2015

Warrants increased to

48,078,

the exercise was reduced to

$5.20

per share, and the Company recorded a non-cash deemed dividend in amount of

$41,688.