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Stockholders’ Equity
 6 Months Ended
Jun. 30, 2024
Stockholders’ Equity [Abstracf]  
Stockholders’ Equity

Note 7. Stockholders’ Equity

 

Authorized Shares

 

The Company has 45,000,000 Common shares and 900,000 Series A convertible preferred shares authorized with a par value of $0.001 per share.

 

On October 6, 2023, following stockholder approval at the Company’s annual meeting, the Company amended its certificate of incorporation to implement a 1 for 15 reverse split of its common stock. The effect of the reverse stock split was to combine every 15 shares of outstanding common stock into one share of common stock. The reverse stock split was effective at the opening of the trading day on October 11, 2023. The effects of the reverse stock split have been reflected in this quarterly report on form 10/Q for all periods presented.

 

Common Stock

 

Issuance of Shares for Vested Restricted Stock Units

 

March 27, 2024, the Company issued 1,667 shares of common stock to a holder of fully vested restricted stock units.

 

Issuance of Shares as Settlement of Accounts Payable

 

Between February 6, 2024 and June 12, 2024, the Company issued an aggregate 94,711 shares of common stock in full settlement of $183,644 of accounts payable. The shares had fair values ranging from $1.20 to $2.65 per share.

 

Issuance of Shares as Settlement of Accounts Payable

 

On May 30, 2024, the Company issued 37,500 shares of common stock valued at $67,200 or $1.79 per share to fulfill its obligation under a previous legal settlement. See Note 6. Commitments and Contingencies for further information.

Stock Incentive Plan

 

The number of shares of the Company’s common stock that are issuable pursuant to warrant and stock option grants with time-based vesting as of and for the six months ended June 30, 2024 were:

 

   Warrant Grants   Stock Option Grants   Restricted
Stock
Units		 
   Number of
shares
subject to
warrants		   Weighted-
average
exercise
price per
share		   Number of
shares
subject to
options		   Weighted-
average
exercise
price per
share		   Number of
shares
subject to
restricted
stock units		 
Balance at December 31, 2023   11,394   $58.72    3,333   $39.60    165,663 
Granted   
-
    
-
    
-
    
-
    88,362 
Exercised   
-
    
-
    
-
    
-
    (90,029)
Cancelled/Expired   (2,293)   53.64    
-
    
-
    
-
 
Balance at June 30, 2024   9,101   $60.00    3,333   $39.60    163,996 
Exercisable at June 30, 2024   9,101   $60.00    3,333   $39.60    163,996 

 

The number of shares of the Company’s common stock that are issuable pursuant to warrant and stock option grants with time-based vesting as of and for the six months ended June 30, 2023 were:

 

   Warrant Grants   Stock Option Grants   Restricted
Stock
Units		 
   Number of
shares
subject to
warrants		   Weighted-
average
exercise
price per
share		   Number of
shares
subject to
options		   Weighted-
average
exercise
price per
share		   Number of
shares
subject to
restricted
stock units		 
Balance at December 31, 2022   104,515   $20.25    7,889   $48.75    160,650 
Granted   -    -    
-
    
-
    32,736 
Exercised   (54,872)   9.75    
-
    
-
    (25,269)
Cancelled/Expired   (2,974)   137.10    (959)   101.25    
-
 
Balance at June 30, 2023   46,669   $25.05    6,930   $41.40    168,117 
Exercisable at June 30, 2023   46,669   $25.05    6,930   $41.40    168,117 

 

The Company has classified the warrant as having Level 2 inputs, and has used the Black-Scholes option-pricing model to value the warrants.

 

The Company’s outstanding warrants and options at June 30, 2024 are as follows:

 

Warrants Outstanding   Warrants Exercisable 
Exercise Price
Range		   Number
Outstanding		   Weighted Average
Remaining
Contractual Life
(in years)		   Weighted
Average
Exercise 
Price		   Number
Exercisable		   Weighted
Average
Exercise Price		   Intrinsic Value 
$60.00    9,101    1.51   $60.00    9,101   $60.00    
      -
 

 

Options Outstanding   Options Exercisable 
Exercise Price
Range		   Number
Outstanding		   Weighted Average
Remaining
Contractual Life
(in years)		   Weighted
Average
Exercise
Price		   Number
Exercisable		   Weighted
Average
Exercise Price		   Intrinsic Value 
$39.60    3,333    0.41   $39.60    3,333   $39.60    
      -
 

 

As of June 30, 2024 and December 31, 2023, there was no unrecognized expense for unvested stock options and restricted stock awards.

 

Stock-based compensation expense for three and six months ended June 30, 2024 is 2023 was as follows:

 

   For the three months ended   For the six months ended 
   June 30,   June 30, 
   2024   2023   2024   2023 
Stock-based compensation expense  $
    -
   $147,873   $
     -
   $295,746