Note 5 - Stockholders' Equity (Deficit) |
6 Months Ended |
|---|---|
Jun. 30, 2021 | |
| Notes to Financial Statements | |
| Stockholders' Equity Note Disclosure [Text Block] |
NOTE 5 – STOCKHOLDERS' EQUITY (DEFICIT)
Common Stock
The Company is authorized to issue 50,000,000 shares of common stock, $0.00001 par value per share.
Stock Options
In 2016, the Board of Directors adopted the HyreCar Inc. 2016 Incentive Plan (the "2016 Plan"). The 2016 Plan provides for the grant of equity awards to highly qualified personnel, including stock options, restricted stock, stock appreciation rights, and restricted stock units to purchase shares of common stock. The 2016 Plan is administered by the Board of Directors, and expires years after adoption, unless terminated earlier by the Board of Directors. The Company does not currently utilize the 2016 Plan for equity award grants.
In 2018, the Board of Directors adopted the HyreCar Inc. 2018 Incentive Plan (the "2018 Plan"). The 2018 Plan provides for the grant of equity awards to acquire shares of common stock. Three million shares of common stock were initially reserved for issuance under the 2018 Plan, with the share reserve number subject to increases that occur starting in 2021. The 2018 Plan is administered by the Board of Directors, and expires ten years after adoption, unless terminated earlier by the Board.
In the second quarter of 2021, the Board of Directors adopted the HyreCar Inc. 2021 Incentive Plan (the "2021 Plan"). The 2021 Plan provides for the grant of equity awards to acquire shares of common stock. Three million shares of common stock were initially reserved for issuance under the 2021 Plan, with the share reserve number subject to increases that occur starting in 2024. The 2021 Plan is administered by the Board of Directors, and expires years after adoption, unless terminated earlier by the Board. As of June 30, 2021 the Company has utilized the 2021 Plan for any equity award grants.
stock options were granted during the six months ended June 30, 2021 and June 30, 2020.
Stock-based compensation expense for the vesting of stock options for the three months ended June 30, 2021 and 2020 was $4,123 and $26,161, respectively, and $10,770 and $278,233 for the six months ended June 30, 2021 and 2020, respectively. As of June 30, 2021, the total estimated remaining stock-based compensation expense for unvested stock options is approximately $632 which is expected to be recognized over a weighted average period of 0.1 years.
Restricted Stock Units and Shares Issued for Services
During the six months ended June 30, 2021, the Company granted 390,366 and 265,000 restricted stock units to the employees and executives, respectively, of which a large portion vested upon issuance. Additionally, for the six months ended June 30, 2021, the Company granted 206,068 restricted stock units to Board members, of which 50% vested on grant date and the remaining 50% vest over the next four quarters following the date of grant.
Stock-based compensation related to restricted stock units for the three months ended June 30, 2021 and 2020 was $1,939,766 and $121,797, respectively. Stock-based compensation related to restricted stock units for the six months ended June 30, 2021 and 2020 was $5,700,793 and $284,897, respectively. As of June 30, 2021, unrecognized compensation expense related to the unvested restricted stock units is $6,213,390 and is expected to be recognized over approximately 2.6 years.
During the six months ended June 30, 2021, the Company granted 12,278 shares of common stock in exchange for legal services. The Company recognized stock-based compensation of $249,980 based on the closing price of the Company’s common stock on the date of grant.
Warrants
During the six months ended June 30, 2021, several warrant holders exercised an aggregate of 280,681 warrants exercised in cashless exercises resulting in 100,879 shares of common stock being issued.
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