Quarterly report pursuant to Section 13 or 15(d)

Equity

v3.22.1
Equity
3 Months Ended
Mar. 31, 2022
Stockholders' Equity Note [Abstract]  
EQUITY

NOTE 8 – EQUITY

 

Common Shares Sold for Cash

 

On December 13, 2019, the Company entered into an Open Market Sale AgreementSM (the “Sales Agreement”) with Jefferies LLC, as sales agent (“Jefferies”), pursuant to which the Company may offer and sell, from time to time, through Jefferies, shares of its common stock. During the three months ended March 31, 2022, Jefferies sold an aggregate of 170,640 shares of common stock at an average price of $0.79 per share to investors and the Company recorded net proceeds of $112,328, net of commission and other offering costs of $23,239.

 

Options

 

The following table summarizes the shares of the Company’s common stock issuable upon exercise of options outstanding at March 31, 2022:

 

Options Outstanding     Options Exercisable  
Range of
Exercise
Price
    Number
Outstanding at
March 31, 2022
    Weighted Average
Remaining
Contractual Life
(Years)
    Weighted
Average
Exercise
Price
    Number
Exercisable at
March 31, 2022
    Weighted
Average
Exercise
Price
 
$ 0.50 – 0.82       2,460,000       4.84     $ 0.56       2,116,667     $ 0.52  
  1.00 – 1.93       2,955,000       4.55       1.39       2,845,000       1.40  
  2.00 – 2.80       2,740,000       1.52       2.17       2,740,000       2.17  
  4.76       30,000       2.01       4.76       30,000       4.76  
$ 0.50 – 4.76       8,185,000       3.62     $ 1.41       7,731,667     $ 1.44  

 

Stock option activities for the three months ended March 31, 2022 were as follows:

 

    Number of Options     Weighted
Average
Exercise
Price
 
Outstanding at January 1, 2022     7,725,000     $ 1.45  
Granted     460,000       0.82  
Expired/forfeited/exercised    
-
     
-
 
Outstanding at March 31, 2022     8,185,000     $ 1.41  
Options exercisable at March 31, 2022     7,731,667     $ 1.44  
Options expected to vest     453,333     $ 0.87  

 

The aggregate intrinsic value of both stock options outstanding and stock options exercisable at March 31, 2022 was $401,400.

 

The fair values of options granted during the three months ended March 31, 2022 were estimated at the date of grant using the Black-Scholes option-pricing model with the following assumptions: volatility of 117.46%, risk-free rate of 1.37% - 1.53%, annual dividend yield of 0%, and expected life of 5.00 years. The aggregate fair value of the options granted during the three months ended March 31, 2022 was $315,145.

 

The fair values of options granted during the three months ended March 31, 2021 were estimated at the date of grant using the Black-Scholes option-pricing model with the following assumptions: volatility of 128.42%, risk-free rate of 0.36%, annual dividend yield of 0% and expected life of 5.00 years. The aggregate fair value of the options granted during the three months ended March 31, 2021 was $419,020.

 

For the three months ended March 31, 2022 and 2021, stock-based compensation expense associated with stock options granted amounted to $152,323 and $202,505, of which, $104,913 and $139,507 was recorded as compensation and related benefits, $36,138 and $43,443 was recorded as professional fees, and $11,272 and $19,555 was recorded as research and development expenses, respectively.

 

A summary of the status of the Company’s nonvested stock options granted as of March 31, 2022 and changes during the three months ended March 31, 2022 is presented below:

 

    Number of
Options
    Weighted
Average
Exercise
Price
 
Nonvested at January 1, 2022     205,834     $ 1.04  
Granted     460,000       0.82  
Vested     (212,501 )     (0.91 )
Nonvested at March 31, 2022     453,333     $ 0.87