Post-effective amendment to a registration statement that is not immediately effective upon filing

COMMON STOCK OPTIONS AND WARRANTS

v3.20.2
COMMON STOCK OPTIONS AND WARRANTS
 12 Months Ended
Dec. 31, 2019
Share-based Payment Arrangement [Abstract]  
COMMON STOCK OPTIONS AND WARRANTS

NOTE 15 – COMMON STOCK OPTIONS AND WARRANTS


Options


2019


During the first quarter of 2019, 8,572 options were granted to a new Board Member.  Of those options granted, 50% vested immediately and 50% will be vested after 12 months of service to the Board. Value of the options granted was $20,070.


During the second quarter of 2019, 14,286 options were forfeited by a member of the senior management team who resigned and agreed to forfeit 100% of those options even though 50% had already vested.  The options were originally valued at $43,864, all of which was expensed prior to the forfeiture.


During the third quarter of 2019, 8,572 options were granted to a new Board Member.  Of those options granted, 50% vested immediately and 50% will be vested after 12 months of service to the Board.  Value of the options granted was $32,092.


2018


During the second quarter of 2018, 160,152 incentive stock options were issued to staff and Directors under the 2016 Equity Compensation plan. Of those options, 131,143 vested immediately, and 29,009 had a 1-year vesting.


 

 

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

 

 

 

Weighted

 

 

Average

 

 

 

 

 

 

 

 

 

Average

 

 

Remaining

 

 

Aggregate

 

 

 

 

 

 

Exercise

 

 

Contractual

 

 

Intrinsic

 

 

 

Shares

 

 

Price

 

 

Term (Years)

 

 

Value

 

Outstanding at December 31, 2017

 

 

—

 

 

$

—

 

 

 

—

 

 

 

—

 

Granted

 

 

160,152

 

 

$

14.00

 

 

 

5.0

 

 

 

—

 

Outstanding at December 31, 2018

 

 

160,152

 

 

$

14.00

 

 

 

4.3

 

 

 

—

 

Exercisable at December 31, 2018

 

 

145,858

 

 

$

14.00

 

 

 

4.3

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding at December 31, 2018

 

 

160,152

 

 

$

14.00

 

 

 

4.3

 

 

 

—

 

Granted

 

 

17,144

 

 

$

14.00

 

 

 

5.0

 

 

 

—

 

Forfeited

 

 

(14,286

)

 

$

14.00

 

 

 

—

 

 

 

—

 

Outstanding at December 31, 2019

 

 

163,010

 

 

$

14.00

 

 

 

3.4

 

 

 

—

 

Exercisable at December 31, 2019

 

 

154,438

 

 

$

14.00

 

 

 

3.4

 

 

 

—

 


The fair value of the incentive stock option grants for the year ended December 31, 2019 were estimated using the following weighted- average assumptions:


 

 

For the Years Ended
December 31,

 

 

2019

 

2018

Risk free interest rate

 

1.40% - 2.44%

 

2.59%

Expected term in years

 

2.76 – 3.25

 

2.5 – 2.76

Dividend yield

 

—

 

—

Volatility of common stock

 

117.18% - 151.43%

 

197.13% - 207.27%

Estimated annual forfeitures

 

—

 

—


Warrants


2019


During the first quarter of 2019, 214,286 warrants were exercised for cash in the amount of $1,650,000 and 38 warrants expired.


During the second quarter of 2019, a total of 113,328 warrants were exercised of which 66,756 were for cash in the amount of $137,500 and 46,572 were cashless in exchange for 9,878 shares of common stock. Total common stock issued was 76,634 shares.


During the third quarter of 2019, 44,644 warrants were issued in connection with a $1,000,000 working capital loan (see Note 7).  Additionally, 19,643 warrants were exercised for cash in the amount of $151,250.


During the fourth quarter of 2019, 357 warrants were exercised for cash in the amount of $2,750.


2018


During the third quarter of 2018, a shareholder exercised 21,429 warrants in the amount of $195,000.


During the fourth quarter of 2018, the Board approved the issuance of warrants to purchase 35,444 shares of the Company’s Common Stock to six shareholders.


 

 

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

 

 

 

Weighted

 

 

Average

 

 

 

 

 

 

 

 

 

Average

 

 

Remaining

 

 

Aggregate

 

 

 

Number of

 

 

Exercise

 

 

Contractual

 

 

Intrinsic

 

 

 

Warrants

 

 

Price

 

 

Term (Years)

 

 

Value

 

Outstanding at December 31, 2017

 

 

1,801,166

 

 

$

9.10

 

 

 

4.9

 

 

 

—

 

Warrants expired, forfeited, cancelled or exercised

 

 

(21,429

)

 

 

 

 

 

 

 

 

 

 

 

 

Warrants issued

 

 

35,444

 

 

$

9.10

 

 

 

4.9

 

 

 

—

 

Outstanding at December 31, 2018

 

 

1,815,181

 

 

$

9.52

 

 

 

3.9

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding at December 31, 2018

 

 

1,815,181

 

 

$

9.52

 

 

 

3.9

 

 

 

—

 

Warrants expired, forfeited, cancelled or exercised

 

 

(338,575

)

 

 

 

 

 

 

 

 

 

 

 

 

Warrants issued

 

 

44,644

 

 

$

7.70

 

 

 

4.9

 

 

 

—

 

Outstanding at December 31, 2019

 

 

1,521,250

 

 

$

8.78

 

 

 

3.9

 

 

 

—

 

Exercisable at December 31, 2019

 

 

1,521,250

 

 

$

8.78

 

 

 

2.8

 

 

 

—