| Stockholders' Equity |
Note 13 – Stockholders’
Equity
Shares authorized
Upon formation the total number of shares
of all classes of stock which the Company is authorized to issue is seventy-five million (75,000,000) shares of common stock, par
value $0.001 per share.
Common stock
As of September 30, 2019 the Company had
40,959,741 shares of common stock issued and outstanding.
During the nine months ended September
30, 2019, the Company had the following transactions in its common stock:
|
· |
Issued 13,445 shares to consultants in exchange for professional services rendered. The shares
were valued at $96,518 based on the closing price of the Company’s common stock on the dates that the shares were deemed
earned, according to the agreements; and |
|
· |
Issued 39,286 shares as consideration for the AVX acquisition valued at $290,716. The value of
the common stock was determined based on the market price on the day of the closing of the acquisition. |
During the nine months ended September
30, 2018, the Company had the following transactions in its common stock:
|
· |
Issued 5,647,780 shares of common stock to investors for cash proceeds of $9,883,733. |
|
· |
Issued 262,691 shares to consultants in exchange for professional services rendered. The shares
were valued at $469,377 based on the closing price of the Company’s common stock on the dates that the shares were deemed
earned, according to the agreements; and |
|
· |
Issued 108,147 shares of common stock issued to several investors in exchange for $183,850 but
the proceeds were not yet received as of September 30, 2018. |
Stock options
On August 6, 2019, each member of the Board
was granted 30,000 options to purchase shares at $5.70 per share. As of September 30, 2019, there were 210,000 outstanding stock
options. There were no outstanding stock options as of December 31, 2018.
The following is a summary of options activity
from January 1, 2019 to September 31, 2019:
| Options |
|
Shares |
|
|
Weighted average exercise price |
|
|
Weighted Average Remaining Contractual Life |
|
|
Aggregate Intrinsic Value |
|
| Outstanding at January 1, 2019 |
|
|
– |
|
|
$ |
– |
|
|
|
– |
|
|
|
– |
|
| Granted |
|
|
210,000 |
|
|
|
5.70 |
|
|
|
– |
|
|
|
– |
|
| Exercised |
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
– |
|
| Forfeited or expired |
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
– |
|
| Outstanding at September 30, 2019 |
|
|
210,000 |
|
|
$ |
9.86 |
|
|
|
9.86 |
|
|
|
– |
|
| Vested as of September 30, 2019 |
|
|
17,500 |
|
|
|
5.70 |
|
|
|
9.86 |
|
|
|
– |
|
| Exercisable at September 30, 2019 |
|
|
210,000 |
|
|
$ |
9.86 |
|
|
|
9.86 |
|
|
|
– |
|
The exercise price for options outstanding
and exercisable at September 30, 2019:
| Outstanding |
|
|
Exercisable |
|
| |
|
|
|
|
|
|
|
|
|
|
| Number of |
|
|
Exercise |
|
|
Number of |
|
|
Exercise |
|
| Options |
|
|
Price |
|
|
Options |
|
|
Price |
|
| |
30,000 |
|
|
$ |
5.70 |
|
|
|
30,000 |
|
|
$ |
5.70 |
|
| |
30,000 |
|
|
|
5.70 |
|
|
|
30,000 |
|
|
|
5.70 |
|
| |
30,000 |
|
|
|
5.70 |
|
|
|
30,000 |
|
|
|
5.70 |
|
| |
30,000 |
|
|
|
5.70 |
|
|
|
30,000 |
|
|
|
5.70 |
|
| |
30,000 |
|
|
|
5.70 |
|
|
|
30,000 |
|
|
|
5.70 |
|
| |
30,000 |
|
|
|
5.70 |
|
|
|
30,000 |
|
|
|
5.70 |
|
| |
30,000 |
|
|
|
5.70 |
|
|
|
30,000 |
|
|
|
5.70 |
|
| |
210,000 |
|
|
|
|
|
|
|
210,000 |
|
|
|
|
|
The fair value of the warrants listed above
was determined using the Black-Scholes option pricing model with the following assumptions:
| |
|
September 30, |
|
| |
|
2019 |
|
| Risk-free interest rate |
|
|
1.71% |
|
| Expected life of the options |
|
|
10 years |
|
| Expected volatility |
|
|
158.86% |
|
| Expected dividend yield |
|
|
0% |
|
|
Note 8 – Stockholders’ Equity
Shares authorized
Upon formation the total number of shares
of all classes of stock which the Company is authorized to issue is seventy-five million (75,000,000) shares of common stock, par
value $0.001 per share.
Common stock
As of December 31, 2018, the Company had
40,907,010 shares of common stock issued and outstanding.
|