| Stockholders' Equity |
Note 14 – 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, 2019 the Company had
40,959,741 shares of common stock issued and outstanding.
During the year ended December 31, 2019,
the Company had the following transactions in its common stock:
|
· |
Issued 10,133 shares to consultants in exchange for professional services rendered in 2018. The
shares were valued at $75,000 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 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. |
Shares to be Issued for Compensation
The Company entered into agreements with
third party consultants for financing and management consultation. The Company has incurred consulting service fees paid in cash
amount to $50,709 for the year ended December 31, 2019, which the Company will issue stock as compensation for services rendered.
Expenses incurred but not yet paid in shares as of December 31, 2019 and 2018 amounted to $50,709 and $72,000, respectively.
During the year ended December 31, 2018,
the Company had the following transactions in its common stock:
|
· |
Issued 5,755,927 shares of common stock to investors for cash proceeds of $10,072,872. |
|
· |
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 313,686 shares of common stocks to convertible note conversion for $548,951 of convertible
note and interest. |
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 December 31, 2019, there were 210,000 options granted, 87,500 options vested,
122,500 options unvested, and 210,000 outstanding stock options. There were no outstanding stock options as of December 31, 2018.
For the years ended December 31, 2019 and 2018, the Company
had stock option compensation expense amounted to $432,250 and $0, respectively.
The following is a summary of options activity
from January 1, 2019 to December 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 December 31, 2019 |
|
|
210,000 |
|
|
$ |
9.61 |
|
|
|
9.61 |
|
|
|
– |
|
| Vested as of December 31, 2019 |
|
|
87,500 |
|
|
|
5.70 |
|
|
|
9.61 |
|
|
|
– |
|
| Exercisable at December 31, 2019 |
|
|
210,000 |
|
|
$ |
9.61 |
|
|
|
9.61 |
|
|
|
– |
|
The exercise price for options outstanding
and exercisable at December 31, 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:
| |
|
December 31, |
|
| |
|
2019 |
|
| Risk-free interest rate |
|
|
1.71% |
|
| Expected life of the options |
|
|
10 years |
|
| Expected volatility |
|
|
158.86% |
|
| Expected dividend yield |
|
|
0% |
|
|