Quarterly report pursuant to Section 13 or 15(d)

Stockholders' Equity

v3.20.2
Stockholders' Equity
 9 Months Ended
Sep. 30, 2020
Stockholders' Equity Note [Abstract]  
Stockholders' Equity

Note 6 – Stockholders' Equity

 

Stock Options

 

The Company has an incentive stock plan, the Amended and Restated 2011 Equity Incentive Plan (the "2011 Plan"), and has granted stock options to employees, non-employee directors and consultants from the 2011 Plan. Options granted under the 2011 Plan may be Incentive Stock Options or Non-statutory Stock Options, as determined by the Administrator at the time of grant. On June 16, 2020, the Company's stockholders approved an amendment to the 2011 Plan to increase the number of shares authorized for issuance under the 2011 Plan to a total of 14,000,000. As of September 30, 2020, there were 5,129,109 shares remaining available for issuance under the 2011 Plan.

 

During the nine months ended September 30, 2020, the Company granted stock options to employees to purchase 275,000 shares of the Company's common stock with grant date prices that ranged between $1.55 to $2.56 per share. The stock options have terms of ten years and are subject to vesting based on continuous service of the awardee over periods ranging from three to four years. The stock options have an aggregate grant date fair value of $486,273.

 

During the nine months ended September 30, 2020, stock options to purchase 223,924 shares of common stock were exercised for cash proceeds of $252,385.

 

During the nine months ended September 30, 2020, stock options to purchase 213,543 shares of common stock were cancelled and returned to the option pool for future issuance.

 

The Company recorded stock-based compensation as follows:

 

    For the Three Months Ended
September 30,		     For the Nine Months Ended
September 30,		  
    2020     2019     2020     2019  
Research and development   $ 105,585     $ 201,259     $ 553,768     $ 711,401  
General and administrative     265,100       383,251       1,352,689       1,300,932  
Total   $ 370,685     $ 584,510     $ 1,906,457     $ 2,012,333  

 

The following table represents stock option activity for the nine months ended September 30, 2020:

 

                Weighted Average     Aggregate  
    Stock Options     Exercise Price     Fair Value     Contractual     Intrinsic  
    Outstanding     Exercisable     Outstanding     Exercisable     Vested     Life (Years)     Value  
Balance – December 31, 2019     7,632,358       4,542,144     $ 2.21     $ 1.57     $ 1.57       6.44     $       -  
Granted     275,000       -       -       -       -       -       -  
Exercised     (223,924 )     -       -       -       -       -       -  
Cancelled     (213,543 )     -       -       -       -       -       -  
Balance – September 30, 2020     7,469,891       5,229,869     $ 2.06     $ 1.68     $ 1.68       6.27     $ 821,593  

 

The following table summarizes information on stock options outstanding and exercisable as of September 30, 2020:

 

Grant Price     Weighted Average Exercise     Total      Number       Weighted Average Remaining Contractual
From     To     Price     Outstanding      Exercisable       Term
$ 0.26     $ 2.02     $ 0.89       3,119,974       2,920,807      3.73 years
$ 2.10     $ 4.60     $ 2.42       3,756,917       1,782,041      8.01 years
$ 5.30     $ 8.86     $ 6.25     593,000     527,021      7.59 years
                  Totals       7,469,891       5,229,869      

 

Warrants

 

The following table summarizes information on warrants outstanding as of September 30, 2020.

 

                Weighted Average     Aggregate  
    Warrants     Exercise Price     Fair Value     Contractual     Intrinsic  
    Outstanding     Exercisable     Outstanding     Exercisable     Vested     Life (Years)     Value  
Balance – December 31, 2019     4,907,223       4,907,223     $ 2.40     $ 2.40     $ 1.11       1.55     $        -  
Granted     12,120,000       -       -       -       -       -       -  
Exercised     (20,000 )     -       -       -       -       -       -  
Cancelled     -       -       -       -       -       -       -  
Balance – September 30, 2020     17,007,223       15,495,973     $ 1.65     $ 1.61     $ 0.78       4.13     $ 549,982  

 

During the nine months ended September 30, 2020, the Company issued warrants to purchase 12,120,000 shares of the Company's common stock. The warrants were issued as part of an underwritten public offering (see Note 8 – Underwritten Public Offering) and to the note holders that extended the due date of their unsecured promissory notes (see Note 10 – Amendments to Notes and Warrants).

 

During the nine months ended September 30, 2020, warrants to purchase 20,000 shares of common stock were exercised for cash proceeds of $45,000.