Quarterly report pursuant to Section 13 or 15(d)

Stockholders' Equity

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Stockholders' Equity
6 Months Ended
Jun. 30, 2019
Equity [Abstract]  
Stockholders' Equity

NOTE 6 - STOCKHOLDERS’ EQUITY

 

Reverse Stock Splits

 

On January 30, 2019, the Company filed an amendment to the Certificate of Incorporation to effect a one-for-twenty reverse split of the Company’s issued and outstanding common stock which was effectuated on January 30, 2019.

 

The reverse stock splits did not modify the rights or preferences of the common stock. Proportional adjustments have been made to the conversion and exercise prices of the Company’s outstanding common stock warrants, convertible notes, common stock options. The number of shares of common stock issuable under the Company’s equity compensation plan was not impacted by the reverse split. The Company did not issue any fractional shares in connection with the reverse stock splits or change the par value per share. Fractional shares issuable entitle shareholders, to receive a cash payment in lieu of the fractional shares without interest. All share and per share amounts for the common stock have been retroactively restated to give effect to the reverse splits.

 

Common Shares Issued for Cash

 

January Securities Purchase Agreement

 

On January 11, 2019, the Company entered into a Securities Purchase Agreement (“SPA”) with one or more investors identified on the signature pages thereto (“Investors”). Under the terms of the SPA, the Company issued an aggregate of 1,550,000 shares of the Company’s common stock, par value $0.001 per share (the “Common Stock”) and warrants to purchase up to 1,550,000 shares of Common Stock (“Warrants”) for a total gross purchase price of $4,340,000 (exclusive of the exercise of the Warrants) (the “Offering”). The Company received aggregate net proceeds of approximately $4,029,600. The sale of the Common Stock at a price of $2.80 per share was made pursuant to a prospectus supplement and accompanying base prospectus relating to the Company’s shelf registration statement on Form S-3.

 

February Underwriting Agreement

 

On February 8, 2019, the Company entered into an Underwriting Agreement (the “Underwriting Agreement”) with Maxim Group LLC (the “Underwriter”) to issue and sell an aggregate of 10,800,000 shares (the “Shares”) of the Company’s common stock, par value $0.001 per share (“Common Stock”) and warrants to purchase an aggregate of up to 8,100,000 shares of Common Stock (the “Warrants”), in an underwritten public offering, for a total gross purchase price of $13,500,000. The combined price to the public in the offering for each Share and accompanying Warrant to purchase 0.75 shares of Common stock is $1.25. The offering was made pursuant to the Company’s registration statement on Form S-3 and a prospectus supplement thereunder.

 

During the six months ended June 30, 2019, the Company received total proceeds of $17,840,000 and issued 12,350,000 common shares.

 

June Sales Agreement

 

On June 6, 2019, the Company entered into a Sales Agreement (“Agreement”) with The Benchmark Company, LLC (the “Agent”) pursuant to which the Agent will act as the Company’s sales agent with respect to the issuance and sale of up to $7,280,000 of the Company’s shares of common stock, par value $0.001 per share (the “Shares”), from time to time in an at-the-market public offering (the “Offering”). Sales of the Shares, if any, through the Agent, were made directly on The Nasdaq Capital Market. The Shares were sold and issued pursuant the Company’s shelf registration statement on Form S-3 and a related prospectus supplement.

 

During the six months ended June 30, 2019, the company sold 9,032,090 shares of common stock for total gross proceeds of $1,872,379 with the at-the-market public offering.

 

Common Shares Issued for Services

 

During the three and six months ended June 30, 2019, the Company issued 5,618,496 and 9,199,908 shares of common stock to consultants, respectively. The total fair value of these issuances during the three and six months ended June 30, 2019 was $2,197,699 and $4,040,112, respectively, which was recognized as stock-based compensation during the three and six months ended June 30, 2019.

 

During the three and six months ended June 30, 2018, the Company issued 57,758 and 89,341 shares of common stock to consultants, respectively. The total fair value of these issuances during the three and six months ended June 30, 2018 was $712,014 and $1,061,239, respectively, which was recognized as stock-based compensation during the three and six months ended June 30, 2018.