v3.22.2.2
Equity
 12 Months Ended
Dec. 31, 2021
Equity  
Equity

11. Equity

 

The Company has authorized 200,000,000 shares of no-par common stock at December 31, 2021 and 2020. In addition, the Company has authorized 1,000,000 shares of no-par preferred stock, none of which had been issued at December 31, 2021 or 2020. On December 6, 2021, the Corporation completed a one-for-fourteen (1:14) reverse share split of all of its issued and outstanding common shares, resulting in a reduction of the issued and outstanding shares from 152,573,743 to 10,898,408. Shares reserved under the Corporation’s equity, incentive plans and warrants were adjusted to reflect the reverse stock split. All share and per share data presented in the Corporation’s consolidated financial statements have been retroactively adjusted to reflect the reverse stock split unless otherwise noted.

 

Stock Purchase Warrants Outstanding

Transactions in common stock purchase warrants for the years ended December 31, 2021, and 2020 are as follows:

 

 

 

Number of

Warrants

 

 

Exercise

Prices

 

Balance December 31, 2019

 

 

921,438

 

 

$2.52-3.08

 

Issued

 

 

400,002

 

 

$2.52-5.60

 

Expired

 

 

(772,628)

 

$2.52-3.08

 

Exercised

 

 

(122,024)

 

$2.80

 

Balance December 31, 2020

 

 

426,788

 

 

$2.52-5.60

 

Issued

 

 

289,294

 

 

$5.60-7.00

 

Exercised

 

 

(46,615)

 

$2.52

 

Balance December 31, 2020

 

 

669,467

 

 

$2.52-7.00

 

 

These warrants expire as follows:

 

Shares

 

 

Exercise

Price

 

 

Expiration

Date

 

 

33,070

 

 

$2.52

 

 

April 21, 2022

 

 

347,103

 

 

$5.60

 

 

August 28, 2022

 

 

235,722

 

 

$5.60

 

 

October 14, 2023

 

 

53,572

 

 

$7.00

 

 

November 12, 2023

 

 

669,467

 

 

 

 

 

 

 

 

 

Stock Options

In April 2014, the Board of Directors of the Company established a stock option plan to authorize the granting of stock options to officers and employees. Upon exercise of the options shares are issued from the available authorized shares of the Company. Options reserved to any one related person on an annual basis may not upon exercise exceed 5% and the aggregate number of all options outstanding will not exceed 10% of the issued outstanding common shares in total as calculated at that time.

 

In February 2021, the board granted 283,936 stock options to officers, board members, and employees. These options vested immediately and are exercisable at $5.60 for 3 years. Total stock-based compensation recognized on these options was $604,571. In March 2021, the Company granted 3,572 stock options to an individual for services rendered to the Company. These options vested immediately and are exercisable at $5.60 for 3 years. Total stock-based compensation recognized on these options was $9,860. In October 2021 the Company granted 182,166 stock options to officers, board members, and employees. These options vested immediately and are exercisable at $5.60 for 3 years. Total stock-based compensation recognized on these options was $473,144. An additional 32 options were recorded in 2021 representing fractional share issuances related to the 1-14 reverse stock split. The fair value of stock option awards granted, and the key assumptions used in the Black-Scholes valuation model to calculate the fair value of the options are as follows:

 

 

 

February 11, 2021

 

 

March 15, 2021

 

 

October 20, 2021

 

Fair value

 

$604,572

 

 

$9,860

 

 

$473,143

 

Options issued

 

 

283,936

 

 

 

3,572

 

 

 

182,143

 

Exercise price

 

$5.60

 

 

$5.60

 

 

$5.60

 

Expected term (in years)

 

 

3.0

 

 

 

3.0

 

 

 

3.0

 

Risk-free rate

 

 

0.19%

 

 

0.33%

 

 

0.70%

Volatility

 

 

97.9%

 

 

99.3%

 

 

96.6%

Transactions in stock options for the years ended December 31, 2021, and 2020 are as follows:

 

 

 

Number of Options

 

 

Exercise Prices

 

Balance December 31, 2019

 

 

375,893

 

 

$

1.40-2.52

 

Exercised

 

 

(82,143)

 

$

1.40-2.52

 

Expired

 

 

(143,750)

 

$

1.40-2.52

 

Balance December 31, 2020

 

 

150,000

 

 

$

1.40-1.96

 

Granted

 

 

469,674

 

 

$5.60

 

Exercised

 

 

(101,786)

 

$

1.40-1.96

 

Forfeited

 

 

(10,713)

 

$

1.96-5.60

 

Balance December 31, 2021

 

 

507,175

 

 

$

1.96-5.60

 

 

 

 

 

 

 

 

 

 

Exercisable at December 31, 2021

 

 

507,175

 

 

$

1.96-5.60

 

 

At December 31, 2021, the outstanding stock options have an intrinsic value of approximately $1,108,000 and have a weighted average remaining term of 2.2 years. Cashless options exercised in the year ended December 31, 2021 had an intrinsic value of $445,290.