|9 Months Ended|
Sep. 30, 2021
We are authorized to issue shares of preferred stock with a par value of $ . Of the shares of preferred stock:
As of September 30, 2021, there were shares of Junior A, and Series A, B, C and E issued and outstanding. See our Annual Report on Form 10-K for the year ended December 31, 2020 for the pertinent disclosures of preferred stock.
During the nine months ended September 30, 2021, the Company entered into Securities Purchase Agreements with accredited investors pursuant to which the Company sold an aggregate of shares of Series AA Convertible Preferred Stock, each preferred share convertible into shares of the Company’s common stock, par value $0.01 per share, for an aggregate Purchase price of $1,015,000. We issued to the investors warrants to purchase an aggregate 406,000 shares of common stock with an exercise price of $3.50 per share. The Company did not incur any placement agent fees for these transactions.
Stock Options and Warrants
At the Company’s December 12, 2013 Special Meeting, the shareholders approved the 2013 Equity Incentive Plan (the “2013 Plan”) pursuant to which shares of our common stock were reserved for issuance upon exercise of stock options or other equity awards. Under the 2013 Plan, we may award stock options, shares of common stock, and other equity interests in the Company to employees, officers, directors, consultants, and advisors, and to any other persons the Board of Directors deems appropriate. As of September 30, 2021, options to acquire shares were outstanding under the Plan.
As of September 30, 2021, total unrecognized compensation cost related to the unvested stock-based awards was $, which is expected to be recognized over weighted average period of years. The aggregate intrinsic value associated with the options outstanding and exercisable, and the aggregate intrinsic value associated with the warrants outstanding and exercisable as of September 30, 2021, based on the September 30, 2021 closing stock price of $, was $.
The following table summarizes information concerning options and warrants outstanding and exercisable:
Schedule of Concerning Options and Warrants Outstanding and Exercisable
In the nine months ended September 30, 2021 the Company issued stock options to an employee ($fair value, $exercise price, -year vesting term and -year expiration term). As of September 30, 2021, the stock options outstanding have a $weighted average exercise price and years weighted average remaining term. Of these options, are currently exercisable.
Common Stock and Warrant Issuances
Schedule of Loans Obligated to Issue Shares
For the nine-month period ended September 30,2021 the Company is obligated to issueshares of common stock for the loans listed in the above table, but has not issued the shares. The Company and the lenders are negotiating in good faith to resolve these loans and expect to reach a settlement in the coming month. See Note 7.
For our loan dated December 23, 2020, we are obligated to issue 100,000 warrants if the loan is not repaid before January 23, 2021 and an additional 10,000 shares of common stock and 100,000 warrants if the loan is not repaid before February 23, 2021. We are also obligated to issue 10,000 shares of common stock and 400,000 warrants to this lender ($3.50 exercise price and -year term) with a fair value of $600,298. The Company is also obligated to issue shares of common stock to this lender every 31 days up to the loan’s maturity date on June 23, 2021. warrants if the loan is not repaid before March 23, 2021. During the nine months ended September 30, 2021 the Company issued
During the nine months ended September 30, 2021, we issued 2,431,182 shares of common stock with a fair value of approximately $5.6 million to lenders for interest paid-in-kind, shares with a fair value of $579,512 for services rendered, shares with a fair value of $2,589,990 for conversions of debt principal and interest, shares for stock option exercises (at an exercise price of $per share), shares with a fair value of $114,298 for dividends paid-in-kind and shares with a fair value of $551,198 for new convertible debt issuances and 36,290 shares of common stock for a non-cash warrant exercise. During this period, we also issued 1,558,266 warrants (to -year term at a $3.50 to $5.00 exercise price) to acquire common stock at a fair value of $2.0 million to lenders in conjunction with signing of new convertible loans and interest paid-in-kind (including the 400,000 warrants issued.disclosed above). In this period we also issued shares of Series AA preferred stock and 200,100 warrants to acquire common stock (year term and $3.50 exercise price) for settlement of liabilities, including accrued expense, accrued compensation to employees and non-convertible debt and related interest. The relative fair value of these warrants is $245,635. The Company also recognized a $23,004 loss on settlement of liabilities, which is included in losses on extinguishment of liabilities on the consolidated statement of operations.
During the nine months ended September 30, 2020, we issued to Series AA holders shares of common stock for dividends totaling of $221,374 issued in stock in lieu of cash. During this period we also issued shares of restricted common stock at a fair value of $2.8 million to accredited investors and consultants. of the shares with a fair value of $1.8 million were issued for conversions of debt principal and interest; of the shares with a fair value of $616,900 were issued for debt extensions, settlements and interest payments; shares with a fair value of $127,855 were issued to settle an accrued liability; 147,775 were issued with new convertible debt issuances; and shares with a fair value of $shares with a fair value of $87,963 were issued for services rendered. During this period, we also issued 4,168,531 warrants (-year or -year term at a $3.50 exercise price) to acquire common stock at a fair value of $5.6 million to lenders in conjunction with signing of new convertible loans and debt extensions and settlement. In this period we also converted $110,000 of debt into shares of Series AA preferred stock and 44,000 warrants to acquire common stock (-year term and $3.50 exercise price). The relative fair value of warrants is $38,783.
The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef