Quarterly report pursuant to Section 13 or 15(d)

STOCKHOLDERS??? EQUITY AND STOCK-BASED COMPENSATION

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STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION
 6 Months Ended
Jun. 30, 2022
Equity [Abstract]  
STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION

(13) STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION

 

Common Stock

 

During 2021 and 2022, the Company issued an aggregate of 12,542,126 shares of common stock in a series of conversions of a promissory note in the original principal amount of $8.8 million, of which 1,142,858 shares were issued in the first quarter of 2022, resulting in the promissory note being fully paid and retired (see Note 11).

 

During the three months ended June 30, 2022, the Company issued 2,717 shares of restricted common stock associated with previously issued subscriptions for common stock with a grant date fair value of approximately $2,000.

 

In May 2022, the Company issued 350,000 shares of restricted common stock with a grant date fair value of approximately $217,000 in connection with the appointment of the Company’s new Chief Financial Officer.

 

In March 2022, the Company issued 375,000 shares of restricted common stock with a grant date fair value of approximately $274,000 in exchange for consulting services.

 

Amended and Restated 2018 Stock Award and Incentive Plan

 

The Company’s Amended and Restated 2018 Stock Award and Incentive Plan (the “2018 Plan”) provides for the award of options to purchase the Company’s common stock (“stock options”), stock appreciation rights (“SARs”), restricted stock, deferred stock, dividend equivalents, performance shares or other stock-based performance awards and other stock- or cash-based awards. Awards can be granted under the 2018 Plan to the Company’s employees, officers and non-employee directors, as well as consultants and advisors of the Company and its subsidiaries.

 

Warrants

 

At June 30, 2022, warrants to purchase up to 24,676,571 shares of common stock were outstanding, with a weighted average exercise price of $0.89.

 

In April 2022, 750,000 warrants were exercised in a cashless transaction, under which the Company withheld 515,039 shares underlying such warrants and issued 234,961 shares of common stock.

 

Stock Options

 

In June 2022, 312,248 stock options were exercised in a cashless transaction, under which the Company withheld 112,248 shares underlying such stock options and issued 200,000 shares of common stock.

 

At June 30, 2022, options to purchase up to 39,899,423 shares of common stock were outstanding, with a weighted average exercise price of $0.91 and a weighted average remaining life of approximately four years.

 

The grant date fair values of options to purchase common stock granted in the three and six months ended June 30, 2022 were estimated using the Black-Scholes valuation model with the following assumptions:

 

    Three months     Six months  
    ended     ended  
    June 30,     June 30,  
    2022     2022  
Estimated life (in years)     5.0       5.0  
Volatility     98.4 %     98.4 %
Risk-free interest rates     3.0 %     3.0 %
Dividend yield     -       -  

 

 

Stock-Based Compensation

 

The Company recorded stock-based compensation of $2.6 million and $5.0 million in the three and six months ended June 30, 2022, respectively, and $1.2 million and $1.6 million in the three and six months ended June 30, 2021, respectively.