STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| 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 September 30, 2022, the Company issued an aggregate of 531,393 shares of common stock to one of its vendors as payment for services rendered and one of its partners as a royalty payment. The shares had an aggregate fair market value of approximately $361,000.
During the three months ended September 30, 2022, the issued subscriptions for common stock aggregating 74,581 shares, with a grant date fair value of approximately $41,000.
In August 2022, the Company issued 139 shares of common stock to an employee with a grant date fair value of approximately $80.
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 June 2022, the Company issued 4,221 shares of restricted common stock with a grant date fair value of approximately $2,500.
In May 2022, the Company issued 350,000 shares of restricted common stock with a grant date fair value of approximately $217,000 to the Company’s new Chief Financial Officer in connection with her appointment.
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”), restricted stock units ("RSUs"), 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 September 30, 2022, warrants to purchase up to 23,951,571 shares of common stock were outstanding, with a weighted average exercise price of $0.85.
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
At September 30, 2022, options to purchase up to 40,081,173 shares of common stock were outstanding, with a weighted average exercise price of $0.91 and a weighted average remaining life of approximately three years.
In August 2022, 45,000 stock options were exercised, and the Company received $7,100 in connection with these exercises.
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.
In February 2022, 10,000 stock options were exercised, and the Company received $3,000 in connection with these exercises.
The grant date fair values of options to purchase common stock granted in the three and nine months ended September 30, 2022 were estimated using the Black-Scholes valuation model with the following assumptions:
Stock-Based Compensation
The Company recorded stock-based compensation of $1.4 million and $6.4 million in the three and nine months ended September 30, 2022, respectively, and $5.6 million and $7.2 million in the three and nine months ended September 30, 2021, respectively.
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