|3 Months Ended|
Mar. 31, 2022
4. Stockholders’ Equity
The Company is authorized to issue a total of 1% of the annual net revenue of the Company divided by , until converted or redeemed. As of March 31, 2022 and December 31, 2021, the Company had shares of undesignated preferred stock which may be issued with such rights and powers as the Board of Directors may designate. shares of preferred stock, par value $ per share. On March 17, 2015, the Company filed a Certificate of Designations, Preferences, Rights and Limitations of its Series A Convertible Preferred Stock with the Delaware Secretary of State to amend the Company’s certificate of incorporation. The Company has designated a total of shares as Series A Convertible Preferred Stock, which are non-voting and are not subject to increase without the written consent of a majority of the holders of the Series A Convertible Preferred Stock or as otherwise set forth in the Preferences, Rights and Limitations. The holders of each tranche of shares of the Series A Convertible Preferred Stock are entitled to receive a per share dividend equal to
Each share of Series A Convertible Preferred Stock may be converted, at the option of the holder, into 21,875,000. The Series A Convertible Preferred Stock has a liquidation preference based on its assumed conversion into shares of common stock. The Series A Convertible Preferred Stock does not have a cash liquidation preference. shares of common stock (subject to customary anti-dilution provisions) and the Series A Convertible Preferred Stock is subject to mandatory conversion at the conversion rate in the event of a merger or sale transaction resulting in gross proceeds to the Company of at least $
If fully converted, the outstanding shares of Series A Convertible Preferred Stock would convert into shares of common stock at March 31, 2022 and December 31, 2021. The Series A Convertible Preferred Stock has no right to cash, except with respect to the payment of the aforementioned dividend based on the generation of revenues by the Company. The shares of Series A Convertible Preferred Stock do not have any registration rights.
Based on the attributes of the Series A Convertible Preferred Stock as previously described, the Company has accounted for the Series A Convertible Preferred Stock as a permanent component of stockholders’ equity.
The Company is authorized to issue a total of shares of common stock, par value $ per share. As of March 31, 2022 and December 31, 2021, the Company had shares of common stock issued, issuable and outstanding.
During February and March 2021, the Company issued 3,000 warrants at $5.70 per share and received cash proceeds of $17,100. shares of common stock upon the exercise of
Effective March 2, 2021, the Company completed the sale of 4,192,478. The total cash costs of this offering were $502,717, resulting in net cash proceeds of $3,689,761. Pursuant to the placement agents’ agreement, the Company granted warrants to the placement agents to purchase up to 113,310 shares of common stock commencing on March 2, 2021 and expiring on March 2, 2026, at an exercise price of $3.70 per share.shares of common stock at a price of $ per share in a registered direct equity offering, generating gross proceeds of $
Common Stock Warrants
A summary of common stock warrant activity during the three months ended March 31, 2022 is presented below.
Schedule of Warrants Outstanding
At March 31, 2022, the outstanding warrants are exercisable at the following prices per common share:
Schedule of Warrants Outstanding and Exercisable
Based on a fair market value of $ per share on March 31, 2022, there was no intrinsic value attributed to exercisable but unexercised common stock warrants at March 31, 2022.
Information with respect to the issuance of common stock in connection with various stock-based compensation arrangements is provided at Note 6.
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://fasb.org/us-gaap/role/ref/legacyRef