STOCKHOLDERS EQUITY

3 Months Ended

Mar. 31, 2022

STOCKHOLDERS' EQUITY

10. STOCKHOLDERS' EQUITY

NOTE 10 – STOCKHOLDERS’ EQUITY

During the three months ended March 31, 2021, the Company sold shares of its common stock in two separate transactions: on February 3, 2021, 15,300,000 shares were sold at $0.70 for gross proceeds of $10,710,000; and on February 18, 2021, 10,990,000 shares were sold at $1.30 for gross proceeds of $14,287,000. A total of $1,654,820 of issuance costs were incurred on these sales.

During the three months ended March 31, 2021, the Company issued 3,723,810 shares of common stock and received $1,763,619 in cash from the exercise of warrants.

During the three months ended March 31, 2022 and March 31, 2021, the Company expensed $28,125 and $28,125, respectively, in directors’ fees payable that will be paid in common stock.

The Company issued no shares of common stock during the three months ended March 31, 2022.

Common stock warrants

In February 2021, concurrent with sale of common stock, the Company issued warrants to purchase 7,650,000 shares of common stock at an exercise price of $0.85 per share. The warrants are initially exercisable six months following issuance and expire five and one-half years from the issuance date. In connection with the February 2021 sales of common stock, the Company also issued 1,606,500 warrants with an exercise price of $0.85 and 804,000 warrants with an exercise price of $0.46 as commission to the placement agent.

The Company issued no warrants to purchase common stock during the three months ended March 31, 2022.

The following is a summary of the Company’s warrants to purchase shares of common stock activity:

	Number of warrants			Exercise prices
Balance outstanding at December 31, 2020		6,194,899		$	0.65
Issued		10,060,500		$0.46 - $0.85
Exercised		(3,765,477	)	$0.46 - $0.65
Balance outstanding at December 31, 2021 and March 31, 2022		12,489,922		$	0.75

The composition of the Company’s warrants outstanding at March 31, 2022 is as follows:

Number of warrants		Exercise Price		Expiration Date	Remaining life (years)
	143,707	$	0.65	8/12/2022		0.37
	2,285,715		0.46	7/31/2025		3.34
	804,000		0.46	1/27/2026		3.83
	7,650,000		0.85	3/8/2026		4.35
	1,606,500		0.85	2/1/2026		3.84
	12,489,922