Note 5 - Stockholders' Equity, Stock Options and Warrants

3 Months Ended

Mar. 31, 2022

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

NOTE 5 – STOCKHOLDERS’ EQUITY, STOCK OPTIONS AND WARRANTS

Equity Line

On October 24, 2019, the Company entered into an equity purchase agreement with an investor, providing for an equity financing facility. Upon the terms and subject to the conditions in the purchase agreement, the investor is committed to purchase shares having an aggregate value of up to $15,000,000 of the Company’s common stock for a period of up to three years. The Company issued to the investor 104,651 commitment shares at a fair market value of $450,000 for entering into the agreement. From time to time during the three-year commitment period, provided that the closing conditions are satisfied, the Company may provide the investor with put notices to purchase a specified number of shares subject to certain limitations and conditions and at specified prices, which generally represent discounts to the market price of the common stock. As of March 31, 2022, there was $9,026,944 remaining in available balance under the equity line. Additional needs to access this line will be dilutive. During the three months ended March, 31, 2022, the Company issued 120,000 shares of its common stock valued at $86,885 pursuant to the equity line.

Equity Incentive Plan

The Company has an equity incentive plan, which allows the Company to issue incentive and non-qualified stock options to employees, directors, and consultants of the Company, where permitted under the plan. The exercise price for each stock option is determined by the Board of Directors. Vesting requirements are determined by the Board of Directors when granted and currently range from immediate to three years. Options under this plan have terms ranging from three to ten years.

The following summarizes transactions for stock options and warrants for the periods indicated:

	Stock Options					Warrants
	Number of Shares			Average Exercise Price		Number of Shares			Average Exercise Price
Outstanding at December 31, 2020		1,013,547		$	5.41		7,353,376		$	1.99
Issued		147,230			1.06		29,640,801			1.44
Forfeited		(92,593	)		8.64		-			-
Expired		-			-		(25,233	)		10.00
Exercised		(5,313	)		0.74		(5,269,059	)		0.86
Outstanding at December 31, 2021		1,062,871		$	4.83		31,699,885		$	1.66
Issued		4,175			1.08		-			1.44
Forfeited		-			9.27		-			-
Expired		(36,467	)		15.18		(38,640	)		26.91
Outstanding at March 31, 2022		1,030,579		$	4.51		31,661,245		$	1.63

Stock-based compensation expense recognized for three months ended March 31, 2022 and March 31, 2021 was $36,518 and $565,082, respectively. The Company has $45,964 of unrecognized compensation expense related to non-vested stock options that is expected to be recognized over the next 23 months and $93,182 of unrecognized compensation expense related to non-vested restricted stock units that is expected to be recognized over the next 27 months. At March 31, 2022, there were 441,666 RSUs outstanding under the plan.