4. COMMON STOCK

9 Months Ended

Sep. 30, 2019

Equity [Abstract]

COMMON STOCK

4.     COMMON STOCK

At September 30, 2019, the Company's authorized capital stock was 150,000,000 shares of common stock, par value $0.001 per share, and 25,000,000 shares of preferred stock, par value $0.001 per share. As of that date, the Company had 48,095,192 shares of common stock issued, and no shares of preferred stock.

2019 Transactions: During the three and nine months ended September 30, 2019, the Company issued a total of 538,280 and 1,654,427, respectively, for restricted stock awards previously granted, earned and vested, and for the exercise of vested stock options.

During the third quarter of 2019, the Company issued 113,280 shares of common stock related to the exercise of vested stock options and received proceeds of $252,813.

During the third quarter of 2019, the Company issued a total of 425,000 shares of common stock to certain individuals for stock awards previously granted, earned and vested.

2018 Transactions: During the three and nine months ended September 30, 2018, the Company issued the following shares of common stock:

· In August 2018, the Company issued 100,000 shares of common stock for stock-based compensation to a consultant for services rendered.

· In August 2018, the Company issued 130,000 shares of common stock for stock-based compensation to a consultant for services to be rendered.

· In September 2018, the Company issued 200,000 shares of common stock related to an exercise of a warrant with an exercise price of $0.50 per share for total cash proceed of $100,000.

Stock and Warrant Grants:

In July and August 2019, the Company granted three employees a total of 45,000 shares of common stock. The shares were valued for a total of $621,450 based on the average closing stock price per share of $13.81 at the date of grants. The 45,000 shares have an annual vesting period of five years with the first vesting period occurring on July 31, 2020 with the first vesting start date for the grants of August 1, 2019.

In May and June 2019, the Company granted three employees a total of 145,000 shares of common stock. The shares were valued for a total of $1,426,450 based on the average closing stock price per share of $9.84 at the date of grants. The 145,000 shares have an annual vesting period of five years with the first vesting period occurring on June 30, 2020 with vesting start date for each grant of July 1, 2019.

In April 2019, the Company granted an employee a total of 50,000 shares of common stock. The shares were valued at $377,000 based on the closing stock price per share of $7.54 at the date of grant. The 50,000 shares have an annual vesting period of five years with the first vesting period occurring on April 30, 2020.

From 2016 to 2018, excluding employee terminations, the Company granted a total of 8,690,000 shares of common stock and 2,688,000 stock options. The shares were valued at $6,419,849 or an average price per share of $.74. The stock options were valued at $4,172,996 an average price per share of $1.55, collectively vesting over a three to five year period.

Stock-based compensation expense related to Company grants for the three and nine months ended September 30, 2019 was $651,267 and $1,865,887, respectively. Stock-based compensation expense for the three and nine months end September 30, 2018 was $405,921 and $755,503, respectively.