Subsequent Events

3 Months Ended

Mar. 31, 2018

Subsequent Events [Abstract]

Subsequent Events

14. Subsequent Events

Between April 3, 2018 and May 8, 2018, the Company issued 9,291 shares of common stock to directors and employees for stock-based compensation of $66,367. The shares were valued using the closing share price of our common stock on the date of grant, with the range of $7.00 - $7.19 per share.

On April 6, 2018, the Company raised an additional $880,000 under its private offering of promissory notes and accompanying warrants. The promissory notes bear interest at 8% per annum, payable monthly on the last day of the month. The entire amount of principal and any accrued and unpaid interest is due and payable on May 1, 2021. For every $100,000 in principal, the Company issued to the investor 10,000 common stock purchase warrants, for a total of 88,000 warrants. The warrants, which are identical to the warrants that were issued in the Company’s public offering that was consummated in August 2017, are exercisable through August 10, 2022, unless earlier redeemed, at an exercise price of $5.40, subject to adjustment for stock splits, reverse splits and other similar recapitalization events. The Company will have the option to redeem all or a part of the outstanding warrants at any time after the closing price of the Company’s common stock exceeds $7.65 for five consecutive trading days. In electing to redeem the warrants, the Company will provide 30 days’ notice of the redemption date, during which time the holders of outstanding warrants will have the opportunity to exercise their warrants at the exercise price then in effect. Any warrants remaining outstanding at the close of business on the 30th day of the notice period will be redeemed at a price of $0.15 per warrant, after which, the warrants will be cancelled.

Between April 3, 2018 and May 8, 2018, the Company received an aggregate of $735,156 upon exercise of a total of 136,140 common stock purchase warrants that were sold in the Company’s August 2017 public offering. As of May 8, 2018, there remains outstanding 1,117,860 warrants sold in the public offering, in addition to a total of 305,298 identical warrants sold in the private placement noted above. We also received $30,000 upon the exercise of a total of 5,000 common stock purchase warrants that were sold in a prior private offering.