Shareholders' Equity

3 Months Ended

Mar. 31, 2021

Stockholders' Equity Note [Abstract]

SHAREHOLDERS’ EQUITY

NOTE 14 – SHAREHOLDERS’ EQUITY

Private Placements

During the three months ended March 31, 2021, the Company sold 11,787,766 shares of common stock in 46 separate private placement transactions. The Company received $3,488,725 in proceeds from the sales. In connection with the stock sales, the Company also issued 5,893,889 five-year warrants to purchase shares of common stock at exercise prices between $0.27 and $1.05 per share.

During the three months ended March 31, 2020, the Company sold 2,412,087 shares of common stock in seven separate private placement transactions. The Company received $315,000 in proceeds from the sales. In connection with the stock sales, the Company also issued 1,134,616 five-year warrants to purchase shares of common stock at an exercise price of $0.23 and 71,429 five-year warrants to purchase shares of common stock at an exercise price of $0.24 per share. 

Investment Agreement Draws

During three months ended March 31, 2021 and 2020, the Company issued 3,006,098 and 1,331,432 common shares, respectively, pursuant to draws made by the Company under the Investment Agreement and received an aggregate of $900,636 and $122,433, respectively, in net proceeds from the draws.

Shares issued to Consultants

During the three months ended March 31, 2021 and 2020, the Company issued 475,000 and -0- common shares, respectively, to consultants for services rendered. In connection with the issuances, the Company recognized expenses totaling $122,829 and $-0- in the three months ended March 31, 2021 and 2020, respectively.

Common Stock Issuable

As of March 31, 2021 and December 31, 2020, the Company was obligated to issue the following shares:

	March 31, 2021				December 31, 2020
	Amount		Shares		Amount		Shares
Shares issuable to consultants, employees and directors	$	361,817		2,178,770	$	262,273		2,150,020
Shares issuable pursuant to warrant exercise		62,500		625,000		—		—
	$	424,317		2,803,770	$	262,273		2,150,020

Stock Warrants

Transactions involving our stock warrants during the three months ended March 31, 2021 and 2020 are summarized as follows:

	2021						2020
				Weighted					Weighted
				Average					Average
				Exercise					Exercise
	Number			Price			Number		Price
Outstanding at beginning of the period		51,352,986		$	0.14			47,056,293	$	0.21
Granted during the period		19,585,790		$	0.34			1,277,474	$	0.23
Exercised during the period		(11,196,742	)	$	(0.06	)		—	$	—
Outstanding at end of the period		59,742,034		$	0.22			48,333,767	$	0.21
Exercisable at end of the period		59,742,034		$	0.22			45,058,874	$	0.21
Weighted average remaining life		3.7 years						3.5 years

The following table summarizes information about the Company’s stock warrants outstanding as of March 31, 2021: 

Warrants Outstanding							Warrants Exercisable
				Weighted-
				Average	Weighted-				Weighted-
				Remaining	Average				Average
Exercise		Number		Contractual	Exercise		Number		Exercise
Prices		Outstanding		Life (years)	Price		Exercisable		Price
$	0.0001 to 0.09		15,067,351	3.7	$	0.07		15,067,351	$	0.07
$	0.10 to 0.24		11,549,499	2.8	$	0.16		11,549,499	$	0.16
$	0.25 to 0.49		28,560,496	4.3	$	0.31		28,560,496	$	0.31
$	0.50 to 1.00		4,564,688	2.3	$	0.34		4,564,688	$	0.34
$	0.05 to 1.00		59,742,034	3.7	$	0.22		59,742,034	$	0.22

During the three months ended March 31, 2021 and 2020, the Company issued 19,585,790 and 1,277,474 warrants, respectively, the aggregate grant date fair value of which was $4,496,555 and $100,547, respectively. The fair value of the warrants was calculated using the following range of assumptions:

	Three Months Ended March 31,
	2021	2020
Pricing model utilized	Binomial Lattice	Binomial Lattice
Risk free rate range	0.38% to 0.86%	1.38% to 1.59%
Expected life range (in years)	3.00 to 5.00 years	5.00 years
Volatility range	170.58% to 193.21%	119.69% to 124.02%
Dividend yield	0.00%	0.00%

In addition, specific assumptions regarding investor exercise behavior were used in the above periods, including probability assumptions related to estimated exercise behavior.

During the three months ended March 31, 2021, the Company received $62,500 upon the exercise of 625,000 warrants with an exercise price of $0.10. Additionally, the Company issued 9,047,332 shares upon cashless exercise of 10,571,742 warrant shares exercised using a cashless exercise feature in settlement of litigation and other disputes amounts totaling $614,221 that had been accrued in 2020. There were no warrants exercised during the three months ended March 31, 2020.

Employee Equity Incentive Plan

On January 1, 2016, the Company instituted the Employee Equity Incentive Plan (the “EIP”) for the purpose of having equity awards available to allow for equity participation by its employees. The EIP allows for the issuance of up to 15,503,680 shares of the Company’s common stock to employees, which may be issued in the form of stock options, stock appreciation rights, or restricted shares. The EIP is governed by the Company’s board, or a committee that may be appointed by the board in the future.

The following table summarizes the status of shares issued and outstanding under the EIP outstanding as of and for the three months ended March 31, 2021 and 2020:

	2021			2020
Outstanding at beginning of the period		2,603,528			1,874,063
Granted during the period		87,500			207,500
Forfeited during the period		(2,500	)		(62,500	)
Outstanding at end of the period		2,688,528			2,019,063
Shares vested at period-end		2,488,528			1,700,313
Weighted average grant date fair value of shares granted during the period	$	0.11		$	0.10
Aggregate grant date fair value of shares granted during the period	$	4,050		$	17,000
Shares available for grant pursuant to EIP at period-end		9,748,402			10,275,368

Total stock-based compensation recognized for employee grants under the EIP was $12,821 and $17,696 during the three months ended March 31, 2021 and 2020, respectively. Total unrecognized stock compensation related to these grants was $12,521 as of March 31, 2021.

A summary of the status of nonvested shares issued pursuant to the EIP as of and for the three months ended March 31, 2021 and 2020 is presented below:

	2021					2020
				Weighted					Weighted
				Average					Average
				Grant Date					Grant Date
	Shares			Fair Value		Shares			Fair Value
Nonvested at beginning of period		200,000		$	0.17		332,500		$	0.17
Granted		87,500		$	0.11		207,500		$	0.10
Vested		(87,500	)	$	0.12		(158,750	)	$	0.08
Forfeited		—		$	—		(62,500	)	$	0.07
Nonvested at end of period		200,000		$	0.16		318,750		$	0.19

During the three months ended March 31, 2021 and 2020, the Company issued 240,310 and 132,500 shares to employees under the EIP pursuant to the grants and vesting described in the tables above.

Employee Stock Options

The following table summarizes the status of options outstanding as of and for the three months ended March 31, 2021 and 2020:

	2021						2020
				Weighted						Weighted
				Average						Average
				Exercise						Exercise
	Number			Price			Number			Price
Outstanding at beginning of the period		3,111,750		$	0.20			3,269,250		$	0.21
Granted during the period		—		$	—			20,000		$	0.11
Exercised during the period		(12,500	)	$	(0.25	)		—		$	—
Forfeited during the period		(32,500	)	$	(0.16	)		(80,000	)	$	(0.26	)
Outstanding at end of the period		3,066,750		$	0.20			3,209,250		$	0.20
Options exercisable at period-end		2,276,750						1,926,125
Weighted average remaining life (in years)		6.4						7.4
Weighted average grant date fair value of options granted during the period	$	—					$	0.08
Options available for grant at period-end		9,823,402						10,275,368

The following table summarizes information about the Company’s stock options outstanding as of March 31, 2021:

Options Outstanding								Options Exercisable
				Weighted-
				Average		Weighted-				Weighted-
				Remaining		Average				Average
Exercise		Number		Contractual		Exercise		Number		Exercise
Prices		Outstanding		Life (years)		Price		Exercisable		Price
$	— to 0.10		1,283,000		4.7	$	0.08		1,283,000		0.08
$	0.11 to 0.31		1,783,750		7.6	$	0.28		993,750		0.29
$	0.08 to 0.31		3,066,750		6.4	$	0.20		2,276,750	$	0.17

Total stock-based compensation recognized related to option grants was $18,334 and $20,880 during the three months ended March 31, 2021 and 2020, respectively.

A summary of the status of nonvested options issued pursuant to the EIP as of and for the three months ended March 31, 2021 and 2020 is presented below:

	2021					2020
				Weighted					Weighted
				Average					Average
				Grant Date					Grant Date
	Shares			Fair Value		Shares			Fair Value
Nonvested at beginning of period		1,044,375		$	0.21		1,636,250		$	0.22
Granted		—		$	—		20,000		$	0.08
Vested		(225,000	)	$	0.21		(293,125	)	$	0.20
Forfeited		(29,375	)	$	0.12		(80,000	)	$	0.21
Nonvested at end of period		790,000		$	0.22		1,283,125		$	0.22