Stockholders' Deficit

9 Months Ended

Sep. 30, 2022

Federal Home Loan Banks [Abstract]

Stockholders' Deficit

NOTE I – STOCKHOLDERS' DEFICIT

Common Stock

On July 10, 2022, we sold an aggregate of 4,939,515 shares of our common stock and warrants to purchase up to 4,939,515 shares of our common stock. The net proceeds received from sale, after offering expenses of $1.8 million, were $14.7 million. The shares of common stock and warrants were sold in units, with each unit consisting of one share of common stock and one warrant to purchase one share of common stock at an exercise price of $3.35 per share of common stock. Each unit was sold at a negotiated price of $3.35 per unit. The warrants are exercisable at any time beginning on December 10, 2022, and ending on the close of business on June 10, 2027.

Warrants

In conjunction with our sale of shares common stock and warrants on July 10, 2022, as described above, we issued warrants to purchase up to 4,939,515 shares of our common stock. The warrants have an exercise price of $3.35 per share and are exercisable at any time beginning on December 10, 2022, and ending on the close of business on June 10, 2027.

Stock-Based Compensation

The share-based compensation charged against income, related to our restricted stock units, for the three months ended September 30, 2022 and 2021, was $293,785 and $312,646, respectively. The share-based compensation charged against income for the nine months ended September 30, 2022 and 2021 was $1,025,283 and $937,939, respectively. We did not grant stock options to employees or outside directors in the three and nine months ended September 30, 2022 and 2021.

On June 13, 2022, shareholders of the Company approved an amendment to the Company’s 2019 Stock Incentive Plan to increase the number of shares of common stock authorized for issuance under the Plan by 1,600,000 shares, from 800,000 shares to 2,400,000 shares.