Quarterly report pursuant to Section 13 or 15(d)

Stockholders??? (Deficit) Equity

Stockholders’ (Deficit) Equity
3 Months Ended
Mar. 31, 2022
Stockholders' Equity Note [Abstract]  
Stockholders’ (Deficit) Equity

9. Stockholders’ (Deficit) Equity


Authorized Common Stock


The Company is authorized to issue up to 200,000,000 shares of common stock at par value of $0.001 per share.


Issuance of Common Stock and Warrants


During July 2021, as a result of its IPO, the Company issued 5,000,000 shares of common stock and 4,000,000 warrants to investors in exchange for cash at $5.00 per unit, consisting of $4.99 per share of common stock and $.0125 per four fifths of a warrant. The warrants have a 5-year term and an exercise price of $6.00 per warrant. The underwriters exercised their option to purchase an additional 600,000 warrants, and the Company received $7,500 in proceeds.


As a result of the IPO, the Company’s outstanding convertible notes and unpaid accrued interest were converted into 736,773 shares of common stock. Additionally, in accordance with the original terms of the warrant agreements convertible noteholders were granted a total of 184,193 common stock warrants with a 5-year term and with an exercise price of $6.00 per warrant.


The following table summarizes activity for warrants for the three months ended March 31, 2022:


    Number of           Average        
    Shares     Weighted-     Remaining     Aggregate  
    Underlying     Average     Contractual     Intrinsic  
    Outstanding     Exercise     Term     Value  
    Warrants     Price     (in Years)     (in thousands)  
Outstanding, December 31, 2021     4,784,193       6.00       4.54      
Warrants granted    
Warrants exercised    
Outstanding, March 31, 2022     4,784,193       6.00       4.29      


During the three months ended March 31, 2021, employees and consultants exercised a total of 383,721 stock options and the Company received $119,000 in proceeds. A portion of these options were exercised early (prior to vesting), and as of March 31, 2022, 52,414 of the options remained unvested. Proceeds received related to the unvested options of $53,000 at March 31, 2022 were recorded in accrued liabilities on the accompanying balance sheets and will be reclassified to equity as vesting occurs, provided the employees and consultants continue to provide services to the Company. Proceeds received related to the vested portion of options of $31,000 and $7,000 were reclassified to equity at March 31, 2021 and March 31, 2022, respectively. The vested portion of the exercises was 331,300 shares at March 31, 2022.


Voting Rights of Common Stock


Each holder of shares of common stock shall be entitled to one vote for each share thereof held.


Preferred Stock


As of December 31, 2021 and March 31, 2022, the Company had 10,000,000 shares of preferred stock authorized, par value of $0.001 per share and no shares of preferred stock were issued or outstanding.