Quarterly report pursuant to Section 13 or 15(d)

Stockholders??? (Deficit) Equity

v3.22.2.2
Stockholders’ (Deficit) Equity
 9 Months Ended
Sep. 30, 2022
Stockholders' Equity Note [Abstract]  
Stockholders’ (Deficit) Equity

10. 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 nine months ended September 30, 2022:

 

                Weighted-        
    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, September 30, 2022     4,784,193       6.00       3.79      
-
  

 

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 September 30, 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.