they expire on December 4, 2022. On December 6, 2017, the Companys underwriters on the FPO exercised in full its option to purchase 626,250 shares of common stock and accompanying
warrant, at a combined price to the public of $2.40. After giving effect to the full exercise of the over-allotment, the Company sold an aggregate of 4,801,250 shares of common stock and accompanying warrants to purchase an aggregate of 4,801,250
shares of common stock, raising $11,523,000 before underwriting discounts and other offering expenses of $1,115,000.
On November 13, 2017, the
Company repaid all outstanding principal and accrued but unpaid interest under certain notes payable, totaling approximately $1,081,135 in cash by issuing 107,505 shares of the Companys common stock at a price per share equal to $5.03, 80% of
the price per share of common stock on the repayment date, and issuing 86,004 shares of the Companys common stock at a price per share equal to $6.29, the price per share of common stock on the repayment date.
During the year ended December 31, 2017 and 2016, the Company issued 80,085 and 124,456 shares of common stock through the exercise of stock options for
proceeds of $26,954 and $2,873, respectively.
During the year ended December 31, 2017, the Company issued 34,800 shares of common stock through the
exercise of warrants for proceeds of $102,660.
In June 2017, the Company issued 4,000 shares to an investor relations firm for services performed. The
Company recorded a charge to operations for $30,000 for the fair value of the stock issued.
At December 31, 2016 the Company has authorized
5,600,000 shares of common stock with a par value of $0.0001 per share, of which 2,622,187 are reserved for issuance in connection with the conversion of
Series A-1
Preferred Stock and Series
B-1
Preferred Stock and 806,313 shares are reserved for issuance upon the exercise of stock options under the 2004 Stock Option and Incentive Plan and the 2014 Stock Option and Grant Plan. At December 31, 2016,
1,124,888 shares of common stock were issued and 1,124,080 were outstanding.
As of December 31, 2016 the Company has outstanding 253,783 shares of
restricted common stock previously issued to key executives of the Company. The restricted common stock included provisions for lapsing forfeiture rights that extended up to 48 months. As of December 31, 2016, 2,626 shares of common stock were
subject to forfeiture. The stock compensation expense is being amortized over the respective vesting periods. At December 31, 2016, the unamortized stock compensation expense was approximately $2,300 and is expected to be recognized over 0.08
years. The Company recorded a charge of approximately $27,300 for the year ended December 31, 2016.
On December 20, 2016, the Company filed
with the State of Delaware the Seventh Amended and Restated Certificate of Incorporation for a
one-for
sixteen reverse stock split of the Companys outstanding common and preferred stock. In addition, the
Company also amended its authorized shares to be issued to (i) 5,600,000 shares of Common Stock, $0.0001 par value per share, and (ii) 4,100,000 shares of Preferred Stock, $0.0001 par value per share.
Note 14 Treasury Stock
Treasury stock is reported
at cost and consists of 808 shares of common stock as of December 31, 2017 and 2016.
Note 15 Redeemable Preferred Stock
Upon closing of the IPO, the Company issued 960,083 shares of common stock upon the conversion of 960,083 shares of Series
A-1
Preferred Stock, and 1,662,104 shares of common stock upon the conversion of 1,662,104 shares of Series
B-1
Preferred Stock. As of December 31, 2017, the
Company does not have any convertible preferred stock issued or outstanding.
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