Quarterly report pursuant to Section 13 or 15(d)

Common Stock

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Common Stock
 3 Months Ended
Mar. 31, 2021
Equity [Abstract]  
Common Stock
12. COMMON STOCK

 

The Company’s Common Stock activity for the three months ended March 31, 2021 is as follows:

 

Common Stock

 

Shares Issued as Part of the Company’s Public Offering

 

On March 15, 2021, the Company completed a registered direct offering with institutional investors for the purchase and sale of 9,375,000 shares of common stock at a purchase price of $1.60 per share which resulted in net proceeds of $14,129,000. Included in the $14,129,000 is a refund of $144,000 from the underwriter that was received subsequent to March 31, 2021.

 

Shares Issued for Services

 

During the three months ended March 31, 2021, the Company issued 935,994 shares of Common Stock to vendors for services rendered and to be rendered with a fair value of $1,424,000. These shares of Common Stock were valued based on the market value of the Company’s Common Stock price at the issuance date or the date the Company entered into the agreement related to the issuance. In addition, 4,641 shares granted to employees that vested were returned to the Company in exchange for the Company paying the corresponding income and payroll taxes of these employees amounting $10,000. Pursuant to current accounting guidelines, the Company accounted the return of the 4,641 shares and the payment of $10,000 for income and payroll taxes paid on behalf the employees as a reduction in additional paid in capital.

 

Shares Issued for Debt

 

During the three months ended March 31, 2021, the Company issued 121,842 shares of Common Stock to vendors certain employees as settlement of payroll of $207,000 that was previously recorded as accrued payroll as of December 31, 2020. These shares of Common Stock were valued based on the market value of the Company’s Common Stock price at the issuance date and approximates the carrying value of the accrued payroll.