COMMON STOCK |
6 Months Ended | ||
|---|---|---|---|
Jun. 30, 2021 | |||
| Equity [Abstract] | |||
| COMMON STOCK |
The Company’s Common Stock activity for the six months ended June 30, 2021 was 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 shares of common stock at a purchase price of $ 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.
Shares Issued for Services
During the six months ended June 30, 2021, the Company issued shares of Common Stock to certain employees and vendors for services rendered and to be rendered with a fair value of $1,900,000. 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, 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 $. Pursuant to current accounting guidelines, the Company accounted the return of the 104,790 shares and the payment of $131,000 for income and payroll taxes paid on behalf the employees as a reduction in additional paid in capital, or a net balance of $1,769,000.
Shares Issued for Debt
During the six months ended June 30, 2021, the Company issued shares of Common Stock to vendors and certain employees as settlement of payroll of $281,000 that was previously recorded as accrued payroll as of December 31, 2020 or March 31, 2021. 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.
Shares Issued from Conversion of Note Payable – Related Party
During the six months ended, the Company issued shares of Common Stock upon a partial conversion of a note payable of the Company’s Chief Executive Officer totaling $200,000. The conversion price was $, which was closing price of the Company’s common stock on the day of conversion.
Shares Issued for Settlement of Litigation
During the six months ended June 30, 2021, the Company issued shares to EMA Financial to settle a litigation (see Note 17). The fair market value of the shares issued was based on the closing price of Company’s stock on the day of settlement which amounted to $. As of the settlement date the Company had previously accrued $585,000 and as a result the Company recorded an additional $93,000 in general and administrative expenses to account for the difference between the fair value of the common shares issued and amount accrued.
|