Issuance of Common Stock

Subsequent to June 30, 2021, the Company issued 40,896 shares of Common Stock to a former employee as part of a severance package and vendors for services rendered with a fair value of $81,000. These shares of Common Stock were valued based on the market value of the Company’s stock price at the issuance date or the date the Company entered into the agreement related to the issuance.

Subsequent to June 30, 2021, the Company issued 641,509 shares of Common Stock to officers and board members associated with the vesting of Restricted Stock Units.

Subsequent to June 30, 2021, a total of 1,217,811 warrants were exercised into 1,217,811 shares of Common Stock at an average exercise price of $1.35. The Company received cash of $1,682,000 upon exercise of the warrants.

Subsequent to June 30, 2021, a total of 185,000 options were exercised into 118,735 shares of Common Stock at an average exercise price of $1.37. The Company received cash of $113,000 upon exercise of the options.

Subsequent to June 30, 2021, the Company elected to convert all of the outstanding shares of the Company’s Series A Convertible Preferred Stock, par value $0.0001 per share into shares of the Company’s common stock, par value $0.0001 per share. As a result of the Conversion, the Company issued an aggregate of 1,706,000 shares of Common Stock and has no shares of Preferred Stock remaining outstanding.

Grant of Stock Options

Subsequent to June 30, 2021, the Company granted stock options to employees to purchase a total of 326,000 shares of Common Stock for services to be rendered. The options have an average exercise price of $2.12 per share, expire in five years, and vest over a period of 4 years from grant date. The total fair value of these options at the grant date was $728,000 using the Black-Scholes option pricing model.