Quarterly report pursuant to Section 13 or 15(d)


9 Months Ended
Sep. 30, 2021
Subsequent Events [Abstract]  



The Company has evaluated subsequent events through November 10, 2021, the date these financial statements are available to be issued. The Company believes there were no material events or transactions discovered during this evaluation that requires recognition or disclosure in the financial statements other than the items discussed below.


Issuance of Common Stock


Subsequent to September 30, 2021, the Company issued 33,499 shares of Common Stock with average fair market value of $2.06 per share to vendors for services rendered.


Subsequent to September 30, 2021, a total of 167,250 options were exercised into 167,250 shares of Common Stock at an average exercise price of $1.42. The Company received cash of $232,000 upon exercise of the options.


Grant of Stock Options


Subsequent to September 30, 2021, the Company granted stock options to employees to purchase a total of 62,500 shares of Common Stock for services to be rendered. The options have an average exercise price of $2.00 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 $124,000 using the Black-Scholes option pricing model.


Shares Issued as Part of the Company’s At-The Market Issuances


Subsequent to September 30, 2021, the Company received $185,000 of net proceeds associated with an At-The-Market Issuance.


Advance on Future Receipts


Subsequent to September 30, 2021, the Company received advances from unaffiliated third parties totaling $4,815,000 for the purchase of future receipts/revenues of $5,928,000. Pursuant to the terms of the agreement the unaffiliated third parties will auto withdraw an aggregate of $19,000 from the Company’s operating account each banking day plus an average monthly payment of $353,000 over the next six months. The term of the agreement extends until the advances are paid in full. The Company may pay off the advances for $5,228,000 if paid within 45 days of funding or for $5,452,000 if paid between 46 and 60 days of funding.