Annual report pursuant to Section 13 and 15(d)

Stock Warrants

v3.20.1
Stock Warrants
12 Months Ended
Dec. 31, 2019
Stock Warrants  
Stock Warrants

Note 13 — Stock Warrants

The following table shows the various changes in warrants for the years ended:

 

 

 

 

 

 

 

 

 

December 31, 

 

December 31, 

 

December 31, 

 

    

2019

    

2018

    

2017

Warrants Outstanding, Beginning of Year

 

2,233,062

 

1,184,912

 

401,859

Exercised During the Year

 

 —

 

(113,850)

 

(250,009)

Issued During the Year

 

5,479,454

 

1,200,000

 

1,033,062

Expired During the Year

 

(1,200,000)

 

(38,000)

 

 —

Warrants Outstanding, End of Year

 

6,512,516

 

2,233,062

 

1,184,912

 

Of the outstanding warrants as of December 31, 2019, 1,033,062 expire on June 18, 2021 and the remainder expire on January 2, 2022. The weighted average remaining term of the warrants was 1.9 years. The weighted average exercise price was $4.56 per share. Of the outstanding warrants as of December 31, 2018, 1,200,000 expired on January 26, 2019 and the remainder expire on June 18, 2021. The weighted average remaining term of the warrants was 1.2 years. The weighted average exercise price was $8.61 per share. The outstanding warrants as of December 31, 2017 expire from March 21, 2018 to June 18, 2021. The weighted average remaining term of the warrants is 3.1 years. The weighted average exercise price is $6.44 per share.

During the year ended December 31, 2019 there were no warrants exercised. During the year ended December 31, 2018, a total of 96,350 warrants were exercised on a cashless basis resulting in the issuance of 66,710 shares and a total of 17,500 warrants were exercised for cash resulting in the issuance of 17,500 shares and proceeds of $39,373. During the year ended December 31, 2017 a total of 250,009 warrants were exercised on a cashless basis resulting in the issuance of 168,203 shares.

Management completed a derivative analysis on the 5,479,454 warrants issued in conjunction with our securities purchase agreement which closed on July 2, 2019 to determine whether or not they met the criteria under ASC 815‑10‑15‑83 to trigger treatment as a derivative instrument. Management concluded that these warrants did not meet the criteria to be treated as a derivative instrument.