Quarterly report pursuant to Section 13 or 15(d)

3. Equity

v3.20.1
3. Equity
 3 Months Ended
Mar. 31, 2020
Equity [Abstract]  
Equity

Note 3 – Equity

 

Stock Options

 

In 2017, the Board of Directors of the Company approved the CNS Pharmaceuticals, Inc. 2017 Stock Plan (the “Plan”). The Plan allows for the Board of Directors to grants various forms of incentive awards for up to 2,000,000 shares of common stock. No key employee may receive more than 500,000 shares of common stock (or options to purchase more than 500,000 shares of common stock) in a single year.

 

On March 12, 2020, the Board of Directors approved to grant 175,000 options to one employee of the Company and two consultants. The options to the employee vest in four equal annual installments beginning on the first anniversary following issuance. The options to the consultants vest in one annual installment on the first anniversary following issuance. The options have a ten-year term and have an exercise price of $2.21 per share. The fair value of the options at issuance was $337,691.

 

During the three months ended March 31, 2020 and 2019, the Company recognized $242,209 and $44,016 of stock-based compensation, respectively, related to outstanding stock options. At March 31, 2020, the Company had $2,774,019 of unrecognized expenses related to options.

 

The following table summarizes the stock option activity for the three months ended March 31, 2020:

 

     

Options

     Weighted-Average Exercise Price Per Share  
Outstanding, December 31, 2019       1,764,500     $ 1.92  
Granted       175,000       2.21  
Exercised       –       –  
Forfeited       –       –  
Expired       –       –  
Outstanding, March 31, 2020       1,939,500     $ 1.95  

 

The following table discloses information regarding outstanding and exercisable options at March 31, 2020:

 

      Outstanding     Exercisable  

 

Exercise Price

     Number of Option/Warrant Shares     Weighted Average Exercise Price     Weighted Average Remaining Life (Years)     Number of Option Shares     Weighted Average Exercise Price  
  $4.00       300,000               9.61       –          
  $2.21       175,000               9.95       –          
  $2.00       789,500               9.25       –          
  $1.50       400,000               8.17       225,014          
  $0.045       275,000               7.64       198,624          
  Total       1,939,500     $ 1.95       8.93       423,638     $ 0.82  

 

As of March 31, 2020, the aggregate intrinsic value of options exercisable was $543,181. As of March 31, 2020, there are 60,500 awards remaining to be issued under the Plan.

 

Stock Warrants

 

The following table summarizes the stock warrant activity for the three months ended March 31, 2020:

 

     

 

 

Warrants

     Weighted-Average Exercise Price Per Share  
Outstanding, December 31, 2019        3,986,630       3.99  
Granted       –       –  
Exercised       –       –  
Forfeited       –       –  
Expired       –       –  
Outstanding, March 31, 2020       3,986,630     $ 3.99  

 

The following table discloses information regarding outstanding and exercisable warrants at March 31, 2020:

 

      Outstanding     Exercisable  

 

Exercise Price

     Number of Option/Warrant Shares     Weighted Average Exercise Price     Weighted Average Remaining Life (Years)     Number of Option Shares     Weighted Average Exercise Price  
  $11.00       1,206,059               2.39       1,206,059          
  $4.00       148,750               4.61       –          
  $2.00       63,750               4.18       63,750          
  $1.75       100,000               4.04       61,116          
  $1.50       14,000               3.20       14,000          
  $0.70       2,454,071               3.75       2,454,071          
  Total       3,986,630     $ 3.99       3.38       3,798,996     $ 4.01  

 

As of March 31, 2020, the aggregate intrinsic value of warrants exercisable was $3,471,865.