Equity |
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Equity |
Note 3 – Equity
Common Stock
In January 2021, the Company entered into a twelve-month agreement with an investor relations firm that includes the issuance of restricted shares of common stock. Upon signing the agreement, shares vested immediately, and the remaining shares will vest quarterly over the remainder of the agreement. The Company may terminate the agreement at any time during the twelve-month period with a fifteen-day notice. During the six months ended June 30, 2021, the Company issued common shares and recognized $ of stock-based compensation related to the agreement and will issue the remaining shares over the service period. In July 2021, the Company issued common shares and will issue the remaining shares over the service period.
On February 12, 2021, the Company entered into a Capital on Demand™ Sales Agreement (the “Agreement”) with JonesTrading Institutional Services LLC and Brookline Capital Markets, a division of Arcadia Securities, LLC (collectively, the “Agent”). Pursuant to the terms of the Agreement, the Company may sell from time to time, through the Agent, shares of the Company’s common stock with an aggregate sales price of up to $20.0 million.
During the six months ended June 30, 2021, the Company sold 2,063,509 shares of common stock to the Agent for net proceeds of $1,084,704 and recorded a subscription receivable of $3,569,117. The subscription receivable was collected in full on July 1, 2021.
Stock Options
In 2017, the Board of Directors of the Company approved the CNS Pharmaceuticals, Inc. 2017 Stock Plan (the “2017 Plan”). The 2017 Plan allows for the Board of Directors to grant various forms of incentive awards for up to 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.
In 2020, the Board of Directors of the Company approved the CNS Pharmaceuticals, Inc. 2020 Stock Plan (the “2020 Plan”). The 2020 Plan allows for the Board of Directors to grant various forms of incentive awards for up to shares of common stock. No key employee may receive more than 750,000 shares of common stock (or options to purchase more than 750,000 shares of common stock) in a single year.
During the six months ended June 30, 2021, the Board of Directors approved grants of 1,769,686. Of the 611,000 options issued, options provided that 25% vested upon issuance, 50% vest upon the Board approving a business development acquisition and 25% vest over a three-year period in equal installments on each of the succeeding three anniversary dates. The remaining options issued vest in four equal annual installments beginning on the first anniversary following issuance. options to officers, employees and a consultant. The exercise price of the options ranges from $ to $ and the options expire ten-years following issuance. The total fair value of these option grants at issuance was $
During the six months ended June 30, 2021 and 2020, the Company recognized $ and $ of stock-based compensation, respectively, related to outstanding stock options. As of June 30, 2021, the Company had $ of unrecognized expenses related to outstanding options.
The following table summarizes the stock option activity for the six months ended June 30, 2021:
The following table discloses information regarding outstanding and exercisable options at June 30, 2021:
As of June 30, 2021, the aggregate intrinsic value of options vested and outstanding were $ and $ respectively. As of June 30, 2021, there are awards remaining to be issued under the 2017 Plan and awards remaining to be issued under the 2020 Plan.
Stock Warrants
During the six months ended June 30, 2021, the Company received $1,580,140 warrants on a cashless basis resulting in issuance of shares of common stock. in cash proceeds from the exercise of warrants previously issued at an exercise price of $ . In addition, the Company received notices to exercise
The following table summarizes the stock warrant activity for the six months ended June 30, 2021:
The following table discloses information regarding outstanding and exercisable warrants at June 30, 2021:
As of June 30, 2021, the aggregate intrinsic value of warrants vested and outstanding was $ .
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