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 nine months ended September 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.
During the nine months ended September 30, 2021, the Company issued 140,250 of expense for investor relations services for a four month period ending September 2021. shares of common stock and recognized $
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 nine months ended September 30, 2021, the Company sold 2,063,059 shares of common stock to the Agent for net proceeds of $4,653,821.
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 nine months ended September 30, 2021, the Board of Directors approved grants of options to officers, employees, board of directors 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 $1,969,712. Of the 739,000 options issued, options vest on the first anniversary date of issuance, 75,000 options have a vesting term of 25% vest upon issuance, 50% vest upon 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.
During the nine months ended September 30, 2021 and 2020, the Company recognized $ and $ of stock-based compensation, respectively, related to outstanding stock options. At September 30, 2021, the Company had $ of unrecognized expenses related to outstanding options.
The following table summarizes the stock option activity for the nine months ended September 30, 2021:
As of September 30, 2021, the outstanding stock options have a weighted average remaining term of years and the aggregate intrinsic value of options vested and outstanding were $and $respectively. As of September 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 nine months ended September 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 nine months ended September 30, 2021:
As of September 30, 2021 the outstanding and exercisable warrants have a weighted average remaining term of years and have an aggregate intrinsic value of $ .
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