Annual report pursuant to Section 13 and 15(d)

Subsequent Events

Subsequent Events
12 Months Ended
Dec. 31, 2021
Subsequent Events [Abstract]  



On February 10, 2022, the Company, entered into a securities purchase agreement with an accredited institutional investor providing for the issuance of (i) 2,322,250 shares of the Company’s common stock, par value $0.001, (ii) pre-funded warrants to purchase up to 1,865,000 shares of Common Stock with an exercise price of $0.001 per share, which Pre-Funded Warrants are to be issued in lieu of shares of Common Stock to ensure that the Investor does not exceed certain beneficial ownership limitations, and (iii) warrants, with a term of five years and six months from the date of issuance, to purchase an aggregate of up to 3,977,888 shares of Common Stock at an exercise price of $2.52 per share. The Company realized net proceeds from the offering of approximately $9.1 million after deducting fees due to the placement agent and the Company’s transaction expenses.


The Company agreed to file a registration statement (the “Registration Statement”) to register the resale of the warrant shares within 90 days of the date of the Purchase Agreement and to use its commercially reasonable efforts to obtain effectiveness of the Registration Statement within 181 days following the closing of the offering. Accordingly, a registration statement registering the warrant shares was filed with the SEC on February 22, 2022 and is expected to be declared effective after the filing date of these financial statements.


On February 23, 2022, the Company issued an aggregate 561,667 options to purchase shares of common stock at an exercise price of $2.00 for a total expected cost of $923,534 to be recognize over a service period of 3 years. On the same day, 450,000 shares common stock were issued in compensation to our CEO and a consultant with an estimated fair value of $900,000. All options and shares issued were issued on the Company’s 2017 Equity Incentive Plan.


On February 28, 2022, the Company entered into a retainer agreement under the terms of which the Company issued a warrant to purchase 100,000 shares of common stock at an exercise price of $2.06 per share and a warrant to purchase 100,000 shares of common stock at an exercise price of $2.58 per share.