Quarterly report pursuant to Section 13 or 15(d)

7. STOCKHOLDERS' EQUITY

v3.19.3
7. STOCKHOLDERS' EQUITY
9 Months Ended
Sep. 30, 2019
Stockholders' equity:  
STOCKHOLDERS' EQUITY

Common Stock

 

During the nine months ended September 30, 2019, the Company issued 3,146,100 shares of common stock for cash of $2,516,880.

 

During the nine months ended September 30, 2019, the Company issued 312,593 shares of common stock with a fair value of $365,400 as compensation for services.

 

During the nine months ended September 30, 2019, the Company issued 167,845 shares of common stock valued at $183,714 in payment of interest accrued on notes payable.

 

During the nine months ended September 30, 2019, the Company issued 168,690 shares of common stock resulting from warrant and option exercise for consideration totaling $184,843.

 

The Company issued 100,000 shares of common stock effective May 1, 2019, as compensation for an extension of oil and gas lease expiration valued at $125,000.

 

In April 2019, the Company issued 202,316 shares of common stock in satisfaction of the payment in kind valued at $314,108 due on April 10, 2019 to the holders of notes payable by the Company.

 

Warrants and Options

 

During the nine months ended September 30, 2019, the Company issued 200,000 warrants and options with total fair value of $154,000 as compensation for services and recorded expense of $335,320 related to warrants and options issued in prior periods.

 

During the nine months ended September 30, 2019, the Company issued 365,455 warrants valued at $240,455 in connection with the issuance of convertible notes payable.

 

In connection with the issuance of common stock for cash during the nine months ended September 30, 2019, 1,592,600 warrants were surrendered to the Company for cancellation.

 

A summary of warrants outstanding as of September 30, 2019 by exercise price and year of expiration is presented below:

 

Exercise     Expiration Date in        
Price     2019     2020     2021     2022     2023     2024     Total  
                                             
$ 0.70       -       420,000       -       -       -       -       420,000  
$ 1.03       -       -       120,000       -       -       -       120,000  
$ 1.14       -       -       -       -       600,000       -       600,000  
$ 1.21       -       -       -       -       120,000       -       120,000  
$ 1.35       -       -       -       365,455                       365,455  
$ 1.40       -       321,737       -       -       -       -       321,737  
$ 1.63       -       -       -       -       -       100,000       100,000  
$ 1.64       -       -       200,000       -       -       -       200,000  
$ 1.80       -       1,250,000       -       -       -       -       1,250,000  
$ 2.00       -       -       200,000       -       -       -       200,000  
$ 2.23       -       339,901       -       -       -       -       339,901  
$ 2.50       35,211       -       -       -       -       -       35,211  
$ 3.50       15,000       -       -       -       -       -       15,000  
          50,211       2,331,638       520,000       365,455       720,000       100,000       4,087,304  

 

A summary of stock options outstanding as of September 30, 2019 by exercise price and year of expiration is presented below:

 

Exercise     Expiration Date in        
Price     2020     2021     2022     2023     Total  
                                 
$ 0.97       -       259,742       -       -       259,742  
$ 1.10       -       -       800,000       -       800,000  
$ 1.19       -       -       -       700,000       700,000  
$ 1.57       4,500,000       -       -       -       4,500,000  
$ 1.63       -       -       58,026       -       58,026  
$ 1.79       300,000       -       -       -       300,000  
          4,800,000       259,742       858,026       700,000       6,617,768  

 

At September 30, 2019, the Company had reserved 10,705,072 common shares for future exercise of warrants and options.

 

Warrants and options granted were valued using the Black-Scholes Option Pricing Model. The assumptions used in calculating the fair value of the warrants and options issued were as follows:

 

2019    
     
Risk-free interest rate   1.77% - 2.46%
Expected volatility of common stock   80% - 107%
Dividend yield   0.00%
Discount due to lack of marketability   20%
Expected life of option/warrant   Three to Five Years
     
2018    
     
Risk-free interest rate   2.15% - 2.83%
Expected volatility of common stock   97% - 119%
Dividend yield   0.00%
Discount due to lack of marketability   20%
Expected life of option/warrant   2.75 to Five Years