Quarterly report pursuant to Section 13 or 15(d)

Stockholders' Equity

v3.20.2
Stockholders' Equity
6 Months Ended
Jun. 30, 2020
Equity [Abstract]  
Stockholders' Equity

Note 9. Stockholders’ Equity

Stock Options

The 2015 Omnibus Incentive Plan provides for the issuance of stock options, stock appreciation rights, performance shares,

performance units, restricted stock, restricted stock units, shares of our common stock, dividend equivalent units, incentive cash

awards or other awards based on our common stock. Awards may be granted alone or in addition to, in tandem with, or (subject to the

2015 Omnibus Incentive Plan’s prohibitions on repricing) in substitution for any other award (or any other award granted under

another plan of ours or of any of our affiliates).

 

The following is a summary of the stock option plan activity during the six months ended June 30, 2020 and 2019:

 

 

 

2020

 

 

2019

 

 

 

Number of

 

 

Weighted Average

 

 

Number of

 

 

Weighted Average

 

 

 

Options

 

 

Exercise Price

 

 

Options

 

 

Exercise Price

 

Options Outstanding at Beginning of the year

 

 

19,300

 

 

$

60.51

 

 

 

19,300

 

 

$

60.51

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Granted

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Exercised

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Adjustment

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Forfeited

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Options Outstanding at June 30,

 

 

19,300

 

 

$

60.51

 

 

 

19,300

 

 

$

60.51

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Options Exercisable at June 30,

 

 

11,800

 

 

$

84.49

 

 

 

7,634

 

 

$

113.81

 

 

Compensation expense recognized from the vesting of stock options was approximately $6,800 and $7,800 for the three months ended June 30, 2020 and 2019. The remaining unrecognized compensation cost associated with unvested stock options as of June 30, 2020 is approximately $11,400.

 

The aggregate intrinsic value of the outstanding common stock options as of June 30, 2020 and December 31, 2019 was $0 and $0 respectively.

 

Warrants

 

The following is a summary of the warrant activity during the six months ended June 30, 2020 and 2019:

 

 

 

2020

 

 

2019

 

 

 

Number of

 

 

Weighted Average

 

 

Number of

 

 

Weighted Average

 

 

 

Warrants

 

 

Exercise Price

 

 

Warrants

 

 

Exercise Price

 

Warrants Outstanding at Beginning of the year

 

 

3,959,287

 

 

$

5.36

 

 

 

3,843,587

 

 

$

5.44

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Granted

 

 

-

 

 

 

-

 

 

 

125,000

 

 

 

2.64

 

Exercised

 

 

1,227,700

 

 

 

2.40

 

 

 

9,300

 

 

 

2.40

 

Forfeited

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Warrants Outstanding at June 30,

 

 

2,731,587

 

 

$

6.83

 

 

 

3,959,287

 

 

$

5.36

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

During June 2020, the Company received approximately $2,946,480 upon the exercise by warrant holders of warrants for 1,227,700 shares.

 

Common Share Issuance

On March 23, 2020, the Company entered into a Share Exchange Agreement, dated March 23, 2020 (the “Share Exchange Agreement”), with Hanfor (Cayman) Limited, a Cayman Islands exempted company (“Hanfor”), and BZ Industrial Limited, a British Virgin Islands business company and the sole stockholder of Hanfor (“Hanfor Owner”).  In connection with the execution of the Share Exchange Agreement, the Company and Hanfor Owner entered into a Stock Purchase Agreement, dated March 23, 2020, pursuant to which Hanfor Owner purchased from Company an aggregate of 520,833 shares of the Company’s common stock at a price of $2.40 per share. Hanfor Owner paid $250,000 cash on March 23, 2020 and the Company received the remaining $1.0 million in April 2020 2020 at which time the Company issued the 520,838 shares.

 

On March 23, 2020, the Company issued 186,000 shares to Maxim Holdings LLC for services and recognized $125,450 as stock compensation expense for the six months ended June 30, 2020.