Quarterly report pursuant to Section 13 or 15(d)

Capital Stock

Capital Stock
6 Months Ended
Jun. 30, 2021
Stockholders' Equity Note [Abstract]  
Capital Stock

NOTE 15 - Capital Stock


  1) Preferred Stock:


The Company is authorized to issue 50,000,000 shares of preferred stock, with par value of $0.001. As of June 30, 2021, there were no preferred stock shares outstanding. The Board of Directors has the authority to issue preferred stock in one or more series, and in connection with the creation of any such series, by resolutions providing for the issuance of the shares thereof, to determine dividends, voting rights, conversion rights, redemption privileges and liquidation preferences.


  2) Common Stock:


The Company is authorized to issue 90,000,000 shares of common stock with par value of $0.001.


As of June 30, 2021 and December 31, 2020, the restricted shares consisted of the following:


    June 30,
    December 31,
Restricted stock - vested     1,802,373       1,802,373  
Restricted stock - unvested     149,162       149,162  
Total restricted stock     1,951,535       1,951,535  


The unvested shares of restricted stock were recorded under a deposit liability account awaiting future conversion to common stock when they become vested.


  3) Stock Warrant:


In connection with the Underwriting Agreement with Boustead Securities, LLC, or Boustead, the Company agreed to issue to Boustead warrants to purchase a number of the Company’s shares equal to 6% of the gross proceeds of the public offering, which shall be exercisable, in whole or in part, commencing on April 13, 2018 and expiring on the five-year anniversary at an initial exercise price of $53.125 per share, which is equal to 125% of the offering price paid by investors. As of December 31, 2019, the Company issued total warrants to Boustead to purchase 77,680 shares of the Company’s stock. 


For the six-month periods ended June 30, 2021 and 2020, the Company recorded decrease of $397,600 and an increase of $389,300, respectively, in additional paid-in capital as adjustment for the issuance costs of these stock warrants.