Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 03, 2019 | |
Document and Entity Information | ||
Entity Registrant Name | WRAP TECHNOLOGIES, INC. | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2019 | |
Amendment Flag | false | |
Entity Central Index Key | 0001702924 | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 29,656,500 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | true | |
Emerging Growth Extended Transition Period | false | |
Entity Small Business | true | |
Entity Current Reporting Status | Yes | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash | $ 21,377,807 | $ 12,358,896 |
Accounts receivable | 31,259 | 4,396 |
Inventories, net | 1,255,587 | 158,267 |
Prepaid expenses and other current assets | 186,045 | 114,863 |
Total current assets | 22,850,698 | 12,636,422 |
Property and equipment, net | 126,803 | 30,373 |
Operating lease right-of-use asset, net | 318,789 | 0 |
Intangible assets, net | 186,829 | 118,715 |
Other assets, net | 12,681 | 1,512 |
Total assets | 23,495,800 | 12,787,022 |
Current Liabilities: | ||
Accounts payable | 416,393 | 232,915 |
Accrued liabilities | 131,372 | 68,453 |
Deferred revenue | 3,357 | 0 |
Operating lease liability- short term | 104,327 | 0 |
Deferred and accrued officer compensation | 96,000 | 96,000 |
Total current liabilities | 751,449 | 397,368 |
Operating Lease Liability - Long Term | 215,780 | 0 |
Total liabilities | 967,229 | 397,368 |
Commitments and contingencies (Note 10) | ||
Stockholders' equity: | ||
Preferred stock - 5,000,000 authorized; par value $0.0001 per share; none issued and outstanding | 0 | 0 |
Common stock - 150,000,000 authorized; par value $0.0001 per share; 29,640,250 and 27,364,607 shares issued and outstanding each period, respectively | 2,964 | 2,736 |
Additional paid in capital | 30,324,798 | 16,791,254 |
Accumulated deficit | (7,799,191) | (4,404,336) |
Total stockholders' equity | 22,528,571 | 12,389,654 |
Total liabilities and stockholders' equity | $ 23,495,800 | $ 12,787,022 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock, authorized | 5,000,000 | 5,000,000 |
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, issued | 0 | 0 |
Preferred stock, outstanding | 0 | 0 |
Common stock, authorized | 150,000,000 | 150,000,000 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, issued | 29,640,250 | 27,364,607 |
Common stock, outstanding | 29,640,250 | 27,364,607 |
Condensed Statements of Operati
Condensed Statements of Operations - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues: | ||||
Product sales | $ 48,948 | $ 0 | $ 162,901 | $ 0 |
Other revenue | 10,496 | 0 | 14,354 | 0 |
Total revenues | 59,444 | 0 | 177,255 | 0 |
Cost of revenues | 35,695 | 0 | 96,915 | 0 |
Gross profit | 23,749 | 0 | 80,340 | 0 |
Operating expenses: | ||||
Selling, general and administrative | 1,481,187 | 581,575 | 2,669,063 | 920,742 |
Research and development | 516,213 | 193,629 | 891,032 | 289,614 |
Total operating expenses | 1,997,400 | 775,204 | 3,560,095 | 1,210,356 |
Loss from operations | (1,973,651) | (775,204) | (3,479,755) | (1,210,356) |
Other income (expense): | ||||
Interest income | 61,777 | 537 | 87,187 | 758 |
Other | (2,200) | (875) | (2,287) | (1,322) |
Other income (expense) | 59,577 | (338) | 84,900 | (564) |
Net loss | $ (1,914,074) | $ (775,542) | $ (3,394,855) | $ (1,210,920) |
Net loss per basic common share | $ (0.07) | $ (0.03) | $ (0.12) | $ (0.05) |
Weighted average common shares used to compute net loss per basic common share | 27,848,421 | 22,803,533 | 27,606,514 | 22,803,533 |
Condensed Statements of Stockho
Condensed Statements of Stockholders Equity - USD ($) | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total |
Beginning balance, shares at Dec. 31, 2017 | 22,803,533 | |||
Beginning balance, amount at Dec. 31, 2017 | $ 2,280 | $ 4,137,936 | $ (1,067,901) | $ 3,072,315 |
Share-based compensation expense | 172,973 | 172,973 | ||
Net loss for the period | (1,210,920) | (1,210,920) | ||
Ending balance, shares at Jun. 30, 2018 | 22,803,533 | |||
Ending balance, amount at Jun. 30, 2018 | $ 2,280 | 4,310,909 | (2,278,821) | 2,034,368 |
Beginning balance, shares at Mar. 31, 2018 | 22,803,533 | |||
Beginning balance, amount at Mar. 31, 2018 | $ 2,280 | 4,137,936 | (1,503,279) | 2,636,937 |
Share-based compensation expense | 172,973 | 172,973 | ||
Net loss for the period | (775,542) | (775,542) | ||
Ending balance, shares at Jun. 30, 2018 | 22,803,533 | |||
Ending balance, amount at Jun. 30, 2018 | $ 2,280 | 4,310,909 | (2,278,821) | 2,034,368 |
Beginning balance, shares at Dec. 31, 2018 | 27,364,607 | |||
Beginning balance, amount at Dec. 31, 2018 | $ 2,736 | 16,791,254 | (4,404,336) | 12,389,654 |
Sale of common stock and warrants at $6.50 per share and placement agent warrants in public offering, net of issuance costs, shares | 1,923,076 | |||
Sale of common stock and warrants at $6.50 per share and placement agent warrants in public offering, net of issuance costs, amount | $ 192 | 11,351,022 | 11,351,214 | |
Common shares issued upon exercise of warrants at $3.00 per share, shares | 62,150 | |||
Common shares issued upon exercise of warrants at $3.00 per share, amount | $ 6 | 186,444 | 186,450 | |
Common shares issued upon exercise of warrants at $5.00 per share, shares | 274,167 | |||
Common shares issued upon exercise of warrants at $5.00 per share, amount | $ 28 | 1,370,807 | 1,370,835 | |
Common shares issued upon exercise of stock options, shares | 16,250 | |||
Common shares issued upon exercise of stock options, amount | $ 2 | 24,373 | 24,375 | |
Share-based compensation expense | 600,898 | 600,898 | ||
Net loss for the period | (3,394,855) | (3,394,855) | ||
Ending balance, shares at Jun. 30, 2019 | 29,640,250 | |||
Ending balance, amount at Jun. 30, 2019 | $ 2,964 | 30,324,798 | (7,799,191) | 22,528,571 |
Beginning balance, shares at Mar. 31, 2019 | 27,364,607 | |||
Beginning balance, amount at Mar. 31, 2019 | $ 2,736 | 17,018,301 | (5,885,117) | 11,135,920 |
Sale of common stock and warrants at $6.50 per share and placement agent warrants in public offering, net of issuance costs, shares | 1,923,076 | |||
Sale of common stock and warrants at $6.50 per share and placement agent warrants in public offering, net of issuance costs, amount | $ 192 | 11,351,022 | 11,351,214 | |
Common shares issued upon exercise of warrants at $3.00 per share, shares | 62,150 | |||
Common shares issued upon exercise of warrants at $3.00 per share, amount | $ 6 | 186,444 | 186,450 | |
Common shares issued upon exercise of warrants at $5.00 per share, shares | 274,167 | |||
Common shares issued upon exercise of warrants at $5.00 per share, amount | $ 28 | 1,370,807 | 1,370,835 | |
Common shares issued upon exercise of stock options, shares | 16,250 | |||
Common shares issued upon exercise of stock options, amount | $ 2 | 24,373 | 24,375 | |
Share-based compensation expense | 373,851 | 373,851 | ||
Net loss for the period | (1,914,074) | (1,914,074) | ||
Ending balance, shares at Jun. 30, 2019 | 29,640,250 | |||
Ending balance, amount at Jun. 30, 2019 | $ 2,964 | $ 30,324,798 | $ (7,799,191) | $ 22,528,571 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash Flows From Operating Activities: | ||
Net loss | $ (3,394,855) | $ (1,210,920) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 12,573 | 4,846 |
Warranty provision | 3,503 | 0 |
Inventory write-off | (65,012) | 0 |
Non-cash lease expense | 22,211 | 0 |
Share-based compensation | 600,898 | 172,973 |
Changes in assets and liabilities: | ||
Accounts receivable | (26,863) | 0 |
Inventories | (1,032,308) | (15,222) |
Prepaid expenses and other current assets | (71,182) | (5,695) |
Accounts payable | 183,478 | 11,018 |
Operating lease liability | (20,893) | 0 |
Accrued liabilities and other | 59,416 | (17,758) |
Deferred revenue | 3,357 | 0 |
Net cash used in operating activities | (3,725,677) | (1,060,758) |
Cash Flows From Investing Activities: | ||
Capital expenditures for property and equipment | (108,616) | (8,015) |
Investment in patents and trademarks | (68,501) | 0 |
Long-term deposits | (11,169) | 0 |
Net cash used in investing activities | (188,286) | (8,015) |
Cash Flows From Financing Activities: | ||
Sale of common stock and warrants | 11,351,214 | 0 |
Proceeds from exercise of warrants | 1,557,285 | 0 |
Proceeds from exercise of stock options | 24,375 | 0 |
Net cash provided by financing activities | 12,932,874 | 0 |
Net increase (decrease) in cash and cash equivalents | 9,018,911 | (1,068,773) |
Cash, beginning of period | 12,358,896 | 3,083,976 |
Cash, end of period | 21,377,807 | 2,015,203 |
Supplemental Disclosure of Non-Cash Investing and Financing Activities: | ||
Prepaid insurance financed with note payable | 0 | 39,435 |
Right-of-use assets and liabilites recorded during period | 341,000 | 0 |
Issuance costs relating to warrants issued to public offering selling agent | $ 205,894 | $ 0 |
ORGANIZATION AND SUMMARY OF SIG
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Organization and Business Description Wrap Technologies, Inc., a Delaware corporation (the “ Company On June 18, 2019, the Company received gross cash proceeds of $12.50 million, or net cash proceeds of approximately $11.35 million after deduction of commissions and offering costs, from the public offering and sale of 1,923,076 units (“ Units June 2019 Follow-On Offering Basis of Presentation and Use of Estimates The Company’s unaudited interim financial statements and related notes included herein have been prepared in accordance with accounting principles generally accepted in the United States of America (“ US GAAP SEC The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions (e.g., recognition and measurement of contingencies and accrued costs) that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements and affect the reported amounts of revenue and expense during the reporting period. Actual results could materially differ from those estimates. Concentrations of Risk Credit Risk Concentrations of Accounts Receivable and Revenues Concentration of Suppliers Share-Based Compensation The Company follows the fair value recognition provisions issued by the Financial Accounting Standards Board (“ FASB ASC ASC 718 ASU The grant date fair value of stock options is determined using the Black-Scholes option-pricing model. The Black-Scholes option-pricing model requires inputs including the market price of the Company’s common stock on the date of grant, the term that the stock options are expected to be outstanding, the implied stock volatilities of several publicly-traded peers over the expected term of stock options, risk-free interest rate and expected dividend. Each of these inputs is subjective and generally requires significant judgment to determine. The grant date fair value of restricted stock units is based upon the market price of the Company’s common stock on the date of the grant. The fair value of share-based compensation is amortized to compensation expense over the vesting term. Revenue Recognition In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (“ ASU 2014-09 ASC 340-40 Topic 606 Accounts Receivable Accounts receivable, net consists of trade accounts receivables from customers, net of allowance for doubtful accounts if deemed necessary. Accounts receivables are recorded at the invoiced amount. The Company does not require collateral or other security for accounts receivable. The Company periodically evaluates the collectability of its accounts receivable and provides an allowance for potential credit losses, based on the historical experience. At June 30, 2019 and December 31, 2018, the Company did not have an allowance for potential credit losses as there were no estimated credit losses. Net Loss per Share Basic loss per common share is computed by dividing net loss for the period by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per common share reflects the potential dilution of securities that could share in the earnings of an entity. The Company’s losses for the periods presented cause the inclusion of potential common stock instruments outstanding to be antidilutive. Stock options, restricted stock units and warrants exercisable or issuable for a total of 9,997,123 shares of common stock were outstanding at June 30, 2019. These securities are not included in the computation of diluted net loss per common share for the periods presented as their inclusion would be antidilutive due to losses incurred by the Company. Income Taxes Until its conversion to a corporation on March 31, 2017, the Company was treated as a partnership for federal and state income tax purposes and did not incur income taxes. Instead, its losses were included in the income tax returns of the member partners. No income tax expense was recorded for period ended June 30, 2019 due to losses incurred. Deferred tax assets and liabilities are determined based on temporary differences between the bases of certain assets and liabilities for income tax and financial reporting purposes. The Company maintains a valuation allowance with respect to deferred tax assets. The Company establishes a valuation allowance based upon the potential likelihood of realizing the deferred tax asset and taking into consideration the Company’s financial position and results of operations for the current period. Future realization of the deferred tax benefit depends on the existence of sufficient taxable income within the carry-forward period under the Federal tax laws. Changes in circumstances, such as the Company generating taxable income, could cause a change in judgment about the realizability of the related deferred tax asset. Any change in the valuation allowance will be included in income in the year of the change in estimates. Recent Issued Accounting Guidance Recently Adopted Accounting Pronouncement: In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which is intended to increase transparency and comparability among organizations by requiring the recognition of right-of-use (“ ROU Effective the first quarter of 2020: In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (“ Topic 820 Other pronouncements: The Company has reviewed other recently issued, but not yet effective, accounting pronouncements and does not believe the future adoptions of any such pronouncements will be expected to cause a material impact on its financial condition or the results of operations. |
REVENUE AND PRODUCT COSTS
REVENUE AND PRODUCT COSTS | 6 Months Ended |
Jun. 30, 2019 | |
Revenues: | |
REVENUE AND PRODUCT COSTS | The Company enters into contracts that include various combinations of products, accessories and services, such as training, each of which are generally distinct and are accounted for as separate performance obligations. A performance obligation is a promise in a contract to transfer a distinct good or service to a customer, and is the unit of account in Topic 606. For contracts with a single performance obligation, the entire transaction price is allocated to the single performance obligation. For contracts with multiple performance obligations, the Company allocates the contract transaction price to each performance obligation using the Company’s estimate of the standalone selling price (“ SSP Performance obligations to deliver products and accessories are generally satisfied at the point in time the Company ships the product, as this is when the customer obtains control of the asset under our standard terms and conditions. The Company has elected to recognize shipping costs as an expense in cost of revenues when control has transferred to the customer. The revenues and costs of training are recognized when the training is completed, generally following delivery of related products. The timing of revenue recognition may differ from the timing of invoicing to customers. The Company generally has an unconditional right to consideration when customers are invoiced and a receivable is recorded. A contract asset is recognized when revenue is recognized prior to invoicing, or a contract liability (deferred revenue) when revenue will be recognized subsequent to invoicing. At December 31, 2018 the Company had no contract assets and no deferred revenue related to products or training for product delivered during the year. At June 30, 2019 the Company had deferred revenue of $3,357 related to future training. The Company recognizes an asset if there are incremental costs of obtaining a contract with a customer such as commissions. These costs are ascribed to or allocated to the underlying performance obligations in the contract and amortized consistent with the recognition timing of the revenue for any such underlying performance obligations. The Company had no such assets at June 30, 2019 and December 31, 2018. The Company will apply the practical expedient to expense any sales commissions related to performance obligations with an amortization of one year or less when incurred within selling, general and administrative expenses. Estimated costs for the Company’s standard one-year warranty are charged to cost of products sold when revenue is recorded for the related product. Royalties are also charged to cost of products sold. |
INVENTORIES, NET
INVENTORIES, NET | 6 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
INVENTORIES, NET | Inventory is recorded at the lower of cost or net realizable value. The cost of substantially all the Company’s inventory is determined by the weighted average cost method. Inventories consisted of the following: June 30, December 31, 2019 2018 Finished goods $ 106,460 $ 82,313 Work in process 63,241 12,695 Raw materials 1,085,886 63,259 $ 1,255,587 $ 158,267 During the three and six months ended June 30, 2019 the Company wrote off $52,937 and $65,012, respectively, of raw material parts primarily due to model improvements. |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 6 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | Property and equipment consisted of the following: June 30, December 31, 2019 2018 Laboratory equipment $ 30,047 $ 13,980 Tooling 56,234 22,683 Computer equipment 19,560 12,608 Furniture, fixtures and improvements 52,086 9,595 157,927 58,866 Accumulated depreciation (31,124 ) (28,493 ) $ 126,803 $ 30,373 Depreciation expense was $7,621 and $12,186 for the three and six months ended June 30, 2019 and was $2,585 and $4,846 for the three and six months ended June 30, 2018, respectively. |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, NET | Intangible assets consisted of the following: June 30, December 31, 2019 2018 Patents $ 150,174 $ 111,160 Trademarks 38,397 8,910 188,571 120,070 Accumulated amortization (1,742 ) (1,355 ) $ 186,829 $ 118,715 The costs related to issued patents will be amortized using the straight-line method over the estimated remaining lives of issued patents which is 20 years from the initial filing. An impairment charge is recognized if the carrying amount is not recoverable and the carrying amount exceeds the fair value of the intangible assets as determined by projected discounted net future cash flows. Amortization expense was $203 and $387 for the three and six months ended June 30, 2019. There was no amortization for the three or six months ended June 30, 2018. |
ACCOUNTS PAYABLE AND ACCRUED LI
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | 6 Months Ended |
Jun. 30, 2019 | |
Payables and Accruals [Abstract] | |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | Accounts payable includes $7,590 due to related party Syzygy Licensing, LLC (“ Syzygy Accrued liabilities consist of the following: June 30, December 31, 2019 2018 Patent costs $ 7,800 $ 11,600 Accrued compensation 116,841 55,493 Warranty costs 3,931 428 Other 2,800 932 $ 131,372 $ 68,453 |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
LEASES | The Company adopted ASU 2016-02, Leases (Topic 842) on January 1, 2019 using the modified retrospective approach. The Company has elected not to apply ASC Topic 842 to arrangements with lease terms of 12 months or less. The adoption of the standard resulted in the recognition of a ROU asset and lease liability of $12,900 for one operating lease as of January 1, 2019, with no impact to retained earnings. Prior year amounts have not been restated. That lease is for 1,890 square feet of improved office, assembly and warehouse space in Las Vegas, Nevada. In January 2019 the Company recorded an additional $17,101 ROU remeasurement asset and liability from an extension of the operating facility lease to December 31, 2020. In March 2019 the Company recorded a $57,587 ROU asset and liability for a two-year facility operating lease for 1,906 square feet of improved office, assembly and warehouse space in Lake Forest, California expiring in February 2021. In June 2019 the Company recorded a $253,412 ROU asset and liability for a 38-month facility operating lease for 11,256 square feet of improved office, assembly, training and warehouse space in Tempe, Arizona expiring in July 2022. Due to lack of borrowing history or ability the Company used as its incremental borrowing rate a low-grade debt rate published by the Federal Reserve Bank and determined a discount rate of 7.5% for the remeasurement in January 2019, 6.8% for the March 2019 operating lease and 7.0% for the June 2019 operating lease. Management determined these are reasonable borrowing rates. Amortization of ROU operating lease assets was $16,432 and $22,211 for the three and six months ended June 30, 2019. Operating lease expense for capitalized operating leases included in operating activities was $19,305 and $25,956 for the three and six months ended June 30, 2019. Operating lease obligations recorded on the balance sheet at June 30, 2019 are: Operating lease liability- short term $ 104,327 Operating lease liability - long term 215,780 Total Operating Lease Liability $ 320,107 Future lease payments included in the measurement of lease liabilities on the balance sheet at June 30, 2019 for future periods are as follows: Remainder of 2019 (six months) $ 53,705 2020 143,574 2021 101,406 2022 57,328 Total future minimum lease payments 356,013 Less imputed interest (35,996 ) Total $ 320,017 The weighted average remaining lease term is 2.7 years and the weighted average discount rate is 7.0%. The Company does not have any finance leases. |
DEFERRED AND ACCRUED COMPENSATI
DEFERRED AND ACCRUED COMPENSATION | 6 Months Ended |
Jun. 30, 2019 | |
Deferred And Accrued Compensation | |
DEFERRED AND ACCRUED COMPENSATION | From March 2016 through February 2017, the Company accrued monthly compensation for the services of two officers in the aggregate amount of $7,000 per month payable to Syzygy. In March 2017 the Company accrued and deferred $6,000 compensation to each of the two officers. The balance payable to Syzygy as of June 30, 2019 was $84,000 and the accrued deferred compensation aggregated $12,000. These balances accrue without interest. No payment terms or schedule has been established. |
STOCKHOLDERS' EQUITY AND SHARE-
STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION | The Company’s authorized capital consists of 150,000,000 shares of common stock, par value $0.0001 per share, and 5,000,000 shares of preferred stock, par value $0.0001 per share. Public Offering On June 18, 2019, the Company consummated the June 2019 Follow-On Offering, pursuant to which a total of 1,923,076 Units were offered and sold at the public offering price of $6.50 per Unit. Each Unit sold consisted of one share of common stock and one detachable two-year warrant to purchase one share of common stock at an exercise price of $6.50 per share. The offering resulted in the Company’s receipt of gross cash proceeds of $12.5 million, or net cash proceeds of $11.35 million after deduction of commissions and offering costs. In connection with the June 2019 Follow-On Offering, the Company also issued placement agent warrants exercisable for 153,846 shares of common stock for two years at an exercise price of $8.125 per share. The estimated fair value of these warrants was $205,894, as determined using the Black-Scholes methodology (assuming estimated volatility of 49%, risk-free interest rate of 1.86%, and expected dividend yield of 0.0%). This amount was recorded as both an increase to additional paid in capital and as a non-cash issuance cost of the offering. Share-Based Compensation On March 31, 2017, the Company adopted and the shareholders approved the 2017 Stock Incentive Plan (the “ Plan The Company generally recognizes share-based compensation expense on the grant date and over the period of vesting or period that services will be provided. The following table summarizes stock option activity under the Plan for the six months ended June 30, 2019: Weighted Average Options on Remaining Aggregate Common Exercise Contractual Intrinsic Shares Price Term Value Outstanding January 1, 2019 2,067,500 $ 1.68 4.44 $ 3,063,375 Granted 1,000,000 5.41 5.00 - Exercised (16,250 ) 1.50 - - Forfeited, cancelled, expired (75,000 ) 1.50 - - Outstanding June 30, 2019 2,976,250 $ 2.94 4.21 $ 9,757,700 Vested and exercisable at June 30, 2019 1,208,438 $ 1.58 3.92 $ 5,611,323 The Company uses the Black-Scholes option pricing model to determine the fair value of the options granted. The following table summarizes the assumptions used to compute the fair value of options granted to employees and nonemployees: Six Months Ended June 30, 2019 Expected stock price volatility 49 % Risk-free interest rate 2.41 % Forfeiture rate 0 % Expected dividend yield 0 % Expected life of options - years 3.50 Weighted-average fair value of options granted $ 2.06 Estimated volatility is a measure of the amount by which the Company’s stock price is expected to fluctuate each year during the expected life of awards. The Company’s estimated volatility was based on an average of the historical volatility of peer entities whose stock prices were publicly available. The Company’s calculation of estimated volatility is based on historical stock prices of these peer entities over a period equal to the expected life of the awards. The Company uses the historical volatility of peer entities due to the lack of sufficient historical data of its stock price, as it only recently commenced trading. The risk-free interest rate assumption is based upon observed interest rates on zero coupon U.S. Treasury bonds whose maturity period is appropriate for the term of the options. The dividend yield of zero is based on the fact that the Company has never paid cash dividends and has no present intention to pay cash dividends. The Company calculates the expected life of the options using the Simplified Method for the employee stock options as the Company does not have sufficient historical data. On May 23, 2019 the Company granted a total of 263,087 of service-based RSU’s to employees and consultants vesting over three years that convert to common stock as vesting occurs. A summary is set forth below: Service-Based Grant Date Vesting RSU's Fair Value Period Unvested at January 1, 2019 - Granted at May 23, 2019 263,087 $ 7.24 3 Years Vested - Forfeited and cancelled - Unvested at June 30, 2019 263,087 The Company recorded stock-based compensation in its statements of operations for the relevant periods as follows: For the Three Months For the Six Months Ended June 30, Ended June 30, 2019 2018 2019 2018 Selling, general and administrative $ 345,217 $ 125,878 $ 548,417 $ 125,878 Research and development 28,634 47,095 52,481 47,095 Total stock-based expense $ 373,851 $ 172,973 $ 600,898 $ 172,973 As of June 30, 2019, total estimated compensation cost of stock options and RSUs granted but not yet vested was $4.3 million which is expected to be recognized over the weighted average period of 2.5 years. Warrants The following table summarizes warrant activity during the six months ended June 30, 2019: Number Average Purchase Price Per Share Shares purchasable under outstanding warrants at January 1, 2019 5,017,181 $ 4.82 Stock purchase warrants issued 2,076,922 $ 6.62 Stock purchase warrants exercised (336,317 ) $ 4.63 Shares purchasable under outstanding warrants at June 30, 2019 6,757,786 $ 5.38 The Company determined that the warrants issued in connection with the June 2019 Follow-On Offering should be classified as equity in accordance with ASC 480. However, changes in director and officer ownership or other factors in future periods could require reclassification of outstanding warrants as a liability with changes in value thereafter reflected in the statement of operations. The Company has outstanding common stock purchase warrants as of June 30, 2019 as follows: Number of Exercise Price Description Common Shares Per Share Expiration Date Purchase Warrants (1) 4,286,907 $ 5.00 October 30, 2020 Agent Warrants 393,957 $ 3.00 October 30, 2020 Purchase Warrants 1,923,076 $ 6.50 June 18, 2021 Agent Warrants 153,846 $ 8.125 June 18, 2021 (1) Subsequent to June 30, 2019 a total of 15,000 of the $3.00 warrants were exercised for cash proceeds of $45,000. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | Facility Leases See Note 7. Related Party Technology License Agreement The Company is obligated to pay royalties and pay development and patent costs pursuant to an exclusive Amended and Restated Intellectual Property License Agreement dated as of September 30, 2016 with Syzygy, a company owned and controlled by stockholders/officers Mr. Elwood Norris and Mr. James Barnes. The agreement provides for royalty payments of 4% of revenue from products employing the licensed ensnarement device technology up to an aggregate of $1,000,000 in royalties or until September 30, 2026, whichever occurs earlier. The Company recorded $2,231 and $6,719 for royalties incurred during the three and six months ended June 30, 2019, respectively. Purchase Commitments At June 30, 2019 the Company was committed for approximately $1.1 million for future component deliveries that are generally subject to modification or rescheduling in the normal course of business. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | Commencing in October 2017 the Company began reimbursing Mr. Elwood Norris, an officer and stockholder of the Company, $1,500 per month on a month to month basis for laboratory facility costs, for an aggregate of $9,000 during the six months ended June 30, 2019 and 2018. See Notes 1, 6, 8 and 10 for information on related party transactions and information. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | The Company evaluated subsequent events for their potential impact on the financial statements and disclosures through the date the financial statements were available to be issued, and determined that, except as disclosed herein, no subsequent events occurred that were reasonably expected to impact the financial statements presented herein. Specifically, see Note 9 for subsequent event information related to warrant exercises. |
ORGANIZATION AND SUMMARY OF S_2
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Business Description | Wrap Technologies, Inc., a Delaware corporation (the “ Company On June 18, 2019, the Company received gross cash proceeds of $12.50 million, or net cash proceeds of approximately $11.35 million after deduction of commissions and offering costs, from the public offering and sale of 1,923,076 units (“ Units June 2019 Follow-On Offering |
Basis of Presentation and Use of Estimates | The Company’s unaudited interim financial statements and related notes included herein have been prepared in accordance with accounting principles generally accepted in the United States of America (“ US GAAP SEC The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions (e.g., recognition and measurement of contingencies and accrued costs) that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements and affect the reported amounts of revenue and expense during the reporting period. Actual results could materially differ from those estimates. |
Concentrations of Risk | Credit Risk Concentrations of Accounts Receivable and Revenues Concentration of Suppliers |
Share-Based Compensation | The Company follows the fair value recognition provisions issued by the Financial Accounting Standards Board (“ FASB ASC ASC 718 ASU The grant date fair value of stock options is determined using the Black-Scholes option-pricing model. The Black-Scholes option-pricing model requires inputs including the market price of the Company’s common stock on the date of grant, the term that the stock options are expected to be outstanding, the implied stock volatilities of several publicly-traded peers over the expected term of stock options, risk-free interest rate and expected dividend. Each of these inputs is subjective and generally requires significant judgment to determine. The grant date fair value of restricted stock units is based upon the market price of the Company’s common stock on the date of the grant. The fair value of share-based compensation is amortized to compensation expense over the vesting term. |
Revenue Recognition | In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (“ ASU 2014-09 ASC 340-40 Topic 606 |
Accounts Receivable | Accounts receivable, net consists of trade accounts receivables from customers, net of allowance for doubtful accounts if deemed necessary. Accounts receivables are recorded at the invoiced amount. The Company does not require collateral or other security for accounts receivable. The Company periodically evaluates the collectability of its accounts receivable and provides an allowance for potential credit losses, based on the historical experience. At June 30, 2019 and December 31, 2018, the Company did not have an allowance for potential credit losses as there were no estimated credit losses. |
Net Loss per Share | Basic loss per common share is computed by dividing net loss for the period by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per common share reflects the potential dilution of securities that could share in the earnings of an entity. The Company’s losses for the periods presented cause the inclusion of potential common stock instruments outstanding to be antidilutive. Stock options, restricted stock units and warrants exercisable or issuable for a total of 9,997,123 shares of common stock were outstanding at June 30, 2019. These securities are not included in the computation of diluted net loss per common share for the periods presented as their inclusion would be antidilutive due to losses incurred by the Company. |
Income Taxes | Until its conversion to a corporation on March 31, 2017, the Company was treated as a partnership for federal and state income tax purposes and did not incur income taxes. Instead, its losses were included in the income tax returns of the member partners. No income tax expense was recorded for period ended June 30, 2019 due to losses incurred. Deferred tax assets and liabilities are determined based on temporary differences between the bases of certain assets and liabilities for income tax and financial reporting purposes. The Company maintains a valuation allowance with respect to deferred tax assets. The Company establishes a valuation allowance based upon the potential likelihood of realizing the deferred tax asset and taking into consideration the Company’s financial position and results of operations for the current period. Future realization of the deferred tax benefit depends on the existence of sufficient taxable income within the carry-forward period under the Federal tax laws. Changes in circumstances, such as the Company generating taxable income, could cause a change in judgment about the realizability of the related deferred tax asset. Any change in the valuation allowance will be included in income in the year of the change in estimates. |
Recent Issued Accounting Guidance | Recently Adopted Accounting Pronouncement: In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which is intended to increase transparency and comparability among organizations by requiring the recognition of right-of-use (“ ROU Effective the first quarter of 2020: In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (“ Topic 820 Other pronouncements: The Company has reviewed other recently issued, but not yet effective, accounting pronouncements and does not believe the future adoptions of any such pronouncements will be expected to cause a material impact on its financial condition or the results of operations. |
INVENTORIES, NET (Tables)
INVENTORIES, NET (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | June 30, December 31, 2019 2018 Finished goods $ 106,460 $ 82,313 Work in process 63,241 12,695 Raw materials 1,085,886 63,259 $ 1,255,587 $ 158,267 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment | June 30, December 31, 2019 2018 Laboratory equipment $ 30,047 $ 13,980 Tooling 56,234 22,683 Computer equipment 19,560 12,608 Furniture, fixtures and improvements 52,086 9,595 157,927 58,866 Accumulated depreciation (31,124 ) (28,493 ) $ 126,803 $ 30,373 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of intangible assets | June 30, December 31, 2019 2018 Patents $ 150,174 $ 111,160 Trademarks 38,397 8,910 188,571 120,070 Accumulated amortization (1,742 ) (1,355 ) $ 186,829 $ 118,715 |
ACCOUNTS PAYABLE AND ACCRUED _2
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Payables and Accruals [Abstract] | |
Summary of accrued liabilities | June 30, December 31, 2019 2018 Patent costs $ 7,800 $ 11,600 Accrued compensation 116,841 55,493 Warranty costs 3,931 428 Other 2,800 932 $ 131,372 $ 68,453 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Operating lease obligations | Operating lease liability- short term $ 104,327 Operating lease liability - long term 215,780 Total Operating Lease Liability $ 320,107 |
Future lease payments | Remainder of 2019 (six months) $ 53,705 2020 143,574 2021 101,406 2022 57,328 Total future minimum lease payments 356,013 Less imputed interest (35,996 ) Total $ 320,017 |
STOCKHOLDERS' EQUITY AND SHAR_2
STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock option activity | Weighted Average Options on Remaining Aggregate Common Exercise Contractual Intrinsic Shares Price Term Value Outstanding January 1, 2019 2,067,500 $ 1.68 4.44 $ 3,063,375 Granted 1,000,000 5.41 5.00 - Exercised (16,250 ) 1.50 - - Forfeited, cancelled, expired (75,000 ) 1.50 - - Outstanding June 30, 2019 2,976,250 $ 2.94 4.21 $ 9,757,700 Vested and exercisable at June 30, 2019 1,208,438 $ 1.58 3.92 $ 5,611,323 |
Assumptions used to compute the fair value of options granted | Six Months Ended June 30, 2019 Expected stock price volatility 49 % Risk-free interest rate 2.41 % Forfeiture rate 0 % Expected dividend yield 0 % Expected life of options - years 3.50 Weighted-average fair value of options granted $ 2.06 |
Service-based RSU activity | Service-Based Grant Date Vesting RSU's Fair Value Period Unvested at January 1, 2019 - Granted at May 23, 2019 263,087 $ 7.24 3 Years Vested - Forfeited and cancelled - Unvested at June 30, 2019 263,087 |
Stock-based compensation | For the Three Months For the Six Months Ended June 30, Ended June 30, 2019 2018 2019 2018 Selling, general and administrative $ 345,217 $ 125,878 $ 548,417 $ 125,878 Research and development 28,634 47,095 52,481 47,095 Total stock-based expense $ 373,851 $ 172,973 $ 600,898 $ 172,973 |
Warrant activity | Number Average Purchase Price Per Share Shares purchasable under outstanding warrants at January 1, 2019 5,017,181 $ 4.82 Stock purchase warrants issued 2,076,922 $ 6.62 Stock purchase warrants exercised (336,317 ) $ 4.63 Shares purchasable under outstanding warrants at June 30, 2019 6,757,786 $ 5.38 |
Summary of stock purchase warrants | Number of Exercise Price Description Common Shares Per Share Expiration Date Purchase Warrants (1) 4,286,907 $ 5.00 October 30, 2020 Agent Warrants 393,957 $ 3.00 October 30, 2020 Purchase Warrants 1,923,076 $ 6.50 June 18, 2021 Agent Warrants 153,846 $ 8.125 June 18, 2021 (1) |
INVENTORIES, NET (Details)
INVENTORIES, NET (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 106,460 | $ 82,313 |
Work in process | 63,241 | 12,695 |
Raw materials | 1,085,886 | 63,259 |
Inventory | $ 1,255,587 | $ 158,267 |
INVENTORIES, NET (Details Narra
INVENTORIES, NET (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |||
Inventory write down | $ (52,937) | $ (65,012) | $ 0 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Property and equipment, gross | $ 157,927 | $ 58,866 |
Accumulated depreciation | (31,124) | (28,493) |
Property and equipment, net | 126,803 | 30,373 |
Laboratory equipment | ||
Property and equipment, gross | 30,047 | 13,980 |
Tooling | ||
Property and equipment, gross | 56,234 | 22,683 |
Computer equipment | ||
Property and equipment, gross | 19,560 | 12,608 |
Furniture, fixtures and improvements | ||
Property and equipment, gross | $ 52,086 | $ 9,595 |
PROPERTY AND EQUIPMENT, NET (_2
PROPERTY AND EQUIPMENT, NET (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 7,621 | $ 2,858 | $ 12,186 | $ 4,846 |
INTANGIBLE ASSETS, NET (Details
INTANGIBLE ASSETS, NET (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Intangible assets, gross | $ 188,571 | $ 120,070 |
Accumulated amortization | (1,742) | (1,355) |
Intangible assets, net | 186,829 | 118,715 |
Patents | ||
Intangible assets, gross | 150,174 | 111,160 |
Trademarks | ||
Intangible assets, gross | $ 38,397 | $ 8,910 |
INTANGIBLE ASSETS, NET (Detai_2
INTANGIBLE ASSETS, NET (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 203 | $ 0 | $ 387 | $ 0 |
ACCOUNTS PAYABLE AND ACCRUED _3
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||
Patent costs | $ 7,800 | $ 11,600 |
Accrued compensation | 116,841 | 55,493 |
Warranty costs | 3,931 | 428 |
Other | 2,800 | 932 |
Accrued liabilities | $ 131,372 | $ 68,453 |
LEASES (Details)
LEASES (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
Operating lease liability- short term | $ 104,327 | $ 0 |
Operating lease liability - long term | 215,780 | $ 0 |
Total operating lease liability | $ 320,107 |
LEASES (Details 1)
LEASES (Details 1) | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
Remainder of 2019 (six months) | $ 53,705 |
2020 | 143,574 |
2021 | 101,406 |
2022 | 57,328 |
Total future minimum lease payments | 356,013 |
Less imputed interest | (35,996) |
Total | $ 320,107 |
STOCKHOLDERS' EQUITY AND SHAR_3
STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION (Details) | 6 Months Ended |
Jun. 30, 2019USD ($)$ / sharesshares | |
Share-based Payment Arrangement [Abstract] | |
Number of options outstanding, beginning | shares | 2,067,500 |
Number of options granted | shares | 1,000,000 |
Number of options exercised | shares | (16,250) |
Number of options forfeited/cancelled | shares | (75,000) |
Number of options outstanding, ending | shares | 2,976,250 |
Number of options vested and exercisable | shares | 1,208,438 |
Weighted average exercise price outstanding, beginning | $ 1.68 |
Weighted average exercise price granted | 5.41 |
Weighted average exercise price exercised | 1.50 |
Weighted average exercise price forfeited/cancelled | 1.50 |
Weighted average exercise price outstanding, ending | 2.94 |
Weighted average exercise price vested and exercisable | $ 1.58 |
Weighted average remaining contractual term outstanding, beginning | 4 years 5 months 8 days |
Weighted average remaining contractual term granted | 5 years |
Weighted average remaining contractual term outstanding, ending | 4 years 2 months 16 days |
Weighted average remaining contractual term vested and exercisable | 3 years 11 months 1 day |
Aggregate intrinsic value outstanding, beginning | $ | $ 3,063,375 |
Aggregate intrinsic value granted | $ 0 |
Aggregate intrinsic value exercised | $ | $ 0 |
Aggregate intrinsic value forfeited/cancelled | $ 0 |
Aggregate intrinsic value outstanding, ending | $ | $ 9,757,700 |
Aggregate intrinsic value vested and exercisable | $ | $ 5,611,323 |
STOCKHOLDERS' EQUITY AND SHAR_4
STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION (Details 1) | 6 Months Ended |
Jun. 30, 2019$ / shares | |
Share-based Payment Arrangement [Abstract] | |
Expected stock price volatility | 49.00% |
Risk-free interest rate | 2.41% |
Forfeiture rate | 0.00% |
Expected dividend yield | 0.00% |
Expected life of options - years | 3 years 6 months |
Weighted-average fair value of options granted | $ 2.06 |
STOCKHOLDERS' EQUITY AND SHAR_5
STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION (Details 2) | 6 Months Ended |
Jun. 30, 2019$ / sharesshares | |
Share-based Payment Arrangement [Abstract] | |
Unvested service-based RSUs outstanding, beginning | 0 |
Granted | 263,087 |
Vested | 0 |
Forfeited and cancelled | 0 |
Unvested service-based RSUs outstanding, ending | 263,087 |
Grant date fair value | $ / shares | $ 7.24 |
Vesting period | 3 years |
STOCKHOLDERS' EQUITY AND SHAR_6
STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION (Details 3) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based compensation | $ 373,851 | $ 172,973 | $ 600,898 | $ 172,973 |
Selling, general and administrative | ||||
Share-based compensation | 345,217 | 125,878 | 548,417 | 125,878 |
Research and development | ||||
Share-based compensation | $ 28,634 | $ 47,095 | $ 52,481 | $ 47,095 |
STOCKHOLDERS' EQUITY AND SHAR_7
STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION (Details 4) | 6 Months Ended |
Jun. 30, 2019$ / sharesshares | |
Share-based Payment Arrangement [Abstract] | |
Warrants outstanding, beginning | shares | 5,017,181 |
Issued | shares | 2,076,922 |
Exercised | shares | (336,317) |
Warrants outstanding, ending | shares | 6,757,786 |
Average purchase price per share outstanding, beginning | $ / shares | $ 4.82 |
Issued | $ / shares | 6.62 |
Exercised | $ / shares | 4.63 |
Average purchase price per share outstanding, ending | $ / shares | $ 5.38 |
STOCKHOLDERS' EQUITY AND SHAR_8
STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION (Details 5) | 6 Months Ended | |
Jun. 30, 2019USD ($)$ / shares | ||
Purchase Warrants | ||
Number of common shares | $ | $ 4,286,907 | [1] |
Exercise price per share | $ / shares | $ 5 | |
Expiration date | Oct. 30, 2020 | |
Agent Warrants | ||
Number of common shares | $ | $ 393,957 | |
Exercise price per share | $ / shares | $ 3 | |
Expiration date | Oct. 30, 2020 | |
Purchase Warrants | ||
Number of common shares | $ | $ 1,923,076 | |
Exercise price per share | $ / shares | $ 6.50 | |
Expiration date | Jun. 18, 2021 | |
Agent Warrants | ||
Number of common shares | $ | $ 153,846 | |
Exercise price per share | $ / shares | $ 8.125 | |
Expiration date | Jun. 18, 2021 | |
[1] | 333,334 warrants are held by a family trust of officer Elwood G. Norris. |
STOCKHOLDERS' EQUITY AND SHAR_9
STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION (Details Narrative) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
Share-based Payment Arrangement [Abstract] | ||
Common stock, authorized | 150,000,000 | 150,000,000 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, authorized | 5,000,000 | 5,000,000 |
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Royalties | $ 2,231 | $ 6,719 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Related Party Transactions [Abstract] | ||
Payment to related party during period | $ 9,000 | $ 9,000 |