Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 22, 2020 | |
Document And Entity Information | ||
Entity Registrant Name | SIGMA LABS, INC. | |
Entity Central Index Key | 0000788611 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2020 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business Flag | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 3,926,362 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2020 |
Condensed Balance Sheets (Unaud
Condensed Balance Sheets (Unaudited) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Current Assets: | ||
Cash | $ 2,445,766 | $ 86,919 |
Accounts Receivable, net | 286,405 | 55,540 |
Inventory | 585,640 | 598,718 |
Prepaid Assets | 118,031 | 199,727 |
Total Current Assets | 3,435,842 | 940,904 |
Other Assets: | ||
Property and Equipment, net | 117,006 | 128,723 |
Intangible Assets, net | 644,286 | 569,341 |
Investment in Joint Venture | 500 | |
Long-Term Prepaid Asset | 52,000 | 52,000 |
Total Other Assets | 813,292 | 750,564 |
TOTAL ASSETS | 4,249,134 | 1,691,468 |
Current Liabilities: | ||
Accounts Payable | 295,220 | 727,114 |
Notes Payable | 50,000 | |
Deferred Revenue | 99,588 | 139,447 |
Accrued Expenses | 272,442 | 122,658 |
Total Current Liabilities | 667,250 | 1,039,219 |
Long-Term Liabilities: | ||
CARES Act Deferred Payroll Tax Liability | 22,072 | |
Total Long-Term Liabilities | 22,072 | |
TOTAL LIABILITIES | 689,322 | 1,039,219 |
Stockholders' Equity | ||
Preferred Stock, $0.001 par; 10,000,000 shares authorized; 333 and 0 issued and outstanding, respectively | 1 | |
Common Stock, $0.001 par; 12,000,000 shares authorized; 3,926,362 and 1,403,759 issued and outstanding, respectively | 3,926 | 1,404 |
Additional Paid-In Capital | 33,151,829 | 26,746,439 |
Accumulated Deficit | (29,595,944) | (26,095,594) |
Total Stockholders' Equity | 3,559,812 | 652,249 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 4,249,134 | $ 1,691,468 |
Condensed Balance Sheets (Una_2
Condensed Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 333 | 0 |
Preferred stock, shares outstanding | 333 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 12,000,000 | 12,000,000 |
Common stock, shares issued | 3,926,362 | 1,403,759 |
Common stock, shares outstanding | 3,926,362 | 1,403,759 |
Condensed Statements of Operati
Condensed Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Statement [Abstract] | ||||
REVENUES | $ 167,688 | $ 33,582 | $ 389,418 | $ 98,032 |
COST OF REVENUE | 57,684 | 60,625 | 302,387 | 157,180 |
GROSS PROFIT (LOSS) | 110,004 | (27,043) | 87,031 | (59,148) |
OPERATING EXPENSES: | ||||
Salaries & Benefits | 605,295 | 581,356 | 1,257,492 | 1,093,916 |
Stock-Based Compensation | 270,818 | 220,360 | 424,989 | 474,566 |
Operating R&D Costs | 111,647 | 118,845 | 165,335 | 264,117 |
Investor & Public Relations | 171,287 | 157,318 | 409,555 | 315,107 |
Legal & Professional Service Fees | 219,007 | 218,919 | 430,515 | 403,489 |
Office Expenses | 78,843 | 184,068 | 226,590 | 350,178 |
Depreciation & Amortization | 17,970 | 49,203 | 35,983 | 97,586 |
Other Operating Expenses | 51,687 | 38,994 | 135,736 | 77,203 |
Total Operating Expenses | 1,526,554 | 1,569,064 | 3,086,195 | 3,076,162 |
LOSS FROM OPERATIONS | (1,416,550) | (1,596,107) | (2,999,164) | (3,135,310) |
OTHER INCOME (EXPENSE) | ||||
Interest Income | 31 | 7,016 | 882 | 12,798 |
State Incentives | 151,657 | 151,657 | 51,877 | |
Exchange Rate Gain (Loss) | (31) | (2,264) | (1,422) | (2,710) |
Interest Expense | (6,244) | (2,136) | (6,675) | (4,258) |
Loss on Dissolution of Joint Venture | (201) | (201) | ||
Other Income | 361,700 | 361,700 | ||
Total Other Income (Expense) | 506,912 | 2,616 | 505,941 | 57,707 |
LOSS BEFORE PROVISION FOR INCOME TAXES | (909,638) | (1,593,491) | (2,493,223) | (3,077,603) |
Provision for income Taxes | ||||
Net Loss | (909,638) | (1,593,491) | (2,493,223) | (3,077,603) |
Preferred Dividends | (691,880) | (1,007,127) | ||
Net Loss Applicable to Common Stockholders | $ (1,601,518) | $ (1,593,491) | $ (3,500,350) | $ (3,077,603) |
Net Loss per Common Share - Basic and Diluted | $ (0.49) | $ (1.5) | $ (1.48) | $ (3.1) |
Weighted Average Number of Shares Outstanding - Basic and Diluted | 3,256,098 | 1,077,759 | 2,359,862 | 1,006,381 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
OPERATING ACTIVITIES | ||
Net Loss | $ (2,493,223) | $ (3,077,603) |
Noncash Expenses: | ||
Depreciation and Amortization | 35,983 | 97,586 |
Stock Based Compensation | 424,989 | 474,566 |
Securities Issued for Third Party Services | 54,924 | |
Change in assets and liabilities: | ||
Accounts Receivable | (230,865) | 818 |
Interest Receivable | 27,038 | |
Inventory | 13,078 | (330,340) |
Prepaid Assets | 81,695 | (1,463) |
Accounts Payable | (431,893) | 150,567 |
Deferred Revenue | (39,860) | 27,275 |
Accrued Expenses | 149,785 | (105,678) |
NET CASH USED IN OPERATING ACTIVITIES | (2,435,387) | (2,737,650) |
INVESTING ACTIVITIES | ||
Purchase of Property and Equipment | (11,474) | (23,796) |
Purchase of Intangible Assets | (87,736) | (107,124) |
Payment Received from Notes Receivable | 15,000 | |
Dissolution of Joint Venture | 500 | |
NET CASH USED IN INVESTING ACTIVITIES | (98,710) | (115,920) |
FINANCING ACTIVITIES | ||
Gross Proceeds from Public and Private Issuances of Securities | 3,600,000 | 2,521,220 |
Less Offering Costs | (820,228) | (326,890) |
Payment of Note Payable | (50,000) | |
Proceeds from Exercise of Warrants | 2,141,100 | 75,848 |
Deferral of Payroll Taxes under the CARES Act | 22,072 | |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 4,892,944 | 2,270,178 |
NET CHANGE IN CASH FOR PERIOD | 2,358,847 | (583,392) |
CASH AT BEGINNING OF PERIOD | 86,919 | 1,279,782 |
CASH AT END OF PERIOD | 2,445,766 | 696,390 |
Noncash investing and financing activities disclosure: | ||
Issuance of Common Shares for Conversion of Preferred Shares and Preferred Dividends | 3,417,967 | |
Issuance of Securities for services | 62,794 | 153,000 |
Interest | 9,359 | 2,514 |
Income Taxes |
Statement of Stockholders' Equi
Statement of Stockholders' Equity (Unaudited) - USD ($) | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Total |
Balance at Dec. 31, 2018 | $ 878 | $ 21,509,306 | $ (19,774,745) | $ 1,735,439 | |
Balance, shares at Dec. 31, 2018 | 877,663 | ||||
Net loss | (3,077,603) | (3,077,603) | |||
Shares sold in Public Offering | $ 140 | 1,679,190 | 1,679,330 | ||
Shares sold in Public Offering, shares | 140,080 | ||||
Shares Sold in Private Placement | $ 40 | 514,960 | 515,000 | ||
Shares Sold in Private Placement, shares | 40,000 | ||||
Shares issued for Exercise of Warrants | $ 7 | 75,841 | 75,848 | ||
Shares issued for Exercise of Warrants, shares | 7,023 | ||||
Shares Issued for Cashless Exchange of UPO's | $ 9 | (9) | |||
Shares Issued for Cashless Exchange of UPO's, shares | 8,843 | ||||
Shares Issued for Services | $ 20 | 152,980 | 153,000 | ||
Shares Issued for Services, shares | 20,150 | ||||
Stock Options Awarded to Employees | 321,150 | 321,150 | |||
Balance at Jun. 30, 2019 | $ 1,094 | 24,253,419 | (22,852,348) | 1,402,165 | |
Balance, shares at Jun. 30, 2019 | 1,093,759 | ||||
Balance at Mar. 31, 2019 | $ 1,054 | 23,518,514 | (21,258,857) | 2,260,711 | |
Balance, shares at Mar. 31, 2019 | 1,053,759 | ||||
Net loss | (1,593,491) | (1,593,491) | |||
Shares Sold in Private Placement | $ 40 | 514,960 | 515,000 | ||
Shares Sold in Private Placement, shares | 40,000 | ||||
Shares Issued for Services | 75,000 | 75,000 | |||
Shares Issued for Services, shares | |||||
Stock Options Awarded to Employees | 144,944 | 144,944 | |||
Balance at Jun. 30, 2019 | $ 1,094 | 24,253,419 | (22,852,348) | 1,402,165 | |
Balance, shares at Jun. 30, 2019 | 1,093,759 | ||||
Balance at Dec. 31, 2019 | $ 1,404 | 26,746,439 | (26,095,594) | 652,249 | |
Balance, shares at Dec. 31, 2019 | 1,403,759 | ||||
Preferred Stock Dividends, shares | 86,801 | ||||
Common Shares issued for Conversion of Preferred Shares, shares | 321,517 | ||||
Balance at Mar. 31, 2020 | $ 2 | $ 1,818 | 29,425,382 | (27,994,426) | 1,432,776 |
Balance, shares at Mar. 31, 2020 | 1,378 | 1,817,834 | |||
Balance at Dec. 31, 2019 | $ 1,404 | 26,746,439 | (26,095,594) | 652,249 | |
Balance, shares at Dec. 31, 2019 | 1,403,759 | ||||
Net loss | (2,493,223) | (2,493,223) | |||
Common Shares Sold in Public Offering | $ 493 | 1,499,507 | 1,500,000 | ||
Common Shares Sold in Public Offering, shares | 493,027 | ||||
Preferred Shares Sold in Private Offering | $ 3 | 2,099,997 | 2,100,000 | ||
Preferred Shares Sold in Private Offering, shares | 1,973 | ||||
Preferred Stock Dividends | $ 410 | 1,006,717 | (1,007,127) | ||
Preferred Stock Dividends, shares | 410,425 | ||||
Common Shares issued for Conversion of Preferred Shares | $ (4) | $ 1,602 | (1,598) | ||
Common Shares issued for Conversion of Preferred Shares, shares | (3,836) | 1,601,877 | |||
Preferred Shares issued for Exercise of Preferred Warrants | $ 2 | 2,141,098 | 2,141,100 | ||
Preferred Shares issued for Exercise of Preferred Warrants, shares | 2,196 | ||||
Securities Issued for Third Party Services | $ 3 | 54,921 | 54,924 | ||
Securities Issued for Third Party Services, shares | 2,500 | ||||
Stock Options Awarded to Employees | 417,120 | 417,120 | |||
Common Shares Awarded to Employees | $ 11 | 7,859 | 7,870 | ||
Common Shares Awarded to Employees, shares | 11,517 | ||||
Offering Costs | (820,228) | (820,228) | |||
Issuance of Fractional Shares from Reverse Split | $ 3 | (3) | |||
Issuance of Fractional Shares from Reverse Split, shares | 3,257 | ||||
Balance at Jun. 30, 2020 | $ 1 | $ 3,926 | 33,151,829 | (29,595,944) | 3,559,812 |
Balance, shares at Jun. 30, 2020 | 333 | 3,926,362 | |||
Balance at Mar. 31, 2020 | $ 2 | $ 1,818 | 29,425,382 | (27,994,426) | 1,432,776 |
Balance, shares at Mar. 31, 2020 | 1,378 | 1,817,834 | |||
Net loss | (909,638) | (909,638) | |||
Common Shares Sold in Public Offering | $ 493 | 1,499,507 | 1,500,000 | ||
Common Shares Sold in Public Offering, shares | 493,027 | ||||
Preferred Shares Sold in Private Offering | |||||
Preferred Stock Dividends | $ 323 | 691,557 | (691,880) | ||
Preferred Stock Dividends, shares | 323,624 | ||||
Common Shares issued for Conversion of Preferred Shares | $ (2) | $ 1,281 | (1,279) | ||
Common Shares issued for Conversion of Preferred Shares, shares | (2,729) | 1,280,360 | |||
Preferred Shares issued for Exercise of Preferred Warrants | $ 1 | 1,641,899 | 1,641,900 | ||
Preferred Shares issued for Exercise of Preferred Warrants, shares | 1,684 | ||||
Securities Issued for Third Party Services | 15,306 | 15,306 | |||
Stock Options Awarded to Employees | 262,950 | 262,950 | |||
Common Shares Awarded to Employees | $ 11 | 7,859 | 7,870 | ||
Common Shares Awarded to Employees, shares | 11,517 | ||||
Offering Costs | (391,352) | (391,352) | |||
Balance at Jun. 30, 2020 | $ 1 | $ 3,926 | $ 33,151,829 | $ (29,595,944) | $ 3,559,812 |
Balance, shares at Jun. 30, 2020 | 333 | 3,926,362 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 1 - Summary of Significant Accounting Policies Nature of Business Basis of Presentation Reclassification Loss Per Share - Six Months Ended June 30, 2020 2019 Warrants 1,845,722 362,061 Preferred Stock Warrants 2,147,277 - Stock Options 486,720 110,820 Preferred Stock 61,651 - Convertible Note Payable - 2,500 Total Underlying Common Shares 4,541,370 475,381 The following data shows the amounts used in computing loss per share and the effect on income and the weighted average number of shares of dilutive potential common stock for the periods ended June 30, 2020 and 2019: Three Months Ended June 30 Six Months Ended June 30 2020 2019 2020 2019 Net Loss per Common Share - Basic and Diluted $ (0.49 ) $ (1.50 ) (1.48 ) $ (3.10 ) Loss from continuing Operations available to Common stockholders (numerator) $ (1,601,518 ) $ (1,593,491 ) (3,500,350 ) $ (3,077,603 ) Weighted average number of common shares Outstanding used in loss per share during the Period (denominator) 3,256,098 1,077,759 2,359,862 1,006,381 Recently Enacted Accounting Standards Accounting Estimates |
Inventory
Inventory | 6 Months Ended |
Jun. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Inventory | NOTE 2 – Inventory At June 30, 2020 and December 31, 2019, the Company’s inventory was comprised of: June 30, 2020 December 31, 2019 Raw Materials $ 170,530 $ 173,102 Work in Process 16,072 92,493 Finished Goods 399,038 333,123 Total Inventory $ 585,640 $ 598,718 |
Notes Payable
Notes Payable | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Notes Payable | NOTE 3 - Notes Payable On January 31, 2020, the Company paid off its Secured Convertible Promissory Note in full in the amount of $56,458, including accrued interest of $1,458 and a late fee penalty of $5,000. |
Paycheck Protection Plan Loan
Paycheck Protection Plan Loan | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Paycheck Protection Plan Loan | NOTE 4 – Paycheck Protection Plan Loan On April 14, 2020, the Company was granted a loan from BOKF, NA dba Bank of Oklahoma in the aggregate amount of $361,700, pursuant to the Paycheck Protection Program (the “ ” Coronavirus Aid, Relief and Economic Security Act (the “ ” As of June 30, 2020, The Company does not anticipate taking any action that would cause any portion of the loan to be ineligible for forgiveness. However, to the extent that any amount is deemed unforgivable, such amount is payable over two to five years at an interest rate of 1%, with a deferral of payments for the first six months. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | NOTE 5 - Stockholders’ Equity Common Stock Effective February 27, 2020, our Articles of Incorporation were amended to provide for a reverse stock split of the outstanding shares of our common stock on a 1-for-10 basis (the “Reverse Stock Split”), and a corresponding decrease in the number of shares of our common stock that we are authorized to issue (the “Share Decrease”). The effects of the stock split have been retroactively reflected to all periods presented. On March 27, 2020, at a special shareholders’ meeting, our authorized shares of common stock were increased from 2,250,000 to 8,000,000. At our annual shareholders’ meeting held on June 15, 2020, our authorized shares of common stock were increased from 8,000,000 to 12,000,000. On April 6, 2020, the Company closed a public offering of equity securities in which it issued 493,027 shares of common stock and pre-funded warrants to purchase up to 22,438 shares of the Company’s common stock. The Company also issued Series A Warrants to purchase an aggregate of 515,465 shares of the Company’s common stock pursuant to a private placement. In connection with this offering, the Company issued Dawson James Securities, Inc., its Placement Agent, a warrant to purchase an aggregate of 41,237 shares of the Company’s Common Stock (which amount is based on the number of Common Shares and shares underlying the Pre-Funded Warrants) at an exercise price of $3.64 per share. Net proceeds to the Company after deducting offering expenses were approximately $1,230,000. In the second quarter of 2020, the Company issued 1,280,360 shares of common stock in exchange for the conversion of 1,684 shares of Series D Convertible Preferred stock, and 323,624 shares of common stock as in-kind payment of preferred stock dividends. In April 2020, the Company granted 11,517 shares of common stock to employees under the 2013 Equity Incentive Plan. Such shares will vest on December 31, 2020 as long as the grantee is employed by the Company on that date. In the first quarter of 2020, the Company issued 321,517 shares of common stock in exchange for the conversion of 1,107 shares of Series D Convertible Preferred stock, and 86,801 shares of common stock as in-kind payment of preferred stock dividends. In February 2020, the Company issued 2,500 shares of common stock valued at $8.70 per share to MHZCI, LLC, an investor relations firm engaged by the Company, as partial compensation for services to be rendered. In January 2019, the Company issued a total of 200,000 shares of common stock to directors valued at $1.50 per share, or $300,000, with such shares to vest ratably over four quarterly instalments, subject in each case to such director’s continuing service as a director. Also in January 2019, the Company issued 88,431 shares of common stock upon the cashless exercise of Unit Purchase Options issued in our June 2018 public offering. In January and February 2019, the Company issued a total of 70,230 shares of common stock upon the exercise of 70,230 warrants having an exercise price of $1.08 resulting in gross cash proceeds of $75,848. In March 2019, the Company issued 1,500 shares of common stock to the Company’s Vice President of Business Development in connection with his achievement of performance milestones, with such shares vesting immediately. Also in March 2019, the Company closed a public offering of equity securities in which it issued 1,400,800 shares of common stock and warrants to purchase a total of 420,240 shares of common stock resulting in net proceeds of approximately $1,679,230, after deducting placement agent commissions and other offering expenses payable by the Company. In May 2019, the Company closed a private placement of equity securities in which it issued 400,000 shares of common stock and warrants to purchase a total of 220,000 shares of common stock resulting in net proceeds of approximately $515,000, after deducting placement agent commissions and other offering expenses payable by the Company. Preferred Stock The Company is authorized to issue 10,000,000 shares of preferred stock, $0.001 par value. 333 and 0 shares of preferred stock were issued and outstanding at June 30, 2020 and 2019, respectively. In January 2020, the Company entered into a Securities Purchase Agreement (the “SPA”) with certain institutional investors (the “Institutional Private Placement”). Pursuant to the SPA, the Company issued and sold 1,640 shares of the Company’s newly created Series D Convertible Preferred Stock (the “Series D Preferred Stock”). Under the Certificate of Designations for the Series D Preferred Stock, the Series D Preferred Stock has an initial stated value of $1,000 per share (the “Stated Value”). Dividends accrue at a dividend rate of 9% per annum (subject to increase upon the occurrence (and during the continuance) of certain triggering events described therein) and, on a monthly basis, shall be payable in kind by the increase of the Stated Value of the Series D Preferred Shares by said amount. The holders of the Series D Preferred Shares will have the right at any time to convert all or a portion of the Series D Preferred Shares (including, without limitation, accrued and unpaid dividends and make-whole dividends through the third anniversary of the closing date) into shares of the Company’s Common Stock at the conversion price then in effect, which is $2.50 (subject to adjustment for stock splits, dividends, recapitalizations and similar events and full ratchet price protection). In addition, a holder may at any time, alternatively, convert all, or any part, of its Series D Preferred Shares at an alternative conversion price, which equals the lower of the applicable conversion price then in effect, and the greater of (x) $1.80 and (y) 85% of the average volume weighted average price (“VWAP”) of the Common Stock for a five (5) trading day period prior to such conversion. Upon the occurrence of certain triggering events, described in the Certificate of Designations, including, but not limited to payment defaults, breaches of transaction documents, failure to maintain listing on the Nasdaq Capital Market, and other defaults set forth therein, the Series D Preferred Shares would become subject to redemption, at the option of a holder, at a 125% premium to the underlying value of the Series D Preferred Shares being redeemed At June 30, 2020 there were 0 shares of Series D Convertible Preferred stock outstanding. Concurrent with the Institutional Private Placement, the Company entered into a Securities Purchase Agreement (the “SPA”) with certain of its directors and the Company’s largest shareholder (the “Other Private Placement”). Pursuant to the SPA, the Company issued and sold 333 shares of the Company’s newly created Series E Convertible Preferred Stock (the “Series E Preferred Stock”). Dividends accrue at a dividend rate of 9% per annum and, on a monthly basis, shall be payable in kind by the increase of the Stated Value of the Series E Preferred Shares by said amount. The Series E Preferred Stock is initially convertible into 48,544 shares of Common Stock. At June 30, 2020, all of the issued Series E Convertible Preferred Stock were outstanding, which if converted as of June 30, 2020, including the make-whole dividends, would have resulted in the issuance of 61,651 shares of common stock. Deferred Compensation In previous years and in the six months ended June 30, 2020, the Company issued to various employees, directors, and contractors shares of the Company’s common stock, subject to restrictions, pursuant to the 2013 Equity Incentive Plan (the “2013 Plan”). Such shares are valued at the fair value at the date of issue. The fair value is expensed as compensation over the vesting period and recorded as an increase to stockholders’ equity. During the six months ended June 30, 2020 and June 30, 2019, $7,870 and $153,000, respectively, of the unvested compensation cost related to these issues was recognized. At June 30, 2020, there was $15,740 of unrecognized deferred compensation expense to be recognized over the remainder of the year. Stock Options On June 15, 2020, at the Annual Meeting of Stockholders of the Company, the Company’s stockholders approved an amendment to the 2013 Plan to increase the number of shares of the Company’s common stock reserved for issuance under the 2013 Plan by 650,000 shares of our common stock to a total of 890,000 shares. In August 2019, the Company terminated its 2011 Equity Incentive Plan. As of June 30, 2020, an aggregate of 436,720 shares of common stock were reserved for issuance under the 2013 Plan. During the six months ended June 30, 2020, the Company granted options to purchase a total of 335,183 shares of common stock to 19 employees and 4 consultants with vesting periods ranging from immediately upon issuance to 3 years beginning June 15, 2020. During the six months ended June 30, 2019, the Company granted options to purchase a total of 286,925 shares of common stock to 18 employees and 1 consultant with vesting periods ranging from immediately upon issuance to 4 years beginning January 2019. The Company generally grants stock options to employees and directors at exercise prices equal to the fair market value of the Company’s stock on the dates of grant. Stock options are typically granted throughout the year and generally vest over four years of service and expire five years from the date of the award, unless otherwise specified. The Company recognizes compensation expense for the fair value of the stock options over the requisite service period for each stock option award. Total share-based compensation expense included in the statements of operations for the six months ended June 30, 2020 and 2019 is $424,989 and $474,566 of which $417,119 and $321,149 is related to stock options, respectively. The fair value of share-based awards was estimated using the Black-Scholes model with the following weighted-average assumptions for the six months ended June 30, 2020 and 2019: Assumptions: 2020 2019 Dividend yield 0.00 0.00 Risk-free interest rate .22-1.52 % 1.90-2.54 % Expected volatility 113.8-117.2 % 105.2-106.1 % Expected life (in years) 5 5 Option activity for the six months ended June 30, 2020 and the year ended December 31, 2019 was as follows: Weighted Average Weighted Average Exercise Remaining Aggregate Price Contractual Intrinsic Options ($) Life (Yrs.) Value ($) Options outstanding at December 31, 2018 82,627 24.90 6.47 60,090 Granted 100,335 12.50 4.79 Exercised - - - Forfeited or cancelled (2,050 ) 16.80 - Options outstanding at December 31, 2019 180,912 18.11 5.09 25,988 Granted 335,183 2.58 4.94 52,214 Exercised - - - - Forfeited or cancelled (29,375 ) 28.01 Options outstanding June 30, 2020 486,720 6.82 4.70 62,384 Options expected to vest in the future as of June 30, 2020 305,715 5.23 4.82 41,480 Options exercisable at June 30, 2020 181,005 9.51 4.49 20,904 Options vested, exercisable, and options expected to vest at June 30, 2020 486,720 62,384 The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted price of our common stock for those awards that have an exercise price currently below the $2.67 closing price of our common stock on June 30, 2020. 324,833 of the 2020 option grants have an exercise price currently below $2.67. At June 30, 2020, there was $1,088,934 of unrecognized share-based compensation expense related to unvested share options with a weighted average remaining recognition period of 3.13 years. Stock Appreciation Rights On June 23, 2020, the board of directors (the “Board”) of the Company adopted the Sigma Labs, Inc. 2020 Stock Appreciation Rights Plan (the “Plan”). The purposes of the Plan are to: (i) enable the Company to attract and retain the types of employees, consultants and directors (collectively, “Service Providers”) who will contribute to the Company’s long range success; (ii) provide incentives that align the interests of Service Providers with those of the shareholders of the Company; and (iii) promote the success of the Company’s business. The Plan provides for incentive awards that are only made in the form of stock appreciation rights payable in cash (“SARs”). No shares of common stock were reserved in connection with the adoption of the Plan since no shares will be issued pursuant to the Plan. SARs may be granted to any Service Provider. A SAR is the right to receive an amount equal to the Spread with respect to a share of the Company’s common stock (“Share”) upon the exercise of the SAR. The “Spread” is the difference between the exercise price per share specified in a SAR agreement on the date of grant and the fair market value per share on the date of exercise of the SAR. The exercise price per share will not be less than 100% of the fair market value of a Share on the date of grant of the SAR. The administrator of the Plan will have the authority to, among other things, prescribe the terms and conditions of each SAR, including, without limitation, the exercise price and medium of payment and vesting provisions, and to specify the provisions of the SAR Agreement relating to such grant. On June 23, 2020, the Company granted, pursuant to the Plan, (i) 60,094 SARs to its President and Chief Executive Officer, (ii) 12,019 SARs to its Vice President of Business Development, (iii) 24,038 SARs to its Chief Technology Officer, and (iv) 18,028 SARs to its Chief Financial Officer. The exercise price of each such SAR is $2.63, which was the closing price of the Company’s common stock on the date of grant. Such SARs expire on the fifth anniversary of the grant date and may be settled only in cash. Additionally, each such SAR will vest and become exercisable in three equal (as closely as possible) installments on each of the first, second and third anniversaries of the grant date, subject, in each case, to the applicable SAR holder being in the continuous employ of the Company on the applicable vesting date, and, in the event of a Change in Control (as defined in the Plan), will become immediately vested and exercisable as long as the applicable holder is in the Company’s employ immediately prior to the Change in Control, and will otherwise be on such other terms set forth in the form of Stock Appreciation Rights Agreement. The Company recognizes compensation expense and a corresponding liability for the fair value of the SARs over the requisite service period for each SAR award. The SAR’s are revalued at each reporting date in accordance with ASC 718 “Compensation-Stock Compensation”, and any changes in fair value are reflected in income as of the applicable reporting date. The fair value of SAR awards was estimated using the Black-Scholes model with the following weighted-average assumptions for the six months ended June 30, 2020: Assumptions: 2020 Dividend yield 0.00 Risk-free interest rate .22 % Expected volatility 116.9 % Expected life (in years) 5 SARs activity for the six months ended June 30, 2020 was as follows: Weighted Average Weighted Average Exercise Remaining Aggregate Price Contractual Intrinsic SARs ($) Life (Yrs.) Value ($) SARs outstanding at December 31, 2019 - - - - Granted 114,179 2.63 4.98 - Exercised - - - - Forfeited or cancelled - - SARs outstanding June 30, 2020 114,129 2.63 4.98 5,709 SARs expected to vest in the future as of June 30, 2020 114,179 2.63 4.98 5,709 SARs exercisable at June 30, 2020 - - - - SARs vested, exercisable, and options expected to vest at June 30, 2020 114,179 2.63 4.98 5,709 The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted price of our common stock for those awards that have an exercise price currently below the $2.67 closing price of our common stock on June 30, 2020. All of the 2020 SARs grants have an exercise price currently below $2.67. At June 30, 2020, there was $236,419 of unrecognized share-based compensation expense related to unvested SARs with a weighted average remaining recognition period of 2.98 years. Warrants Warrant activity for the six months ended June 30, 2020 and 2019 was as follows: Weighted Average Weighted Average Exercise Remaining Price Contractual Warrants ($) Life (Yrs.) Warrants outstanding at December 31, 2018 305,060 27.50 3.86 Granted 64,024 16.00 4.94 Exercised (7,023 ) 10.80 - Forfeited or cancelled - - - Warrants outstanding at June 30, 2019 362,061 25.80 3.63 Warrants outstanding at December 31, 2019 363,727 25.60 3.12 Granted 1,481,995 3.22 5.14 Exercised - Forfeited or cancelled - Warrants outstanding at June 30, 2020 1,845,722 7.64 4.64 In connection with its January 2020 private placement, the Company issued 6,156 warrants to purchase its Series D Preferred Stock (the Preferred Warrants”). The Preferred Warrants have an exercise price of $975 per warrant and expire on February 15, 2021. Pursuant to the terms of the Securities Purchase Agreement, the Company forced the exercise of 512 warrants on March 27, 2020. During the second quarter, an additional 1,684 warrants were exercised, resulting in the issuance of 1,603,984 shares of common stock. As of June 30, 2020, there were 3,960 Preferred Warrants outstanding, which if exercised would result in the issuance of 3,960 shares of Series D Convertible Preferred Stock. The Series D Convertible Preferred stock, including make-whole dividends, was convertible into 2,147,277 shares of common stock on June 30, 2020. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 6 - Subsequent Events The Company performed an evaluation of subsequent events through the date of filing of these condensed financial statements with the SEC. There were no material subsequent events which affected, or could affect, the amounts or disclosures in the condensed financial statements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Nature of Business | Nature of Business -Sigma Labs, Inc., formerly named Framewaves, Inc., a Nevada corporation, was founded by a group of scientists, engineers and businessmen to develop and commercialize novel and unique manufacturing and materials technologies. Sigma believes that some of these technologies will fundamentally redefine conventional quality assurance and process control practices by embedding them into the manufacturing processes in real time, enabling process intervention and ultimately leading to closed loop process control. The Company anticipates that its core technologies will allow its clientele to combine advanced manufacturing quality assurance and process control protocols with novel materials to achieve breakthrough product potential in many industries including aerospace, defense, oil and gas, bio-medical, and power generation. The terms the “Company,” “Sigma,” “we,” “us” and “our” refer to Sigma Labs, Inc. |
Basis of Presentation | Basis of Presentation |
Reclassification | Reclassification |
Loss Per Share | Loss Per Share - Six Months Ended June 30, 2020 2019 Warrants 1,845,722 362,061 Preferred Stock Warrants 2,147,277 - Stock Options 486,720 110,820 Preferred Stock 61,651 - Convertible Note Payable - 2,500 Total Underlying Common Shares 4,541,370 475,381 The following data shows the amounts used in computing loss per share and the effect on income and the weighted average number of shares of dilutive potential common stock for the periods ended June 30, 2020 and 2019: Three Months Ended June 30 Six Months Ended June 30 2020 2019 2020 2019 Net Loss per Common Share - Basic and Diluted $ (0.49 ) $ (1.50 ) (1.48 ) $ (3.10 ) Loss from continuing Operations available to Common stockholders (numerator) $ (1,601,518 ) $ (1,593,491 ) (3,500,350 ) $ (3,077,603 ) Weighted average number of common shares Outstanding used in loss per share during the Period (denominator) 3,256,098 1,077,759 2,359,862 1,006,381 |
Recently Enacted Accounting Standards | Recently Enacted Accounting Standards |
Accounting Estimates | Accounting Estimates |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per | At June 30, 2020 and 2019, the Company had the following common shares underlying these instruments: Six Months Ended June 30, 2020 2019 Warrants 1,845,722 362,061 Preferred Stock Warrants 2,147,277 - Stock Options 486,720 110,820 Preferred Stock 61,651 - Convertible Note Payable - 2,500 Total Underlying Common Shares 4,541,370 475,381 |
Schedule of Earnings Per Share, Basic and Diluted | The following data shows the amounts used in computing loss per share and the effect on income and the weighted average number of shares of dilutive potential common stock for the periods ended June 30, 2020 and 2019: Three Months Ended June 30 Six Months Ended June 30 2020 2019 2020 2019 Net Loss per Common Share - Basic and Diluted $ (0.49 ) $ (1.50 ) (1.48 ) $ (3.10 ) Loss from continuing Operations available to Common stockholders (numerator) $ (1,601,518 ) $ (1,593,491 ) (3,500,350 ) $ (3,077,603 ) Weighted average number of common shares Outstanding used in loss per share during the Period (denominator) 3,256,098 1,077,759 2,359,862 1,006,381 |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | At June 30, 2020 and December 31, 2019, the Company’s inventory was comprised of: June 30, 2020 December 31, 2019 Raw Materials $ 170,530 $ 173,102 Work in Process 16,072 92,493 Finished Goods 399,038 333,123 Total Inventory $ 585,640 $ 598,718 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The fair value of share-based awards was estimated using the Black-Scholes model with the following weighted-average assumptions for the six months ended June 30, 2020 and 2019: Assumptions: 2020 2019 Dividend yield 0.00 0.00 Risk-free interest rate .22-1.52 % 1.90-2.54 % Expected volatility 113.8-117.2 % 105.2-106.1 % Expected life (in years) 5 5 |
Schedule of Stock Option Activity | Option activity for the six months ended June 30, 2020 and the year ended December 31, 2019 was as follows: Weighted Average Weighted Average Exercise Remaining Aggregate Price Contractual Intrinsic Options ($) Life (Yrs.) Value ($) Options outstanding at December 31, 2018 82,627 24.90 6.47 60,090 Granted 100,335 12.50 4.79 Exercised - - - Forfeited or cancelled (2,050 ) 16.80 - Options outstanding at December 31, 2019 180,912 18.11 5.09 25,988 Granted 335,183 2.58 4.94 52,214 Exercised - - - - Forfeited or cancelled (29,375 ) 28.01 Options outstanding June 30, 2020 486,720 6.82 4.70 62,384 Options expected to vest in the future as of June 30, 2020 305,715 5.23 4.82 41,480 Options exercisable at June 30, 2020 181,005 9.51 4.49 20,904 Options vested, exercisable, and options expected to vest at June 30, 2020 486,720 62,384 |
Summary of Warrant Activity | Warrant activity for the six months ended June 30, 2020 and 2019 was as follows: Weighted Average Weighted Average Exercise Remaining Price Contractual Warrants ($) Life (Yrs.) Warrants outstanding at December 31, 2018 305,060 27.50 3.86 Granted 64,024 16.00 4.94 Exercised (7,023 ) 10.80 - Forfeited or cancelled - - - Warrants outstanding at June 30, 2019 362,061 25.80 3.63 Warrants outstanding at December 31, 2019 363,727 25.60 3.12 Granted 1,481,995 3.22 5.14 Exercised - Forfeited or cancelled - Warrants outstanding at June 30, 2020 1,845,722 7.64 4.64 |
2020 Stock Appreciation Rights Plan [Member] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The fair value of SAR awards was estimated using the Black-Scholes model with the following weighted-average assumptions for the six months ended June 30, 2020: Assumptions: 2020 Dividend yield 0.00 Risk-free interest rate .22 % Expected volatility 116.9 % Expected life (in years) 5 |
Schedule of Stock Option Activity | SARs activity for the six months ended June 30, 2020 was as follows: Weighted Average Weighted Average Exercise Remaining Aggregate Price Contractual Intrinsic SARs ($) Life (Yrs.) Value ($) SARs outstanding at December 31, 2019 - - - - Granted 114,179 2.63 4.98 - Exercised - - - - Forfeited or cancelled - - SARs outstanding June 30, 2020 114,129 2.63 4.98 5,709 SARs expected to vest in the future as of June 30, 2020 114,179 2.63 4.98 5,709 SARs exercisable at June 30, 2020 - - - - SARs vested, exercisable, and options expected to vest at June 30, 2020 114,179 2.63 4.98 5,709 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per (Details) - shares | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Total Underlying Common Shares | 4,541,370 | 475,381 |
Warrants [Member] | ||
Total Underlying Common Shares | 1,845,722 | 362,061 |
Preferred Stock Warrants [Member] | ||
Total Underlying Common Shares | 2,147,277 | |
Stock Options [Member] | ||
Total Underlying Common Shares | 486,720 | 110,820 |
Preferred Stock [Member] | ||
Total Underlying Common Shares | 61,651 | |
Convertible Note Payable [Member] | ||
Total Underlying Common Shares | 2,500 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Accounting Policies [Abstract] | ||||
Net Loss per Common Share - Basic and Diluted | $ (0.49) | $ (1.5) | $ (1.48) | $ (3.1) |
Loss from continuing Operations available to Common stockholders (numerator) | $ (1,601,518) | $ (1,593,491) | $ (3,500,350) | $ (3,077,603) |
Weighted average number of common shares Outstanding used in loss per share during the Period (denominator) | 3,256,098 | 1,077,759 | 2,359,862 | 1,006,381 |
Inventory - Schedule of Invento
Inventory - Schedule of Inventory (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Raw Materials | $ 170,530 | $ 173,102 |
Work in Process | 16,072 | 92,493 |
Finished Goods | 399,038 | 333,123 |
Total Inventory | $ 585,640 | $ 598,718 |
Notes Payable (Details Narrativ
Notes Payable (Details Narrative) - Secured Convertible Promissory Note [Member] | Jan. 31, 2020USD ($) |
Repayments of convertible debt | $ 56,458 |
Accrued interest | 1,458 |
Late fee penalty | $ 5,000 |
Paycheck Protection Plan Loan (
Paycheck Protection Plan Loan (Details Narrative) - Bank of Oklahoma [Member] - Paycheck Protection Program [Member] - USD ($) | Apr. 14, 2020 | Jun. 30, 2020 |
Proceeds from loan | $ 361,700 | |
Debt instrument payment terms description | Amount is payable over two to five years at an interest rate of 1%, with a deferral of payments for the first six months. | |
Debt instrument, interest rate | 1.00% |
Stockholders' Equity (Details N
Stockholders' Equity (Details Narrative) - USD ($) | Jul. 15, 2020 | Jun. 23, 2020 | Apr. 06, 2020 | Feb. 27, 2020 | Apr. 30, 2020 | Feb. 29, 2020 | Jan. 31, 2020 | May 31, 2019 | Mar. 31, 2019 | Feb. 28, 2019 | Jan. 31, 2019 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Jun. 15, 2020 | Mar. 27, 2020 |
Reverse stock split | 1-for-10 basis | ||||||||||||||||||
Common stock, shares authorized | 12,000,000 | 8,000,000 | 12,000,000 | 12,000,000 | 8,000,000 | 2,250,000 | |||||||||||||
Common stock issued during period | 70,230 | 70,230 | |||||||||||||||||
Share price per share | $ 1.08 | $ 1.08 | |||||||||||||||||
Common stock issued during period, value | $ 75,848 | $ 75,848 | $ 1,679,330 | ||||||||||||||||
Warrants exercise, shares | 70,230 | 70,230 | |||||||||||||||||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | ||||||||||||||
Preferred stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | ||||||||||||||
Preferred stock, shares issued | 333 | 333 | 0 | ||||||||||||||||
Preferred stock, shares outstanding | 333 | 333 | 0 | ||||||||||||||||
Unvested compensation cost | $ 7,870 | $ 153,000 | $ 7,870 | $ 153,000 | |||||||||||||||
Unrecognized deferred compensation expense to be recognized over remainder of year | $ 15,740 | $ 15,740 | |||||||||||||||||
Number of shares granted | 335,183 | 100,335 | |||||||||||||||||
Share based compensation | $ 424,989 | $ 474,566 | |||||||||||||||||
Options exercise price | $ 2.67 | ||||||||||||||||||
Unrecognized share based compensation | $ 1,088,934 | ||||||||||||||||||
Weighted average remaining recognition period of unvested share options | 4 years 8 months 12 days | ||||||||||||||||||
Warrant exercised | 7,023 | ||||||||||||||||||
June 2018 Public Offering [Member] | |||||||||||||||||||
Common stock issued during period | 88,431 | ||||||||||||||||||
Securities Purchase Agreement [Member] | |||||||||||||||||||
Warrants to purchase shares of common stock | 512 | ||||||||||||||||||
2013 Equity Incentive Plan [Member] | |||||||||||||||||||
Common shares granted for the period | 11,517 | ||||||||||||||||||
2013 Stock Option Plan [Member] | |||||||||||||||||||
Common stock issued during period | 890,000 | ||||||||||||||||||
Common stock shares reserved for issuance | 650 | 436,720 | 436,720 | ||||||||||||||||
2020 Stock Appreciation Rights Plan [Member] | |||||||||||||||||||
Number of shares granted | 114,179 | ||||||||||||||||||
Options exercise price | $ 2.63 | $ 2.67 | |||||||||||||||||
Unrecognized share based compensation | $ 236,419 | ||||||||||||||||||
Weighted average remaining recognition period of unvested share options | 4 years 11 months 23 days | ||||||||||||||||||
Percentage for stock appreciation rights exercise price | 100.00% | ||||||||||||||||||
Series D Convertible Preferred Stock [Member] | |||||||||||||||||||
Common stock issued during period | 1,280,360 | ||||||||||||||||||
Common shares issued for conversion of preferred shares | 1,107 | 1,684 | |||||||||||||||||
Preferred stock dividend, shares | 323,624 | ||||||||||||||||||
Preferred stock, shares outstanding | 0 | 0 | |||||||||||||||||
Series D Convertible Preferred Stock [Member] | Securities Purchase Agreement [Member] | |||||||||||||||||||
Share issued and sold during period, shares | 1,640 | ||||||||||||||||||
Preferred stock dividend rate | 9.00% | ||||||||||||||||||
Preferred stock conversion price per shares | $ 2.50 | ||||||||||||||||||
Preferred stock, description | In addition, a holder may at any time, alternatively, convert all, or any part, of its Series D Preferred Shares at an alternative conversion price, which equals the lower of the applicable conversion price then in effect, and the greater of (x) $1.80 and (y) 85% of the average volume weighted average price ("VWAP") of the Common Stock for a five (5) trading day period prior to such conversion. Upon the occurrence of certain triggering events, described in the Certificate of Designations, including, but not limited to payment defaults, breaches of transaction documents, failure to maintain listing on the Nasdaq Capital Market, and other defaults set forth therein, the Series D Preferred Shares would become subject to redemption, at the option of a holder, at a 125% premium to the underlying value of the Series D Preferred Shares being redeemed | ||||||||||||||||||
Series D Preferred Stock [Member] | Securities Purchase Agreement [Member] | |||||||||||||||||||
Preferred stock, par value | $ 1,000 | ||||||||||||||||||
Series E Convertible Preferred Stock [Member] | |||||||||||||||||||
Common stock issued during period | 61,651 | ||||||||||||||||||
Series E Convertible Preferred Stock [Member] | Securities Purchase Agreement [Member] | |||||||||||||||||||
Share issued and sold during period, shares | 333 | ||||||||||||||||||
Common shares issued for conversion of preferred shares | 48,544 | ||||||||||||||||||
Preferred stock dividend rate | 9.00% | ||||||||||||||||||
Directors [Member] | |||||||||||||||||||
Common stock issued during period | 200,000 | ||||||||||||||||||
Share price per share | $ 1.50 | ||||||||||||||||||
Common stock issued during period, value | $ 300,000 | ||||||||||||||||||
Vice President [Member] | |||||||||||||||||||
Common stock issued during period | 1,500 | ||||||||||||||||||
Vice President [Member] | 2020 Stock Appreciation Rights Plan [Member] | |||||||||||||||||||
Common shares granted for the period | 12,019 | ||||||||||||||||||
19 Employees [Member] | |||||||||||||||||||
Number of shares granted | 335,183 | ||||||||||||||||||
Vesting period | 3 years | ||||||||||||||||||
4 Consultant [Member] | |||||||||||||||||||
Number of shares granted | 335,183 | ||||||||||||||||||
Vesting period | 3 years | ||||||||||||||||||
18 Employees [Member] | |||||||||||||||||||
Number of shares granted | 286,925 | ||||||||||||||||||
Vesting period | 4 years | ||||||||||||||||||
1 Consultant [Member] | |||||||||||||||||||
Number of shares granted | 286,925 | ||||||||||||||||||
Vesting period | 4 years | ||||||||||||||||||
President and Chief Executive Officer [Member] | 2020 Stock Appreciation Rights Plan [Member] | |||||||||||||||||||
Common shares granted for the period | 60,094 | ||||||||||||||||||
Chief Technology Officer [Member] | 2020 Stock Appreciation Rights Plan [Member] | |||||||||||||||||||
Common shares granted for the period | 24,038 | ||||||||||||||||||
Chief Financial Officer [Member] | 2020 Stock Appreciation Rights Plan [Member] | |||||||||||||||||||
Common shares granted for the period | 18,028 | ||||||||||||||||||
Dawson James Securities, Inc [Member] | Placement Agent [Member] | |||||||||||||||||||
Warrants to purchase shares of common stock | 41,237 | ||||||||||||||||||
MHZCI, LLC [Member] | |||||||||||||||||||
Number of common stock issued for services | 2,500 | ||||||||||||||||||
Share price per share | $ 8.70 | ||||||||||||||||||
Pre-funded Warrants [Member] | |||||||||||||||||||
Warrants to purchase shares of common stock | 22,438 | ||||||||||||||||||
Warrants exercise price | $ 3.64 | ||||||||||||||||||
Series A Warrants [Member] | |||||||||||||||||||
Warrants to purchase shares of common stock | 515,465 | ||||||||||||||||||
Common Stock [Member] | |||||||||||||||||||
Share issued and sold during period, shares | 40,000 | 40,000 | |||||||||||||||||
Common stock issued during period | 140,080 | ||||||||||||||||||
Common shares issued for conversion of preferred shares | 1,280,360 | 321,517 | 1,601,877 | ||||||||||||||||
Preferred stock dividend, shares | 323,624 | 86,801 | 410,425 | ||||||||||||||||
Number of common stock issued for services | 20,150 | ||||||||||||||||||
Common stock issued during period, value | $ 140 | ||||||||||||||||||
Common Stock [Member] | Series D Convertible Preferred Stock [Member] | |||||||||||||||||||
Common stock issued during period | 1,603,984 | ||||||||||||||||||
Common shares issued for conversion of preferred shares | 2,147,277 | ||||||||||||||||||
Warrant exercised | 1,684 | ||||||||||||||||||
Stock Options [Member] | |||||||||||||||||||
Share based compensation | $ 417,119 | $ 321,149 | |||||||||||||||||
Preferred Warrants [Member] | |||||||||||||||||||
Warrant outstanding | 3,960 | 3,960 | |||||||||||||||||
Public Offering [Member] | |||||||||||||||||||
Share issued and sold during period, shares | 493,027 | ||||||||||||||||||
Warrants to purchase shares of common stock | 420,240 | ||||||||||||||||||
Proceeds from public offering | $ 1,230,000 | $ 1,679,230 | |||||||||||||||||
Common stock issued during period | 1,400,800 | ||||||||||||||||||
Private Placement [Member] | |||||||||||||||||||
Warrants to purchase shares of common stock | 220,000 | ||||||||||||||||||
Common stock issued during period | 400,000 | ||||||||||||||||||
Proceeds from private placement | $ 515,000 | ||||||||||||||||||
Private Placement [Member] | Series D Preferred Stock [Member] | |||||||||||||||||||
Warrants to purchase shares of common stock | 6,156 | ||||||||||||||||||
Warrants exercise price | $ 975 | ||||||||||||||||||
Warrants expiration date | Feb. 15, 2021 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Details) | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Dividend yield | 0.00% | 0.00% |
Risk-free interest rate, minimum | 0.22% | 1.90% |
Risk-free interest rate, maximum | 1.52% | 2.54% |
Expected volatility, minimum | 113.80% | 105.20% |
Expected volatility, maximum | 117.20% | 106.10% |
Expected life (in years) | 5 years | 5 years |
2020 Stock Appreciation Rights Plan [Member] | ||
Dividend yield | 0.00% | |
Risk-free interest rate | 0.22% | |
Expected volatility | 116.90% | |
Expected life (in years) | 5 years |
Stockholders' Equity - Schedu_2
Stockholders' Equity - Schedule of Stock Option Activity (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Number of Options, Outstanding, Beginning Balance | 180,912 | 82,627 |
Number of Options, Granted | 335,183 | 100,335 |
Number of Options, Exercised | ||
Number of Options, Forfeited or cancelled | (29,375) | (2,050) |
Number of Options, Outstanding Ending Balance | 486,720 | 180,912 |
Number of Options, Expected to Vest in the Future Ending Balance | 305,715 | |
Number of Options, Exercisable | 181,005 | |
Number of Options, Vested, Exercisable and Options Expected to Vest Ending Balance | 486,720 | |
Weighted Average Exercise Price, Outstanding Beginning Balance | $ 18.11 | $ 24.90 |
Weighted Average Exercise Price, Granted | 2.58 | 12.50 |
Weighted Average Exercise Price, Exercised | ||
Weighted Average Exercise Price, Forfeited or cancelled | 28.01 | 16.80 |
Weighted Average Exercise Price, Outstanding | 6.82 | $ 18.11 |
Weighted Average Exercise Price, Expected to Vest | 5.23 | |
Weighted Average Exercise Price, Exercisable | 9.51 | |
Weighted Average Exercise Price, Vested, Exercisable and Options Expected to Vest | ||
Weighted Average Remaining Contractual Life, Outstanding Beginning | 5 years 1 month 2 days | 6 years 5 months 20 days |
Weighted Average Remaining Contractual Life, Granted | 4 years 11 months 8 days | 4 years 9 months 14 days |
Weighted Average Remaining Contractual Life, Outstanding | 0 years | 5 years 1 month 2 days |
Weighted Average Remaining Contractual Life, Expected to Vest | 4 years 8 months 12 days | |
Weighted Average Remaining Contractual Life, Exercisable | 4 years 9 months 25 days | |
Weighted Average Remaining Contractual Life, Vested, Exercisable and Options Expected to Vest | 4 years 5 months 27 days | |
Aggregate Intrinsic Value, Outstanding, Beginning Balance | $ 25,988 | $ 60,090 |
Aggregate Intrinsic Value, Granted | 52,214 | |
Aggregate Intrinsic Value, Outstanding, Ending Balance | 62,384 | $ 25,988 |
Aggregate Intrinsic Value, Options expected to vest in the future | 41,480 | |
Aggregate Intrinsic Value, Options exercisable | 20,904 | |
Aggregate Intrinsic Value, Options vested, exercisable and options expected to vest | $ 62,384 | |
2020 Stock Appreciation Rights Plan [Member] | ||
Number of Options, Outstanding, Beginning Balance | ||
Number of Options, Granted | 114,179 | |
Number of Options, Exercised | ||
Number of Options, Forfeited or cancelled | ||
Number of Options, Outstanding Ending Balance | 114,129 | |
Number of Options, Expected to Vest in the Future Ending Balance | 114,179 | |
Number of Options, Exercisable | ||
Number of Options, Vested, Exercisable and Options Expected to Vest Ending Balance | 114,179 | |
Weighted Average Exercise Price, Outstanding Beginning Balance | ||
Weighted Average Exercise Price, Granted | 2.63 | |
Weighted Average Exercise Price, Exercised | ||
Weighted Average Exercise Price, Forfeited or cancelled | ||
Weighted Average Exercise Price, Outstanding | 2.63 | |
Weighted Average Exercise Price, Expected to Vest | 2.63 | |
Weighted Average Exercise Price, Exercisable | ||
Weighted Average Exercise Price, Vested, Exercisable and Options Expected to Vest | $ 2.63 | |
Weighted Average Remaining Contractual Life, Outstanding Beginning | 0 years | |
Weighted Average Remaining Contractual Life, Granted | 4 years 11 months 23 days | |
Weighted Average Remaining Contractual Life, Outstanding | 4 years 11 months 23 days | |
Weighted Average Remaining Contractual Life, Expected to Vest | 4 years 11 months 23 days | |
Weighted Average Remaining Contractual Life, Exercisable | 0 years | |
Weighted Average Remaining Contractual Life, Vested, Exercisable and Options Expected to Vest | 4 years 11 months 23 days | |
Aggregate Intrinsic Value, Outstanding, Ending Balance | $ 5,709 | |
Aggregate Intrinsic Value, Options expected to vest in the future | 5,709 | |
Aggregate Intrinsic Value, Options exercisable | ||
Aggregate Intrinsic Value, Options vested, exercisable and options expected to vest | $ 5,709 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Warrant Activity (Details) - $ / shares | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Equity [Abstract] | ||
Number of Shares, Warrants Outstanding, Beginning balance | 363,727 | 305,060 |
Number of Shares, Warrants Granted | 1,481,995 | 64,024 |
Number of Shares, Warrants Exercised | (7,023) | |
Number of Shares, Warrants Forfeited or Cancelled | ||
Number of Shares, Warrants Outstanding, Ending balance | 1,845,722 | 362,061 |
Weighted Average Exercise Price, Warrants Outstanding, Beginning Balance | $ 25.60 | $ 27.50 |
Weighted Average Exercise Price, Warrants Granted | 3.22 | 16 |
Weighted Average Exercise Price, Warrants Exercised | 10.80 | |
Weighted Average Exercise Price, Warrants Forfeited Or Cancelled | ||
Weighted Average Exercise Price, Warrants Outstanding, Ending Balance | $ 7.64 | $ 25.80 |
Weighted Average Remaining Contractual Life (Yrs.), Warrants outstanding, Beginning balance | 3 years 1 month 13 days | 3 years 10 months 10 days |
Weighted Average Remaining Contractual Life (Yrs.), Warrants Grants | 5 years 1 month 20 days | 4 years 11 months 8 days |
Weighted Average Remaining Contractual Life (Yrs.), Warrants outstanding, Ending balance | 4 years 7 months 21 days | 3 years 7 months 17 days |