Note 4 – Stockholders’ Equity

Common Stock and Preferred Stock

On January 28, 2020, we completed the sale of 3,448,278 shares of the Company’s common stock, par value $0.001 per share, at a purchase price of $1.45 per share in a registered direct offering. The aggregate gross proceeds for the sale of the shares was $5,000,003 and we received net proceeds of $4,517,102 after deducting offering costs of $482,901.

On February 13, 2020, we completed the sale of 3,324,676 shares of the Company’s common stock, par value $0.001 per share, at a purchase price of $3.08 per share in a registered direct offering. The aggregate gross proceeds for the sale of the shares was $10,240,002 and we received net proceeds of $9,612,561 after deducting offering costs of $627,441.

On March 2, 2020, we completed the sale of 470,000 shares of the Company’s common stock, par value $0.001 per share, at a purchase price of $9.00 per share in a registered direct offering. The aggregate gross proceeds for the sale of the shares was $4,230,000 and we received net proceeds of $3,882,420 after deducting offering costs of $347,580.

During the nine months ended September 30, 2020, the Company issued an aggregate of 2,133,333 shares of common stock upon conversion of all of the Company’s convertible preferred stock outstanding as of December 31, 2019.

During the nine months ended September 30, 2020, the Company issued 829,492 shares of common stock upon the exercise of warrants and received $270,000.

During the nine months ended September 30, 2020, the Company issued 528,623 shares of common stock upon the exercise of options and received $917,984.

During the nine months ended September 30, 2020, the Company issued 83,935 shares of common stock for services provided by third parties primarily related to investment relations services.

Earnings per Share

The following table reconciles the numerator and the denominator used to calculate basic and diluted earnings per share for three and nine months ended September 30, 2020:

50,000 options were excluded from the computation of diluted earnings per share because the effect would have been anti-dilutive.

As a result of incurring a net loss for the three and nine months ended September 30, 2019, no potentially dilutive securities are included in the calculation of diluted earnings per share because such effect would be anti-dilutive. The Company had potentially dilutive securities as of September 30, 2019, consisting of: (i) 2,021,817 options, (ii) 953,535 warrants and (iii) 2,133,333 for issued and outstanding shares of convertible preferred stock.