Annual report pursuant to Section 13 and 15(d)

Stockholders' (Deficit) Equity (Tables)

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Stockholders' (Deficit) Equity (Tables)
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Equity [Abstract]    
Summary of Nonvested Restricted Stock Shares Activity
Restricted stock activity for the year ended December 31, 2019 and 2018 is summarized as follows:
Number of Shares Weighted-Average Grant Date Fair Value
Outstanding at December 31, 2017 305,000    $ 3.21   
  Vested (177,500)   3.21   
Outstanding at December 31, 2018 127,500    $ 3.21   
  Granted 200,000    11.54   
  Vested (169,164)   5.26   
Outstanding at December 31, 2019 158,336    $ 11.54   
 
Summary of Stock Option Activity  
The following table summarizes stock option activities for the years ended December 31, 2019 and 2018:
Number of
Shares
Weighted
Average
Exercise Price
Weighted
Average
Remaining Life
(in Years)
Aggregate
Intrinsic Value
Outstanding, December 31, 2017 15,000    $ 0.13    9.75 $ —   
  Granted 2,220,000    1.75    —    —   
Outstanding, December 31, 2018 2,235,000    1.74    9.44 $ 23,100   
  Granted 648,550    6.03    —    —   
Outstanding, December 31, 2019 2,883,550    $ 2.70    8.62 $ 23,861,981   
Exercisable, December 31, 2019 867,563 $ 1.73    8.66 $ 8,025,827   

During the year ended December 31, 2018, the Company granted its employees 2,220,000 options to purchase the Company’s common stock with an exercise price of $1.75 per share, for a term of 10 years, and a vesting period of four years. The options have an aggregated grant date fair value of $2,694,567 that was calculated using the Black-Scholes option-pricing model. Variables used in the Black-Scholes option-pricing model include: (1) discount rate of 2.77% based on the daily yield curve rates for U.S. Treasury obligations, (2) expected life of 6.25 years based on the simplified method provided in Staff Accounting Bulletin, (3) expected volatility range from 84.5% to 84.7% based on the historical volatility of comparable companies' stock, (4) no expected dividends and (5) fair market value of the Company's stock at $1.67 per share which value was determined by the Company's Board after reviewing and considering, among other factors, a valuation report issued by an independent appraisal firm.
Summary of Warrant Activity
The following table summarizes warrant activities for the years ended December 31, 2019 and 2018:
Number of
Shares
Weighted
Average
Exercise Price
Weighted
Average
Remaining Contractual
Term (in Years)
Aggregate
Intrinsic Value
Outstanding, December 31, 2017 —    $ —    —    $ —   
Granted 776,350    1.75    4.80 —   
Outstanding, December 31, 2018 776,350    $ 1.75    4.80 $ —   
Granted 1,458,356    10.88    —    —   
Exercised (685,900)   2.12    —    6,073,855   
Forfeited (cashless exercise) (174,198)   3.99    —    —   
Outstanding December 31, 2019 1,374,608    $ 10.97    4.43 $ 13,591   
Exercisable, December 31, 2019 1,374,608    $ 10.97    4.43 $ 13,591