Changes in Stockholders’ Equity |
6 Months Ended |
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Jun. 30, 2021 | |
| Equity [Abstract] | |
| Changes in Stockholders’ Equity |
Note 13 – Changes in Stockholders’ Equity
Common Stock
The Company is authorized to issue an aggregate of shares of common stock with a par value of $. As of June 30, 2021, there were shares of common stock issued and outstanding.
Common Stock Issued on Subscriptions Payable
On March 1, 2021, the Company issued shares of common stock on a Subscriptions Payable for the November 27, 2020 sale of common stock at $ per share for proceeds of $75,000.
Common Stock Issued as a Promissory Note Commitment
As disclosed in Note 11, above, pursuant to the Purchase Agreement with AJB Capital, the Company paid a commitment fee to the Investor in the form of 2,000,000 shares of the Company’s common stock. During the six month period following the six month anniversary of the closing date (the “Adjustment Period”), the Investor shall be entitled to be issued additional shares of common stock of the Company to the extent the Investor’s sale of the Commitment Fee Shares has resulted in net proceeds in an amount less than the $ Commitment Fee. If the Company repays the Note on or prior to the Maturity Date, the Company may redeem 1,000,000 of the Commitment Fee Shares for a nominal redemption price of $1.00. The Commitment Fee Shares resulted in a debt discount of $268,250 that is being amortized over the life of the loan, resulting in $170,033 of finance expense during the six months ended June 30, 2021.
ONE WORLD PHARMA, INC. Notes to Condensed Consolidated Financial Statements (Unaudited)
Common Stock Issued for Services
On May 25, 2021, the Company awarded a total of shares of common stock for Advisory Board services to two individuals. The aggregate fair value of the shares was $51,000, based on the closing price of the Company’s common stock on the date of grant.
On May 25, 2021, the Company awarded a total of shares of common stock pursuant for consulting services to two individuals. The aggregate fair value of the shares was $8,500, based on the closing price of the Company’s common stock on the date of grant.
On May 12, 2021, the Company entered into a Settlement Agreement with COR Prominence, LLC. Pursuant to the Settlement Agreement, the Company issued shares of common stock. The fair value of the shares was $29,537, based on the closing price of the Company’s common stock on the date of grant.
In addition, the Company engaged COR Prominence, LLC to provide investor relation services to the Company, in consideration for the payment of $7,500 per month in cash, and $5,000 per month with shares of common stock valued at 125% of the closing price of the common stock of the Company on the date of issuance. On June 1, 2021, the Company issued another shares of common stock to COR Prominence, LLC. The fair value of the shares was $18,758, based on the closing price of the Company’s common stock on the date of grant.
Amortization of Stock-Based Compensation
A total of $ of stock-based compensation expense was recognized from the amortization of options to purchase common stock over their vesting period during the six months ended June 30, 2021.
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