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Note 10. Stockholder’s Equity
Authorized Capital Stock
On August 31, 2021, the Company filed an amendment to its Amended and Restated Certificate of Incorporation with the State of Delaware to authorize the Company to issue shares, consisting of shares of Class A Common Stock, shares of Class B Common Stock and shares of Preferred Stock. The Class B Common Stock is entitled to 10 votes for every 1 vote of the Class A Common Stock.
On December 16, 2021, the Company filed an amendment to its Amended and Restated Certificate of Incorporation with the State of Delaware to authorize the Company to issue shares, consisting of shares of Class A Common Stock, shares of Class B Common Stock and shares of Preferred Stock. The Class B Common Stock is entitled to 10 votes for every 1 vote of the Class A Common Stock.
In April 2021, as part of the share conversion, the Company converted the 100% membership interest of Craig Technical Consulting, Inc. into shares of Common Stock, par value $, of the Company. The Company has reflected this conversion for all periods presented.
Class A Common Stock
During August and September 2021, the Company sold Class A shares of Common stock for $ per share for aggregate proceeds of $2,694,335, net of fees and expenses.
On September 22, 2021, the Board of Directors approved an issuance of shares of restricted Class A Common Stock to 2 employees valued at $200,000. The shares vested immediately upon the grant date.
On December 16, 2021, the Company sold Class A shares of Common stock for $ per share for aggregate proceeds of $13,560,900, net of fees and expenses.
During December 2021, the Company issued 374,040 Class A shares of Common stock for cashless warrant exercise.
The Company had and shares of Class A common stock issued and outstanding as of December 31, 2021 and 2020, respectively.
Class B Common Sock
On December 31, 2020, Mark Mikolajczyk assigned all his rights, title and 10% membership interest in the Company to Craig Technical Consulting, Inc.
In April 2021, as part of the share conversion, the Company converted the 100% membership interest of Craig Technical Consulting, Inc. into shares of Common Stock, par value $, of the Company.
On August 16, 2021, all shares of the previously issued and outstanding Common Stock, par value $ were exchanged for shares of Class B Common Stock, par value $. All Class B common share and per share information in these financial statements retroactively reflect this share exchange.
The Company had shares of Class B common stock issued and outstanding as of December 31, 2021 and 2020.
Warrants
During August, September and December 2021, the Company issued a total of 420,000 warrants for a period of five years at a price per share of $1.00 or $5.00 in connection with the common stock sold. Upon the issuance of the warrant as compensation of its services as an underwriter, the warrant was categorized as equity and the fair value of $768,905 was recorded as finance expense. During the year ended December 31, 2021, all warrants were fully exercised with cashless conversions and there were no warrants outstanding as of December 31, 2021.
The Company utilizes the Black-Scholes model to value its warrants. The Company utilized the following assumptions:
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