Quarterly report pursuant to Section 13 or 15(d)

EQUITY

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EQUITY
 9 Months Ended
Sep. 30, 2022
Equity [Abstract]  
EQUITY EQUITY
Common Stock
The Company authorized 990,000,000 shares of common stock with $0.001 par value per share. As of September 30, 2022 and December 31, 2021, 560,353,549 and 498,546,291 shares of common stock were outstanding, respectively.

On February 1, 2022, the Company granted 294,452 shares of common stock to Apollo Management Group, Inc. in exchange for the $0.05 million convertible promissory note that Apollo Management Group, Inc. held and the related accrued interest. The fair value of the shares was $0.08 million.

On February 28, 2022, the Company sold 25,000,000 shares for an aggregate sales price of $4.35 million to an unrelated party. The shares were restricted.

During the nine months ended September 30, 2022, the Company issued 4,759,708 and 146,212 common shares for the cashless exercise of warrants and options, respectively.

During the nine months ended September 30, 2022, the Company issued 2,100,000 and 943,128 common shares to employees and directors, respectively. As a result, the Company recorded stock compensation of $0.35 million and $0.21 million, respectively, for the nine months ended September 30, 2022.

During the nine months ended September 30, 2022, the Company issued 7,197,492 common shares to third-party service providers. As a result, the Company recorded $0.39 million of stock-based compensation expense for services for the nine months ended September 30, 2022.
During the nine months ended September 30, 2022, the Company issued 23,424,674 of the holdback common shares to the sellers of the UMBRLA acquisition pursuant to the original acquisition agreement.