Better Choice Company Inc. Annual report pursuant to Section 13 and 15(d)

Stockholders' deficit (Tables)

12 Months Ended

Dec. 31, 2019

As of December 31, 2019, the Company has reserved approximately 31.0 million shares of common stock for future issuance as follows:

	December 31, 2019
Conversion of Series E		1,760,903
Exercise of options to purchase common stock		7,791,833
Warrants to purchase common stock		16,981,854
Notes payable		4,437,500
Total		30,972,090

The following table provides detail of the options granted and outstanding:

					Vested options		Non-vested options
	Total number of options		Weighted average exercise price		Number		Number			Weighted average grant date fair value
Legacy options		38,462	$	6.76		38,462		-		$	8.06
Acquired on May 6, 2019		5,250,000		1.82		-		5,250,000			0.92
Granted		2,503,371		1.83		-		2,503,371			0.97
Vested during period		-		1.89		2,678,329		(2,678,329	)		1.02
Options outstanding at December 31, 2019		7,791, 833	$	1.85		2,716,791		5,075,042		$	0.97
Options expected to vest								5,075,042
Weighted average exercise price					$	1.89	$	1.82
Weighted average remaining contractual term (years)						9.3		9.6
Aggregate intrinsic value at December 31, 2019 (in thousands)					$	2,357	$	4,448

The warrants are exercisable on the date of issuance and expire 24 months from the date of the consummation of a future IPO.

	Warrants			Exercise Price
Warrants acquired on May 6, 2019		712,823		$	3.90
Issued		17,414,030			3.27
Exercised		(1,144,999	)⁽¹⁾		3.50
Warrants outstanding at December 31, 2019		16,981,854		$	3.23

(1) Exercised warrants were converted at 1.1 shares per warrant for a total of 1,259,498 shares.