Warrants

6 Months Ended

Jun. 30, 2020

Warrants [Abstract]

WARRANTS

19. WARRANTS

On April 29, 2020, the Company issued a warrant to purchase 158,730 shares of the Company’s common stock. The warrant was issued in conjunction with the sale of the Company’s 12.5% OID Convertible Note. The warrant has an exercise price of $0.99 per share and an expiration date of April 29, 2025. In connection with this transaction and as a placement fee to an unrelated third party, the Company also issued a warrant to purchase 27,778 shares of the Company’s common stock. The warrant has an exercise price of $0.99 per share and an expiration date of April 29, 2025. None of these warrants were exercised during the six months ended June 30, 2020. No warrants were granted by the Company during the period January 10, 2019 (inception) to June 30, 2019.

On September 24, 2019, ComSovereign Corp. issued a warrant to purchase 150,000 shares of ComSovereign’s common stock, which was converted into the ability to purchase 283,530 shares of the Company’s common stock as a result of the ComSovereign Merger. The warrant was issued in conjunction with the sale of ComSovereign’s 10% Senior Convertible Debentures. The warrant had an exercise price of $0.01 per share and an expiration date of December 31, 2021. No warrants were exercised during fiscal 2019. On April 21, 2020, these warrants were exercised and exchanged for 283,530 shares of the Company’s common stock.

The following table summarizes the assumptions used to estimate the fair value of warrants granted during the six months ended June 30, 2020:

	2020
Expected dividend yield		0	%
Expected volatility		29.29	%
Risk-free interest rate		0.36	%
Expected life of warrants		5.0 years

The following table represents warrant activity for the six months ended June 30, 2020 and the period January 10, 2019 (Inception) to June 30, 2019:

	Number of Warrants			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life in Years		Aggregate Intrinsic Value
Outstanding – December 31, 2019		503,523		$	0.95		1.96	$	258,328
Exercisable – December 31, 2019		503,523		$	0.95		1.96	$	258,328
Granted		186,508			0.99		5.00		-
Exercised		(283,530	)		0.01		1.50		-
Forfeited or Expired		-			-		-		-
Outstanding – June 30, 2020		406,501		$	1.62		2.98	$	43,690
Exercisable – June 30, 2020		406,501		$	1.62		2.98	$	43,690

	Number of Warrants			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life in Years		Aggregate Intrinsic Value
Outstanding – January 10, 2019		2,280,000		$	0.72		3.44	$	—
Exercisable – January 10, 2019		2,280,000		$	0.72		3.44	$	—
Granted		—			—		—		—
Exercised		—			—		—		—
Forfeited or Expired		(60,000	)		2.91		—		—
Outstanding – June 30, 2019		2,220,000		$	0.66		3.03	$	838,450
Exercisable – June 30, 2019		2,220,000		$	0.66		3.03	$	838,450