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Fair Value Measurements
 6 Months Ended
Jun. 30, 2022
Fair Value Measurements [Abstract]  
Fair Value Measurements
10.
Fair Value Measurements

In accordance with ASC 820 (Fair Value Measurements and Disclosures), the Company uses various inputs to measure the outstanding warrants and certain embedded conversion features associated with a convertible debt on a recurring basis to determine the fair value of the liability.

The following table classifies the Company’s liabilities measured at fair value on a recurring basis into the fair value hierarchy as of June 30, 2022 and December 31, 2021 (in thousands):

   
Fair value measured at June 30, 2022
  
   
Fair value at
June 30, 2022
    
Quoted prices in
active markets
(Level 1)
    
Significant other
observable inputs
(Level 2)
    
Significant
unobservable inputs
(Level 3)
  
Warrant liability
  
$
5,295
    
$
-
    
$
-
    
$
5,295
  
Embedded conversion option
    
218
      
-
      
-
      
218
  
Total fair value
    
5,513
      
-
      
-
      
5,513
  

   
Fair value measured at December 31, 2021
  
   
Fair value at
December 31, 2021
    
Quoted prices in
active markets
(Level 1)
    
Significant other
observable inputs
(Level 2)
    
Significant
unobservable inputs
(Level 3)
  
Warrant liability
  
$
9,614
      
-
      
-
      
9,614
  
Embedded conversion option
    
6,255
      
-
      
-
      
6,255
  
Total fair value
    
15,869
      
-
      
-
      
15,869
  

There were no transfers between Level 1, 2 or 3 during the three and six months ended June 30, 2022 and 2021.

The following table presents changes in Level 3 liabilities measured at fair value for the six months ended June 30, 2022. Both observable and unobservable inputs were used to determine the fair value of positions that the Company has classified within the Level 3 category. Unrealized gains and losses associated with liabilities within the Level 3 category include changes in fair value that were attributable to both observable (e.g. changes in market interest rates) and unobservable (e.g., changes in unobservable long-dated volatilities) inputs (dollars in thousands):

   
Warrant
Liability
    
Conversion
Feature
    
Total
  
Balance at December 31, 2021
  
$
9,614
    
$
6,255
    
$
15,869
  
Cashless exercise
    
(2,167
)
    
-
      
(2,167
)
Warrants issued
    
3,168
      
-
      
3,168
  
Change in fair value
    
(5,320
)
    
(6,037
)
    
(11,357
)
Balance at June 30, 2022
  
$
5,295
    
$
218
    
$
5,513
  

A summary of the warrant liability activity for the six months ended June 30, 2022 is as follows:

   
Warrants
Outstanding
    
Fair Value
per Share
    
Fair Value
  
Balance at December 31, 2021
    
62,617,188
    
$
0.15
    
$
9,614,134
  
Warrants classified as liabilities
    
(15,000,000
)
    
0.14
      
(2,167,022
)
Warrants issued
    
21,874,302
      
0.14
      
3,168,581
  
Gain on remeasurement of warrant liability
    
-
              
(5,320,470
)
Balance at June 30, 2022
    
69,491,490
    
$
0.08
    
$
5,295,223
  

Significant inputs related to the Company’s liability classified warrants are listed below.

   
June 30,
2022
    
December 31,
2021
    
New Issuance
at Issue Date
  
Weighted average remaining life in years
    
5.21
      
4.67
      
6.89
  
Weighted average volatility
    
325
%
    
116
%
    
276
%
Weighted average risk free interest rate
    
3.0
%
    
1.2
%
    
3.0
%
Expected dividend yield
    
0.00
%
    
0.00
%
    
0.00
%