WARRANT AGREEMENTS |
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NOTE 15 - WARRANT AGREEMENTS | NOTE 15 – WARRANT AGREEMENTS
Warrants that vest at the end of a one-year period are amortized over the vesting period using the straight-line method.
In June 2020, as part of the Company’s settlement with CHI we amended the warrants to purchase up 8,018,071 common stock shares which vest based on various revenue achievement during year 3 and year 4 post the CHI acquisition Closing Date. As part of the settlement the Company reduced the number of warrants to708,467 common stock shares at an exercise price of $2.00 per share which was reduced from the original exercise price of $5.01 per share. In addition, the expiration date of the warrants was amended to expire on June 5, 2020. The warrants were exercisable on the date of issuance and were exercised by the warrant holders and the Company received $1.4 million. The Company determined based on Black-Scholes value calculated for pre and post modification, there was no incremental value to the warrant modification as the exercise price was more than the fair value of the stock.
On October 2, 2020 and December 31, 2020, in connection with the Series A Note and Series B Note, respectively, a placement agent is to receive a warrant (the “Warrant”) exercisable for 2 years for the purchase of an aggregate of up to 242,424 and 60,606 shares, respectively, of the Company’s common stock, at an exercise price of $1.32 per share. The Warrant may also be exercised by means of a “cashless exercise” or “net exercise.” Upon the achievement of certain milestones, the placement agent is entitled to receive an additional warrant, on the same terms as the Warrant, exercisable for an aggregate of up to 363,636 shares of the Company’s common stock.
On December 8, 2020, an individual exercised 62,851 warrants by means of a cashless exercise with an exercise price of $1.00 per share. As a result of the exercise, the Company is to issue 26,936 common stock shares of the Company.
Warrants that vest at the end of a one-year period are amortized over the vesting period using the straight-line method.
The Company’s warrant activity was as follows:
Warrant summary as of June 30, 2021:
Warrant summary as of December 31, 2020:
The change in warrant value for the three months ended June 30, 2021 and 2020 was $0 and $0.1 million, respectively. The change in warrant value for the six months ended June 30, 2021 and 2020 was $0 and $0 million, respectively.
There were no warrants granted during the three and six months ended June 30, 2021. The weighted-average fair value of warrants granted to during the three and six months ended June 30, 2020, and the weighted-average significant assumptions used to determine those fair values, using a Black-Scholes option pricing model are as follows:
The aggregate intrinsic value of warrants outstanding and exercisable at June 30, 2021 was $0. |