| Schedule of Effect of the Private Placements on Common and Preferred Stock as well Warrants to Purchase the Company's Stock |
The following tables summarize the effect of the Private Placements on the Company's shares of common and preferred stock as well warrants to purchase the Company's stock.
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Effect of Private Placements on Common Stock |
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Number of Shares |
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Common stock |
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Shares issued on April 3, 2024 and June 13, 2024 |
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3,690,000 |
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Shares of Series B Preferred Stock converted into common stock on June 28, 2024 (1) |
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50,232,000 |
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Shares of Series C Preferred Stock exchanged for common stock on November 7, 2024 (1) |
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10,928,000 |
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Increase in shares of common stock |
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64,850,000 |
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Warrants issued to purchase common stock, after conversion (2) |
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31,959,999 |
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(1) The conversion rate for Series B Preferred Stock and Series C Preferred Stock into common stock was 4,000 common shares per preferred share. |
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(2) The conversion rate for warrants of Series B Preferred Stock and Series C Preferred Stock into warrants for common stock was 4,000 common shares per preferred share. |
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Number of Shares |
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Effect of Private Placements on Preferred Stock |
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Series B |
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Series C |
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Preferred stock |
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Shares issued on April 3, 2024 and June 13, 2024 |
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12,558 |
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2,732 |
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Shares of preferred stock that converted into common stock on June 28, 2024 (1) |
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(12,558 |
) |
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— |
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Shares of preferred stock exchanged for common stock on November 7, 2024 (1) |
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— |
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(2,732 |
) |
Shares of preferred stock outstanding as of December 31, 2024 |
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— |
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— |
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Warrants, preferred stock |
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Warrants issued issued on April 3, 2024 and June 13, 2024 |
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6,549 |
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1,441 |
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Warrants for preferred stock that converted into warrants for common stock on June 28, 2024 (2) |
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(6,549 |
) |
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— |
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Warrants for preferred stock that converted into warrants for common stock November 7, 2024 (2) |
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— |
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(1,441 |
) |
Warrants for preferred stock outstanding as of December 31, 2024 |
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— |
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— |
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(1) The conversion rate for preferred stock into common stock was 4,000 common shares per preferred share. |
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(2) The conversion rate for warrants for Series B Preferred Stock and Series C Preferred Stock into warrants for common stock was for 4,000 common shares per preferred share. |
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| Schedule of Fair Value of Warrants Issued in Connection with the Private Placements |
The following table presents the assumptions used in the calculation of the fair value of the warrants issued in connection with the Private Placements.
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Warrants to Purchase Company Stock |
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Facts and assumptions |
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Issued April 3, 2024 |
Issued June 13, 2024 |
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Number of warrants (1) |
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29,531,999 |
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2,428,000 |
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Fair value per warrant (1) |
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$ |
1.34 |
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$ |
1.49 |
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Stock price per share (1) |
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$ |
2.76 |
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$ |
2.99 |
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Strike price per share (1) |
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$ |
2.50 |
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$ |
2.39 |
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Risk-free interest rate |
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4.40 |
% |
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4.30 |
% |
Term (years) |
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5.00 |
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4.81 |
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Expected volatility |
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45.00 |
% |
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45.00 |
% |
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(1) Presented on a common share equivalent basis. |
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