Annual report [Section 13 and 15(d), not S-K Item 405]

Note 18 - Warrants

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Note 18 - Warrants
12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Warrants [Text Block]

NOTE 18  WARRANTS

 

The following table summarizes warrant activity for the years ended December 31, 2024 and 2023:

 

   

Warrants

   

Weighted- Average Exercise Price

 
                 

Warrants Outstanding as of December 31, 2022

    808,818     $ 22.00  

Issued

    703,572     $ 2.80  

Expired

    (6,223 )   $ 294.23  

Exercised

    (42,855 )   $ 1.00  

Warrants Outstanding as of December 31, 2023

    1,463,312     $ 6.17  

Issued

    2,500,621     $ 0.45  

Expired

    (708,113 )   $ 3.23  

Warrants Outstanding as of December 31, 2024

    3,255,820     $ 2.41  

 

During the year ended December 31, 2023, the Company issued 25,146 shares of Common Stock upon the exercise of 42,855 warrants on a cashless basis.

 

In January 2023, the Company issued 703,572 warrants to purchase up to 703,572 of Common Stock with an exercise price of $2.80 in connection with the 2023 Private Placement described in "Note 15 - Stockholders' Deficit". The warrants met the scope exception under ASC 815,Derivatives and Hedging” and are classified as equity instruments.

 

In connection with the amendment of the Series V Preferred Stock on December 30, 2024, the warrants related to the 2023 Private Placement were modified wherein the conversion ratio was increased by approximately 3.33x, in which the warrants are now exercisable into 2,345,238 shares of Common Stock, at an exercise price of $0.46 per share. The warrants shall expire on December 31, 2027. The amended warrants met the scope exception under ASC 815,Derivatives and Hedging” and are classified as equity instruments.

 

In connection with the A&R Note on December 31, 2024, the Company issued a warrant to purchase up to 117,647 shares of Common Stock with an exercise price of $0.17 and a warrant to purchase up to 37,736 shares of Common Stock with an exercise price of $0.53. The warrants may be exercised at the election of the holder on a cashless basis in the event that the underlying common shares are unregistered. The warrants are exercisable until  December 30, 2027 upon which the warrants shall be automatically exercised on a cashless basis. The warrants issued in connection with the Note met the scope exception under ASC 815,Derivatives and Hedging” and are classified as equity instruments. The warrants were measured at fair value and included in the loss on extinguishment of debt on December 31, 2024.  Refer to "Note 13 - Notes Payable" for the A&R Note.

 

The fair value of the warrants issued during the years ended  December 31, 2024 and 2023 was determined using the Black-Scholes simulation model based on Level 3 inputs on the fair value hierarchy. The following weighted average assumptions were used for the periods presented:

 

   

December 31, 2024

   

December 31, 2023

 

Expected Term

    3.0       3.0  

Volatility

    109.3 %     124.0 %

Risk-Free Interest Rate

    4.3 %     4.0 %

Dividend Yield

    0.0 %     0.0 %