Quarterly report pursuant to Section 13 or 15(d)

Warrant Liability

v3.22.1
Warrant Liability
3 Months Ended
Mar. 31, 2022
Warrant Liability  
Warrant Liability

Note 12 — Warrant Liability

 

For the three months ended March 31, 2022, the Company issued warrants to purchase shares of the Company’s common stock related to the Warrant Exercise Agreement dated December 20, 2021, with a warrant holder, in which the Company agreed to issue 2.25 warrants with an exercise price of $3.265 to the warrant holder for every warrant the warrant holder exercised from the period commencing December 20, 2021 and ending on February 28, 2022. In conjunction with this agreement, the warrant holder exercised 36,894,569 warrants in the first three months of 2022 which generated $111,029,493 in gross proceeds to the Company during the three months ended March 31, 2022. In conjunction with the agreement, the Company issued 83,012,781 warrants to the holder and 6,641,022 to the placement agent for the agreement. The warrants have an exercise price of $3.265, a five year term, and provide registration rights to the holder along with other terms that cause the warrants to be accounted for as a liability. The initial fair value of the warrants issued during the three months ended March 31, 2022 was $243,681,478.

 

 

The Company’s outstanding warrants set forth below were valued using the Monte-Carlo simulation pricing model to calculate the March 31, 2022 fair value of the warrants with the following assumptions:

   

Dividend

Yield

    Expected
Volatility
    Risk-free
Interest Rate
   

Expected

Life

Hudson Bay Warrant; June 4, 2021     0.00 %     128.50 %     2.43 %   3.2 years
Hudson Bay Series A Warrant; September 1, 2021     0.00 %     128.50 %     2.43 %   3.0 years
Palladium Capital Group Series A Warrant; September 1, 2021     0.00 %     128.50 %     2.43 %   3.0 years
Hudson Bay Warrant; November 10, 2021     0.00 %     128.50 %     2.43 %   3.9 years
Palladium Capital Warrant; November 10, 2021     0.00 %     128.50 %     2.43 %   3.9 years
Hudson Bay Warrant; December 20, 2021     0.00 %     128.50 %     2.43 %   3.9 years
Palladium Capital Warrant; December 20, 2021     0.00 %     128.50 %     2.43 %   3.9 years