Quarterly report pursuant to Section 13 or 15(d)

Warrant Liability

Warrant Liability
6 Months Ended
Jun. 30, 2022
Warrant Liability  
Warrant Liability

13. Warrant Liability


On September 2, 2021, March 11, 2021, February 3, 2021, December 24, 2020, March 18, 2020, September 10, 2019, and November 6, 2019, the Company issued 22,019, 34,286, 7,429, 7,286, 44,286, 35,715 and 114,286 warrants, respectively, as equity issuance consideration, in connection with a private placement of the Company’s common stock. The warrants entitle the holder to purchase one share of our common stock at an exercise price equal to $0.49 to $5.25 per share at any time on or after their issuance date and on or prior to the close of business 3 years after the issuance date (the “Termination Date”). The Company determined that these warrants are free standing financial instruments that are legally detachable and separately exercisable from the common stock included in the public share offering. Management also determined that the warrants required classification as a liability pursuant to ASC 815. In accordance with the accounting guidance, the outstanding warrants are recognized as a warrant liability on the balance sheet and are measured at their inception date fair value and subsequently re-measured at each reporting period with changes being recorded as a component of other income in the statement of operations.


The warrants outstanding and fair values at each of the respective valuation dates are summarized below:


    Warrants     Fair Value        
Warrant Liability   Outstanding     per Share     Fair Value  
Fair Value as of period ending 12/31/2021     265,305              $ 318  
Change in fair value of warrant liability                     101  
Fair Value as of period ending 6/30/2022     265,305             $ 419  


The warrant liabilities are considered Level 3 liabilities on the fair value hierarchy as the determination of fair value includes various assumptions about of future activities and the Company’s stock prices and historical volatility of Guideline Public Companies as inputs. As of June 30, 2022, none of the warrants have been exercised.