Annual report pursuant to Section 13 and 15(d)

Warrants (Tables)

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Warrants (Tables)
12 Months Ended
Dec. 31, 2023
Warrants and Rights Note Disclosure [Abstract]  
Schedule of Warrant Activity
The following table summarizes the activity in the Company’s outstanding warrants during the years ended December 31, 2023 and 2022:
Warrants Outstanding Number of
Shares
Weighted Average Remaining
Contractual Life
Weighted Average Exercise Price Per
Share
Balance at December 31, 2021 4,551,197 4.77 $ 22.66 
Granted $ – 
Exercised $ – 
Expired (67,604) $ – 
Forfeitures (50,000) $ – 
Balance at December 31, 2022 4,433,593 3.37 $ 22.50 
Granted 4,784,909 4.84 $ 2.50 
Exercised (2,311,550) 2.59 $ 23.70 
Expired (4,000) $ – 
Forfeitures (50,000) $ – 
Balance at December 31, 2023 6,852,952 4.16 $ 8.19 
Exercisable December 31, 2023 6,852,952 4.16 $ 8.19 
Exercisable December 31, 2022 4,433,593 4.77 $ 22.50 
Schedule of Assumptions for Warrant Activity
The fair value of the outstanding derivative warrants was determined by using the BSM option pricing model based on the following assumptions as of December 31, 2023:
December 31, 2023
Market Price $ 1.39 
Exercise Price $ 2.10 
Dividend Yield –  %
Volatility 149  %
Risk-free Interest Rate 4.68  %
Expected Life of Warrants 1.2 years
The fair value of the aggregate total of 4,784,909 Exchange Warrants and the SEG Warrants (collectively, the “Warrants”) on the issuance date of June 26, 2023 was determined to be $13.1 million, or $2.74 per share, as calculated using the BSM option pricing model based on the following assumptions:
June 26, 2023
Market Price $ 3.30 
Exercise Price $ 2.50 
Dividend Yield –  %
Volatility 110  %
Risk-free interest rate 3.96  %
Expected Life of Warrants 5.0 years
The fair value of the Warrants was determined to be $3.0 million, using the BSM option pricing model based on the following assumptions on October 31, 2023:
October 31, 2023
Market Price $ 0.99 
Exercise Price $ 2.50 
Dividend Yield –  %
Volatility 98  %
Risk-free interest rate 4.82  %
Expected Life of Warrants 5.0 years