Warrants

v3.23.1

Warrants	12 Months Ended
	Dec. 31, 2022
Warrants and Rights Note Disclosure [Abstract]
Warrants	WarrantsThe following table summarizes the changes in the Company's outstanding warrants during the years ended December 31, 2022 and December 31, 2021: Warrants Outstanding Number of Shares Exercise Prices Per Share Weighted Average Remaining Contractual Life Weighted Average Exercise Price Per Share Balance at December 31, 2021 4,551,197 $ 2.10 - 53.00 4.77 $ 22.66  Granted – $ –  – $ –  Exercised – $ –  – $ –  Expired (67,604) $ 33.00 - 53.00 – $ 39.34  Forfeitures (50,000) $ 13.90  – $ 13.90  Balance at December 31, 2022 4,433,593 $ 2.10 - 30.00 3.37 $ 22.50  Exercisable December 31, 2022 4,433,593 $ 2.10 - 30.00 3.37 $ 22.50  Exercisable December 31, 2021 4,451,197 $ 2.10 - 53.00 4.77 $ 22.66  The warrants to purchase shares of the Company’s common stock outstanding as of December 31, 2022 and December 31, 2021 had a total value of $73.3 million and $73.8 million, respectively. As of December 31, 2022, 89,286 liability classified derivative warrants to purchase shares of the Company’s common stock remained outstanding and are revalued each reporting period. As of December 31, 2022, the warrants were revalued at $0.3 million, resulting in a decrease of $0.6 million in liability as compared to December 31, 2021. The change in value is recorded within net other income (expense) on the consolidated statements of operations. The fair value of the outstanding derivative warrants was determined by using the Black-Scholes option pricing model ("BSM") based on the following assumptions: Exercise Price $ 2.10  Dividend Yield –  % Volatility 95  % Risk-free interest rate 4.37  % Expected life of options 2.2 years Of the total outstanding warrants, two shareholders were each issued 50,000 warrants, for a total of 100,000 warrants, to purchase the Company's common stock on October 15, 2020. The warrant agreement included a right for each holder to put their warrants to the Company for a fixed rate of $250,000 in cash commencing on the 2nd anniversary of the issue date. The put option was exercisable commencing on October 15, 2022 and anytime thereafter, prior to the ten years expiration term. On October 10, 2022, the Company received a notification of intent from one holder to exercise the put option for their 50,000 warrants in return for $250,000 in cash on the commencement date. The Company paid the balance on October 10, 2022. The remaining 50,000 warrants recorded as equity-classified warrants prior to the two-year commencement date of the option to exercise for cash, were reclassified as a current liability on the commencement date. At each reporting period, the Company will record the greater of the cash payable upon the exercise of the put option and the fair value of the warrants as of the reporting date. The Company revalued the remaining 50,000 warrants at $181,341 as of December 31, 2022 using the BSM model. As the cash payable for the exercise of the put option is greater than the fair value of the warrant, the Company recorded $250,000 within Warrant Liability on the Company's consolidated balance sheet as of December 31, 2022.