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Warrants
 9 Months Ended
Sep. 30, 2024
Warrants  
Warrants

Note 9 - Warrants

 

The following table summarizes information with respect to outstanding warrants to purchase common stock during the nine months ended September 30, 2024:

 

           Weighted   Weighted     
           Average   Average   Aggregate 
   Warrants   Exercise   Remaining Life   Intrinsic 
   Outstanding   Exercisable   Price   In Months   Value 
                     
Outstanding at December 31, 2023   635,314    635,314   $61.72    37    - 
                          
Granted   -    -    -    -    - 
                          
Exercised   -    -    -    -    - 
                          
Expired   (17,529)   (17,529)  $114.34          -    - 
                          
Outstanding at September 30, 2024   617,785    617,785   $60.23    29    - 

 

The following table summarizes information about warrants outstanding at September 30, 2024:

 

    Warrants   Weighted Average 
Exercise price   Outstanding   Exercisable   Months Outstanding 
              
$124.74    1,447    1,447            1 
                  
$60.00    592,125    592,125    29 
                  
$61.95    24,213    24,213    29 
                  
      617,785    617,785    29 

 

Q3 2021 Warrants Issued to Series B Preferred Stockholder

 

On September 28, 2021, the Company entered into a Securities Purchase Agreement with an institutional investor, pursuant to which the investor purchased from the Company 3,300 shares of convertible Series B Preferred Stock with a stated value of $1,000 per share, or $3,300,000 of stated value in the aggregate, and a warrant to purchase up to 16,082 shares of common stock of the Company for an aggregate purchase price of $3,000,000. The warrant was exercisable until September 28, 2024, at an exercise price of $113.40, subject to adjustment for stock splits, stock dividends and other typical adjustments and changes in capitalization, including mergers and acquisitions and distribution of rights. Accordingly, these warrants expired, unexercised, on September 28, 2024.

 

Q3 2021 Warrants Issued to Series B Preferred Placement Agent

 

In connection with the sale of the shares of convertible Series B Preferred Stock described above, the Company issued 2,894 warrants to the placement agent and its designees. Half of the warrants were issued on September 28, 2021, and the second half were issued on November 3, 2021, and were exercisable commencing February 28, 2022 and May 3, 2022, respectively, until September 28, 2024 and November 3, 2024, respectively. The exercise price per share of the warrants was $124.80, subject to adjustment for stock splits, stock dividends and other typical adjustments and changes in capitalization, including mergers and acquisitions and distribution of rights. Accordingly, 1,447 of these warrants expired, unexercised, on September 28, 2024. Further, as discussed in Note 12 Subsequent Events below, the remaining 1,447 warrants expired unexercised on November 3, 2024.

 

 

CEA Industries Inc.

Notes to Condensed Consolidated Financial Statements

September 30, 2024

(in US Dollars except share numbers)

(Unaudited)