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Warrants

9 Months Ended

Sep. 30, 2021

8. Warrants

In conjunction with both debt and equity investments, the Company issued warrants on each of the following classes of stock: common stock and Series A-1 convertible preferred stock.

The following is a summary of the Company’s outstanding common stock warrants:

As of September 30, 2021:


	Exercise		Expiration
Number of Warrants	Price		Date
115,310	$	0.03	March 2023
24,171	$	0.03	May 2023
10,319	$	0.03	August 2023

As of December 31, 2020:


	Exercise		Expiration
Number of Warrants	Price		Date
50,497	$	0.68	May 2021
116,144	$	0.03	March 2023
24,171	$	0.03	May 2023
10,319	$	0.03	August 2023

Series A-1 Convertible Preferred Stock Warrants

The Company reviewed the classification of the warrants as liabilities or equity under the guidance of ASC 480-10, Distinguishing Liabilities from Equity, and concluded that the Series A-1 convertible preferred stock warrants should be classified as a liability. The Company re-measures the warrant liability to fair market value at the end of each reporting period. The Series A-1 convertible preferred stock warrants expired in October 2020 and were not exercised.

Common Stock Warrants

The Company’s common stock warrants are equity classified as there are no features within the warrant agreements that require liability treatment. Accordingly, the warrants are recorded as a component of equity when they are issued. Upon the closing of the IPO on October 13, 2021, 147,702 warrants were exercised into shares of common stock (see Note 13). The remaining warrants were not exercised and expired pursuant to their terms.