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WARRANTS
 6 Months Ended
Jun. 30, 2020
Warrants  
WARRANTS

13. WARRANTS 

 

During the six months ended June 30, 2020, the Company issued a total of 2,079,435 warrants at an average exercise price of $1.37 per share.

 

(i)On February 20, 2020, pursuant to the Master Exchange Agreement, the Company issued warrants to purchase an aggregate of 270,198 shares of common stock at an average exercise price equal to $1.43 per share of common stock (see Note 17).

  

(ii)During the six months ended June 30, 2020, the Company issued warrants to purchase an aggregate of 890,103 shares of common stock at an average exercise price equal to $1.08 per share of common stock in connection with the issuance of the Esousa 12% short-term promissory notes in the aggregate principal amount of $875,000 (see Note 17).

  

(iii)On April 14, 2020, the Company issued warrants to purchase up to 157,143 shares of common stock at an exercise price equal to $1.17 per share of common stock in connection with the issuance of a convertible promissory note in the principal amount of $100,000 (see Note 19).

  

(iv)On May 28, 2020, the Company issued warrants to purchase an aggregate of 400,000 shares of common stock at an exercise price equal to $1.07 per share of common stock in connection with the issuance of a convertible promissory note in the principal amount of $200,000 (see Note 19).

   

(v)On June 26, 2020, the Company issued warrants to purchase an aggregate of 361,991 shares of common stock at an exercise price equal to $2.43 per share of common stock in connection with the issuance of promissory notes in the aggregate principal face amount of $800,000 (see Note 17).

 

The following table summarizes information about common stock warrants outstanding at June 30, 2020:

 

Outstanding       Exercisable
        Weighted            
    Average Weighted   Weighted
    Remaining Average   Average
Exercise Number Contractual Exercise Number Exercise
Price Outstanding Life (Years) Price Exercisable Price
$                            —      6,500   3.75   $              —      6,500   $                —   
$                         0.88   281,250   4.77   $           0.88   —   $             0.88
$                         1.07   400,000   4.91   $           1.07   400,000   $             1.07
$                         1.14   144,928   4.69   $           1.14   —   $             1.14
$                         1.16   95,238   4.91   $           1.16   —   $             1.16
$                         1.17   157,143   4.79   $           1.17   157,143   $             1.17
$                         1.19   277,778   4.66   $           1.19   —   $             1.19
$                         1.21   90,909   4.81   $           1.21   —   $             1.21
$                         1.43   270,198   4.61   $           1.43   —   $             1.43
$                         2.43   361,991   1.41   $           2.43   361,991   $             2.43
$                         8.00   397   1.34   $           8.00   397   $             8.00
$                         8.80   25,000   4.01   $           8.80   25,000   $             8.80
$                       12.00   12,500   3.86   $         12.00   12,500   $           12.00
$                       19.80   15,555   3.75   $         19.80   15,555   $           19.80
$                     440.00   355   2.36   $       440.00   355   $         440.00
$                     480.00   94   2.84   $       480.00   94   $         480.00
$                     528.00   186   2.34   $       528.00   186   $         528.00
$                     560.00   2,657   2.37   $       560.00   2,657   $         560.00
$                     600.00   170   1.87   $       600.00   170   $         600.00
$                     640.00   200   1.82   $       640.00   200   $         640.00
$                     752.00   9,614   2.88   $       752.00   9,614   $         752.00
$                     800.00   350   2.44   $       800.00   350   $         800.00
$                     880.00   947   1.17   $       880.00   947   $         880.00
$                     920.00   2,126   2.74   $       920.00   2,126   $         920.00
$                  1,040.00   1,243   2.79   $    1,040.00   1,243   $      1,040.00
$                  1,760.00   781   2.56   $    1,760.00   781   $      1,760.00
$                  1,800.00   140   2.57   $    1,800.00   140   $      1,800.00
$                  2,000.00   203   2.57   $    2,000.00   203   $      2,000.00
$ 0.88  -  $ 2,000.00   2,158,453   4.16   $           8.88   998,152   $           17.85

  

The Company has valued the warrants at their date of grant utilizing the Black-Scholes option pricing model. This model is dependent upon several variables such as the warrants’ term, exercise price, current stock price, risk-free interest rate and estimated volatility of our stock over the contractual term of the warrants. The risk-free interest rate used in the calculations is based on the implied yield available on U.S. Treasury issues with an equivalent term approximating the contractual life of the warrants. 

 

The Company utilized the Black-Scholes option pricing model and the assumptions used during the six months ended June 30, 2020 and 2019:

 

    Six Months Ended
    June 30, 2020   June 30, 2019
Weighted average risk free interest rate   0.17% — 1.38%   2.18% — 2.28%
Weighted average life (in years)   1.42 — 5   5.0
Volatility   86.3% — 103.1%   87.5%
Expected dividend yield   0%   0%
Weighted average grant-date fair value per share of warrants granted   $                0.78   $               10.48