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WARRANTS | 12 Months Ended
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Dec. 31, 2023
Warrants |
WARRANTS | 18. WARRANTS A summary of warrant activity for the years ended December 31, 2023 and 2022 is presented below.
Schedule of warrants |  |  |  |  |  |  |  |  |  |  |  |
|  | Warrants |  |  | Weighted- Average Exercise Price |  |  | Weighted- Average Remaining Contractual Life (Years) |
Outstanding at January 1, 2022 |  |  | 2,669 |  |  | $ | 23,175 |  |  |  | 4.7 |
Granted |  |  | 1,209 |  |  |  | 4,500 |  |  |  |  |
Forfeited |  |  | (1 | ) |  |  | 4,554,717 |  |  |  |  |
Exercised |  |  | (1,803 | ) |  |  | 16,618 |  |  |  |  |
Outstanding at December 31, 2022 |  |  | 2,074 |  |  |  | 16,835 |  |  |  | 3.9 |
Granted |  |  | 14,176,472 |  |  |  | 3.55 |  |  |  |  |
Forfeited |  |  | - |  |  |  | - |  |  |  |  |
Exercised |  |  | - |  |  |  | - |  |  |  |  |
Outstanding at December 31, 2023 |  |  | 14,178,546 |  |  | $ | 5.10 |  |  |  | 4.7 |
The following table summarizes information about common stock warrants outstanding at December 31, 2023:
Schedule of common stock warrants outstanding |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Outstanding |  |  | Exercisable |
|  |  |  |  |  | Weighted |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  | Average |  |  | Weighted |  |  |  |  |  | Weighted |
|  |  |  |  |  | Remaining |  |  | Average |  |  |  |  |  | Average |
Exercise |  |  | Number |  |  | Contractual |  |  | Exercise |  |  | Number |  |  | Exercise |
Price |  |  | Outstanding |  |  | Life (Years) |  |  | Price |  |  | Exercisable |  |  | Price |
$ | 3.38 |  |  |  | 12,269,032 |  |  |  | 4.77 |  |  | $ | 3.38 |  |  |  | - |  |  |  |  |
$ | 4.59 |  |  |  | 1,907,440 |  |  |  | 4.60 |  |  | $ | 4.59 |  |  |  | - |  |  |  |  |
$ | 3,375 - $18,750 |  |  |  | 2,067 |  |  |  | 2.72 |  |  | $ | 10,3801 |  |  |  | 2,067 |  |  | $ | 10,381 |
$ | 66,000 - $148,500 |  |  |  | 7 |  |  |  | 0.24 |  |  | $ | 84,643 |  |  |  | 7 |  |  | $ | 84,643 |
$ | 3.38 - $148,500 |  |  |  | 14,178,546 |  |  |  | 4.75 |  |  | $ | 5.10 |  |  |  | 2,074 |  |  | $ | 10,631 |
Warrant Issuances During 2023 During the year ended December 31, 2023, the Company issued warrants to purchase 14.2 million shares of Class A common stock at a weighted average exercise price of $3.54 per share, subject to adjustment, in connection with the issuance of a senior secured convertible promissory note, related party (see Note 24) and Series C convertible preferred stock, related party (see Note 26). Warrant Issuances During 2022 On November 7, 2022, the Company issued warrants to purchase 606 shares of common stock at exercise price equal to $3,375 per share and warrants to purchase 606 shares of common stock at exercise price equal to $5,625 per share, subject to adjustment in connection with the issuance of secured promissory notes in the aggregate principal face amount of $18.9 million. The Company has valued the warrants issued at their date of grant utilizing the Black-Scholes option pricing model. This model is dependent upon several variables such as the warrants’ remaining contractual term, exercise price, current stock price, risk-free interest rate and estimated volatility of the Company’s 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 a variety of pricing models and the weighted average assumptions used during the years ended December 31, 2023 and 2022 were as follows:
Schedule of weighted average assumptions |  |  |  |  |  |  |  |
|  | December 31, 2023 |  |  | December 31, 2022 |
Exercise price |  | $ | 3.54 |  |  | $ | 4,500 |
Contractual term in years |  |  | 5.0 |  |  |  | 4.0 |
Volatility |  |  | 168 | % |  |  | 176 | %
Dividend yield |  |  | 0 | % |  |  | 0 | %
Risk-free interest rate |  |  | 4.0 | % |  |  | 4.5 | %

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