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Stockholders' Equity | 12 Months Ended
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Dec. 31, 2021
Stockholders Equity Note [Abstract] |
Stockholders' Equity | Note 7: Stockholders’ Equity Convertible Preferred Shares The following tables summarize the movement in preferred shares for the year ended December 31, 2020.
| Class A |  |  | Class B |  |  | Class C |  |  |  |  |
(amounts in thousands) | preferred shares |  |  | preferred shares |  |  | preferred shares |  |  | Total |
Balance at January 1, 2020 |  | 124 |  |  | $ | 4,457 |  |  |  | 1,989 |  |  | $ | 54,831 |  |  |  | 2,959 |  |  | $ | 58,803 |  |  | $ | 118,091 |
Dividends accrued |  |  |  |  |  | 65 |  |  |  |  |  |  |  | 796 |  |  |  |  |  |  |  | - |  |  |  | 861 |
Amortization of issuance costs and warrants |  |  |  |  |  | - |  |  |  |  |  |  |  | 77 |  |  |  |  |  |  |  | 728 |  |  |  | 805 |
Foreign exchange impact |  |  |  |  |  | (293 | ) |  |  |  |  |  |  | (3,601 | ) |  |  |  |  |  |  | (3,862 | ) |  |  | (7,756 | )
Preferred shares converted into Peraso Shares |  | (124 | ) |  |  | (4,229 | ) |  |  | (1,989 | ) |  |  | (52,103 | ) |  |  | (2,959 | ) |  |  | (55,669 | ) |  |  | (112,001 | )
Balance at December 31, 2020 |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
In March 2020, the Company issued 124,408 Peraso Shares upon conversion of all outstanding Class A preferred shares amounting to $4,229,288 and 1,988,554 Peraso Shares upon conversion of all outstanding Class B preferred shares amounting to $52,102,651. The Class A and B preferred shares were converted into Peraso Shares based on the original conversion price of CDN$1.00 ($0.72 USD). The outstanding accumulated dividends of $22,732,543 were reclassified into additional paid-in capital. In March 2020, the Company also issued 2,958,787 Peraso Shares amounting to $55,668,932 upon conversion of all outstanding Class C preferred shares based on the amended conversion price of CDN$1.18 ($0.85 USD). As a conversion inducement, the Company amended the ratio for the conversion of the Class C preferred shares into Peraso Shares from 1:1 to 1:1.25. The Company determined that the additional Peraso Shares issuable arising from such modification totaled 591,757 with a fair value of $11,133,786 and recognized such amount as a deemed dividend. These convertible preferred shares were accounted for as mezzanine equity prior to their conversion into Peraso Shares in March 2020. Warrants classified as equity At December 31, 2021, the Company had the following warrants outstanding (share amounts in thousands):
Warrant Type |  | Number of Shares |  |  | Exercise Price |  |  | Expiration
Common stock |  |  | 33 |  |  | $ | 47.00 |  |  | January 2023
Common stock |  |  | 101 |  |  | $ | 2.40 |  |  | October 2023
Warrants classified as liability Warrants outstanding at December 31, 2020 and their respective exercise price and expiration dates, were as follows:
Year Issued |  | Number of warrants issued (recast) |  |  | Exercise price |  | Expiration
2014 |  |  | 27 |  |  | CDN$1.00 |  | December 31, 2025
2015 |  |  | 4 |  |  | CDN$1.00 |  | August 31, 2022
2016 |  |  | 19 |  |  | CDN$1.479 |  | December 31, 2025
2017 |  |  | 7 |  |  | CDN$1.479 |  | December 31, 2022
2017 |  |  | 15 |  |  | CDN$1.479 |  | December 31, 2025
2019 |  |  | 3 |  |  | CDN$1.479 |  | December 31, 2025
2020 |  |  | 98 |  |  | CDN$0.15 |  | December 31, 2025
2020 |  |  | 202 |  |  | CDN$0.15 |  | December 31, 2023
Total |  |  | 375 |  |  |  |  |
Exercise prices in USD were $0.79, $1.16, and $0.12 at December 31, 2020. Warrant activity and the related changes in the estimated fair values during the years ended December 31, 2021 and 2020 were:
|  | Number of shares (recast) |  |  | Amount |
Balance - December 31, 2019 |  |  | 75 |  |  | $ | 1,501,307 |
Issued in the year |  |  | 300 |  |  |  | 5,300,798 |
Change in fair value of warrants |  |  | — |  |  |  | (96,267 | )
Balance - December 31, 2020 |  |  | 375 |  |  |  | 6,705,838 |
Issued in the year |  |  | 133 |  |  |  | 2,604,420 |
Effect of business combination |  |  | (508 | ) |  |  | (1,208,250 | )
Change in fair value of warrants |  |  | — |  |  |  | (8,102,008 | )
Balance - December 31, 2021 |  |  | — |  |  | $ | — |
The fair value of the warrant liability was estimated using the Black-Scholes option-pricing model. Peraso Tech was a private company and lacked company-specific historical and implied volatility information. Therefore, it estimated its expected stock volatility based on the historical volatility of a publicly traded set of peer companies within the semiconductor industry with characteristics similar to the Company. The risk-free interest rate is determined by reference to the U.S. Treasury yield curve in effect at the time of grant of the award for time periods approximately equal to the expected term of the award. Expected dividend yield is zero, based on the fact that the Company had never paid cash dividends and did not expect to pay any cash dividends in the foreseeable future. The Company granted warrants with exercise price of CDN$0.15 ($0.12 USD) to purchase 6,628,495 common shares of the Company in 2020 to certain holders of convertible debentures (Note 7). The total fair values of these warrants at grant date amounted to $5.3 million in 2020. The fair values were determined using Black-Scholes model with the following assumptions: expected term based on the contractual term of 3.2 - 5 years, risk-free interest rate of 0.37%-0.38% based on a comparable US Treasury Bond, expected volatility of 104.37%, and expected dividend of zero. The fair values of the outstanding warrants at December 31, 2020 was calculated based on the following assumptions used in the Black-Scholes model: expected term based on the remaining contractual term of 1.92-5.25 years, risk-free interest rate of 0.36% based on a comparable US Treasury Bond, expected volatility of 104.37%, and expected dividend of zero. In accordance with the Arrangement Agreement, on December 16, 2021, the warrants were settled in exchange for a defined number of common shares. Upon settlement, the fair value of the warrants were calculated using the intrinsic fair value of the common shares. The change in fair value was recognized in other income (expense) in the consolidated statements of operations.

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- Definition The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 13 -URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 14 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496171-112644 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 14 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496171-112644 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.3-04) -URI http://asc.fasb.org/extlink&oid=120397183&loc=d3e187085-122770 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 18 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496189-112644 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (g) -URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644 Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -URI http://asc.fasb.org/topic&trid=2208762 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 18 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496189-112644 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (h) -URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 14 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496171-112644 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 18 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496189-112644 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 16 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496180-112644 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (i) -URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644 Reference 15: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(e)(1)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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