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Warrants

12 Months Ended

Dec. 31, 2023

9. Warrants

The Company issued warrants to purchase 6,745 shares of common stock in 2018 in conjunction with convertible debt financing that have a redemption provision providing the holder the right to have the Company redeem all or any portion of the warrant (or shares it has converted into) at a purchase price equal to the fair market value of the shares as determined by the board of directors or an independent appraiser. As a result of this redemption provision, the warrants have been classified as a liability in the financial statements based on ASC 480 – Distinguishing Liabilities from Equity. These warrants have an exercise price of $0.48 per share and a term of 10 years. The warrants are marked to market each reporting period. The fair value is $35,453 and $70,283 at December 31, 2023 and 2022, respectively.

The Company also issued warrants in 2016 and 2019 which did not meet the criteria under ASC 480 to be classified as a liability, and instead meet equity classification criteria. The 11,466 warrants issued in 2016 had a weighed average exercise price of $0.01 and a weighted average term of 9.7 years and expired upon the initial public offering in June 2023.

The following table summarizes information about warrants outstanding at December 31, 2023:

				Warrants Outstanding						Warrant Exercisable
Year Granted		Exercise Price		Number of Warrants at 12/31/2023		Weight Average Remaining Contractual Life		Weight Average Exercise Price		Number of Warrants at 12/31/2023		Weighted Average Remaining Contractual Life		Weighted Average Exercise Price
	2018	$	0.48		47,890		4.5 years	$	0.48		47,890		4.5 years	$	0.48
	2019	$	5.28		215,846		2.4 years	$	5.28		215,846		2.4 years	$	5.28
	2023	$	6.25		60,000		4.7 years	$	6.25		60,000		4.7 years	$	6.25
					323,736			$	4.75		323,736			$	4.75

AZITRA, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

For the Years Ended December 31, 2023 and 2022