NOTE 12: WARRANTS

Share Purchase Warrants

A summary of the Company’s share purchase warrants as of December 31, 2019 and 2018, respectively, and changes during the period is presented below:


				Weighted Average
	Number of	Weighted Average		Remaining Contractual	Total Intrinsic
	Warrants	Exercise Price		Life (in years)	Value
Balance - January 1, 2018	6,520,000	$	6.11	3.16	$	1,733,000
Warrants granted	18,484,000		4.45	—		—
Exercised for cash	(1,499,000)		6.79	—		—
Cashless exercised	(281,000)		4.03	—		—
Expired or cancelled	(208,000)		4.00	—		—
Balance - December 31, 2018	23,016,000		4.78	4.29		26,066,000
Warrants granted	45,000		4.26	—		—
Exercised for cash	(190,000)		3.99	—		—
Cashless exercise	(17,000)		2.38	—		—
Expired or cancelled	(190,000)		13.63	—		—
Balance - December 31, 2019	22,664,000	$	4.71	3.33	$	954,000

2019 Warrant Transactions

Exercise of Stock Warrants

During the twelve months ended December 31, 2019, certain outstanding warrants were exercised for 190,258 shares of common stock providing aggregate proceeds to the Company of approximately $759,000.

Additionally, during the twelve months ended December 31, 2019, the Company issued 9,449 shares of common stock upon cashless exercises of stock warrants, which resulted in cancellation of 7,211 shares of common stock subject to such warrants.

2018 Warrant Transactions

The Merger

Pursuant to the Merger discussed in Note 4 above, the Company issued 5,046,003 stock warrants to shareholders of Marker Cell Therapy, Inc. at an exercise price of $2.99 per share with a five-year term.

Securities Purchase Agreements

Pursuant to the financing discussed in Note 4 above, the Company issued 13,437,500 stock warrants to certain accredited investors at an exercise price of $5.00 per share with a five-year term.

Exercise and Repricing of Warrants Held by Existing Institutional Investors

On May 14, 2018, certain institutional holders of outstanding warrants entered into Warrant Exercise Agreements with the Company that provide for an amendment to the exercise price of the warrants being exercised at $2.50 per share. Upon closing of the Warrant Exercise Agreements, such institutional holders immediately exercised warrants for 782,505 shares of common stock providing aggregate proceeds to the Company of approximately $2.0 million.

The fair value relating to the modification of exercise prices on the repriced and exercised warrants was treated as deemed dividend on the statement of stockholders’ equity of $728,000.

A weighted average summary of quantitative information with respect to valuation methodology and significant unobservable inputs used for the Company’s common stock purchase warrants that are included in the modification is as follows:


	Weighted Average Inputs
	Before			After
	Modification			Modification
Exercise price	$	9.93		$	2.50
Contractual term (years)		2.37			2.37
Volatility (annual)		79	%		79	%
Risk-free rate		1.5	%		1.5	%
Dividend yield (per share)		0	%		0	%

Exercise of Stock Warrants

In addition to the exercise and repricing of warrants discussed above, during the twelve months ended December 31, 2018, certain outstanding warrants were exercised by warrant holders providing aggregate proceeds to the Company of approximately $2.4 million and resulted in the issuance of 716,819 shares of common stock.

Additionally, 280,760 of the stock warrants exercised were exercised on a cashless basis, which resulted in approximately 204,000 of warrant shares being cancelled due to use of cashless exercise provisions.