WARRANTS

9 Months Ended

Sep. 30, 2021

Warrants

WARRANTS

NOTE 12 — WARRANTS

A summary of the warrants activity during the nine months ended September 30, 2021 is as follows:

Warrants:	Shares			Weighted Avg. Exercise Price
Balance at December 31, 2020		221,513		$	7.08
Issued		—			—
Exercised		(166,072	)		0.00
Expired		(35,441	)		23.70
Balance at September 30, 2021		20,000		$	3.91

On March 4, 2020, in connection with the March 4th Note, the Company issued Series “I” Warrant to purchase up to 20,000 shares of Common Stock at a purchase price of $3.91 per share. The warrants become exercisable on the six-month anniversary and for a period of five years thereafter. If a resale registration statement covering the shares of Common Stock underlying the warrants is not effective and available at the time of exercise, the warrants may be exercised by means of a “cashless” exercise formula. The Company determined that the Series “I” Warrant should be classified as a freestanding financial instrument that meets the criteria to be accounted for as a derivative liability and recorded a fair value at issuance of $40,000. The Company recorded losses of $55,000 and of $155,000 in its condensed consolidated statements of operations due to change in fair value for the three and nine months ending September 30, 2021, respectively. The fair value recorded on the Company’s condensed consolidated balance sheets as of September 30, 2021 and December 31, 2020 was $205,000 and $50,000, respectively.

The Company recorded a loss of $2,397,877 in its condensed consolidated statements of operations due to change in fair value for the nine months ending September 30, 2021 in connection with the Series E, F, G and H warrants which were exercised in March 2021 using a cashless exercise formula pursuant to the warrant agreement.