Note 11 - Warrant Liability Change in Fair Value During Year 2018

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Warrant Liability Disclosure [Text Block]

11.

Warrant Liability Change in Fair Value During Year

2018

The Company’s liability-classified warrants to purchase preferred stock were recorded as a liability at their estimated fair value at the date of issuance, with the subsequent changes in estimated fair value recorded in warrant fair value adjustments in the Company’s Statements of Operations and Comprehensive Loss. The warrants, with a fair value of

$4,474,122

at inception, were initially recorded as a warrant liability on the Balance Sheet with a corresponding discount to the notes. The change in the estimated fair value of the warrant liability resulted in a fair value adjustment and is included in warrant fair value adjustments in the Statements of Operations and Comprehensive Loss. In conjunction with the IPO during the year ended

December 31, 2018,

the warrants automatically converted to warrants to purchase common stock. Therefore, upon the IPO, the warrant liability was marked to fair market value and transferred to additional paid-in capital. Changes in the values of the warrant liability for the years ended

December 

31,

 

2019

and

2018

are summarized below:

	Year Ended December 31,
	2019		2018
Fair value, beginning of period	$	—	$	2,462,859
Issuance of warrants		—		—
Change in fair value		—		(277,715	)
Transfer to additional paid-in capital		—		(2,185,144	)
Fair value, end of period	$	—	$	—