XML 40 R20.htm IDEA: XBRL DOCUMENT

Warrants

12 Months Ended

Dec. 31, 2019

NOTE 14: WARRANTS

On November 19, 2018, the Company announced the closing of its underwritten public offering of 2,857,142 shares of its common stock and warrants to purchase 1,428,571 shares of common stock at a combined public offering price of $3.50 per share and warrant. The gross proceeds to the Company from this the Public Offering were approximately $10,000, before deducting underwriting discounts and commissions and other estimated offering expenses. The proceeds were primarily used in the Allure Acquisition and in the repayment of approximately $1,283 of debt.

On April 27, 2018, we entered into the Fourth Amendment to the Loan and Security Agreement with Slipstream, under which we obtained a $1,100 revolving loan, with interest thereon at 8% per annum, maturing on January 16, 2019. In connection with the loan, we issued the lender a five-year warrant to purchase up to 143,791 shares of Creative Realities' common stock at a per share price of $7.65 (subject to adjustment and subsequently adjusted to $6.25 in November 2018). The fair value of the warrants was $543, which is accounted for as an additional debt discount and amortized over the remaining life of the loan.

On January 16, 2018, we entered into the Third Amendment to the Loan and Security Agreement with Slipstream, under which we obtained a $1,000 revolving loan, with interest thereon at 8% per annum, maturing on January 16, 2019. In connection with the loan, we issued the lender a five-year warrant to purchase up to 61,729 shares of Creative Realities' common stock at a per share price of $8.10 (subject to adjustment and subsequently adjusted to $6.09 in November 2018). The fair value of the warrants on the issuance date was $266, which is accounted for as an additional debt discount and amortized over the remaining life of the loan.

Listed below are the range of inputs used for the probability weighted Black Scholes option pricing model valuations for when the warrants were issued and at December 31, 2019.

Issuance Date	Expected Term at Issuance Date		Risk Free Interest Rate at Date of Issuance			Volatility at Date of Issuance			Stock Price at Date of Issuance
1/16/2018		5.00		2.36	%		65.07	%	$	7.80
4/27/2018		5.00		2.80	%		65.95	%	$	6.90

Remaining Expected Term at December 31, 2019		Risk Free Interest Rate at December 31, 2019				Volatility at December 31, 2019				Stock Price at December 31, 2019
0.13 - 3.92			1.69	%			74.49	%		$	1.53

A summary of outstanding debt and equity warrants is included below:

	Warrants (Equity)							Warrants (Liability)
	Amount			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life		Amount			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life
Balance January 1, 2019		4,815,047		$	4.90		4.34		216,255		$	7.34		0.64
Warrants issued		-			-		-		-			-		-
Warrants expired		(82,019	)		8.25		-		(216,255	)		7.34		-
Balance December 31, 2019		4,733,028		$	4.83		3.41		-		$	-		-