Note 8 - Derivatives

6 Months Ended

Jun. 30, 2023

Notes to Financial Statements

Derivative Instruments and Hedging Activities Disclosure [Text Block]

NOTE 8 – DERIVATIVES

Certain warrants issued to placement agents were determined to be a derivative liability due to certain features of the warrants which could, in certain circumstances, result in the holder receiving the Black Scholes value of the outstanding warrants in the same type of consideration as the common stockholders. As a result, in those circumstances, the amount of consideration would differ from that provided to holders of common stock, therefore, the warrants were classified as a liability.

The fair value of the placement agent warrants issued in connection with the March 2020 private placement was determined to be $1,036 and $3,355 as of June 30, 2023 and December 31, 2022, respectively. The Company recorded gains on the change in fair value of the placement agent warrants of $1,900 and $30,976 during the three months ended June 30, 2023 and June 30, 2022, respectively, and $2,319 and $32,166 during the six months ended June 30, 2023 and June 30, 2022, respectively. The placement agent warrants expire in March 2025.

The fair value of the placement agent warrants issued in connection with the May 2020 offering of securities was determined to be $1,709 and $4,479 as of June 30, 2023 and December 31, 2022, respectively. The Company recorded gains on the change in fair value of the placement agent warrants of $2,435 and $31,546 during the three months ended June 30, 2023 and June 30, 2022, respectively, and $2,770 and $32,051 during the six months ended June 30, 2023 and June 30, 2022, respectively. The placement agent warrants expire in May 2025.

The placement agent warrants issued in connection with the June 2020 warrant exercise and issuance had a fair value of $2,827 and $5,999 as of June 30, 2023 and December 31, 2022, respectively. The Company recorded gains on the change in fair value of the placement agent warrants of $2,973 and $32,733 during the three months ended June 30, 2023 and June 30, 2022, respectively, and $3,172 and $32,945 during the six months ended June 30, 2023 and June 30, 2022, respectively. The placement agent warrants expire in June 2025.

The table below discloses changes in value of the Company’s embedded derivative liabilities discussed above.

Derivative liability balance at December 31, 2021	$	129,480
Gain recognized to revalue derivative instrument at fair value		(1,908	)
Derivative liability balance at March 31, 2022	$	127,572
Gain recognized to revalue derivative instrument at fair value		(95,254	)
Derivative liability balance at June 30, 2022	$	32,318

Derivative liability balance at December 31, 2022	$	13,833
Gain recognized to revalue derivative instrument at fair value		(953	)
Derivative liability balance at March 31, 2023	$	12,880
Gain recognized to revalue derivative instrument at fair value		(7,308	)
Derivative liability balance at June 30, 2023	$	5,572