Note 8 - Derivatives

9 Months Ended

Sep. 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 $293 and $3,355 as of September 30, 2023 and December 31, 2022, respectively. The Company recorded gains on the change in fair value of the placement agent warrants of $743 and $3,308 during the three months ended September 30, 2023 and September 30, 2022, respectively, and $3,062 and $35,474 during the nine months ended September 30, 2023 and September 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 $576 and $4,479 as of September 30, 2023 and December 31, 2022, respectively. The Company recorded gains on the change in fair value of the placement agent warrants of $1,133 and $3,370 during the three months ended September 30, 2023 and September 30, 2022, respectively, and $3,903 and $35,421 during the nine months ended September 30, 2023 and September 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 $1,240 and $5,999 as of September 30, 2023 and December 31, 2022, respectively. The Company recorded gains on the change in fair value of the placement agent warrants of $1,587 and $3,541 during the three months ended September 30, 2023 and September 30, 2022, respectively, and $4,759 and $36,486 during the nine months ended September 30, 2023 and September 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
Gain recognized to revalue derivative instrument at fair value		(10,219	)
Derivative liability balance at September 30, 2022	$	22,099
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
Gain recognized to revalue derivative instrument at fair value		(3,463	)
Derivative liability balance at September 30, 2023	$	2,109