Note 6 - Stock Warrants

9 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Warrants [Text Block]

6. Stock Warrants

As a result of the Merger closing (see Note 3), as of March 15, 2021, the Company had outstanding warrants to purchase an aggregate of 534,067 shares of common stock, 102,817 of which were exercisable. The warrants were previously issued by ADOMANI, Inc. and assumed in the Merger. In connection with the second closing of the Financing discussed in the Company’s Annual Report on Form 10-K filed with the SEC on April 26, 2022, the Company issued additional warrants to purchase up to 958,333 shares of its common stock, all of which were exercisable as of September 30, 2022. Approximately 27,483 stock warrants have expired in the nine months ending September 30, 2022. The Company’s outstanding warrants as of September 30, 2022 is summarized as follows, and all were exercisable at that date.

	Number of		Exercise		Remaining
	Shares		Price		Contractual Life (years)
Outstanding warrants expiring January 9, 2023		12,833	$	75.00		0.33
Outstanding warrants expiring January 28, 2025		431,250	$	10.00		2.33
Outstanding warrants expiring May 7, 2026		958,334	$	20.00		3.60
Outstanding warrants on September 30, 2022		1,402,417	$	17.43		3.18

The Warrants issued as part of the Purchase Agreement related to the Financing contain a call provision whereby the Company, after the 13-month anniversary of the issuance date, and if the volume weighted average price of the common stock for such date exceeds four times the exercise price of the warrants for 20 consecutive trading days, may call the Warrants that have not previously been exercised, and the Warrant holders have ten trading days within which to exercise before the Warrants may be cancelled.

As of September 30, 2022, the outstanding warrants have no intrinsic value.