WARRANTS

12 Months Ended

Dec. 31, 2023

Warrants

WARRANTS

NOTE 16 – WARRANTS

On July 22, 2022, simultaneously with the listing of the Company’s common stock on Nasdaq, the price protection provision in certain warrants were triggered, resulting in the purchase price per share of warrants to purchase 2,714,351 shares of common stock being reduced from $19.50 per share to $7.52 per share, in addition to the issuance of additional warrants to purchase 4,316,474 shares of common stock at $7.52 per share. The Company realized a deemed dividend of $21,115,910 as result of the repricing of certain warrants and the issuance of additional warrants. The price protection provision in the warrants expired as a result of the Nasdaq listing.

On September 12, 2022, in exchange for the waiver of certain liquidated damages due under the Registration Rights Agreement dated November 29, 2022, by and among the Company and certain of its convertible note and warrant holders party thereto, the Company reduced the exercise price of warrants to purchase 6,572,773 shares of common stock from $7.52 per share to $5.50 per share, in addition to issuing additional warrants to purchase 2,726,022 shares of common stock at $5.50 per share. The Company realized a deemed dividend of $462,556 as result of the repricing of certain warrants and a warrant expense for liquidated damages waiver for $7,408,681 for the issuance of new warrants.

On July 31, 2023, the Company entered into a letter agreement with the holders of common stock purchase warrants to purchase an aggregate of 9,756,876 shares of Common Stock (the “2021 and 2022 Warrants”) issued to the Holders pursuant to that certain Securities Purchase Agreement, dated as of November 29, 2021, by and among the Company and the Holders, and issued to the Holders pursuant to that certain Waiver Agreement, dated as of September 13, 2022, pursuant to which the Company agreed, subject to receipt of approval from the Company’s stockholders, to reduce the exercise price of the 2021 and 2022 Warrants from $7.52 and $5.50 per share to $1.50 per share, subject to adjustment as set forth in the Warrant Repricing Agreement. Holders of a majority of the shares of common stock approved the repricing on October 13, 2023. The Company recorded a deemed divided of $1,307,574 for the reduction in the exercise price of the 2021 and 2022 Warrants.

On July 31, 2023, the Company realized a debt discount of $3,279,570 for the fair value of warrants issued in its senior secured debt offering.

During the year ended December 31, 2023, the Company credited additional paid in capital $753,567 for a debt discount for the fair value of warrants issued as commission for its senior secured debt offering.

On August 21, 2023, upon the closing of a registered direct offering, the exercise price of the 2021 and 2022 Warrants and warrants issued as commission for the Company’s July 2023 senior secured debt offering was reduced to $1.02, subject to receipt of approval from the Company’s stockholders. Holders of a majority of the shares of common stock approved the repricing on October 13, 2023. The Company realized a deemed divided of $331,018 for the reduction in the exercise price of the 2021 and 2022 Warrants as well as the July 2023 Commission Warrants.

A summary of the warrant activity for the years ended December 31, 2023 and 2022 is as follows:

	Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding at December 31, 2021		2,752,941		$	19.77		4.86	$	11,650
Granted		7,042,525		$	5.50
Exercised		-
Expired/Canceled/Exchanged		(37,756	)	$	40.00
Outstanding at December 31, 2022		9,757,710		$	5.61		4.14	$	635
Granted		10,811,43 3		$	0.62
Exercised		(1,918,507	)	$	0.01
Expired/Canceled/Exchanged		(834	)	$	0.12
Outstanding at December 31, 2023		18,649,802		$	0.89		3.99	$	1,388,582
Exercisable at December 31, 2023		18,649,802		$	0.89		3.99	$	1,388,582

Exercise Price		Warrants Outstanding		Weighted Avg. Remaining Life		Warrants Exercisable
$	0.01		2,501,950		4.59		2,501,950
	1.02		15,645,619		3.87		15,645,619
	1.28		502,233		4.64		502,233
			18,649,802		3.99		18,649,802

The aggregate intrinsic value of outstanding stock warrants was $1,388,582, based on warrants with an exercise price less than the Company’s stock price of $0.57 as of December 31, 2023 which would have been received by the warrant holders had those holders exercised the warrants as of that date.