Warrant

9 Months Ended

Sep. 30, 2022

Warrant

Warrant

8. Warrant

In connection with the Term Loan and Loan Agreement (see Note 7), the Company issued warrants to purchase 339,725 shares of the Company’s common stock with an exercise price of $1.3246 (the “Warrant”).  K2HV may at any time and from time to time exercise this Warrant, in whole or in part, by delivering to the Company the original of this Warrant together with a duly executed Notice of Exercise.

The Company also granted registration rights to the Lenders with respect to shares issuable upon exercise of the Warrant.

All of the 339,725 shares are outstanding as of September 30, 2022.

	Shares	Initial Recognition Date	Exercise Price		Expiration Date
Warrant	339,725	July 27, 2022	$	1.3246	July 27, 2032

The warrant’s allocated fair value upon issuance was estimated to be approximately $0.4 million, and was measured using a Black-Scholes option-pricing model with the following assumptions:

Stock price	$1.41
Strike price	$1.32
Volatility (annual)	75.30%
Risk-free rate	2.74%
Estimated time to expiration (years)	10
Dividend yield	—%