K2 Warrant

6 Months Ended

Jun. 30, 2023

K2 Warrant

K2 Warrant

8. K2 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 “K2 Warrant”). K2HV may at any time and from time to time exercise this K2 Warrant, in whole or in part, by delivering to the Company the original of this K2 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 K2 Warrant.

All of the 339,725 shares are outstanding as of June 30, 2023.

	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 recorded as additional paid-in capital on the Company’s condensed consolidated balance sheets.