WARRANT LIABILITY

6 Months Ended

Jun. 30, 2023

WARRANT LIABILITY [Abstract]

WARRANT LIABILITY

Note 9
WARRANT LIABILITY

In conjunction with the business combination with Helix, outstanding warrants to purchase Helix common stock were converted to warrants to purchase Company common stock. As the warrant holders have the option to receive cash in lieu of common stock in certain circumstances, the Company determined that the warrants require classification as a liability pursuant to ASC 815-40. In accordance with the applicable accounting guidance, the outstanding warrants are recognized as a warrant liability on the condensed consolidated balance sheet and were measured at their inception date fair value (the closing date of the business combination with Helix) and subsequently re-measured at each reporting period with changes being recorded in the condensed consolidated statements of operations. As of June 30, 2023 and 2022, the Company had 55,121 and 92,058 warrants outstanding classified as liabilities, respectively. During the six months ended June 30, 2023, 36,936 warrants expired.

The fair value of the Company’s warrant liability, measured at Level 3 in the fair value hierarchy,  was calculated using the Black-Scholes model and the following inputs:

	As of June 30, 2023			As of December 31, 2022
Fair value of Company's common stock	$	2.45		$	2.73
Dividend yield		0	%		0	%
Expected volatility		65% - 89	%		76% - 92	%
Risk free interest rate		5.14% - 5.45	%		4.34% - 4.75	%
Expected life (years)		0.76			0.91
Exercise price	$	8.00 - $28.00		$	8.00 - $28.00
Fair value of financial instruments - warrants	$	2,053		$	4,547

The change in fair value of the Company’s financial instruments – warrants, measured at Level 3 in the fair value hierarchy, was calculated using the Black-Scholes model and the following inputs:

	Amount
Balance as of January 1, 2023	$	4,547
Change in fair value of warrant liability		(2,494	)
Balance as of June 30, 2023	$	2,053

	Amount
Balance as of January 1, 2022	$	369,234
Change in fair value of warrant liability		(334,616	)
Balance as of June 30, 2022	$	34,618

	Amount
Balance as of April 1, 2023	$	10,106
Change in fair value of warrant liability		(8,053	)
Balance as of June 30, 2023	$	2,053

	Amount
Balance as of April 1, 2022	$	149,394
Change in fair value of warrant liability		(114,776	)
Balance as of June 30, 2022	$	34,618