WARRANT LIABILITY

12 Months Ended

Dec. 31, 2023

Note 10

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 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 consolidated statements of operations. As of December 31, 2023 and 2022, the Company had 50,954 and 92,058 warrants outstanding classified as liabilities, respectively. During the year ended December 31, 2023, 51,102 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 using the following inputs:

	As of December 31, 2023		As of December 31, 2022
Fair value of Company’s common stock	$	2.93	$	2.73
Dividend yield		0%		0%
Expected volatility		68% - 83%		76% - 92%
Risk free interest rate		5.06% - 5.54%		4.34% - 4.75%
Expected life (years)		0.30		0.91
Exercise price	$	8.00 - $28.00	$	8.00 - $28.00
Fair value of financial instruments - warrants	$	563	$	4,547

The following table summarizes the change in fair value of the Company’s financial instruments – warrants, measured at Level 3 in the fair value hierarchy:

	Amount
Balance as of January 1, 2023	$	4,547
Change in fair value of warrant liability		(3,984	)
Balance as of December 31, 2023	$	563

	Amount
Balance as of January 1, 2022	$	369,234
Change in fair value of warrant liability		(364,687	)
Balance as of December 31, 2022	$	4,547