WARRANTS

6 Months Ended

Jun. 30, 2022

WARRANTS.

WARRANTS

NOTE 9 – WARRANTS

The Company has warrants that are exercisable for shares of the Company’s common stock. Warrants may only be exercised for a whole number of shares at an exercise price of $11.50. These warrants expire on June 25, 2026. At June 30, 2022, there were 25,158,086 warrants outstanding with a corresponding liability valued at $15,850. The warrants are considered to be a Level 1 fair value measurement due to the observability of the inputs. Note that 723,333 Placement Warrants were forfeited at the close of the Reverse Recapitalization transaction.

The Warrants were accounted for as liabilities in accordance with ASC 815-40 and are presented within warrant liabilities on our balance sheet. The warrant liabilities are measured at fair value at inception and on a recurring basis, with changes in fair value presented within change in fair value of warrant liabilities in the consolidated statement of operations. The following table presents the changes in the fair value of warrant liabilities:

	Warrant
	Liability
Fair value as of December 31, 2021	$	59,877
Change in fair value		(44,027)
Fair value as of June 30, 2022	$	15,850
Initial measurement as of June 25, 2021	$	71,701
Change in fair value		(12,076)
Fair value as of June 30, 2021	$	59,625