WARRANTS

9 Months Ended

Sep. 30, 2020

Warrants

WARRANTS

13. WARRANTS 

During the nine months ended September 30, 2020, the Company issued warrants to purchase an aggregate of 3,509,598 shares of common stock at an average exercise price of $1.39 per share.

(i) On February 20, 2020, pursuant to the Master Exchange Agreement, the Company issued warrants to purchase an aggregate of 1,700,361 shares of common stock at an average exercise price equal to $1.43 per share of common stock (see Note 17).

(ii) During the nine months ended September 30, 2020, the Company issued warrants to purchase an aggregate of 890,103 shares of common stock at an average exercise price equal to $1.08 per share of common stock in connection with the issuance of the Esousa 12% short-term promissory notes in the aggregate principal amount of $875,000 (see Note 17).

(iii) On April 14, 2020, the Company issued warrants to purchase up to 157,143 shares of common stock at an exercise price equal to $1.17 per share of common stock in connection with the issuance of a convertible promissory note in the principal amount of $100,000 (see Note 19).

(iv) On May 28, 2020, the Company issued warrants to purchase an aggregate of 400,000 shares of common stock at an exercise price equal to $1.07 per share of common stock in connection with the issuance of a convertible promissory note in the principal amount of $200,000 (see Note 19).

(v) On June 26, 2020, the Company issued warrants to purchase an aggregate of 361,991 shares of common stock at an exercise price equal to $2.43 per share of common stock in connection with the issuance of promissory notes in the aggregate principal face amount of $800,000 (see Note 17).

The following table summarizes information about common stock warrants outstanding at September 30, 2020:

Outstanding							Exercisable
				Weighted
				Average	Weighted				Weighted
				Remaining	Average				Average
Exercise		Number		Contractual	Exercise		Number		Exercise
Price		Outstanding		Life (Years)	Price		Exercisable		Price
$	-		6,500	3.50	$	-		6,500	$	-
$	0.88		281,250	4.52	$	0.88		281,250	$	0.88
$	1.07		400,000	4.66	$	1.07		400,000	$	1.07
$	1.14		144,928	4.44	$	1.14		144,928	$	1.14
$	1.16		95,238	4.65	$	1.16		95,238	$	1.16
$	1.17		157,143	4.53	$	1.17		157,143	$	1.17
$	1.19		277,778	4.41	$	1.19		277,778	$	1.19
$	1.21		90,909	4.56	$	1.21		90,909	$	1.21
$	1.43		1,700,361	4.36	$	1.43		1,700,361	$	1.43
$	2.43		361,991	1.16	$	2.43		361,991	$	2.43
$	8.00		397	1.09	$	8.00		397	$	8.00
$	8.80		25,000	3.75	$	8.80		25,000	$	8.80
$	12.00		12,500	3.61	$	12.00		12,500	$	12.00
$	19.80		15,555	3.50	$	19.80		15,555	$	19.80
$	440.00		355	2.11	$	440.00		355	$	440.00
$	480.00		94	2.58	$	480.00		94	$	480.00
$	528.00		186	2.09	$	528.00		186	$	528.00
$	560.00		2,657	2.12	$	560.00		2,657	$	560.00
$	600.00		170	1.62	$	600.00		170	$	600.00
$	640.00		200	1.57	$	640.00		200	$	640.00
$	752.00		9,614	2.62	$	752.00		9,614	$	752.00
$	800.00		350	2.19	$	800.00		350	$	800.00
$	880.00		947	0.92	$	880.00		947	$	880.00
$	920.00		2,126	2.49	$	920.00		2,126	$	920.00
$	1,040.00		1,243	2.54	$	1,040.00		1,243	$	1,040.00
$	1,760.00		781	2.31	$	1,760.00		781	$	1,760.00
$	1,800.00		140	2.32	$	1,800.00		140	$	1,800.00
$	2,000.00		203	2.32	$	2,000.00		203	$	2,000.00
$	0.88 - $2,000.00		3,588,616	4.09	$	5.91		3,588,616	$	5.91

The Company has valued the warrants at their date of grant utilizing the Black-Scholes option pricing model. This model is dependent upon several variables such as the warrants’ term, exercise price, current stock price, risk-free interest rate and estimated volatility of our stock over the contractual term of the warrants. The risk-free interest rate used in the calculations is based on the implied yield available on U.S. Treasury issues with an equivalent term approximating the contractual life of the warrants.

The Company utilized the Black-Scholes option pricing model and the assumptions used during the nine months ended September 30, 2020 and 2019:

	Nine Months Ended
	September 30, 2020		September 30, 2019
Weighted average risk free interest rate		0.17% — 1.38%		1.75% — 2.28%
Weighted average life (in years)		1.42 — 5		5.0
Volatility		86.3% — 103.1%		85.5% —87.5%
Expected dividend yield		0%		0%
Weighted average grant-date fair value per share of warrants granted	$	1.39	$	10.34