WARRANTS

12 Months Ended

Dec. 31, 2022

Warrants

WARRANTS

20. WARRANTS 

A summary of warrant activity for the years ended December 31, 2022 and 2021 is presented below.

	Warrants			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life (Years)
Outstanding at January 1, 2021		3,315,560		$	6.19		4.3
Granted		18,665,252			2.47
Forfeited		(397	)		8.00
Exercised		(1,965,628	)		2.42
Outstanding at December 31, 2021		20,014,787			3.09		4.7
Granted		9,066,666			0.60
Forfeited		(3,998	)		607.30
Exercised		(13,548,421	)		2.22
Outstanding at December 31, 2022		15,529,034		$	2.24		3.9

The following table summarizes information about common stock warrants outstanding at December 31, 2022:

Outstanding						Exercisable
			Weighted
			Average	Weighted				Weighted
			Remaining	Average				Average
Exercise	Number		Contractual	Exercise		Number		Exercise
Price	Outstanding		Life (Years)	Price		Exercisable		Price
$0.00		6,500	1.25	$	0.00		6,500	$	0.00
$0.45 - $2.50		15,454,885	3.91	$	1.38		15,454,885	$	1.38
$8.80 - $19.80		53,055	1.39	$	12.78		53,055	$	12.78
$480 - $920		12,227	0.34	$	774.63		12,227	$	774.63
$1,040 - $2,000		2,367	0.18	$	1,404.85		2,367	$	1,404.85
$0.00 - $2,000.00		15,529,034	3.89	$	2.24		15,529,034	$	2.24

Warrant Issuances During 2021

On December 30, 2021, the Company issued warrants to purchase an aggregate of 16,037,858 shares of common stock at an exercise price equal to $2.50 per share in connection with the issuance of promissory notes in the aggregate principal face amount of $66 million (see Note 24). If the trading price of the common stock is less than $2.50 per share 90 days after December 30, 2021, the exercise price will be reduced to 110% of the closing price of the common stock on that date, subject to a floor price of $1.00 per share.

The Company has valued the 14,095,350 Series A warrants issued in connection with the issuance of promissory notes in the aggregate principal face amount of $66 million (see Note 24) at their date of grant utilizing a Monte Carlo simulation valuation model. The Company has valued the other warrants issued at their date of grant utilizing the Black-Scholes option pricing model. This model is dependent upon several variables such as the warrants’ remaining contractual term, exercise price, current stock price, risk-free interest rate and estimated volatility of the Company’s 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.

Warrant Issuances During 2022

On November 7, 2022, the Company issued warrants to purchase 4,533,334 shares of common stock at exercise price equal to $0.45 per share and warrants to purchase 4,533,334 shares of common stock at exercise price equal to $0.75 per share, subject to adjustment in connection with the issuance of secured promissory notes in the aggregate principal face amount of $18.9 million (see Note 24).  

The Company has valued the warrants issued at their date of grant utilizing the Black-Scholes option pricing model. This model is dependent upon several variables such as the warrants’ remaining contractual term, exercise price, current stock price, risk-free interest rate and estimated volatility of the Company’s 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 a variety of pricing models and the weighted average assumptions used during the years ended December 31, 2022 and 2021 were as follows:

	December 31, 2022			December 31, 2021
Exercise price	$	0.60		$	2.29
Contractual term in years		4.0			4.7
Volatility		176	%		150	%
Dividend yield		0	%		0	%
Risk-free interest rate		4.5	%		1.0	%