WARRANTS

12 Months Ended

Dec. 31, 2023

Warrants

WARRANTS

18. WARRANTS

A summary of warrant activity for the years ended December 31, 2023 and 2022 is presented below.

	Warrants			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life (Years)
Outstanding at January 1, 2022		2,669		$	23,175		4.7
Granted		1,209			4,500
Forfeited		(1	)		4,554,717
Exercised		(1,803	)		16,618
Outstanding at December 31, 2022		2,074			16,835		3.9
Granted		14,176,472			3.55
Forfeited		-			-
Exercised		-			-
Outstanding at December 31, 2023		14,178,546		$	5.10		4.7

The following table summarizes information about common stock warrants outstanding at December 31, 2023:

Outstanding								Exercisable
				Weighted
				Average		Weighted				Weighted
				Remaining		Average				Average
Exercise		Number		Contractual		Exercise		Number		Exercise
Price		Outstanding		Life (Years)		Price		Exercisable		Price
$	3.38		12,269,032		4.77	$	3.38		-
$	4.59		1,907,440		4.60	$	4.59		-
$	3,375 - $18,750		2,067		2.72	$	10,3801		2,067	$	10,381
$	66,000 - $148,500		7		0.24	$	84,643		7	$	84,643
$	3.38 - $148,500		14,178,546		4.75	$	5.10		2,074	$	10,631

Warrant Issuances During 2023

During the year ended December 31, 2023, the Company issued warrants to purchase 14.2 million shares of Class A common stock at a weighted average exercise price of $3.54 per share, subject to adjustment, in connection with the issuance of a senior secured convertible promissory note, related party (see Note 24) and Series C convertible preferred stock, related party (see Note 26).

Warrant Issuances During 2022

On November 7, 2022, the Company issued warrants to purchase 606 shares of common stock at exercise price equal to $3,375 per share and warrants to purchase 606 shares of common stock at exercise price equal to $5,625 per share, subject to adjustment in connection with the issuance of secured promissory notes in the aggregate principal face amount of $18.9 million.

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, 2023 and 2022 were as follows:

	December 31, 2023			December 31, 2022
Exercise price	$	3.54		$	4,500
Contractual term in years		5.0			4.0
Volatility		168	%		176	%
Dividend yield		0	%		0	%
Risk-free interest rate		4.0	%		4.5	%