|12 Months Ended|
Dec. 31, 2021
On May 31, 2020, in terms of convertible debt extension agreements entered into with investors, the Company granted two year warrants exercisable for 301,644 shares of common stock at an exercise price of $3.75 per share until May 31, 2022 and three year warrants exercisable for 72,729 shares of common stock at an exercise price of $5.00 per share until May 31, 2023.
In terms of the underwritten public offering disclosed in note 16 above, the Company granted 4,166,666 five year warrants, exercisable at $2.50 per share to the subscribers. In addition, the Company granted the underwriter 208,333 three year warrants exercisable at $3.00 per share, and in terms of the underwriters’ over-allotment option, the Company granted an additional 624,999 five year warrants exercisable at $2.50 per share to the Underwriter.
Notes to the Consolidated Financial Statements
18. Warrants (continued)
The warrants issued during the year ended December 31, 2020, were assessed in terms of ASC 480-10, Distinguishing between Liabilities and Equity, and ASC 815-10, Derivatives and Hedging Transactions to determine if they met equity classification or liability classification. After considering the guidance provided by the ASC under both ASC 480-10 and ASC 815-10, the Company determined that equity classification was appropriate.
The warrants awarded during the year ended December 31, 2020 were valued using a Black-Scholes option pricing model.
The following assumptions were used in the Black-Scholes model:
A summary of all of the Company’s warrant activity during the period January 1, 2020 to December 31, 2021 is as follows:
The following tables summarize information about warrants outstanding as of December 31, 2021:
The outstanding warrants have an intrinsic value of $257,672 as of December 31, 2021.