| Schedule of warrants vested and outstanding |
Warrants vested and outstanding as of June 30, 2021 are summarized as follows:
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| Source |
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Exercise
Price |
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Term
(Years) |
|
Number of
Warrants
Vested and
Outstanding |
| Pre 2015 Common Stock Warrants |
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$ |
1.00 |
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6-10 |
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1,110,000 |
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| 2015 Common Stock Warrants |
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$ |
5.00 |
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10 |
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100,000 |
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| 2016 Common Stock Warrants to Service Providers |
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$ |
1.15 |
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10 |
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40,000 |
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| 2016 Series C Common Stock Warrants to Placement Agent |
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$ |
0.40 |
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5 |
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125,000 |
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| 2017 Series D Common Stock Warrants to Placement Agent |
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$ |
0.25 |
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5 |
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480,000 |
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| 2017 Common Stock Warrants to Service Provider |
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$ |
0.41 |
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5 |
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125,000 |
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| 2018 Emerald Financing Warrants |
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$ |
0.10 |
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5 |
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3,400,000 |
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| Emerald Multi-Draw Credit Agreement Warrants |
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$ |
0.50 |
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5 |
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7,500,000 |
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| 2019 Common Stock Warrants |
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$ |
0.35 |
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5 |
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8,000,000 |
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| 2020 Common Stock Warrants |
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$ |
0.06 |
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5 |
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21,166,667 |
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| 2020 Common Stock Warrants to Placement Agent |
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$ |
0.075 |
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4.99 |
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8,166,667 |
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| Total warrants vested and outstanding as of June 30, 2021 |
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50,213,334
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| Schedule of the activity of derivative liabilities |
The following tables summarize the activity of derivative liabilities for the periods indicated:
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Six Months Ended June 30, 2021 |
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December 31, 2020
Fair
Value of Derivative Liabilities
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Fair
Value of
Derivative
Liabilities
Issued |
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Change in
Fair Value of Derivative
Liabilities |
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Reclassification
of Derivatives
to Equity |
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June 30, 2021
Fair
Value of Derivative Liabilities
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Emerald Financing - warrant liability (1)
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$ |
38,567 |
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$ |
— |
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$ |
358,998 |
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$ |
— |
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$ |
397,565 |
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| Current balance of derivative liabilities |
$ |
38,567
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$ |
—
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$ |
358,998
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$ |
—
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$ |
397,565
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Six Months Ended June 30, 2020 |
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December 31, 2019
Fair
Value of Derivative Liabilities
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Fair
Value of
Derivative
Liabilities
Issued |
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Change in
Fair
Value of
Derivative
Liabilities |
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Reclassification
of Derivatives
to Equity |
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June 30, 2020
Fair
Value of Derivative Liabilities
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Emerald Multi Draw Credit Agreement - compound derivative liability (2)
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$ |
90,797 |
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$ |
— |
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$ |
(90,797) |
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$ |
— |
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$ |
— |
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Emerald Financing - warrant liability (1)
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276,024 |
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— |
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76,708 |
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— |
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352,732 |
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Series B - warrant liability(3)
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134,579 |
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— |
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4,539 |
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(26,563) |
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112,555 |
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| Total derivative liabilities |
$ |
501,400
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$ |
—
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$ |
(9,550) |
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$ |
(26,563) |
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$ |
465,287
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| Less, noncurrent portion of derivative liabilities |
(90,797) |
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— |
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| Current balance of derivative liabilities |
$ |
410,603
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$ |
465,287
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Emerald Financing Warrant Liability (1) In connection with the August 2020 Financing, the exercise price of the warrants was permanently set to $0.10. The warrants contain a contingent put option if the Company undergoes a subsequent financing that results in a change in control. The warrant holders also have the right to participate in subsequent financing transactions on an as-if converted basis.
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| Schedule of input and valuation technique used to value warrant liabilities |
The warrant liability is valued at the balance sheet dates using the following assumptions:
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June 30,
2021 |
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December 31,
2020 |
| Dividend yield |
0.00% |
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0.00% |
| Volatility factor |
145.3% |
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90.9% |
| Risk-free interest rate |
0.18% |
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0.14% |
| Expected term (years) |
1.63 |
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2.13 |
| Underlying common stock price |
$0.16 |
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$0.04 |
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June 30,
2020 |
| Dividend yield |
0.00% |
| Volatility factor |
104.9% |
| Risk-free interest rate |
0.16% |
| Expected term (years) |
0.14 |
| Underlying common stock price |
$0.16 |
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