Quarterly report pursuant to Section 13 or 15(d)

COMMON STOCK WARRANTS

v3.22.2
COMMON STOCK WARRANTS
6 Months Ended
Jun. 30, 2022
Common Stock Warrants  
COMMON STOCK WARRANTS

Note 8 - Common Stock Warrants

 

A summary of the Company’s warrant issuance activity and related information for the six months ended June 30, 2022 and 2021 is as follows:

 

    Shares     Weighted
Average
Exercise Price
    Weighted
Average Remaining Contractual
Life
 
Outstanding and exercisable at December 31, 2020     413,424     $ 15.00       10.30  
Expired     (3,367 )     (315.16 )     -  
Outstanding and exercisable at June 30, 2021     410,057     $ 15.12       8.63  
             

 

         
Outstanding and exercisable at December 31, 2021     406,301     $ 34.88       8.17  
Expired     (20,411 )     (372.12 )     -  
Exercised     (83,579 )     14.00       -  
Granted     84,579       14.00       4.64  
Outstanding and exercisable at June 30, 2022     386,890     $ 19.41       7.32  

 

 

The fair value of all warrants issued are determined by using the Black-Scholes valuation technique. The inputs used in the Black-Scholes valuation technique to value each of the warrants as of their respective issue dates are as follows:

 

Event Description   Date   Number of Warrants     H-CYTE Stock Price     Exercise Price of Warrant     Grant Date Fair Value     Life of Warrant   Risk Free Rate of Return (%)     Annualized Volatility Rate (%)  
Granted for inducement agreement   1/19/2022     3,732     $ 63.25     $ 14.00     $ 0.062     5 years     1.62       187.79  
Granted for inducement agreement   1/20/2022     372     $ 64.50     $ 14.00     $ 0.064     5 years     1.62       187.85  
Granted for inducement agreement   1/20/2022     187     $ 64.50     $ 14.00     $ 0.064     5 years     1.62       187.85  
Granted for inducement agreement   1/24/2022     374     $ 48.00     $ 14.00     $ 0.047     5 years     1.53       188.01  
Granted for inducement agreement   1/25/2022     3,744     $ 49.10     $ 14.00     $ 0.048     5 years     1.56       188.00  
Granted for inducement agreement   2/02/2022     3,741     $ 44.55     $ 14.00     $ 0.044     5 years     1.60       188.25  
Granted for inducement agreement   2/04/2022     6,935     $ 44.38     $ 14.00     $ 0.043     5 years     1.78       188.33  
Granted for inducement agreement   2/04/2022     13,870     $ 44.38     $ 14.00     $ 0.043     5 years     1.78       188.33  
Granted for services provided   2/09/2022     1,000     $ 32.00     $ 14.00     $ 0.031     5 years     1.82       188.69  
Granted for inducement agreement   2/22/2022     41,609     $ 32.88     $ 14.00     $ 0.032     5 years     1.85       188.59  
Granted for inducement agreement   2/22/2022     693     $ 32.88     $ 14.00     $ 0.032     5 years     1.85       188.59  
Granted for inducement agreement   3/21/2022     8,322     $ 28.00     $ 14.00     $ 0.027     5 years     2.33       194.01  

 

The fair value of warrants issued during the six months ended June 30, 2022 totaled approximately $3,000,000 which is included in inducement expense. The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.