Quarterly report pursuant to Section 13 or 15(d)

COMMON STOCK WARRANTS

v3.22.2.2
COMMON STOCK WARRANTS
9 Months Ended
Sep. 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 nine months ended September 30, 2021 and 2022 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     (5,783 )     33.00        
Outstanding and exercisable at September 30, 2021     407,641     58.00       8.42  
                         
Outstanding and exercisable at December 31, 2021     406,301     $ 34.88       8.17  
Expired     (22,513 )   373.85        
Exercised     (83,579 )     14.00        
Granted     140,829       9.41       4.63  
Outstanding and exercisable at September 30, 2022     441,038     $ 12.52       6.84  

 

 

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     $ 62.00       5 years       1.62       187.79  
Granted for inducement agreement     1/20/2022       372     $ 64.50     $ 14.00     $ 64.00       5 years       1.62       187.85  
Granted for inducement agreement     1/20/2022       187     $ 64.50     $ 14.00     $ 64.00       5 years       1.62       187.85  
Granted for inducement agreement     1/24/2022       374     $ 48.00     $ 14.00     $ 47.00       5 years       1.53       188.01  
Granted for inducement agreement     1/25/2022       3,744     $ 49.10     $ 14.00     $ 48.00       5 years       1.56       188.00  
Granted for inducement agreement     2/02/2022       3,741     $ 44.55     $ 14.00     $ 44.00       5 years       1.60       188.25  
Granted for inducement agreement     2/04/2022       6,935     $ 44.38     $ 14.00     $ 43.00       5 years       1.78       188.33  
Granted for inducement agreement     2/04/2022       13,870     $ 44.38     $ 14.00     $ 43.00       5 years       1.78       188.33  
Granted for services provided     2/09/2022       1,000     $ 32.00     $ 14.00     $ 31.00       5 years       1.82       188.69  
Granted for inducement agreement     2/22/2022       41,609     $ 32.88     $ 14.00     $ 32.00       5 years       1.85       188.59  
Granted for inducement agreement     2/22/2022       693     $ 32.88     $ 14.00     $ 32.00       5 years       1.85       188.59  
Granted for inducement agreement     3/21/2022       8,322     $ 28.00     $ 14.00     $ 27.00       5 years       2.33       194.01  
Granted for securities purchase agreement     9/27/2022       56,250     $ 6.00     $ 2.50     $ 5.94       5 years       4.21       213.54  

 

The fair value of warrants issued during the three and nine months ended September 30, 2022 totaled approximately $334,000 and is included in warrant expense. The fair value of warrants issued as a result of the warrant inducement during the three and nine months ended September 30, 2022 totaled approximately $0 and $3,024,000, respectively, and 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.