Quarterly report pursuant to Section 13 or 15(d)

Common Stock Warrants (Tables)

v3.19.2
Common Stock Warrants (Tables)
6 Months Ended
Jun. 30, 2019
Equity [Abstract]  
Summary of Warrant Activity

A summary of the Company’s warrant issuance activity and related information for the six months ended June 30, 2019 is as follows:

 

    Shares     Weighted
Average
Exercise
Price
    Weighted
Average
Remaining
Contractual
Life
 
Assumed as of the January 8, 2019 merger     12,108,743     $ 1.38       2.6  
                         
Issued     18,000,000     $ 0.75       2.59  
Outstanding and exercisable at June 30, 2019     30,108,743     $ 0.95 (1)(2)     2.38  

 

(1)Warrants issued with the May 2018 private placement and debt conversion had an initial exercise price of $0.75 and contain a contingent feature which would adjust the exercise price of the warrant in the event the Company issues any shares of common stock or common stock equivalents in a private placement of equity or debt securities at a price less than $0.75 per share. On August 8, 2018, the Company completed the issuance of convertible debt at an initial conversion price of $0.40. Accordingly, the exercise price on these warrants was adjusted downward to $0.40.

 

(2)Warrants issued with the August 8, 2018 and September 28, 2018 convertible notes had an initial exercise price of $0.75 and contain a contingent feature which would adjust the exercise price of the warrants in the event the Company issued any shares of common stock or common stock equivalents in a private placement of equity or debt securities to 90% of the issuance price if it is less than $0.75.

Schedule of Assumptions for Warrants

The inputs used in the Black-Scholes valuation technique to value each of the warrants issued at June 30, 2019 as of their respective issue dates are as follows:

 

Event
Description
  Date     H-CYTE
Stock Price
    Exercise Price of Warrant     Grant Date Fair Value     Life
of Warrant
    Risk Free Rate of Return (%)     Annualized Volatility Rate (%)  
Private placement     1/8/2019     $ 0.40     $ 0.75     $ 0.24     3 years     2.57       115.08  
Private placement     1/18/2019     $ 0.40     $ 0.75     $ 0.23     3 years     2.60       114.07  
Private placement     1/25/2019     $ 0.59     $ 0.75     $ 0.38     3 years     2.43       113.72  
Private placement     1/31/2019     $ 0.54     $ 0.75     $ 0.34     3 years     2.43       113.47  
Private placement     2/7/2019     $ 0.57     $ 0.75     $ 0.36     3 years     2.46       113.23  
Private placement     2/22/2019     $ 0.49     $ 0.75     $ 0.30     3 years     2.46       113.34  
Private placement     3/1/2019     $ 0.52     $ 0.75     $ 0.33     3 years     2.54       113.42  
Private placement     3/8/2019     $ 0.59     $ 0.75     $ 0.38     3 years     2.43       113.53  
Private placement     3/11/2019     $ 0.61     $ 0.75     $ 0.40     3 years     2.45       113.62  
Private placement     3/26/2019     $ 0.51     $ 0.75     $ 0.32     3 years     2.18       113.12  
Private placement     3/28/2019     $ 0.51     $ 0.75     $ 0.31     3 years     2.18       112.79  
Private placement     3/29/2019     $ 0.51     $ 0.75     $ 0.31     3 years     2.21       112.79  
Private placement     4/4/2019     $ 0.48     $ 0.75     $ 0.29     3 years     2.29       112.77