NOTE 14 – WARRANTS

During the six months ended June 30, 2020, in conjunction with the $21M Debentures previously disclosed in Note 10 – Debentures Payable, the Company issued three-year warrants to purchase 180,000 shares of common stock at an exercise price of $0.75 per share. The fair value of these warrants on the issuance date approximated $28,000, with approximately $3,000 of this amount amortized to interest expense during the period and the remainder to be amortized over the term of the respective debenture. Also during this period, as part of the $8.8M Note transaction previously disclosed in Note 9 – Debt, the Company issued three-year warrants to purchase 750,000 shares of common stock at an exercise price of $0.50 per share. The fair value of these warrants on the issuance date approximated $66,000, with approximately $1,000 of this amount amortized to interest expense during the period and the remainder to be amortized by the maturity date of the $8.8M Note.

During the six months ended June 30, 2019, in conjunction with the $21M Debentures previously disclosed in Note 10 – Debentures Payable, the Company issued three-year warrants to purchase 550,000 shares of common stock at an exercise price of $5.00 per share. The fair value of these warrants at issuance approximated $929,000, with approximately $57,000 of this amount amortized to interest expense during the period and the remainder amortized over the remaining term of the respective debentures. Also during this period, as part of the $10M Note transaction previously disclosed in Note 9 – Debt, the Company issued three-year warrants to purchase 375,000 shares of common stock at an exercise price of $4.50 per share. The fair value of these warrants at issuance approximated $601,000, with approximately $65,000 of this amount amortized to interest expense during the period and the remainder amortized by the maturity date of the $10M Note.

During the six months ended June 30, 2019, warrants to purchase 666,104 shares of common stock were exercised at exercise prices ranging from $0.12 to $1.75 per share, resulting in aggregate proceeds to the Company of approximately $602,000. No warrants were exercised during the six months ended June 30, 2020.

At June 30, 2020 and 2019, warrants to purchase 12,710,107 and 10,865,107 shares of common stock, respectively, were outstanding with exercise prices ranging from $0.16 to $5.50 per share in both periods.