NOTE 15 – WARRANTS

During the six months ended June 30, 2021, the Company issued warrants to purchase up to 1,100,000 shares of common stock at exercise prices of $0.82 and $0.83 per share, expiring three and four years from issuance. The fair value of these warrants on their issuance dates approximated $710,000 in the aggregate which was charged to compensation expense. Also during this period, the Company issued warrants to Hadron to purchase up to 15,540,540 shares of common stock at an exercise price of $1.087 per share, expiring four years from issuance, as part of the Hadron transaction previously discussed in Note 12 – Mezzanine Equity. The fair value of these warrants on the issuance date approximated $9.5 million, and this amount was allocated to the warrant from the $23.0 million proceeds from the Hadron transaction and recorded in additional paid in capital.

During the six months ended June 30, 2020, in conjunction with the $21M Debentures discussed in Note 11 – Debentures Payable, the Company issued three-year warrants to purchase up to 180,000 shares of common stock at an exercise price of $0.75 per share. Also during this period, in conjunction with the $8.8M Note discussed in Note 10 – Debt, the Company issued three-year warrants to purchase up to 750,000 shares of common stock at an exercise price of $0.50 per share The fair value of these warrants on their issuances dates approximated $94,000 in the aggregate, of which approximately $20,000 was amortized to interest expense in the period and the remainder to be amortized over the terms of the respective debt instruments.

During the six months ended June 30, 2021, warrants to purchase 956,250 shares of common stock were exercised at exercise prices ranging from $0.11 to $0.55 per share. No warrants were exercised during the same period in 2020.

During the six months ended June 30, 2021, warrants to purchase 3,426,500 shares of common stock with exercise prices of $0.90 and $2.25 per share were forfeited. No warrants were forfeited during the same period in 2020.

At June 30, 2021 and 2020, warrants to purchase up to 29,174,958 and 12,710,107 shares of common stock, respectively, were outstanding with exercise prices ranging from $0.11 to $5.50 per share across both periods.