NOTE 15 – WARRANTS

During the six months ended June 30, 2019, in conjunction with the $7.5M Debentures previously disclosed in Note 12 – 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 to be amortized over the two-year term of the $7.5M Debentures. Also during this period, the Company issued three-year warrants to purchase 375,000 shares of common stock at an exercise price of $4.50 per share as part of the $10M Note transaction previously disclosed in Note 11 – Debt. 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 to be amortized by the January 2020 maturity date of the $10M Note.

During the six months ended June 30, 2018, the Company issued warrants to purchase 4,239,000 shares of common stock at exercise prices ranging from $0.30 to $2.25 per share. Of these warrants, (i) 470,000 warrants were issued in exchange for services previously rendered to the Company, with expiration dates of three and five years from issuance, at a fair value of approximately $433,000 which was charged to compensation expense during the period, (ii) 237,500 warrants issued in conjunction with a promissory note, expiring in April 2021, at a fair value of approximately $198,200 which was charged to interest expense during the period, and (iii) 3,531,500 three-year warrants issued as part of the sale of common stock, at a fair value of at issuance of approximately $4.5 million that was charged to additional paid-in capital.

During the six months ended June 30, 2019 and 2018, warrants to purchase 666,104 and 1,425,379 shares of common stock, respectively, were exercised at exercise prices ranging from $0.12 to $1.75 per share in 2019 and $0.10 to $0.50 per share in 2018.

At June 30, 2019 and 2018, warrants to purchase 10,865,107 and 7,058,932 shares of common stock, respectively, were outstanding at exercise prices ranging from $0.15 to $5.50 per share in 2019 and $0.10 to $2.25 per share in 2018.