NOTE 15 – WARRANTS

During the three months ended March 31, 2021, the Company issued warrants to an individual to purchase up to 100,000 shares of common stock at an exercise price of $0.82 per share, expiring three years from issuance. The fair value of this warrant on the issuance date approximated $56,000 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 three months ended March 31, 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. The fair value of these warrants on the issuance date approximated $1,148,000, of which approximately $24,000 was amortized to interest expense in the quarter and the remainder to be amortized over the term of the respective debenture.

During the three months ended March 31, 2021, warrants to purchase 50,000 shares of common stock were exercised at an exercise price of $0.15 per share. No warrants were exercised during the same period in 2020.

During the three months ended March 31, 2021, warrants to purchase 225,000 shares of common stock with exercise prices of $0.90 and $1.75 per share were forfeited. No warrants were forfeited during the same period in 2020.

At March 31, 2021 and 2020, warrants to purchase up to 32,282,708 and 11,960,107 shares of common stock, respectively, were outstanding at exercise prices ranging from $0.25 to $5.50 per share across both periods.