Quarterly report pursuant to Section 13 or 15(d)

Warrants

v3.22.2
Warrants
6 Months Ended
Jun. 30, 2022
Warrants and Rights Note Disclosure [Abstract]  
Warrants

Note 10. Warrants

In connection with certain past debt and equity financings, the Company issued the following warrants, all of which were exercisable upon issuance:

 

Date Issued

 

Number of Shares

 

 

Price per Share

 

 

Expiration Date

April 15, 2016

 

 

2,862

 

 

$

10.48

 

 

April 15, 2026

December 7, 2017

 

 

834

 

 

$

10.48

 

 

December 7, 2024

December 29, 2017

 

 

107,455

 

 

$

10.48

 

 

December 29, 2027

April 6, 2021

 

 

288,476

 

 

$

14.00

 

 

April 6, 2026

November 10, 2021

 

 

50,769

 

 

$

14.30

 

 

November 10, 2026

 

Following the completion of the Company's IPO, all warrants previously exercisable for shares of the Company's preferred stock became exercisable for shares of the Company's common stock.

As a result of the offering price in the IPO, the warrants originally issued on April 6, 2021 became exercisable for an additional 2,772 shares of common stock, which is reflected in the table above. In November 2021, prior to the IPO, one series of warrants for 6,843 shares was exercised. Upon exercise, $0.1 million was reclassified from liabilities to permanent equity.

 

Upon issuance and prior to the consummation of the IPO, the warrants were recognized as liabilities in the condensed consolidated balance sheets and subject to re-measurement at each balance sheet date after issuance. Any change in fair value was recognized as a component of other income (expense) in the period of change.

 

The valuation of the Company’s warrants contained unobservable inputs that reflected the Company’s own assumptions for which there was little market data. Accordingly, the Company’s warrants were measured at fair value on a recurring basis using unobservable inputs and were classified as Level 3 inputs. The fair value of the warrant liabilities was determined using the Black-Scholes option pricing model.

 

Upon completing the IPO, which occurred in November 2021, the warrants then met the conditions for equity classification as they became exercisable into common stock in conjunction with the IPO. As the warrants were still classified as liabilities as of June 30, 2021, they were remeasured as of that date using the following assumptions.

 

 

 

Six Months Ended June 30,

 

 

 

2021

Risk free interest rates

 

 

0.87% - 1.45%

Expected term (in years)

 

 

2.01 - 6.50

Dividend yield

 

 

Expected volatility

 

 

60%

Fair value of common stock

 

 

$16.88