NOTE 8 – WARRANTS

As of September 30, 2024, the fair value of the Public Warrants was approximately $0.698 per Public Warrant based on the closing price of the warrants on The Nasdaq Capital Market. The fair value of the Representative Warrants was approximately $0.726 per Representative Warrant, which was based on the relative fair value to the Public Warrants.

The following table summarizes the Company’s outstanding warrants:

During the three months ended September 30, 2024, the Company issued warrants to purchase an aggregate of 2,524,392 shares of Common Stock in connection with the September 2024 Offering as described in Note 6 above, excluding the Pre-Funded Warrants. This consisted of (i) Series A Warrants to purchase 1,219,513 shares of Common Stock, (ii) Series B Warrants to purchase 1,219,513 shares of Common Stock, and (iii) Placement Agent Warrants to purchase 85,366 shares of Common Stock

The Series A Warrants have an exercise price of $3.85 per share and have a term of exercise equal to five (5) years from the date of issuance. The Series B Warrants have an exercise price of $3.85 per share and have a term of exercise equal to eighteen (18) months from the date of issuance. The Placement Agent Warrants have an exercise price of $5.13 per share and have a term of exercise equal to five (5) years from the date of issuance.

The exercise price of each 2021 PIPE Warrant was reduced from $70.00 per share to $20.00 per share in connection with the Warrant Modification. The Company recognized the effect of the Warrant Modification as a dividend of $359,656.

For the three months ended September 30, 2024 and 2023, total stock-based compensation expense related to the Company’s warrants was approximately $2,360 and $0, respectively, and is recognized within general and administrative expense on the condensed consolidated statements of operations and comprehensive loss.

During the nine months ended September 30, 2024, the Company issued warrants to purchase an aggregate of 2,525,892 shares of Common Stock in exchange for consulting services. The warrants were issued on March 1, 2024 and September 30, 2024 at $8.13 per share, $3.85 per share and $5.13 per share. These warrants become exercisable in twelve equal monthly instalments commencing the day after issue date. The warrants expire ten years from the date of issuance.

For the nine months ended September 30, 2024 and 2023, total stock-based compensation expense related to the Company’s warrants was approximately $5,507 and $0, respectively, and is recognized within general and administrative expense on the condensed consolidated statements of operations and comprehensive loss.

No warrants were expired/cancelled or exercised during the nine months ended September 30, 2024.