14. STOCK WARRANTS

A summary of warrant activity for the years ended December 31, 2023 and 2022 is presented below:

SCHEDULE OF WARRANTS OUTSTANDING 

As of December 31, 2023, the intrinsic value of the outstanding warrants was $0.

On January 24, 2023, the Company entered into an underwriting agreement with Aegis relating to the January 2023 offering, issuance and sale of 901,275 shares of the Company’s common stock at a public offering price of $8.00 per share. As a result of this transaction, certain warrants which previously had an exercise price of $13.60 per share, had the exercise price reduced to $8.00 per share, which resulted in the Company recognizing a deemed dividend of $164.

On September 19, 2023, the Company issued 183,486 shares of its common stock to certain other investors to settle litigation, see Note 16. In exchange for the shares, 32,140 warrants were cancelled as part of the settlement agreement.

In connection with the April Registered Direct Offering on April 20, 2022, the Company issued 366,667 warrants to purchase common stock with a vesting period of six months and an exercise price of $30.00. As a result, 92,621 warrants, with exercise prices ranging from $44.00 to $84.00 per share, had the exercise prices reduced to $30.00 per share. The change in fair value of such warrants as a result of the new exercise price is approximately $200 and the Company accounted for this change as part of the change in fair value of derivative liability (see Note 10).

Further, as a result of the October Purchase Agreement, certain warrants which previously had an exercise price of $30.00 per share had the exercise price reduced to $13.60 per share, which resulted in the Company recognizing a deemed dividend of $246.