STOCKHOLDERS' DEFICIT (Tables)
|
12 Months Ended |
Dec. 31, 2022 |
|---|
| Schedule of fair value based upon assumptions |
The fair values as of December 31, 2022 and December 31, 2021 were based upon following assumptions:
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December 31, 2022 |
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|
December 31, 2021 |
|
Principal outstanding (South Korean won) |
|
KRW 26.5 billion |
|
|
KRW 30 billion |
|
Stock price |
|
KRW 1,015 |
|
|
KRW 2,925 |
|
Expected life (in years) |
|
|
7.79 |
|
|
|
8.79 |
|
Selected yield |
|
|
13.50 |
% |
|
|
10.50 |
% |
Expected volatility (Telcon common stock) |
|
|
78.50 |
% |
|
|
81.31 |
% |
Risk-free interest rate (South Korea government bond) |
|
|
3.74 |
% |
|
|
2.19 |
% |
Expected dividend yield |
|
|
0.00 |
% |
|
|
0.00 |
% |
Conversion price |
|
KRW1,068(US$0.85) |
|
|
KRW2,847(US$2.39) |
|
|
| Summary of outstanding warrants |
A summary of the Company’s warrants activity for the years ended December 31, 2022 and 2021 is presented below:
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December 31, 2022 |
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|
December 31, 2021 |
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|
Number of Warrants |
|
|
Weighted
Average
Exercise
Price |
|
|
Number of Warrants |
|
|
Weighted
Average
Exercise
Price |
|
Warrants outstanding, beginning of period |
|
8,236,017 |
|
|
$ |
5.78 |
|
|
|
8,439,480 |
|
|
$ |
6.09 |
|
Granted |
|
500,000 |
|
|
$ |
2.50 |
|
|
|
— |
|
|
$ |
— |
|
Exercised |
|
— |
|
|
$ |
— |
|
|
|
— |
|
|
$ |
— |
|
Cancelled, forfeited and expired |
|
(2,125,497 |
) |
|
$ |
14.38 |
|
|
|
(203,463 |
) |
|
$ |
4.36 |
|
Warrants outstanding, end of period |
|
6,610,520 |
|
|
$ |
2.22 |
|
|
|
8,236,017 |
|
|
$ |
5.78 |
|
Warrant exercisable, end of period |
|
6,610,520 |
|
|
$ |
2.22 |
|
|
|
7,486,017 |
|
|
$ |
6.12 |
|
|
| Summary of stock option activity |
A summary of the Company’s stock option activity for the years ended December 31, 2022 and 2021 is presented below:
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|
December 31, 2022 |
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|
December 31, 2021 |
|
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|
Number of
Options |
|
|
Weighted‑
Average
Exercise
Price |
|
|
Number of
Options |
|
|
Weighted‑
Average
Exercise
Price |
|
Options outstanding, beginning of period |
|
|
5,968,338 |
|
|
$ |
4.78 |
|
|
|
7,110,025 |
|
|
$ |
4.63 |
|
Granted or deemed issued |
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|
— |
|
|
$ |
— |
|
|
|
— |
|
|
$ |
— |
|
Exercised |
|
|
— |
|
|
$ |
— |
|
|
|
— |
|
|
$ |
— |
|
Cancelled, forfeited and expired |
|
|
(1,307,551 |
) |
|
$ |
3.73 |
|
|
|
(1,141,687 |
) |
|
$ |
3.82 |
|
Options outstanding, end of period |
|
|
4,660,787 |
|
|
$ |
5.08 |
|
|
|
5,968,338 |
|
|
$ |
4.78 |
|
Options exercisable at end of year |
|
|
4,645,286 |
|
|
$ |
5.10 |
|
|
|
5,937,837 |
|
|
$ |
4.80 |
|
Options available for future grant |
|
|
4,000,000 |
|
|
|
|
|
|
4,000,000 |
|
|
|
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|
| Convertible Promissory Note [Member] |
|
| Schedule of fair value of conversion feature liabilities |
The following table presents the change in fair value of the warrants as of June 15, 2022 and 2021 (in thousands):
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|
Warrant liability— Convertible Promissory Note |
|
June 15, 2022 |
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|
December 31, 2021 |
|
Balance, beginning of period |
|
$ |
1,463 |
|
|
$ |
988 |
|
Change in fair value included in the statement of operations |
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|
(1,250 |
) |
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|
475 |
|
Reclassification to equity |
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|
(213 |
) |
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|
— |
|
Balance, end of period |
|
$ |
— |
|
|
$ |
1,463 |
|
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| Schedule of fair value based upon assumptions |
The fair value of the warrant derivative liabilities was determined using the Black-Scholes Merton model and was based upon following assumptions:
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June 15, 2022 |
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|
December 31, 2021 |
|
Exercise price |
|
$ |
2.05 |
|
|
$ |
2.05 |
|
Stock price |
|
$ |
0.36 |
|
|
$ |
1.67 |
|
Risk‑free interest rate |
|
|
3.35 |
% |
|
|
1.04 |
% |
Expected volatility (peer group) |
|
|
126.00 |
% |
|
|
117.00 |
% |
Expected life (in years) |
|
|
3.00 |
|
|
|
3.46 |
|
Expected dividend yield |
|
— |
|
|
— |
|
Number outstanding |
|
|
1,250,000 |
|
|
|
1,250,000 |
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