STOCKHOLDERS' DEFICIT (Tables)
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9 Months Ended |
Sep. 30, 2021 |
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| Schedule of Fair Value Based upon Assumptions |
The fair value as of September 30, 2021 and December 31, 2020 was based upon following assumptions:
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September 30, 2021
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December 31, 2020
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Principal outstanding (South Korean won)
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KRW 30 billion
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KRW 30 billion
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Stock price
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KRW 3,990
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KRW 6,060
|
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Expected life (in years)
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|
9.04
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|
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|
9.79
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|
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Selected yield
|
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10.50
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%
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10.50
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%
|
|
Expected volatility (Telcon common stock)
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|
|
82.15
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%
|
|
|
85.80
|
%
|
|
Risk-free interest rate (South Korea government bond)
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|
2.18
|
%
|
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|
1.72
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%
|
|
Expected dividend yield
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|
—
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—
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Conversion price
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|
KRW 4,110 (US$3.47)
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|
KRW 6,028 (US$5.54)
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|
|
| Summary of outstanding warrants |
A summary of all outstanding warrants as of September 30, 2021 and December 31, 2020 is presented below:
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September 30, 2021
|
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December 31, 2020
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Warrants outstanding, beginning of period
|
|
|
8,439,480
|
|
|
|
4,931,099
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|
Granted
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—
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3,625,000
|
|
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Exercised
|
|
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—
|
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|
|
—
|
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Cancelled, forfeited or expired
|
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(203,463
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)
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(116,619
|
)
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Warrants outstanding, end of period
|
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|
8,236,017
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|
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|
8,439,480
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|
A summary of all outstanding warrants by year issued and exercise price as of September 30, 2021 is presented below:
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Outstanding
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Exercisable
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Year issued and Exercise Price
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Number of
Warrants
Issued
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Weighted-Average
Remaining
Contractual
Life (Years)
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Weighted-Average
Exercise
Price
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Total
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Weighted-Average
Exercise
Price
|
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Prior to January 1, 2020
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$1.54-$36.24
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4,611,017
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1.39
|
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|
$
|
9.14
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|
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|
4,611,017
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|
|
$
|
9.14
|
|
|
Prior to Jan 1, 2020 Total
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|
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|
4,611,017
|
|
|
|
|
|
|
|
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|
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|
4,611,017
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|
|
|
|
|
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At December 31, 2020
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$
|
2.05
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1,250,000
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3.71
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$
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2.05
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—
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—
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$
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1.54
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2,375,000
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3.95
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$
|
1.54
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2,375,000
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$
|
1.54
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2020 Total
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3,625,000
|
|
|
|
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2,375,000
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At September 30, 2021
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$
|
—
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—
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—
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$
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—
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—
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$
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—
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Grand Total
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8,236,017
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Grand Total
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6,986,017
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| Summary of stock option activity |
A summary of outstanding stock options as of September 30, 2021 and December 31, 2020 is presented below.
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September 30, 2021
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December 31, 2020
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Number of
Options
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Weighted‑
Average
Exercise
Price
|
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Number of
Options
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Weighted‑
Average
Exercise
Price
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Options outstanding, beginning of period
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7,110,025
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$
|
4.63
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7,245,350
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$
|
4.68
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Granted or deemed granted
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—
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—
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90,000
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$
|
2.05
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Exercised
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—
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—
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—
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—
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Cancelled, forfeited and expired
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(1,125,753
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)
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$
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3.82
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(225,325
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)
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$
|
5.08
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Options outstanding, end of period
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5,984,272
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$
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4.78
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7,110,025
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$
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4.63
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Options exercisable, end of period
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5,948,771
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$
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4.80
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6,986,268
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$
|
4.47
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Options available for future grant
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—
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(a)
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2,302,475
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(a)
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Option plans were expired and therefore no options available for future grants.
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| Senior Secured Convertible Debentures [Member] |
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| Schedule of Fair Value Based upon Assumptions |
The fair value as of agreement date and the anti-dilution adjustment dates was based upon following assumptions:
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March 2, 2021 (Anti-dilution adjustment date)
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February 28, 2020 (Anti-dilution adjustment date)
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February 21, 2020 (Amendment date)
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Exercise price
|
|
$
|
1.54
|
|
|
$
|
2.00
|
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$
|
3.00
|
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Common stock fair value
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|
$
|
1.52
|
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$
|
1.60
|
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$
|
1.89
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Volatility
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101.00%-120.00%
|
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|
|
93.00
|
%
|
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|
92.00
|
%
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Risk-free rate
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0.21%-0.58%
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0.86
|
%
|
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1.29
|
%
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Expected life (in years)
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|
2.64-4.56
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3.54
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3.56
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| Convertible Promissory Note [Member] |
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| Schedule of fair value of conversion feature liabilities |
The following table presents the fair value and the change in fair value of the warrants as of September 30, 2021 and December 31, 2020 (in thousands):
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Nine Months Ended
|
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Year Ended
|
|
|
Warrant liability—Wealth Threshold
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September 30, 2021
|
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December 31, 2020
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Balance, beginning of period
|
|
$
|
988
|
|
|
$
|
—
|
|
|
Fair value at issuance date
|
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|
—
|
|
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|
1,425
|
|
|
Change in fair value included in the statement of comprehensive income (loss)
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|
362
|
|
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(437
|
)
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Balance, end of period
|
|
$
|
1,350
|
|
|
$
|
988
|
|
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| Schedule of Fair Value Based upon Assumptions |
The fair value of the warrant derivative liability was determined using the Black-Scholes Merton model and was based upon following assumptions:
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|
September 30, 2021
|
|
|
December 31, 2020
|
|
|
Exercise price
|
|
$
|
2.05
|
|
|
$
|
2.05
|
|
|
Stock price
|
|
$
|
1.60
|
|
|
$
|
1.68
|
|
|
Risk‑free interest rate
|
|
|
0.69
|
%
|
|
|
0.31
|
%
|
|
Expected volatility (peer group)
|
|
|
110.00
|
%
|
|
|
101.00
|
%
|
|
Expected life (in years)
|
|
|
3.71
|
|
|
|
4.46
|
|
|
Expected dividend yield
|
|
—
|
|
|
—
|
|
|
Number outstanding
|
|
|
1,250,000
|
|
|
|
1,250,000
|
|
|
| GPB Debt Holdings II, LLC [Member] |
|
| Schedule of fair value of conversion feature liabilities |
The following table presents the change in fair value of the GPB Warrant as of September 30, 2021 and December 31, 2020 (in thousands):
|
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|
Nine Months Ended
|
|
|
Year Ended
|
|
|
Warrant Liability—GPB
|
|
September 30, 2021
|
|
|
December 31, 2020
|
|
|
Balance, beginning of period
|
|
$
|
83
|
|
|
$
|
38
|
|
|
Change in fair value included in the statement of comprehensive income
|
|
|
(40
|
)
|
|
|
45
|
|
|
Balance, end of period
|
|
$
|
43
|
|
|
$
|
83
|
|
|
| Schedule of Fair Value Based upon Assumptions |
The fair value as of September 30, 2021, and December 31, 2020 set forth in the table above was based on upon following assumptions:
|
|
|
September 30, 2021
|
|
|
December 31, 2020
|
|
|
Adjusted exercise price
|
|
$
|
10.28
|
|
|
$
|
10.28
|
|
|
Common stock fair value
|
|
$
|
1.60
|
|
|
$
|
1.23
|
|
|
Risk‑free interest rate
|
|
|
0.23
|
%
|
|
|
0.15
|
%
|
|
Volatility
|
|
|
100.00
|
%
|
|
|
120.00
|
%
|
|
Time until expiration (years)
|
|
|
1.75
|
|
|
|
2.50
|
|
|
Expected dividend yield
|
|
—
|
|
|
—
|
|
|
Number outstanding
|
|
|
252,802
|
|
|
|
252,802
|
|
|