STOCKHOLDERS' DEFICIT (Tables)
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3 Months Ended |
Mar. 31, 2022 |
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| Schedule of Fair Value Based upon Assumptions |
The fair value as of March 31, 2022 and December 31, 2021 was based upon following assumptions:
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March 31, 2022
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December 31, 2021
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Principal outstanding (South Korean won)
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KRW 26.5 billion
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KRW 30 billion
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Stock price
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KRW2,410
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KRW2,925
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Expected life (in years)
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8.55
|
|
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8.79
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Selected yield
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11.00
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%
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10.50
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%
|
|
Expected volatility (Telcon common stock)
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|
|
80.43
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%
|
|
|
81.31
|
%
|
|
Risk-free interest rate (South Korea government bond)
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2.94
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%
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|
2.19
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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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|
KRW2,140 (US$1.82)
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KRW2,847 (US$2.39)
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|
| Summary of outstanding warrants |
A summary of outstanding warrants as of March 31, 2022 and December 31, 2021 is presented below:
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March 31, 2022
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December 31, 2021
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Warrants outstanding beginning of period
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8,236,017
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|
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|
8,439,480
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Granted
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—
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—
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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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—
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(203,463
|
)
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Warrants outstanding end of period
|
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|
8,236,017
|
|
|
|
8,236,017
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|
A summary of all outstanding warrants by year issued and exercise price as of March 31, 2022 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, 2021
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$1.54-$36.24
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8,236,017
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|
|
|
1.98
|
|
|
$
|
5.87
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|
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|
6,986,017
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|
$
|
5.87
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At March 31, 2022
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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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Total
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8,236,017
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|
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Total
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|
6,986,017
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| Summary of stock option activity |
A summary of the Company’s stock option activity for three months ended March 31, 2022 and for the year ended December 31, 2021 is presented below.
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March 31, 2022
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December 31, 2021
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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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5,968,338
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$
|
4.78
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7,110,025
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$
|
4.63
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Granted or deemed granted
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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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Exercised
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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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Cancelled, forfeited and expired
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(6
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)
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|
$
|
3,600.00
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(1,141,687
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)
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$
|
3.82
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Options outstanding, end of period
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5,968,332
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$
|
4.78
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5,968,338
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$
|
4.78
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Options exercisable, end of period
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5,942,831
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$
|
4.80
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5,937,837
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$
|
4.80
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Options available for future grant
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4,000,000
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4,000,000
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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 values and changes in fair value of the warrants as of March 31, 2022 and December 31, 2021 (in thousands):
|
Warrant liability— Convertible Promissory Note
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March 31, 2022
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December 31, 2021
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Balance beginning of period
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$
|
1,463
|
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|
$
|
988
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Change in fair value included in the statement of operations
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(713
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)
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475
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Balance end of period
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$
|
750
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$
|
1,463
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| Schedule of Fair Value Based upon Assumptions |
The fair values of the warrant derivative liability were determined using the Black-Scholes Merton model based upon following assumptions:
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March 31, 2022
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December 31, 2021
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Exercise price
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$
|
2.05
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|
$
|
2.05
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|
Stock price
|
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$
|
1.00
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|
$
|
1.67
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Risk‑free interest rate
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|
2.45
|
%
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1.04
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%
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Expected volatility (peer group)
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117.00
|
%
|
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|
117.00
|
%
|
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Expected life (in years)
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3.21
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3.46
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Expected dividend yield
|
|
—
|
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—
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Number outstanding
|
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1,250,000
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1,250,000
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| GPB Debt Holdings II, LLC [Member] |
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| Schedule of fair value of conversion feature liabilities |
The following table presents the change in fair value of the GPB Warrant as of March 31, 2022 and December 31, 2021 (in thousands):
|
Warrant Liability—GPB
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|
March 31, 2022
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December 31, 2021
|
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Balance beginning of period
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$
|
40
|
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|
$
|
83
|
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Change in fair value included in the statement of operations
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(35
|
)
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(43
|
)
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Balance end of period
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|
$
|
5
|
|
|
$
|
40
|
|
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| Schedule of Fair Value Based upon Assumptions |
The fair values as of March 31, 2022, and December 31, 2021 were based on upon following assumptions:
|
|
|
March 31, 2022
|
|
|
December 31, 2021
|
|
|
Adjusted exercise price
|
|
$
|
10.28
|
|
|
$
|
10.28
|
|
|
Common stock fair value
|
|
$
|
1.00
|
|
|
$
|
1.67
|
|
|
Risk‑free interest rate
|
|
|
1.79
|
%
|
|
|
0.56
|
%
|
|
Volatility
|
|
|
97.00
|
%
|
|
|
104.00
|
%
|
|
Time until expiration (years)
|
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|
1.25
|
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|
1.50
|
|
|
Expected dividend yield
|
|
—
|
|
|
—
|
|
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Number outstanding
|
|
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252,802
|
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252,802
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