Note 3 - Warrant Derivative Liability |
3 Months Ended |
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Dec. 31, 2023 | |
Notes to Financial Statements | |
Derivatives and Fair Value [Text Block] |
3. WARRANT DERIVATIVE LIABILITY
As of December 31, 2023 and September 30, 2023, there are no instruments accounted as a derivative liability.
The Company previously issued warrants (Series G and Series H warrants) that were accounted for the in accordance with ASC 815-10 as the Company is required to purchase the Series G, and Series H warrants for an amount of cash per share equal to $22.00 and $10.66, respectively, (the "Minimum Value"). Accordingly, the warrants were recorded as liabilities at the greater of the Minimum Value or fair value, and are marked to market each reporting period.
At December 31, 2022, the derivative liabilities were valued at their minimum value of $1,207,475, which was greater than the fair value determined using the Black Scholes Model. In March 2023, the Company entered into exchange agreements with the holders of the Series G warrants and the Series H warrants to exchange all outstanding warrants in shares of common stock. |