Sigma Labs Inc (SASI)

[criticalnugz]

You're pricing it based on its intrinsic value.

Simply put, stock price - exercise price = intrinsic value...which can't be less than $0.00.

So where is this value coming from?
The time value of the warrant, which is to say the premium on the warrant for the length of the contract before it expires. The longer the time til expiration, the higher the premium because it's given more time to be in-the-money. As time goes on, this premium will decay (like you mentioned). Also, the higher the volatility, the higher the premium.

However, the further the warrant is out of the money, the lesser the premium...

The point is, these values aren't stagnant, they won't trade at their exact intrinsic value and should have some other value added.