That's fact. 17.572 mill warrants at .19. From most recent 10K, but I think there's a reference to a May 10, 2014 10Q filing where the original filing is. Visser missed out on millions not holding through the March Lugee announcement. My guess is he only exercises when he's heavily in the money and I would figure he's done more investigating this time around before he acts on this. (And NASA is Visser, not LQMT. It's currently a very small development contract).
14. Warrant Liabilities
Pursuant to FASB ASC 815, the Company is required to report the value of certain warrants as a liability at fair value and record the changes in the fair value of the warrant liabilities as a gain or loss in its consolidated statement of operations and comprehensive loss due to the price-based anti-dilution rights of warrants.
During June 2012, the Company issued warrants to purchase a total of 15,000,000 shares of common stock to Visser under the Visser MTA (see note 3). These warrants had an original exercise price of $0.22 per share and expire on June 1, 2017 and were originally valued at $4,260. The foregoing warrants have certain anti-dilution and exercise price reset provisions which qualify the warrants to be classified as a liability under FASB ASC 815. As a result of subsequent issuances of the Company’s common stock, which resulted in an anti-dilution impact, the exercise price of these warrants was reduced to $0.17 and $0.18 as of December 31, 2015 and December 31, 2014, respectively. In addition, the number of shares to be issued under the warrants as a result of the anti-dilution provision increased to 18,937,931 and 18,706,235 as of December 31, 2015 and December 31, 2014, respectively. As of December 31, 2015, these warrants were valued at $34 using the Black-Scholes valuation model utilizing the following assumptions: (i) expected life of 1.42 years, (ii) volatility of 57%, (iii) risk-free interest rate of 1.1%, and (iv) dividend rate of 0. The change in warrant value for these warrants for the years ended December 31, 2015, 2014 and 2013 was a gain (loss) of $1,019, $1,506, and $(1,299), respectively.
On July 2, 2012, the Company issued warrants to purchase a total of 18,750,000 shares of common stock related to the July 2012 Private Placement (see note 3). These warrants had an exercise price of $0.384 per share and expire on July 2, 2017 and were originally valued at $5,053. The foregoing warrants have certain anti-dilution and exercise price reset provisions which qualify the warrants to be classified as a liability under FASB ASC 815. As a result of executed draw-downs under the 2013 and 2014 Purchase Agreements, which resulted in an anti-dilution impact, as well as contractually defined price resets following the second anniversary of the July 2012 Private Placement, the exercise price of these warrants was reduced to $0.19 as of December 31, 2015 and December 31, 2014. As of December 31, 2015 there were warrants to purchase a total of 17,572,000 shares of common stock outstanding, which were valued at $25 using the Black-Scholes valuation model utilizing the following assumptions: (i) expected life of 1.50 years, (ii) volatility of 56%, (iii) risk-free interest rate of 1.1%, and (iv) dividend rate of 0. The change in warrant value for these warrants for the years ended December 31, 2015, 2014 and 2013 was a gain (loss) of $927, $1,194, and $(856), respectively.
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