If warrants could be exercised cashless, they wouldn’t show up on a quarterly report as a liability to the company. They are a liability at the exercise price. Once exercised, the exercise price is paid to the company and the liability disappears from the books. The share count also increases.
Warrants that expire worthless also disappear from the company’s liability. But no cash is gained from these either.
What about the need to increase the authorized/ outstanding to cover the conversion to common? Original common shareholders own less and less of the pie. And it likely stymies the share price run.
Of course in biotech where an FDA approval means sometimes hundreds X gain, that may not be so bad but it's still dilution.
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