v3.25.2
Common Stock and Preferred Stock
 6 Months Ended
Jun. 30, 2024
Equity [Abstract]  
Common Stock and Preferred Stock

Note 8. Common Stock and Preferred Stock

 

Common stock

 

Common Stock Issuances

 

During the three and six months ended June 30, 2024, $41 and $ 178 of principal of the December 2023 Note was converted for the issuance of 40,000,000 and 126,000,000 shares of common stock.

 

During the three and six months ended June 30, 2024, 54,000,000 and 62,000,000 shares of common stock were issued in respect of the Lease Agreement.

 

On June 21, 2024, MGT Capital Investments, Inc. (the “Company”) issued 103,500,000 shares of common stock upon the cashless exercise of 3,346,420 warrants.

 

Warrants

 

On August 5, 2022, the Company sold 22,800,000 shares of common stock and issued three warrants, each to purchase 7,600,000 shares of common stock for consideration of $228,000. Subject to the terms and adjustments in the Warrants, the Warrants are exercisable at initial prices of $0.03, $0.06, and $0.12 per share, for three years from August 5, 2022.

 

During the three and six months ended June 30, 2024, 72,000,000 and 226,800,000 warrants, respectively, were issued as a result of the partial conversion of convertible debt and 319,384,000 and 617,944,296 warrants, respectively, were issued are a result of an adjustment to the number of X, Y and Z warrants as a result of the terms of the agreement. The Company valued the warrant derivative liability for the 154,800,000 warrants issued using the Black-Scholes option pricing model using the following assumptions on the date of each issuance: 1) stock prices of $0.0005 - $0.0046, 2) exercise prices of $0.0036 - $0.0068, 3) remaining lives of 2.78 – 2.93 years, 4) dividend yields of 0%, 5) risk free rates of 4.02%-4.4%, and 6) volatility of 279.2% - 283.8%. The 298,560,296 warrants that were issued as a result of an adjustment to the number of X, Y and Z warrants were recorded as part of the warrant derivative liability using the binomial lattice model (see Note 5).

 

The following table summarizes information about shares issuable under warrants outstanding during the three and six months ended June 30, 2024 and for the period ended December 31, 2023:

 

   Warrant
shares
outstanding		   Weighted
average
exercise
price		   Weighted
average
remaining
life		   Intrinsic
value		 
Outstanding at January 1, 2023   682,563,502   $0.06    4.47    - 
Issued   551,515,432    -    -    - 
Exercised   (31,668,360)   0.05    -    - 
Expired or cancelled   -    -    -    - 
Outstanding and exercisable at December 31, 2023   1,202,410,574    0.06    3.18    - 
Issued   453,360,000    0.01    -    - 
Exercised   -    -    -    - 
Expired or cancelled   -    -    -    - 
Outstanding and exercisable at March 31, 2024   1,655,770,574    0.01    2.21    - 
Issued   391,384,296    0.00364    -    - 
Exercised   (3,346,420)   0.05    -    - 
Expired or cancelled   -    -    -    - 
Outstanding and exercisable at June 30, 2024   2,043,808,450   $0.01    2.64   $- 

 

(*) Of the 391,384,296 and 844,744,296 shares issued during the three and six months ended June 30, 2024 and 551,515,432 issued during the year ended December 31, 2023, respectively and 2,043,808,450 and 1,202,410,574 shares outstanding and exercisable at June 30, 2024 and December 31, 2023, respectively, the weighted average exercise price and weighted average remaining life was not included for 1,736,988,738 and 1,417,604,442 warrants, respectively because their amount and exercise price is variable. During the six months ended June 30, 2024, 226,800,000 warrants were issued as a result of the partial conversion of convertible debt and 617,944,296 warrants were issued are a result of an adjustment to the number of X, Y and Z warrants as a result of the terms of the agreement. See Note 5 for the exercise prices of Series X, Y, and Z warrants. Series X, Y, and Z warrants expire on September 11, 2025.