Annual report pursuant to Section 13 and 15(d)

WARRANTS

v3.23.1
WARRANTS
12 Months Ended
Dec. 31, 2022
Equity [Abstract]  
WARRANTS SHAREHOLDERS’ EQUITY
On February 17, 2021, we completed an offering of 6,210,000 shares of our common stock, inclusive of the underwriters full over allotment, at $10.00 per share for total gross offering proceeds of $62,100,000. In connection with this offering, we received approval to list our common stock on the Nasdaq Capital Market under the symbol "UGRO."

On May 24, 2021, we announced that the Board authorized a stock repurchase program to purchase up to $5.0 million of the currently outstanding shares of the Company’s common stock, over a period of 12 months through open market purchases, in compliance with Rule 10b-18 under the Securities Exchange Act of 1934. On January 18, 2022, the Board authorized a $2.0 million increase to the stock repurchase program, to a total of $7.0 million. On February 2, 2022, the Board authorized an additional $1.5 million increase to the stock repurchase, to a total of $8.5 million. On September 12, 2022, the Board authorized an additional $2 million increase to the stock repurchase, for a total of $10.5 million. During the twelve months ended December 31, 2022 the Company has repurchased 594,918 shares of common stock at an average price per share of $7.33, for a total price of $4.4 million. In total, the Company has repurchased 1,099,833 shares of common stock at an average price per share of $8.25 for a total of $9.1 million, under this program.

In February 2021, the Company repurchased 350,000 shares of common stock with an average price per share of $8.50, for a total of $3.0 million, outside of any stock repurchase or publicly announced program.
WARRANTS
The following table shows warrant activity for the years ended December 31, 2022 and 2021:
Number of shares Weighted Average Exercise Price
Warrants outstanding as of December 31, 2020 202,752 $ 13.64 
Exercised (22,490) $ 14.94 
Issued in conjunction with equity offering 310,500 $ 12.50 
Expired (116,674) $ 18.00 
Warrants outstanding as of December 31, 2021 374,088 $ 11.26 
Warrants exercisable as of December 31, 2021 374,088 $ 11.26 
Number of shares Weighted Average Exercise Price
Warrants outstanding as of December 31, 2021 374,088 $ 11.26 
Exercised (18,196) $ 6.00 
Terminated – cashless exercise (44,393) $ 6.00 
Expired —  $ — 
Warrants outstanding as of December 31, 2022 311,499 $ 12.32 
Warrants exercisable as of December 31, 2022 311,499 $ 12.32 
The fair value of the options is calculated using the Black-Scholes pricing model based on the estimated market value of the underlying common stock at the valuation measurement date of $10.00, the contractual term of the options is 3 years, 25 days, risk-free interest rate of 0.57% and expected volatility of the price of the underlying common stock of 100%. There is a moderate degree of subjectivity involved when estimating the value of warrants with the Black-Scholes option pricing model as the assumptions used are moderately judgmental.
The weighted-average life of the warrants is 1.85 years. The aggregate intrinsic value of the warrants outstanding and exercisable at December 31, 2022 is $0.