6. COMMON STOCK WARRANT LIABILITY

On February 12, 2021, the Company used a portion of the proceeds from the 2028 Notes offering to redeem all of its outstanding warrants. As part of the Company’s former Second Lien Credit Facility, which was retired in 2018, the Company granted the second lien lenders 1,006,568 warrants. The settled repurchase price to redeem the warrants was $4.0 million.

The Company previously measured the fair value of the warrants at each reporting period (see Note 2). However, upon redemption of the warrants on February 12, 2021, the fair value was determined based on the repurchase price of $4.0 million. This resulted in an incremental fair value adjustment of $1.3 million in the quarter, to increase the warrant liability from $2.7 million at December 31, 2020, when the Company’s stock traded at lower prices.