Stock warrants

C corp client we've had for a few years- working on their first quarter accounting, and find out that there were warrants issued to several holders who all terminated their warrant agreements in exchange for repayment obligations. Warrants were not reported on the balance sheet - just common stock for the common shareholders (none of the warrant holders). Repayment agreements were effective Dec 2023, with payments commencing in first quarter 2024. How to account for these repayment obligations? Obviously have note obligations, but where to post the other side of the entry?

For reference, the total of these obligations is under $30K, and the corp has an NOL of around $750K, so tax effect is nil.

Bump

Is the purpose of the warrants to compensate or enhance interest return as a debt? Is it a convertible feature on a debt instrument? Were the warrants imbedded with the stock issuance as a option?

Messy issue. Need more facts. But to do it right, sounds like the warrants need to be valued and then you incorporate the value of the warrant into your transactions. To do it right would probably cost more than it is worth.