where: X = the number of shares of Common Stock to be issued to Holder.
Y = the number of shares of Common Stock for which this Warrant is being Exercised.
A = the Market Price of one (1) share of Common Stock (for purposes of this Section 3(a)(ii), where “Market Price,” means the Volume Weighted Average Price (as defined herein) of one (1) share of the Company’s Common Stock during the ten (10) consecutive Trading Day period immediately preceding the Date of Exercise.
B = the Exercise Price
X = LETS SAY 1000,000 shares is Y, A is 1.20, B, the conversion price, 1.10
so they wold get 1,000,000 (1.2-1.1)/1.20, or .1/1.2, .0833 x 1 mil = 83,000 shares for FREE