Hey,

Sorry for such the late response.

 Yes, you are correct with your understanding.

Here is some more information for you on this topic with the help of one of analysts.

The underlying premise is that the value of any derivative security "derives" its value from the value of something else - in the case of stock options and warrants, the value of the stock itself.  Therefore, options and warrants are constantly changing value as the stock price goes up and down.  If you think about it, if you have a warrant to buy a share at a $1, the value of that warrant is much higher if the stock is selling at $2 than it is if it is selling at $0.50 (actually at $0.50, the warrant is worthless as why would you buy a share for a $1 that you could only sell for $0.50 - you can buy that same share in the open market for $0.50).
 
So whatever the reason for the warrants being issued, compensation or financing, the change in their value over a reporting period is reflected as a non-cash gain or loss.  No money changes hands, it is really just an adjustment for accounting purposes to reflect the current value of the warrants from the previous reporting period. 

Maj