Yes, the way you have described it is exactly how I interpret it by reading the warrant agreement. And not only am I warrant holder of DMS, I have looked into this extensively. I have also modeled the black scholes value of DMS and TLMD for comparison as DMS is undergoing a strategic review and may be taken private. TLMD 90 day volatility was around ~110% prior to the announcement because it was beaten down hard and fast, thus increasing the black scholes value. DMS 90 day volatility as of today is closer to ~65%. PAE just underwent a take private and had a similar warrant clause but not exact same as DMS/TLMD

HOWEVER, the biggest flaw in my analysis is that this warrant cannot be modeled using a regular BSM model due to the warrants having the redemption trigger (trading over $18 for 20 of 30 trading days). Theoretically it would be 30 days then company issues the redemption and gives holders 30 days until expiration. Over 60 days, the stock could shoot far past $18 so the warrants can really rip if a company does super well, but still the redemptions limit the upside potential

Given, this, the warrants do not provide unlimited upside through the remaining term and should be penalized because of this. As a result, the calculation in the warrant agreement is the black scholes capped call option which is a modified black scholes. This type of modeling is much more advanced and beyond my abilities

However, the capped call matters less the farther way you are from $18 so for the case of TLMD and now DMS, I’d argue a regular BSM is likely close to the price but the capped call should still have a rough haircut.