offering, you would suffer immediate and substantial dilution of $ per share based on the public offering price of
$ per share and our net tangible book value as of September 30, 2017, after giving effect to this offering. See the section entitled Dilution below for a more
detailed discussion of the dilution you would incur if you purchase common stock in this offering.
If we issue additional common stock,
or securities convertible into or exchangeable or exercisable for common stock following the expiration of
the lock-up agreement
we entered into with the underwriters as described in the section
entitled Underwriting elsewhere in this prospectus supplement, our stockholders, including investors who purchase shares of common stock in this offering, could experience additional dilution, and any such issuances may result in
downward pressure on the price of our common stock. In addition, we have a significant number of outstanding options and warrants to purchase shares of our common stock. If these options or warrants are exercised, our stockholders may incur further
dilution.
We will have broad discretion in the use of proceeds from this offering and may invest or spend the proceeds in ways with which you do
not agree and in ways that may not yield a return.
We will have broad discretion over the use of proceeds from this offering. You
may not agree with our decisions, and our use of the proceeds may not yield any return on your investment in us. Our failure to apply the net proceeds of this offering effectively could result in financial losses that could materially impair our
ability to pursue our growth strategy, cause the price of our common stock to decline, delay development of our products, or require us to raise additional capital.
Sales of substantial amounts of our common stock in the public markets, or the perception that such sales might occur, could cause the market price of
our common stock to drop significantly, even if our business is doing well.
Sales of a substantial number of shares of our common
stock in the public market could occur at any time. If our stockholders sell, or the market perceives that our stockholders intend to sell, substantial amounts of our common stock in the public market following this offering, the market price of our
common stock could decline significantly.
Substantially all of our outstanding common stock is eligible for immediate resale in the
public market. In connection with this offering, we and all of our directors and executive officers and certain of our securityholders affiliated with certain of our directors have agreed not to sell, dispose of, or hedge any common stock or
securities convertible into or exchangeable for shares of common stock, such as stock options, during the period from the date of this prospectus supplement continuing through and including the date 90 days after the date of this prospectus
supplement with respect to all our directors and executive officers and the date 180 days after the date of this prospectus supplement with respect to certain of our securityholders affiliated with certain of our directors, subject to certain
exceptions as described in further detail under the section of this prospectus supplement titled Underwriting.
We do not currently
intend to pay dividends on our common stock, and any return to investors is expected to come, if at all, only from potential increases in the price of our common stock.
At the present time, we intend to use available funds to finance our operations. Accordingly, while payment of dividends rests within the
discretion of our board of directors, we have no intention of paying any such dividends in the foreseeable future. Any return to investors is expected to come, if at all, only from potential increases in the price of our common stock.
The recently enacted tax reform bill could adversely affect our business and financial condition.
On December 22, 2017, President Trump signed into law the Tax Cuts and Jobs Act, or the TCJA, which significantly amends the
Internal Revenue Code of 1986. The TCJA, among other things, reduces the corporate
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