Under the terms and subject to the conditions of the Equity Line of Credit, the Company has
the right, but not the obligation, to sell to Lincoln Park, and Lincoln Park is obligated to purchase, up to $35.0 million worth of shares of the Companys common stock. The Companys board of directors reserved 392,104 shares
for issuance pursuant to the Equity Line of Credit (inclusive of commitment shares). On October 20, 2017, the Company issued 11,375 shares of its common stock, as initial commitment shares, to Lincoln Park with a fair value of $15.30 which was
recorded as deferred financing costs and is included within other current assets in the accompanying balance sheet as of June 30, 2018. The deferred financing costs are amortized as interest expense
using the effective interest rate
method over the term of the Equity Line of Credit as there is no guaranty that additional shares will be sold under the Equity Line of Credit. Additionally, the Company will issue, pro rata, up to an additional 11,375 shares of its common stock as
additional commitment shares to Lincoln Park in connection with any additional purchases. Such future sales of common stock by the Company, if any, will be subject to certain limitations, and may occur from time to time, at the Companys
option, over
the 30-month period
that commenced on November 21, 2017, the date that the registration statement was declared effective by the SEC, and the other conditions of the Equity Line of
Credit were satisfied. No sales of common stock have been made under the Lincoln Park purchase agreement as of June 30, 2018.
Public Offering March 2017
On March 22, 2017, the Company completed a registered public offering of 977,500 shares of common stock at a price of $30.00 per share,
which included the exercise in full by the underwriters of their over-allotment option to purchase up to 127,500 additional shares of common stock. The total proceeds from the offering were $26.6 million, net of underwriters discounts and
commissions and offering expenses.
Public Offering April 2018
On April 3, 2018, the Company closed a public offering of 10,000,000 shares of common stock at a public offering price of $5.00 per share.
We received gross proceeds of $50.0 million and approximately $45.6 million of net proceeds from this offering. The offering was made by the Company pursuant to a registration statement on
Form S-1
previously filed with the SEC on December 22, 2017, as amended and declared effective by the SEC on March 28, 2018.
Warrants
Below is
a table summarizing the warrants issued and outstanding for each of the periods presented:
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Warrants
Outstanding as of
As of December 31,
2017
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Warrants
Exercised
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Warrants
Expired
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Warrants
Outstanding
As of June 30, 2018
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Exercise
Price
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|
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Expiration
Date
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|
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PIPE Financing - Series B
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|
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195,906
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195,906
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|
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$
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31.00
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8/19/2021
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Hercules - June 2014
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1,583
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1,583
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$
|
176.80
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1/27/2020
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Hercules - June 2015
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2,035
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2,035
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$
|
147.40
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6/23/2020
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Total
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199,524
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199,524
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As of June 30, 2018, the Company had 199,524 warrants outstanding classified as equity warrants. Each
warrant grants the holder the right to purchase one share of common stock. Equity warrants are recorded at their relative fair market value in the stockholders equity section of the balance sheet. The Companys equity warrants can only be
settled through the issuance of shares and do not have any anti-dilution or price reset provisions.
8.
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Stock-Based Compensation
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The Amended and Restated 2014 Equity and Incentive Plan
The Amended and Restated 2014 Equity and Incentive Plan (the 2014 Plan) provides for the issuance of (i) cash awards and
(ii) equity-based awards, denominated in shares of the Companys common stock, including incentive stock options,
non-statutory
stock options, stock appreciation rights, restricted stock awards,
restricted stock units, unrestricted stock awards, performance share awards and dividend equivalent rights. Incentive stock options may be granted only to Company employees. Nonqualified stock options may be granted to Company employees, outside
directors and consultants. As of June 30, 2018, the Company had reserved 1,348,173 shares of our common stock for issuance under our 2014 Plan, subject to automatic annual increases as set forth in the plan. Options and awards under the
2014 Plan may be granted for periods of up to ten years. Employee options granted by the Company generally vest over four years. Restricted stock awards granted to employees, directors and consultants can be subject to the same vesting
conditions and the right of repurchase by the Company on unvested shares as determined by our board of directors. As of June 30, 2018, the Company had 179,475 shares available for grant under the 2014 Plan. For the six months ended
June 30, 2018, the Company granted 131,000 stock option awards to
non-employee
Directors.
13