Liquidity and Capital Resources
Since inception, the Company has financed its operations primarily
through public and private sales of its Common Stock and warrants,
the exercise of warrants, the issuance of convertible promissory
notes, sales via the ATM programs and through various grants. At
December 31, 2021 cash, cash equivalents and short-term bank
deposits amounted to $22,094,000.
Net cash used in operating activities for the year ended December
31, 2021 was $26,265,000. Cash used for operating activities was
primarily attributed to cost of clinical trials, rent of clean
rooms and materials for clinical trials, payroll costs, rent,
outside legal fee expenses and public relations expenses.
Net cash provided by investing activities for the year ended
December 31, 2021 was $323,000 representing primarily a net
decrease in short-term deposits and purchase of property and
equipment.
Net cash provided by financing activities for the year ended
December 31, 2021 was $ 6,969,000 from the exercises of options
during the year, sales of common stock under ring and sales of
common stock under the September 25, 2020 ATM programs.
On August 9, 2021, the Company entered into an Amended and Restated
Distribution Agreement (the "New Distribution Agreement") with the
Agents pursuant to which the Company may sell from time to time,
through the Agents, shares of Common Stock, having an aggregate
offering price of up to $100,000,000 (the "August 9, 2021, ATM").
Sales under the August 9, 2021, ATM are to be made by any method
permitted by law that is deemed to be an "at the market" offering
as defined in Rule 415 promulgated under the Securities Act,
including, without limitation, sales made directly on the Nasdaq
Capital Market, on any other existing trading market for the
Shares, through a market maker or as otherwise agreed by the
Company and the Agents. During the quarter ended December 31, 2021,
the Company did not sell any shares of its Common Stock pursuant to
the August 9, 2021, ATM.
At-the-market (ATM)
Offerings:
On June 11, 2019, the Company entered into a distribution agreement
with Raymond James & Associates, Inc. ("Raymond James"),
pursuant to which the Company sold, through the Raymond James,
shares of Common Stock having an aggregate offering amount of
$20,000,000 (the “June 11, 2019 ATM”) in an “at the market”
offering as defined in Rule 415 promulgated under the Securities
Act, including, without limitation, by sales made directly on the
Nasdaq Capital Market, on any other existing trading market for the
Shares, through a market maker or as otherwise agreed by the
Company and Raymond James.
On March 6, 2020, the Company entered into a new distribution
agreement with Raymond James (the “Agent”), pursuant to which the
Company was able to sell from time to time, through the Agent,
shares of Common Stock, having an aggregate offering price of up to
$50,000,000 (the “March 6, 2020, ATM”). Sales under the March 6,
2020. ATM were made by any method permitted by law that is deemed
to be an “at the market” offering as defined in Rule 415
promulgated under the Securities Act, including, without
limitation, sales made directly on the Nasdaq Capital Market, on
any other existing trading market for the Shares, through a market
maker or as otherwise agreed by the Company and Raymond James.
Under the March 6, 2020, ATM, the Company sold an aggregate of
2,446,641 shares of Common Stock at an average price of $9.45 per
share, raising gross proceeds of approximately $23.11 million.
On September 25, 2020, the Company entered into an Amended and
Restated Distribution Agreement (the “Distribution Agreement”) with
SVB Leerink LLC (“Leerink”) and Raymond James & Associates
(together with Leerink, the “Agents”) pursuant to which the Company
may sell from time to time, through the Agents, shares of Common
Stock, having an aggregate offering price of up to $45,000,000,
which aggregate amount includes amount unsold pursuant to the March
6, 2020, ATM (the “September 25, 2020, ATM”). Sales under the
September 25, 2020, ATM are to be made by any method permitted by
law that is deemed to be an “at the market” offering as defined in
Rule 415 promulgated under the Securities Act, including, without
limitation, sales made directly on the Nasdaq Capital Market, on
any other existing trading market for the Shares, through a market
maker or as otherwise agreed by the Company and the Agents. The
Distribution Agreement amends and restates in its entirety the
Company’s prior agreement with Raymond James entered into on March
6, 2020 (the “March 6, 2020, ATM”). The Company previously sold
2,446,641 shares of Common Stock for gross proceeds of
approximately $23.11 million of Common Stock under the March 6,
2020, ATM. During the quarter ended September 30, 2021, the Company
did not sell any additional shares of its Common Stock pursuant to
the September 25, 2020, ATM. Since inception and as of September
30, 2021, the Company has sold 4,721,282 shares of Common Stock for
gross proceeds of approximately $29.1 million under the September
25, 2020, ATM.