Quarterly report pursuant to Section 13 or 15(d)

Stockholder's Equity

v3.10.0.1
Stockholder's Equity
9 Months Ended
Sep. 30, 2018
Equity [Abstract]  
Stockholder's Equity

8.

Stockholder's Equity

Authorized, Issued, and Outstanding Common Stock

The Company’s common stock has a par value of $0.001 per share and consists of 125,000,000 authorized shares as of September 30, 2018, and December 31, 2017; 47,193,062 and 28,971,651 shares were issued and outstanding at September 30, 2018, and December 31, 2017, respectively. The following table summarizes common stock share activity for the three and nine months ended September 30, 2018 and 2017 (dollars in thousands): 

 

 

 

Three Months Ended September 30, 3017

 

 

 

Shares of

Common Stock

 

 

Common

Stock

 

 

Additional

Paid-in

Capital

 

 

Accumulated

Deficit

 

 

Total

Stockholders'

Equity

 

Balance, June 30, 2017

 

 

26,478,051

 

 

$

26

 

 

$

220,890

 

 

$

(189,260

)

 

$

31,656

 

Cumulative stock-based compensation forfeiture adjustment

 

 

 

 

 

 

 

 

 

 

 

1

 

 

 

1

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

(8,401

)

 

 

(8,401

)

Stock-based compensation expense

 

 

 

 

 

 

 

 

407

 

 

 

 

 

 

407

 

Common stock issued through employee stock purchase plan

 

 

10,465

 

 

 

 

 

 

18

 

 

 

 

 

 

18

 

Common stock issued, net of expenses

 

 

1,847,320

 

 

 

2

 

 

 

3,581

 

 

 

 

 

 

3,583

 

Balance, September 30, 2017

 

 

28,335,836

 

 

$

28

 

 

$

224,896

 

 

$

(197,660

)

 

$

27,264

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 3017

 

 

 

Shares of

Common Stock

 

 

Common

Stock

 

 

Additional

Paid-in

Capital

 

 

Accumulated

Deficit

 

 

Total

Stockholders'

Equity

 

Balance, December 31, 2016

 

 

24,609,411

 

 

$

24

 

 

$

214,918

 

 

$

(180,123

)

 

$

34,819

 

Cumulative stock-based compensation forfeiture adjustment

 

 

 

 

 

 

 

 

67

 

 

 

(67

)

 

 

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

(17,470

)

 

 

(17,470

)

Stock-based compensation expense

 

 

 

 

 

 

 

 

1,241

 

 

 

 

 

 

1,241

 

Common stock issued through employee stock purchase plan

 

 

18,132

 

 

 

 

 

 

36

 

 

 

 

 

 

36

 

Common stock issued, net of expenses

 

 

3,708,293

 

 

 

4

 

 

 

8,634

 

 

 

 

 

 

8,638

 

Balance, September 30, 2017

 

 

28,335,836

 

 

$

28

 

 

$

224,896

 

 

$

(197,660

)

 

$

27,264

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 3018

 

 

 

Shares of

Common Stock

 

 

Common

Stock

 

 

Additional

Paid-in

Capital

 

 

Accumulated

Deficit

 

 

Total

Stockholders'

Equity

 

Balance, June 30, 2018

 

 

46,844,072

 

 

$

47

 

 

$

246,517

 

 

$

(220,011

)

 

$

26,553

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

351

 

 

 

351

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

458

 

 

 

 

 

 

458

 

Common stock issued through employee stock purchase plan

 

 

17,770

 

 

 

 

 

 

21

 

 

 

 

 

 

21

 

Common stock issued, net of expenses

 

 

328,871

 

 

 

 

 

 

498

 

 

 

 

 

 

498

 

Common stock issued for vested restricted stock units

 

 

2,349

 

 

 

 

 

 

(2

)

 

 

 

 

 

(2

)

Balance, September 30, 2018

 

 

47,193,062

 

 

$

47

 

 

$

247,492

 

 

$

(219,660

)

 

$

27,879

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 3018

 

 

 

Shares of

Common Stock

 

 

Common

Stock

 

 

Additional

Paid-in

Capital

 

 

Accumulated

Deficit

 

 

Total

Stockholders'

Equity

 

Balance, December 31, 2017

 

 

28,971,651

 

 

$

29

 

 

$

226,631

 

 

$

(205,250

)

 

$

21,410

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

(14,410

)

 

 

(14,410

)

Stock-based compensation expense

 

 

 

 

 

 

 

 

1,351

 

 

 

 

 

 

1,351

 

Common stock issued through employee stock purchase plan

 

 

31,361

 

 

 

 

 

 

39

 

 

 

 

 

 

39

 

Common stock issued, net of expenses

 

 

18,181,064

 

 

 

18

 

 

 

19,480

 

 

 

 

 

 

19,498

 

Common stock issued for vested restricted stock units

 

 

8,986

 

 

 

 

 

 

(9

)

 

 

 

 

 

(9

)

Balance, September 30, 2018

 

 

47,193,062

 

 

$

47

 

 

$

247,492

 

 

$

(219,660

)

 

$

27,879

 

 

Shares Reserved for Future Issuance

The Company had reserved shares of common stock for future issuance as follows:

 

 

September 30, 2018

 

 

December 31, 2017

 

Outstanding stock options

 

4,110,108

 

 

 

3,075,994

 

Outstanding restricted stock units

 

107,841

 

 

 

64,365

 

Outstanding Series C-1 Preferred warrants

 

14,033

 

 

 

14,033

 

Warrants to purchase common stock associated with June 2016 Public Offering

 

4,218,750

 

 

 

4,218,750

 

Warrants to purchase common stock associated with March 2018 Public Offering - Series 1

 

13,198,075

 

 

 

 

Warrants to purchase common stock associated with March 2018 Public Offering - Series 2

 

7,988,175

 

 

 

 

Warrants to purchase common stock associated with Loan Agreement

 

122,435

 

 

 

122,435

 

For possible future issuance under 2014 Equity Incentive Plan (Note 9)

 

559,373

 

 

 

492,382

 

For possible future issuance under Employee Stock Purchase Plan (Note 9)

 

81,667

 

 

 

83,617

 

For possible future issuance under 2015 Inducement Plan (Note 9)

 

5,000

 

 

 

5,000

 

Total common shares reserved for future issuance

 

30,405,457

 

 

 

8,076,576

 

 

Warrants Associated with June 2016 and March 2018 Public Offerings

On June 21, 2016, the Company completed the June 2016 public offering of its common stock and warrants pursuant to the Company's previously effective shelf registration (the “June 2016 Public Offering”).  Each purchaser received a warrant to purchase 0.45 of a share for each share purchased in the June 2016 Public Offering. There is not expected to be any trading market for the warrants. Each warrant was exercisable immediately upon issuance, will expire five years from the date of issuance, and has an exercise price of $3.00 per share.

On March 8, 2018, the Company completed the March 2018 Public Offering and sold 17,751,500 shares of its common stock and warrants to purchase up to 21,301,800 shares of the Company’s common stock.  Each purchaser received a warrant to purchase 0.75 of a share of common stock (the “Series 1 warrants”) and 0.45 of a share of common stock (the “Series 2 warrants”) for each share purchased in the March 2018 Public Offering.  The Series 1 warrants to purchase in the aggregate up to 13,313,625 shares of common stock have a 53-week term and an exercise price of $1.85 per share, and the Series 2 warrants to purchase in the aggregate up to 7,988,175 shares of common stock have a five-year term and an exercise price of $2.00 per share.  There is not expected to be any market for the warrants and each warrant is exercisable immediately upon issuance, subject to certain limitations on beneficial ownership.  During the three months ended September 30, 2018, there were 115,550 of the Series 1 warrants exercised for total proceeds of $0.2 million.

The warrants contain a provision where the warrant holder has the option to receive cash, equal to the Black-Scholes fair value of the remaining unexercised portion of the warrant, as cash settlement in the event that there is a fundamental transaction (contractually defined to include various merger, acquisition or stock transfer activities). Due to this provision, ASC 480, Distinguishing Liabilities from Equity, requires that these warrants be classified as liabilities. The fair values of these warrants have been determined using the Black-Scholes valuation model, and the changes in the fair value are recorded in the accompanying statements of operations.  During the three and nine months ended September 30, 2018, the Company recorded a gain of $6.9 million and a gain of $7.6 million, respectively, due to the change in fair value of the warrant liabilities.  As of September 30, 2018, the fair value of the warrant liabilities was $5.2 million.

Warrant Associated with Loan Agreement

Pursuant to the Loan Agreement, on the Closing Date the Company issued to Solar the Solar Warrant to purchase an aggregate of up to 122,435 shares of the Company’s common stock at an exercise price of $3.6754 per share. The Solar Warrant will expire five years from the date of the grant. The Solar Warrant was classified as equity and recorded at its relative fair value at issuance in the stockholders' equity section of the balance sheet.