Quarterly report pursuant to Section 13 or 15(d)

Summary of Significant Accounting Policies (Policies)

v3.22.2.2
Summary of Significant Accounting Policies (Policies)
6 Months Ended
Jun. 30, 2022
Accounting Policies [Abstract]  
Basic and Diluted Net (Loss) Income per Share of Common Stock

Basic and Diluted Net (Loss) Income per Share of Common Stock

The Company calculates net (loss) income per common share in accordance with ASC 260, Earnings Per Share. Basic net (loss) income per common share for the three and six months ended June 30, 2022 and 2021 was determined by dividing net (loss) income applicable to common stockholders by the weighted average number of common shares outstanding during the period.  Per ASC 260, Earnings Per Share, the weighted average number of common shares outstanding utilized for determining the basic net (loss) income per common share for the three and six months ended June 30, 2022 includes the outstanding pre-funded warrants to purchase 11,666,667 and 3,200,000 shares of common stock issued in the April 2022 Public Offering and December 2020 public offering, respectively.  The outstanding pre-funded warrants to purchase 3,200,000 shares of common stock issued in the December 2020 public offering were included in the three and six months ended June 30, 2021.  Diluted net loss per common share for the three and six months ended June 30, 2022 and 2021 was determined as follows (in thousands, except share and per share amounts):

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Net (loss) income

$

(13,345

)

 

$

1,658

 

 

$

(18,796

)

 

$

(3,018

)

Dilutive effect of warrant liability

 

 

 

 

(7,415

)

 

 

 

 

 

(8,739

)

Dilutive effect of convertible debt

 

 

 

 

 

 

 

 

 

 

 

Net loss allocated to common shares

$

(13,345

)

 

$

(5,757

)

 

$

(18,796

)

 

$

(11,757

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding – basic

 

43,285,232

 

 

 

26,015,292

 

 

 

37,647,535

 

 

 

25,909,457

 

Dilutive effect of warrant liability

 

 

 

 

472,681

 

 

 

 

 

 

596,351

 

Dilutive effect of convertible debt

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding – diluted

 

43,285,232

 

 

 

26,487,973

 

 

 

37,647,535

 

 

 

26,505,808

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per share – diluted

$

(0.31

)

 

$

(0.22

)

 

$

(0.50

)

 

$

(0.44

)

 

The following potentially dilutive shares of common stock have not been included in the computation of diluted net loss per share for the three and six months ended June 30, 2022 and 2021, as the result would be anti-dilutive:

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Outstanding stock options

 

2,129,002

 

 

 

1,607,080

 

 

 

2,129,002

 

 

 

1,607,080

 

Outstanding restricted stock units

 

1,024,929

 

 

 

134,774

 

 

 

1,024,929

 

 

 

134,774

 

Warrants to purchase common stock associated with March 2018 public offering – Series 2

 

798,810

 

 

 

798,810

 

 

 

798,810

 

 

 

798,810

 

Warrants to purchase common stock associated with December 2019 public offering

 

 

 

 

4,472,205

 

 

 

 

 

 

4,472,205

 

Warrants to purchase common stock associated with December 2020 public offering - Series 2

 

6,800,000

 

 

 

6,800,000

 

 

 

6,800,000

 

 

 

6,800,000

 

Warrants to purchase common stock associated with April 2022 Public Offering

 

15,000,000

 

 

 

 

 

 

15,000,000

 

 

 

 

Warrants to purchase common stock associated with Loan Agreement

 

198,819

 

 

 

170,410

 

 

 

198,819

 

 

 

170,410

 

Warrants to purchase common stock associated with Solar loan agreement

 

 

 

 

12,243

 

 

 

 

 

 

12,243

 

Common stock associated with March 2019 Notes

 

1,138,200

 

 

 

1,138,200

 

 

 

1,138,200

 

 

 

1,138,200

 

Warrants to purchase common stock associated with Danforth

 

50,000

 

 

 

 

 

 

50,000

 

 

 

 

Total

 

27,139,760

 

 

 

15,133,722

 

 

 

27,139,760

 

 

 

15,133,722

 

 

Reclassification of Prior Year Amounts

Reclassification of Prior Year Amounts

Certain prior year amounts have been reclassified for consistency with the current year presentation.

 

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). The amendments in ASU 2016-13 require a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. In November 2019, the FASB issued ASU No. 2019-10, Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) (“ASU 2019-10”), which revised the effective dates for ASU 2016-13 for public business entities that meet the SEC definition of a smaller reporting company to fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022, with early adoption permitted.  As a smaller reporting company, the Company is currently evaluating the impact ASU 2016-13 will have on its unaudited condensed consolidated financial statements.

In August 2020, the FASB issued ASU No. 2020-06, Debt—Debt with Conversion and Other Options and Derivatives and Hedging—Contracts in Entity’s Own Equity: Accounting for Convertible Instruments and Contracts in and Entity’s Own Equity (“ASU 2020-06”). The amendments in ASU 2020-06 reduce the number of accounting models for convertible debt instruments and revises certain guidance relating to the derivative scope exception and earnings per share.  The amendments in ASU 2020-06 are effective for public business entities that meet the definition of a SEC filer and a smaller reporting company for fiscal years beginning after December 15, 2023, and interim periods within those years.  As a smaller reporting company, the Company is currently evaluating the impact ASU 2020-06 will have on its unaudited condensed consolidated financial statements.