Quarterly report pursuant to Section 13 or 15(d)

Equity

v3.22.2
Equity
 6 Months Ended
Jun. 30, 2022
Stockholders' Equity Note [Abstract]  
Equity

Note 5 - Equity 

 

In August 2020 the Company entered into the Capital on Demand™ Sales Agreement with JonesTrading Institutional Services LLC, or JonesTrading, pursuant to which the Company may sell, from time to time, through or to JonesTrading, up to an aggregate of $200 million of its common stock. Shares of common stock are offered pursuant to a shelf registration statement on Form S-3 filed with the SEC on August 7, 2020. As of December 31, 2021, the Company had sold 6.7 million shares of common stock, resulting in gross proceeds of $59.1 million and net proceeds of $57.0 million. For the six months ended June 30, 2022, the Company sold 2.7 million shares of common stock, resulting in gross proceeds of $17.2 million and net proceeds of $16.7 million. For the six months ended June 30, 2021, the Company sold 3.5 million shares of common stock, resulting in gross proceeds of $29.6 million and net proceeds of $28.7 million.

 

On June 28, 2022, the Company entered into an Amendment and Restated Capital on Demand™ Sales Agreement (the “A&R Sales Agreement”) with JonesTrading and B. Riley Securities, Inc. (“B. Riley Securities”). The A&R Sales Agreement modifies the original Capital on Demand™ Sales Agreement to include B. Riley Securities as an additional sales agent thereunder.

 

Stock Options

 

The following is a summary of stock option activity for the six months ended June 30, 2022:

 

(in thousands, except for per-share amounts)   Number of
Shares		     Weighted
Average
Exercise
Price		     Weighted
Average
Remaining
Contractual
Term
(in years)		     Aggregate
Intrinsic
Value		  
Outstanding, January 1, 2022     1,362     $ 12.45     8.69     $
         -
  
Granted     120       5.23                
Cancelled     (51 )     8.89                
Outstanding, June 30, 2022     1,431       11.97     8.36      
-
  
                               
Exercisable, June 30, 2022     473       22.19     7.07      
-
  

   

During the six months ended June 30, 2022, the Company granted new employees options to purchase 120 thousand shares of common stock with an exercise price ranging from $5.20 to $5.93 per share, a term of 10 years, and a vesting period of 4 years. The options have an aggregated fair value of $442 thousand that was calculated using the Black-Scholes option-pricing model. Variables used in the Black-Scholes option-pricing model include: (1) discount rate range from 1.52% to 3.03% (2) expected life of 6 years, (3) expected volatility range from 78.8% to 79.9%, and (4) zero expected dividends.

 

The fair values of all options issued and outstanding are being amortized over their respective vesting periods. The unrecognized compensation expense at June 30, 2022 was $4.4 million related to unvested options, which is expected to be expensed over a weighted average of 3.0 years. During the six months ended June 30, 2022 and 2021, the Company recorded compensation expense related to stock options of $0.8 million and $0.7 million, respectively.  

 

Warrants

 

Following is a summary of warrant activity for the six months ended June 30, 2022:

 

(in thousands, except for per-share amounts)   Number of Shares     Weighted
Average
Exercise
Price		     Weighted
Average
Remaining
Contractual
Term
(in years)		     Aggregate
Intrinsic
Value		  
Outstanding, January 1, 2022     2,112     $ 20.52     1.76     $      276  
Granted    
-
      
-
                
Exercised    
-
      
-
                
Cancelled/Expired     (59 )     3.62                
Outstanding, June 30, 2022     2,053     $ 21.01     1.32     $
-
  
                               
Exercisable, June 30, 2022     2,049     $ 20.57     1.31     $
-