Stockholders’ Deficit

9 Months Ended

Sep. 30, 2017

Note 8 – Stockholders’ Deficit

In December 2016, the Company filed a $200 million universal shelf registration statement that allows the Company to issue and sell common stock, preferred stock, warrants and/or units in one or more offerings up to an aggregate maximum offering amount of $125 million and up to $75 million in gross proceeds of its common stock pursuant to an At Market Issuance Sales Agreement (“Sales Agreement”), which the Company entered into in January 2017.

During the nine months ended September 30, 2017, the Company sold 37.9 million shares of common stock between February 28, 2017 and September 29, 2017 (the “Trading Period”) resulting in $46.0 million in net proceeds (this amount excludes $0.6 million received in the fourth quarter of 2017 for shares traded in late September 2017). The weighted average sales price achieved during the Trading Period was $1.25 per share. From October 1, 2017 through November 3, 2017, the Company sold an additional 3.4 million shares of common stock resulting in $3.9 million in net proceeds. Through November 3, 2017, the Company sold aggregate gross proceeds of $51.5 million of common stock of the $75 million total amount available under the Sales Agreement.

During the first quarter of 2016, in connection with the Company’s issuance of the Notes, the Company also entered into privately negotiated capped call transactions as discussed in Note 7. The cost of the capped call transactions and associated expenses totaling $38.5 million were recorded as a reduction to additional paid-in-capital.