10. Stockholders’ Equity

9 Months Ended

Sep. 30, 2022

Equity [Abstract]

10. Stockholders’ Equity

10. Stockholders’ Equity

Preferred Stock

The Company is authorized to issue 10,000,000 shares of preferred stock, par value $0.001. No shares of preferred stock were outstanding as of September 30, 2022 or December 31, 2021.

Common Stock

The Company has authorized 240,000,000 shares of common stock as of September 30, 2022 and December 31, 2021. Each share of common stock is entitled to one voting right. Common stock owners are entitled to dividends when funds are legally available and declared by the Board of Directors.

Warrants

September 2020 Warrants

On September 4, 2020, the Company entered into a securities purchase agreement with certain institutional investors pursuant to which the Company issued and sold an aggregate of 8,865,000 shares of common stock in a registered direct offering and issued warrants to purchase up to 6,648,750 shares of common stock in a concurrent private placement (the “September 2020 Warrants”). The September 2020 Warrants are exercisable for 6,648,750 shares of common stock at an exercise price per share equal to $0.84. The September 2020 Warrants became exercisable beginning on March 9, 2021 and will expire on March 9, 2026.

During the nine months ended September 30, 2022 and 2021, the September 2020 Warrants were exercised for 0 and 5.6 million shares of common stock, respectively, for approximately $0 and $4.7 million, respectively. As of September 30, 2022, the September 2020 Warrants exercisable for 1.0 million shares of common stock remain outstanding at an exercise price of $0.84 per share.

August 2019 Warrants

On August 23, 2019, the Company entered into a securities purchase agreement with certain institutional investors pursuant to which the Company issued and sold an aggregate of 4,475,000 shares of common stock in a registered direct offering and issued warrants to purchase up to 2,237,500 shares of common stock in a concurrent private placement (the “August 2019 Warrants”). The August 2019 Warrants were initially exercisable for 2,237,500 shares of common stock at an exercise price per share equal to $1.78. The August 2019 Warrants became exercisable beginning on February 27, 2020 and will expire on August 28, 2023.

During the nine months ended September 30, 2022 and 2021, the August 2019 Warrants for 0 and 1.3 million shares of common stock, respectively, were exercised for approximately $0 and $2.4 million, respectively. As of September 30, 2022, the August 2019 Warrants exercisable for 900,000 shares of common stock remain outstanding at an exercise price of $1.78 per share.

Series A Warrants

On January 24, 2019, STI and the Company closed a private placement with certain accredited investors pursuant to which, among other things, the Company issued warrants representing the right to acquire 1,463,519 shares of common stock (the “Series A Warrants”). The Series A Warrants were initially exercisable for 1,463,519 shares of common stock at an exercise price per share equal to $4.15, which was adjusted several times pursuant to the terms thereof to 3,629,023 shares of common stock at an exercise price per share equal to $0.2957 per share. The most recent adjustment to the exercise price (from $0.60 to $0.2957 per share) occurred during the three months ended September 30, 2020 as a result of the announcement of the registered direct offering of 8,865,000 shares of common stock in September 2020. The Series A Warrants were immediately exercisable upon issuance and will expire on January 31, 2024.

During the nine months ended September 30, 2022 and 2021, the Series A Warrants for 0 and 0.5 million shares of common stock, respectively, were exercised for approximately $0 and $0.1 million, respectively. As of September 30, 2022, the Series A Warrants exercisable for 0.3 million shares of common stock remain outstanding at an exercise price of $0.2957 per share.

A summary of warrant activity during the nine months ended September 30, 2022 is as follows (share amounts in thousands):

				Weighted-
			Weighted-	Average
			Average	Remaining
			Exercise	Contractual Life
	Warrants		Price	(in years)
Outstanding as of December 31, 2021	2,635	$	4.29	2.4
Issued	-	$	-
Exercised	-	$	-
Cancelled	(90)	$	47.06
Outstanding as of September 30, 2022	2,545	$	2.78	1.8
Exercisable as of September 30, 2022	2,545	$	2.78	1.8

The Series A Warrants were recognized as a liability at their fair value upon issuance. The warrant liability is remeasured to the then fair value prior to their exercise or at period end for warrants that are unexercised and the gain or loss recognized in earnings during the period.