5.	Stockholders' Equity and Common Stock Warrants

2019

Common Stock and Warrant Offering

May 2019,

the Company completed a registered direct public offering of

1,317,060

shares of Common Stock and a private placement of warrants to purchase

1,317,060

shares of Common Stock. The shares of Common Stock and warrants were sold for a combined purchase price of

$4.895

for total net proceeds of

$5.6

million. The warrants are exercisable beginning on the date of their issuance until

November 29, 2024

at an initial exercise price equal to

$5.00.

In addition, at the closing of such offering described in the foregoing paragraph, the Company issued warrants to purchase up to

65,853

shares of Common Stock to designees of the placement agent. The placement agent's warrants have an exercise price of

$6.11875

per share, a term of

five

years from the date of issuance and otherwise substantially similar terms to the form of the investor warrant.

During its evaluation of equity classification for the Common Stock warrants, the Company considered the conditions as prescribed within ASC

815

40,

Derivatives and Hedging, Contracts in an Entity’s own Equity

(“ASC

815

40”

). The conditions within ASC

815

are

not

subject to a probability assessment. The warrants do

not

fall under the liability criteria within ASC

480

Distinguishing Liabilities from Equity

as they are

not

puttable and do

not

represent an instrument that has a redeemable underlying security. The warrants do meet the definition of a derivative instrument under ASC

815,

but are eligible for the scope exception as they are indexed to the Company’s own stock and would be classified in permanent equity if freestanding.

Common Stock Warrants

As of

September

30,

2019,

the Company had the following warrants outstanding to acquire shares of its common stock:

	Outstanding		Range of exercise price per share			Expiration dates
Common stock warrants issued prior to 2016		1,667		$562.50		December 2019
Common stock warrants issued related to Series A convertible preferred stock offering		903,870		$33.30		March 2022
Common stock warrants issued in 2018		1,181,375	$12.00	-	$15.00	January 2023
Common stock warrants issued in 2019		1,382,913	$5.00	-	$6.11875	2024
		3,469,825

During the

nine

months ended

September

30,

2019,

100

warrants expired and

warrants were exercised.