Note 5 - Stockholders' Equity and Common Stock Warrants

6 Months Ended

Jun. 30, 2020

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

5. Stockholders' Equity and Common Stock Warrants

2020

Common Stock Offering

In

May 2020,

the Company completed a public offering (the

“May 2020

Offering”) of

11,428,572

shares of its common stock for a purchase price of

$1.05

per share for net proceeds of

$10.3

million after deducting commissions, discounts and other offering costs. In addition, at the closing of the

May 2020

Offering, the Company issued warrants to purchase up to

571,429

shares of common stock to designees of the placement agent for the

May 2020

Offering. The placement agent's warrants have an exercise price of

$1.3125

per share and a term of

five

years from the date of issuance.

Additionally, in

May 2020,

the Company entered into a warrant exercise agreement with an investor (the

“May 2020

investor warrant exercise”) who held existing warrants to purchase up to an aggregate of

5,000,000

shares of our common stock at an exercise price of

$0.35

per share (the “Prior Warrant”). In consideration for the exercise of the the Prior Warrants for cash and an additional

$0.125

per each share of common stock in the Prior Warrant being exercised, the exercising investor received new unregistered warrants to purchase up to an aggregate of

5,000,000

shares of common stock in a private placement. The warrants are exercisable immediately at an exercise price of

$0.5263

per share and exercisable until

November 8, 2025.

The Company recognized a deemed dividend of

$2.0

million to reflect the value as determined by a Black-Scholes option-pricing model of the consideration given above the additional cash received as an inducement for the investor to exercise the warrants. This deemed dividend is recorded in the Company's statement of operations during the

three

months ended

June 30, 2020

as an increase to the net loss attributable to common stockholders for purposes of computing net loss per share, basic and diluted.

In connection with the

May 2020

investor warrant exercise, the Company issued warrants to purchase up to

250,000

shares of common stock to the placement agent with an exercise price of

$0.5938

per share and otherwise have identical terms to the warrants issued to the investor.

Common Stock Warrants

As of

June 

30,

2020,

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

	Outstanding		Range of exercise price per shar			Expiration dates
Common stock warrants issued in 2017 related to Series A convertible preferred stock offering		903,870		$33.30		March 2022
Common stock warrants issued in 2018 related to the common stock offering		1,181,375	$12.00	-	$15.00	January 2023
Common stock warrants issued related to the May 2019 offering		1,382,913	$5.00	-	$6.11875	November 2024
Common stock warrants issued related to the November 2019 offering		514,283	$0.35	-	$0.4375	May 2024
Common stock warrants issued related to the December 2019 offering		313,339		$0.6981		December 2024
Common stock warrants issued related to the May 2020 offering		571,429		$1.3125		May 2025
Common stock warrants issued related to May 2020 investor warrant exercise		4,250,000	$0.5263	-	$0.5938	November 2025
		9,117,209

During the

six

months ended

June 30, 2020,

no

warrants expired, and

19,089,361

warrants were exercised for

19,089,361

shares of common stock resulting in net proceeds of

$7.8

million.