Stockholders' Equity and Redeemable Convertible Preferred Stock

9 Months Ended

Sep. 30, 2018

Stockholders' Equity Note [Abstract]

Stockholders' Equity and Redeemable Convertible Preferred Stock

Note 9. Stockholders’ Equity and Redeemable Convertible Preferred Stock

Common Stock

On March 19, 2018, the Company closed a public offering of common stock for gross proceeds of approximately $3.0 million. The offering was a shelf takedown off of the Company’s registration statement on Form S-3 (File No. 333-222488) and was conducted pursuant to a placement agency agreement (the “Agreement”) between the Company and Laidlaw & Company (UK) Ltd., the sole placement agent, on a best-efforts basis with respect to the offering (the “Placement Agent”), that was entered into on March 14, 2018. The Company sold 2,222,222 shares of its common stock in the offering at a purchase price of $1.35 per share.

Warrants

A summary of warrant activity for the nine months ended September 30, 2018 is presented below:

						Weighted Average
							Remaining Contractual
			Weighted Average				Life
	Warrants		Exercise Price		Total Intrinsic Value		(in years)
Outstanding as of December 31, 2017	1,249,754	$	8.98	$	—		2.92
Outstanding as of September 30, 2018	1,249,754	$	8.98				2.17
Exercisable as of September 30, 2018	1,249,754	$	8.98	$	—		2.17

Stock Options

On February 16, 2018, pursuant to and subject to the available number of shares reserved under the 2014 Plan, the Company issued an aggregate of 150,000 options to purchase common stock of the Company to three of its directors. The aggregate grant date fair value of these options was approximately $0.2 million. These stock options vested over six months.

On May 3, 2018, a new director was granted options to purchase 50,000 shares of the Company’s common stock, at an exercise price of $1.04 per share, which options vested 50% at May 3, 2018 with the remaining 50% vesting at May 3, 2019. The aggregate grant date fair value of these options was approximately $46,000. These stock options vest over twelve months.

A summary of option activity under the Company’s employee stock option plan for the nine months ended September 30, 2018 is presented below:

							Weighted Average
			Weighted Average				Remaining Contractual
	Number of Shares		Exercise Price		Total Intrinsic Value		Life (in years)
Outstanding as of December 31, 2017		325,597	$	78.20	$	5,999		3.2
Employee options granted		200,000		1.39		—		9.4
Outstanding as of September 30, 2018		525,597	$	48.97	$	—		5.1
Options vested and expected to vest		525,597	$	48.97	$	—		5.1
Options vested and exercisable		500,597	$	51.36	$	—		4.9

A summary of option activity under the Company’s non-employee stock option plan for the nine months ended September 30, 2018 is presented below:

							Weighted Average
			Weighted Average				Remaining Contractual
	Number of Shares		Exercise Price		Total Intrinsic Value		Life (in years)
Outstanding as of December 31, 2017		2,893	$	98.07	$	—		3.4
Outstanding as of September 30, 2018		2,893	$	98.07	$	—		2.7
Options vested and expected to vest		2,893	$	98.07	$	—		2.7
Options vested and exercisable		2,893	$	98.07	$	—		2.7

Stock-based compensation associated with the amortization of stock option expense was approximately $28,000 and $2,000 for the three months ended September 30, 2018 and 2017, and was approximately $208,000 and $13,000 for the nine months ended September 30, 2018 and 2017, respectively.

Restricted Stock Awards

On February 16, 2018, the Company granted three of its directors 20,000 shares of restricted common stock each. The grant date fair value of each restricted stock award was approximately $27,000. These restricted stock awards vested immediately.

On April 26, 2018, the Company issued 25,410 shares of its common stock to an employee for services pursuant to an employment agreement. The grant date fair value of this restricted stock award was approximately $27,000 (based upon the closing price of the Company’s common stock on April 26, 2018). This restricted stock award vested immediately.

Stock-based Compensation

Stock-based compensation for the nine months ended September 30, 2018 and 2017 was comprised of the following ($ in thousands): 

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2018		2017		2018		2017
Employee restricted stock awards	$	—	$	—	$	106	$	—
Employee stock option awards		28		2		208		13
Total compensation expense	$	28	$	2	$	314	$	13

Unamortized stock-based compensation expense was approximately $14,000 at September 30, 2018.