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Warrants
12 Months Ended
Dec. 31, 2019
Warrants [Abstract]  
Warrants
Note 12.
Warrants

Warrants Issued to 12.5% Senior Secured Noteholders

The Warrants that were issued in conjunction with the 12.5% Senior Secured Notes expire on June 30, 2025 and entitle the Lenders to purchase two million shares of the Company’s common stock at $4.25 per share and include specified registration rights.  Management estimated the fair value of the Warrants to be $6,800, assisted by an independent third-party appraiser.  The fair value of these Warrants is treated as a debt discount, amortizable over the term of the Warrants, with the unamortized loan portion applied to reduce the face amount of the loan in the Company’s balance sheet.  Additionally, since the Warrants issued do not provide warrant redemption or put rights within the control of the holders that could require the Company to make a payment of cash or other assets to satisfy the obligations under the Warrants, except in the case of a “cash change in control”, the fair value attributed to the Warrants is presented in additional-paid in capital in the accompanying Consolidated Balance Sheets.

Certain 12.5% Noteholders exercised warrants for the purchase of 428,571 shares of common stock, and proceeds totaling $1,821 were received on December 16, 2019.

Warrants Issued to Perceptive Credit Opportunities Fund, LP

A seven-year warrant issued to Perceptive in connection with the Company’s August 2016 debt refinancing included certain put rights that could have required a net-cash settlement and was therefore classified as a liability, rather than as equity. Accordingly, fair value of this warrant was re-valued at each succeeding balance sheet date through the date of its exercise in July 2018 at the time of the Company’s IPO. As a result, $5,278 was charged against 2018 earnings to reflect the increase in value of this warrant during that period in 2018. Also, as a result of the exercise of the warrant,  Perceptive received 863,400 shares of common stock in exchange for proceeds from the July 2018 exercise of $116, concurrent with which the remaining warrant liability of $12,952 was reclassified to additional paid in capital during the third quarter of 2018.  A Level 1 market price of $15.00, the initial price at which the Company’s common stock was publicly offered, was used in determining fair value as of the warrants’ conversion date.