Warrant Liability

12 Months Ended

Dec. 31, 2023

Warrant Liability

Warrant Liability

8. Warrant Liability

During 2016 and 2017, the Company closed a sale of shares of the Company’s common stock, the issuance of warrants to purchase shares of common stock, and the issuance of warrants to the placement agent for each transaction. Due to a cash put provision within the warrant agreement, which could be enacted in certain change in control events, a liability associated with those 1,044,396 warrants were initially recorded at fair value and subsequently re-measured each reporting period. The changes in the fair value between issuance and the end of each reporting period is recorded as a component of other income (expense), net in the consolidated statements of operations.

During 2017, the holders of 952,184 warrants agreed to a modification of the term which removed the cash put provision. The remaining 92,212 warrants continued to be re-measured at each reporting period as long as they were outstanding and un-modified. In February 2022, the remaining 92,212 warrants expired unexercised.

The following table presents a reconciliation of the Company’s warrant liabilities for the year ended December 31, 2022:

	Warrant Liability
	(in thousands)
Balance as of January 1, 2022	$	2
Change in fair value upon re-measurement		(2	)
Balance as of December 31, 2022	$	—