XML 36 R20.htm IDEA: XBRL DOCUMENT

Common Stock

12 Months Ended

Dec. 31, 2021

14. Common Stock

The Company has 60,000,000 shares authorized as of December 31, 2021 and 44,405,107 shares of common stock available for issuance.

The following represent the Company’s common stock transactions during December 31, 2021 and 2020:

2021 Capital Transactions

On November 26, 2021, the Company issued a total of 72,464 shares of its common stock at a purchase price of $3.45 per share and warrants to purchase 36,232 shares of common stock to its Interim Chief Executive Officer at a purchase price of $3.45 per unit. Each unit consisted of one share of common stock and a warrant to purchase one half of one share of common stock. The shares and warrants were sold for aggregate gross and net proceeds of approximately $0.3 million of which, $0.2 million and $0.1 million was allocated to the common stock and warrants, respectively.

During the year ended December 31, 2021, the Company issued a total of 1,300,000 shares of its common stock at a purchase price of $2.00 per share and warrants to purchase 650,000 shares of common stock to a group of existing investors at a purchase price of $2.00 per unit. Each unit consisted of one share of common stock and a warrant to purchase one half of one share of common stock. The shares and warrants were sold for aggregate gross and net proceeds of approximately $2.6 million, of which $1.8 million and $0.8 million was allocated to the common stock and warrants, respectively.

The Company classified the warrants in each of the aforementioned issuances on its consolidated balance sheets as equity, and valued the respective warrants issued in conjunction with common stock placements using the Black-Scholes model based on the following weighted average assumptions:


Risk-free interest rate		0.82	%
Expected volatility		121.22	%
Expected term		5	years
Expected dividend yield		—	%
Exercise price	$	2.08
Market value of common stock	$	2.58

2020 Capital Transactions

During the year ended December 31, 2020, the Company issued a total of 151,027 and 125,000 shares of its common stock at purchase prices of $3.70 and $4.00 per share, respectively, and warrants to purchase 151,027 shares of common stock at an exercise price of $3.70 per share to a group of investors for aggregate gross and net proceeds of approximately $1.1 million, of which, $1.0 million and $0.1 million was allocated to the common stock and warrants, respectively, utilizing the relative fair value. The Company classified these warrants on its consolidated balance sheets as equity, and valued the respective warrants utilizing the Black-Scholes model based on the following weighted average assumptions:


Risk-free interest rate		0.88	%
Expected volatility		107.00	%
Expected term		2	months
Expected dividend yield		—	%
Exercise price	$	3.70
Market value of common stock	$	3.11

During the year ended December 31, 2020, the Company issued 516,877 shares of our common stock to a group of investors in connection with the exercise of 516,877 previously issued warrants at $3.70 per share for aggregate gross and net proceeds of approximately $1.9 million.

During the year ended December 31, 2020, the Company issued 414,000 shares of our common stock to a group of investors in connection with the exercise of 414,000 previously issued warrants at $2.00 per share for aggregate gross and net proceeds of approximately $0.8 million.

During the year ended December 31, 2020, the Company issued a total of 25,948 shares of our common stock to former chief executive officer and an employee due to the vesting of restricted stock units and issuance of a common stock award.

Warrant to purchase common stock activity for the year ended December 31, 2021 was as follows:


		Weighted-average
	Amount	exercise price
Outstanding at December 31, 2020	1,893,201	$	6.44
Issued	686,232		2.08
Expired	(78,014)		35.20
Outstanding at December 31, 2021	2,501,419	$	4.35

Employee Stock Purchase Plan

The Company maintains the 2013 Employee Stock Purchase Plan, or the ESPP Plan, whereas participating employees can authorize the Company to withhold a portion of their base pay during consecutive six-month payment periods for the purchase of shares of the Company’s common stock. At the conclusion of the period, participating employees can purchase shares of the Company’s common stock at 85% of the lower of the fair market value of the Company’s common stock at the beginning or end of the period. Shares are issued under the plan for the six-month periods ending June 30 and December 31. Under this plan, 7,500 shares of common stock are

authorized for issuance of which 4,534 shares have been issued as of December 31, 2021. There are 2,966 shares available for issuance as of December 31, 2021 and December 31, 2020. There was no ESPP Plan activity in 2021 or 2020.