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Stockholders' Equity (Deficit)
9 Months Ended
Sep. 30, 2019
Equity [Abstract]  
Stockholders' Equity (Deficit)
Public Offering

On May 24, 2018, the Company completed an underwritten public offering (the Offering), whereby the Company issued 7,436,171 shares of common stock at a public offering price of $4.69 per share and pre-funded warrants to purchase 1,063,829 shares of common stock at a public offering price of $4.68 per warrant and an exercise price of $0.01 per share. Each share of common stock and each pre-funded warrant was issued together with a common warrant to purchase one-fifth of a share of the Company’s common stock at a public offering price of $0.01 per warrant and an exercise price of $7.50 per share. An aggregate of 8,500,000 common warrants were issued in connection with the Offering and are exercisable to purchase an aggregate of 1,700,000 shares of common stock. The common warrants issued to the three funds affiliated with WIM that participated in the Offering were issued as a unit with one share of common stock totaling three unit shares in the aggregate (the Unit Shares). Except with respect to the Unit Shares, the shares of common stock, pre-funded warrants and common warrants are separately transferable. The Company determined that the pre-funded warrants and common warrants are free standing financial instruments and equity classified in accordance with ASC 480- Distinguish Liabilities from Equity.
The Company received proceeds from the Offering of approximately $37.5 million, net of underwriting discounts and commissions, but before deducting the estimated offering costs of $1.5 million. The estimated offering costs were recorded as contra additional-paid in capital in the condensed consolidated balance sheet. The common stock and warrants issued in the Offering were registered pursuant to a registration statement on Form S-1 filed with the SEC on May 16, 2018 and declared effective on May 21, 2018.
On June 26, 2018, the Company issued an additional 912 common warrants to purchase approximately 182 shares of common stock upon an underwriter’s exercise of its overallotment option. The offering price and exercise price were the same as the common warrants issued on May 24, 2018. The net proceeds received from this issuance were immaterial.
In February 2019, per the terms of the Repricing Letter Agreements, WIM and other holders of common warrants issued in the Offering exercised their common warrants to purchase an aggregate of 851,062 shares of common stock at a reduced exercise price of $2.64 per share. The Company determined that the incremental fair value as a result of the modification to these common warrants issued in the Offering from change of the exercise price was $0.5 million, which was recorded as change in fair value of warrants in the condensed consolidated statement of operations for the nine months ended September 30, 2019.
During the quarter ended September 30, 2019, pre-funded warrants to purchase 200,391 shares of common stock were exercised on a cashless basis, and as a result, the Company issued 200,000 shares of common stock. Additionally, common warrants to purchase 64 shares of common stock were exercised, from which the total cash received was immaterial.
Stockholders' Equity (Deficit)

Warrants
         
As referenced in Note 8- Convertible Preferred Stock and Note 9- Public Offering, common warrants to purchase an aggregate of 2,376,062 shares of common stock were exercised at an exercise price of $2.64 per share in February 2019 per the Repricing Letter Agreements, and common warrants to purchase 64 shares of common stock were exercised at an exercise price of $7.50 per share in August 2019. The Company received gross proceeds of approximately $6.3 million from these exercises. In addition, as referenced in Note 9- Pubic Offering, there were cashless exercises of pre-funded warrants during the quarter ended September 30, 2019.

On February 8, 2019 and per the terms of the Repricing Letter Agreements, the Company issued warrants to purchase up to 1,188,029 shares of the Company’s common stock (Reload Warrants) to the holders party to the Repricing Letter Agreements, at an exercise price of $5.20 per share. The Company determined the Reload Warrants are free standing financial instruments and equity classified in accordance with ASC 480— Distinguish Liabilities from Equity. Since these Reload Warrants were issued in addition to the reduced exercise price to induce Holders of WIM Warrants and common warrants to exercise their warrants, the Company determined the fair value of the Reload Warrants was also the incremental fair value as a result of the modification to the WIM warrants and common warrants exercised. To determine the fair value of the Reload Warrants, the Company utilized the BSM option-pricing model, which resulted in an estimated fair value of the Reload Warrants of $2.5 million, which was recorded as additional paid-in capital in the condensed consolidated balance sheet and change in fair value of warrants in the condensed consolidated statement of operations. Upon completion of the Second Closing of the Private Placement as discussed in Note 10- Private Placement, all Reload Warrants were canceled.

As referenced in Note 10- Private Placement, warrants to purchase an aggregate of 4,444,446 were issued in connection with the Private Placement at an exercise price of $6.38 per share in April and June 2019.

As of September 30, 2019, warrants to purchase up to 6,168,815 shares of the Company’s common stock remain outstanding at a weighted average exercise price of $5.67 per share. These warrants are summarized below:
Type of Warrants
 
Underlying Common Stock to be Purchased
 
Exercise Price
 
Issue Date
 
Exercise Period
Common Warrants
 
2,020

 
$
67.71

 
January 25, 2010
 
January 25, 2010- February 25, 2020
Common Warrants
 
878

 
$
51.24

 
March 30, 2012
 
March 30, 2012 to March 30, 2022
Common Warrants
 
1,171

 
$
51.24

 
August 17, 2012
 
August 17, 2012 to July 17, 2022
Common Warrants
 
7,806

 
$
3.69

 
June 11, 2014
 
June 11, 2014 to June 11, 2024
Pre-funded Warrants
 
863,438

 
$
0.01

 
May 24, 2018
 
May 24, 2018 until shares are exercised
Common Warrants
 
848,874

 
$
7.50

 
May 24, 2018
 
May 24, 2018 to May 24 2025
Common Warrants
 
182

 
$
7.50

 
June 26, 2018
 
June 26, 2018 to June 26, 2025
Common Warrants
 
1,666,667

 
$
6.38

 
April 11, 2019
 
October 11, 2019 to October 11, 2026
Common Warrants
 
2,777,779

 
$
6.38

 
June 10, 2019
 
December 10, 2019 to December 10, 2026
Total
 
6,168,815

 
 
 
 
 
 

Common Stock
Effective January 17, 2018 and in connection with the Merger, the Company amended and restated its certificate of incorporation, under which the Company is currently authorized to issue up to 300,000,000 shares of common stock, $0.0001 par value per share, and 5,000,000 shares of preferred stock, $0.0001 par value per share.
During the first quarter of 2019, the Company issued 2,376,062 shares of common stock upon the exercise of outstanding warrants in connection with the Repricing Letter Agreements on February 5, 2019. On February 8, 2019, the Company issued 3 shares of common stock to each of the investment funds affiliated with WIM in connection with the issuance of Reload Warrants. These shares issued to funds affiliated with WIM may not be transferred separately from the Reload Warrants issued to WIM. On February 25, 2019, the Company issued 470,500 shares of restricted stock pursuant to the Amended and Restated 2014 Plan (as defined below) and are further discussed in Note 12 - Stock-based Compensation.
During the second quarter of 2019, the Company issued 6,666,667 and 11,111,112 shares of common stock on April 11, 2019 and June 10, 2019, respectively, in connection with the First and Second Closing of the Private Placement as discussed in Note 10- Private Placement.
During the third quarter of 2019, the Company issued an aggregate of 200,064 shares of common stock upon the exercise of pre-funded warrants and common warrants. The Company also issued an aggregate of 189,000 shares of common stock upon issuance of restricted stock awards to its employee and vesting of restricted stock units.
Common Stock Reserved for Future Issuance
Common stock reserved for future issuance is as follows in common equivalent shares as of September 30, 2019: 
Common stock issuable upon the exercise of stock options outstanding
6,424,179

Common stock issuable upon release of restricted stock units
113,000

Common stock issuable upon the exercise of common stock warrants
6,168,815

Common stock available for future issuance under the 2019 ESPP
500,000

Common stock available for future issuance under the Amended and Restated 2014 Plan
221,093

Common stock available for future issuance under the Inducement Plan
156,000

Total common stock reserved for future issuance
13,583,087