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Pre-Funded Warrants
6 Months Ended
Jun. 30, 2022
Equity [Abstract]  
Pre-Funded Warrants

8. Pre-Funded Warrants

In February 2020, the Company completed an underwritten public offering of 18,965,385 shares of its common stock at a purchase price of $2.60 per share and, to certain investors in lieu thereof, pre-funded warrants to purchase 2,884,615 shares of its common stock at a purchase price of $2.599 per underlying share.

In June 2020, the Company completed an underwritten public offering of 7,590,909 shares of its common stock at a purchase price of $5.50 per share and, to certain investors in lieu thereof, pre-funded warrants to purchase 909,091 shares of its common stock at purchase price of $5.499 per underlying share.

Each pre-funded warrant entitles the holder to purchase shares of common stock at an exercise price of $0.001 per share and expires 20 years from the date of issuance. These warrants were recorded as a component of stockholders’ equity within additional paid-in

capital. Per the terms of the warrant agreement, a holder of the outstanding warrant is not entitled to exercise any portion of the pre-funded warrant if, upon exercise of such portion of the warrant, the holder’s ownership of our common stock (together with its affiliates) or the combined voting power of our securities beneficially owned by such holder (together with its affiliates) would exceed 4.99% after giving effect to the exercise (“Maximum Ownership Percentage”). Upon at least 61 days’ prior notice to us by the warrant holder, any warrant holder may increase or decrease the Maximum Ownership Percentage to any other percentage not to exceed 19.99%. As of June 30, 2022, no shares underlying the pre-funded warrants have been exercised.

The following table represents a summary of the pre-funded warrants outstanding as of June 30, 2022:

 

Issue Date

 

Classification

 

Exercise Price

 

 

Expiration Date

 

Number of shares underlying

 

February 4, 2020

 

Equity

 

$

0.001

 

 

February 4, 2040

 

 

2,884,615

 

June 11, 2020

 

Equity

 

$

0.001

 

 

June 11, 2040

 

 

909,091

 

Total Outstanding

 

 

 

 

 

 

 

 

 

3,793,706