Stockholders' Equity

3 Months Ended

Mar. 31, 2023

Equity [Abstract]

Stockholders' Equity

Stockholders' Equity

Reverse Stock Split

On September 14, 2022, in connection with the merger, we implemented the Reverse Stock Split, as described in Note 1. All share and per share amounts of common stock, options and warrants in the accompanying financial statements have been restated for all periods presented to give retroactive effect to the Reverse Stock Split. Accordingly, the consolidated statements of equity reflect the impact of the Reverse Stock Split by reclassifying from “common stock” to “additional paid-in capital” in an amount equal to the par value of the decreased shares resulting from the Reverse Stock Split.

Equity Issuances

At The Market Offering Agreement

On June 4, 2021, the Company entered into an At The Market Offering Agreement (the “ATM Agreement”) with H.C. Wainwright & Co., LLC, as sales agent, in connection with an “at the market offering” under which the Company from time to time may offer and sell shares of its common stock, having an aggregate offering price of up to $50.0 million. Subsequent to the filing of our Form 10-K on March 22, 2022, the aggregate market value of our outstanding common stock held by non-affiliates was approximately $43.6 million. Pursuant to General Instruction I.B.6 of Form S-3, since the aggregate market value of our outstanding common stock held by non-affiliates was below $75.0 million at the time of such Form 10-K filing, the aggregate amount of securities that we are permitted to offer and sell was reduced to $17,698,943, which was equal to one-third of the aggregate market value of our common stock held by non-affiliates as of September 21, 2022. During the three months ended March 31, 2023 and since inception, the Company has not issued any shares under the ATM Agreement.

Common Stock

In connection with the Merger closing, the Company issued an aggregate of 3,772,768 shares of common stock, based on the Exchange Ratio, to holders of Cend, in exchange for all of the Cend capital stock outstanding immediately prior to the closing of the Merger.

Stock Options and Warrants

In connection with the Merger and after giving effect to the Reverse Stock Split, the Company assumed 1,227,776 options outstanding of Cend. The options granted under the Cend Plan are exercisable at various dates as determined upon grant and will expire no more than ten years from their original date of grant. The Cend Plan stock options generally vest over a four-year term. The following table summarizes the activity for stock options and warrants for the three months ended March 31, 2023:

	Stock Options						Warrants
	Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value (In Thousands)		Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value (In Thousands)
Outstanding at December 31, 2022	1,391,352	$	10.83	7.03	$	187.6	1,423,774	$	42.57	3.37	$	—
Changes during the period:
Granted	103,850	3.11					—	—
Exercised	—	—					—	—
Forfeited	—	—					—	—
Expired	(2,520)	224.37					—	—
Outstanding at March 31, 2023	1,492,682	$	9.94	7.01	$	359.4	1,423,774	$	42.57	3.13	$	—
Vested at March 31, 2023 or expected to vest in the future	1,486,393	$	9.96	7.00	$	358.2	1,423,774	$	42.57	3.13	$	—
Vested at March 31, 2023	1,207,228	$	10.90	6.64	$	344.4	1,423,774	$	42.57	3.13	$	—

Restricted Stock

During the three months ended March 31, 2023 and 2022, the Company issued restricted stock for services as follows ($ in thousands):

	Three Months Ended March 31,
	2023		2022
Number of restricted stock issued	159,950		70,745
Value of restricted stock issued	$	480	$	973

The vesting terms of restricted stock issuances are generally between one and four years.

Restricted Stock Units

During the three months ended March 31, 2023 and 2022, the Company issued restricted stock units for services as follows ($ in thousands, except share data):

	Three Months Ended March 31,
	2023		2022
Number of restricted stock units issued	188,850		91,990
Value of restricted stock units issued	$	567	$	1,265

The weighted average estimated fair value of restricted stock issued for services in the three months ended March 31, 2023 and 2022 was $3.00 and $13.76 per share, respectively. The fair value of the restricted stock units was determined using the Company’s closing stock price on the date of issuance. The vesting terms of restricted stock unit issuances are generally one year, or upon the achievement of performance-based milestones.