Stock Purchase

12 Months Ended

Dec. 31, 2019

Securities Financing Transactions Disclosures [Abstract]

Stock Purchase

NOTE 12. STOCK PURCHASE

In 2012, we entered into a Securities Purchase Agreement with Abeja Ventures, LLC (“Abeja”), pursuant to which the Company agreed to sell and issue to Abeja at a purchase price of $1.03 per share for an aggregate purchase price of $14.4 million; (i) 14.0 million shares of the Company’s common stock (“Common Stock”); (ii) a warrant to purchase 7.0 million shares of Common Stock at an exercise price of $1.03 per share (the “$1.03 Warrant”); and (iii) another warrant to purchase 7.0 million shares of Common Stock at an exercise price of $2.00 per share (the “$2.00 Warrant”), with each warrant exercisable prior to the fifth anniversary of the closing of the transactions contemplated by the Securities Purchase Agreement (collectively, the “Investment”). The purchase of Common Stock and warrants pursuant to the Investment, which was consummated in June 2012, qualified for equity treatment. The respective values of the warrants and Common Stock were calculated using their relative fair values and both are classified under Contributed Capital. The value therefore recorded for the warrants was $5.9 million and for the Common Stock was $8.5 million. Both warrants were exercisable until June 26, 2017, which was the fifth anniversary of the date on which the warrants were issued.

Prior to 2017 all of the $1.03 Warrant were exercised in full and none were outstanding. Of the $2.00 Warrant, 415,871 were outstanding at the beginning of 2017, of which 370,307 were exercised in the same period. This exercise of the $2.00 Warrant in 2017, resulted in proceeds of $0.7 million, which was recorded as common stock and contributed capital in the consolidated balance sheet. In 2017, 45,564 of the $2.00 Warrant expired unexercised resulting in no outstanding warrants at December 31, 2019, 2018 and 2017 .