Subsequent Events

6 Months Ended

Jun. 30, 2017

Subsequent Events [Abstract]

Subsequent Events

9. Subsequent Events 

We have evaluated subsequent events through the filing date of this Form 10-Q, and determined that no subsequent events, other than as described below, have occurred that would require recognition in the condensed consolidated financial statements or disclosure in the notes thereto other than as discussed in the accompanying notes.

August 2017 Private Placement

On August 2, 2017, we entered into a Securities Purchase Agreement with accredited investors as part of a private placement pursuant to which we agreed to issue a total of 9,750,000 shares of common stock at $1.00 per share, and warrants, for of an aggregate purchase price of $9.75 million in gross proceeds. Under the terms of the 2017 Securities Private Placement, we also agreed to issue warrants (the “2017 Warrants”) to all investors in the private placement to purchase up to a total of 3,250,000 shares of common stock at an exercise price of $2.00 per share. The 2017 Warrants will become exercisable 12 months from the date of issuance and will expire three years from the date of issuance. In addition, the 2017 Warrants may not be exercised unless the Company has sufficient authorized shares of common stock. If the 2017 Warrants are fully exercised, we will receive approximately $6.5 million in cash. There are no registration rights associated with the securities to be issued and sold pursuant to the 2017 Securities Purchase Agreement. 

The proceeds from the August 2017 private placement are anticipated to be used to repay $1.8 million in short-term debt and for general corporate purposes including business development.

Copies of the Securities Purchase Agreement and the form of Warrant are filed as Exhibit 10.1 and Exhibit 4.1 hereto, and are incorporated herein by reference. The foregoing summaries of each of the 2017 Securities Purchase Agreement and the 2017 Warrants are qualified in their entirety by reference to such documents.