Stockholders' Equity

9 Months Ended

Sep. 30, 2017

Stockholders' Equity Note [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

5. Stockholders’ Equity

Securities Purchase Agreements

On October 13, 2017, the Company entered into securities purchase agreements (the “Securities Purchase Agreements”) with certain institutional investors, accredited investors and current stockholders (collectively, the “Purchasers”) pursuant to which the Company agreed to sell 7,951,865 shares of its common stock and warrants exercisable for up to 1,590,373 shares of its common stock (exclusive of the Agent Warrants described below) in a registered direct offering (the “Offering”) for gross proceeds of $23,855,595. The shares and warrants are being sold together, consisting of one share of common stock and a warrant to purchase 0.20 shares of common stock for each share of common stock purchased, at a combined offering price of $3.00. The warrants will be exercisable beginning on April 17, 2018 and will expire on April 17, 2020. The warrants have an exercise price of $3.75 per share.

The Company held its initial closing on October 17, 2017 and second closing on October 23, 2017 (collectively, the “Closings”) and received approximately $14.6 million and yielded approximately $14.3 million after offering expenses. The Closings resulted in the issuance of 4,869,990 shares of common stock. The Company expects to close on the remaining $9.2 million in November 2017, subject to satisfaction of customary closing conditions.

In connection with the Offering, the Company issued to its placement agent or its designees warrants to purchase 48,133 shares of common stock at an exercise price of $3.75 per share of common stock (the “Agent Warrants”), representing the number of warrants equal to an aggregate of 4% of the number of shares sold to investors placed by the placement agent in the Offering, excluding investments made by certain China-focused investors that were placed by the Company. The Agent Warrants will become exercisable on April 17, 2018 and will expire on April 17, 2019.