$21.6 million of shares of our common stock to Aspire Capital from time to time. In addition, we have a significant number of options to purchase shares of our common stock outstanding. If these securities are exercised, you will incur further dilution. Moreover, to the extent that we issue additional options to purchase, or securities convertible into or exchangeable for, shares of our common stock in the future and those options or other securities are exercised, converted or exchanged, stockholders will experience further dilution. Further, you will experience additional dilution, to the extent Aurigene exercises its right to purchase $ of shares of our common stock in a private placement pursuant to the stock purchase agreement.
A substantial number of shares may be sold in the market following this offering, which may depress the market price for our common stock.
Sales of a substantial number of shares of our common stock in the public market following this offering could cause the market price of our common stock to decline. A substantial majority of the outstanding shares of our common stock are, and all of the shares sold in this offering upon issuance will be, freely tradable without restriction or further registration under the Securities Act of 1933 as amended, or the Securities Act, unless these shares are owned or purchased by “affiliates” as that term is defined in Rule 144 under the Securities Act. In addition, we have also registered the shares of common stock that we may issue under our equity incentive plans. As a result, these shares can be freely sold in the public market upon issuance, subject to restrictions under securities laws.
Because we do not anticipate paying any cash dividends on our capital stock in the foreseeable future, capital appreciation, if any, will be your sole source of gain.
We have never declared nor paid cash dividends on our common stock. We currently plan to retain all of our future earnings, if any, to finance the operation, development and growth of our business. In addition, the terms of any future debt or credit agreements may preclude us from paying dividends. As a result, capital appreciation, if any, of our common stock will be your sole source of gain for the foreseeable future.
Following this offering, our executive officers, directors and principal stockholders will continue to own a significant percentage of our common stock and will be able to control matters submitted to stockholders for approval.
Upon completion of this offering, our executive officers, directors and a small number of our stockholders will continue to own a significant portion of our outstanding common stock. As a result, if these stockholders were to choose to act together, they may be able to significantly influence matters submitted to our stockholders for approval, as well as our management and affairs. For example, these persons, if they choose to act together, would significantly influence the election of directors and approval of any merger, consolidation or sale of all or substantially all of our assets. This concentration of voting power could delay or prevent an acquisition of our company on terms that you may desire.
We have identified conditions and events that raise substantial doubt about our ability to continue as a going concern and the proceeds of this offering may not alleviate such concern.
As of September 30, 2020, we had $23.6 million in existing cash and cash equivalents. As disclosed in our Form 10-Q for the quarter ended September 30, 2020, incorporated by reference into this prospectus, based on our available cash resources, recurring losses and cash outflows from operations since inception, an expectation of continuing operating losses and cash outflows from operations for the foreseeable future and the need to raise additional capital to finance our future operations, we concluded that we did not have sufficient cash on hand to support current operations for twelve months from the date of filing of our Form 10-Q for the quarter ended September 30, 2020, and therefore we determined that there was substantial doubt about our ability to continue as a going concern. The proceeds of this offering may not alleviate this concern.
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