| Stockholders' Equity | Note
7-Stockholders’ Equity Common
Stock Securities
Purchase Agreements On
January 5, 2021, the Company entered into a securities purchase agreement with certain accredited investors pursuant to which the Company
offered and sold to the investors an aggregate of 2,475,248 shares of its common stock and warrants to purchase up to 1,237,624 shares
of common stock in a private placement for aggregate net proceeds to the Company of $4.6 million, after deducting estimated offering
expenses payable by the Company. The combined purchase price for each share of common stock and accompanying warrant to purchase one
half of a share of common stock was $2.02. The closing of the offering occurred on January 7, 2021. Each warrant is exercisable for a
period of five years from the issuance date at an exercise price of $2.25 per share, subject to adjustment, and may be exercised on a
cashless basis. In addition, pursuant to the terms of the offering, the Company issued The Benchmark Company, LLC (“Benchmark”)
warrants to purchase up to 185,644 shares of the Company’s common stock. Benchmark’s warrants are exercisable for a period
of five years from the closing date of the offering at an exercise price of $2.25 per share, subject to adjustment, and may be exercised
on a cashless basis. On
March 8, 2021, the Company entered into a securities purchase agreement with certain institutional and accredited investors pursuant
to which it offered and sold to the investors 6,826,962 shares of common stock, pre-funded warrants (the “Pre-Funded Warrants”)
to purchase up to 767,975 shares of common stock and warrants (the “Common Stock Warrants”) to purchase up to 7,594,937 shares
of common stock in a private placement for aggregate net proceeds to the Company of $13.5 million, after deducting estimated offering
expenses payable by the Company. The combined purchase price for each share of common stock and accompanying warrant was $1.975. The
closing of the offering occurred on March 10, 2021. Each Common Stock Warrant is exercisable for a period of three years from the issuance
date at an exercise price of $1.86 per share, subject to adjustment, and may be exercised on a cashless basis. Each Pre-Funded Warrant
is exercisable until exercised in full at an exercise price of $0.001 per share and may be exercised by means of a cashless exercise.
In addition, pursuant to the terms of the offering, the Company issued H.C. Wainwright & Co., LLC warrants (“Wainwright Warrants”)
to purchase up to 379,747 shares of the Company’s common stock. The Wainwright Warrants are exercisable for a period of three years
from the issuance date at an exercise price of $2.4688 per share, subject to adjustment, and may be exercised by on a cashless basis. 2018
Equity Incentive Plan The
compensation committee of the board of directors increased the number of shares reserved pursuant to the Company’s 2018 Equity
Incentive Plan (“2018 Plan”) by 671,926 shares effective as of January 1, 2021, such that as of January 1, 2021, the Company
had an aggregate of 1,671,926 shares of common stock reserved for issuance pursuant to the 2018 Plan. On June 24, 2021, at the annual shareholder meeting, shareholders of the Company approved an amendment to the
2018 Plan to further increase the number of shares reserved
for issuance thereunder from 1,671,926 shares to 3,671,926 shares. Restricted
Stock Awards A
summary of the Company’s restricted stock awards granted under the 2018 Plan during the six months ended June 30, 2021 is as follows:
Number of Restricted Stock Awards Weighted Average Grant Day Fair Value
Nonvested at December 31, 2020 9,882 $ 1.86
Vested (5,268 ) 0.83
Nonvested at June 30, 2021 4,614 $ 2.58 As of June 30, 2021, approximately $4,000 of unrecognized
stock-based compensation expense was related to restricted stock awards. The weighted average remaining contractual terms of unvested
restricted stock awards was approximately 2.58 years at June 30, 2021. Stock
Options A summary of option activity under the Company’s
stock option plan for six months ended June 30, 2021 is presented below.
Number of Weighted Average Exercise Price Total Intrinsic Weighted Average Remaining
Outstanding as of December 31, 2020 689,212 $ 4.52 $ - 8.8
Employee options issued 632,000 2.11 - 9.6
Outstanding as of June 30, 2021 1,321,212 $ 3.37 $ - 8.9
Options vested and exercisable 1,321,212 $ 3.37 $ - 8.9 Stock
Based Compensation Stock-based
compensation expense for the three and six months ended June 30, 2021 and 2020 was as follows:
Three Months Ended Six Months Ended
2021 2020 2021 2020
Employee stock option awards $ - $ - $ 1,092,429 $ -
Employee restricted stock awards 1,803 6,397 4,210 7,762
Non-employee stock warrant awards 28,559 9,683 59,761 32,015
$ 30,362 $ 16,080 $ 1,156,400 $ 39,777 Employee
related stock-based compensation is recognized as “compensation and related expenses” and non-employee related stock-based
compensation is recognized as “professional fees” or “research and development - licenses acquired” in the condensed
consolidated statements of operations and comprehensive loss. Warrants A
summary of warrant activity for the six months ended June 30, 2021 is as follows:
Number of Warrants Weighted Average Total Intrinsic Value Weighted Average Remaining Contractual Life (in years)
Outstanding as of December 31, 2020 1,235,266 $ 3.07 $ 696,334 3.4
Issued 10,165,927 1.80 - 2.7
Exercised (1,126,720 ) 0.32 - -
Outstanding as of June 30, 2021 10,274,473 $ 2.11 $ 181,725 2.8
Warrants exercisable as of June 30, 2021 10,202,711 $ 2.11 $ 181,725 3.0 The
Company has determined that the warrants should be accounted as a component of stockholders’ equity. |
