|12 Months Ended|
Dec. 31, 2016
8. Stockholders’ Equity
The Company is authorized to issue 10,000,000 shares of preferred stock as of December 31, 2016 and 2015, respectively. The Company is authorized to issue 100,000,000 shares of common stock as of December 31, 2016 and 2015, respectively.
Common Stock Issuances
On July 25, 2014, the Company completed a public offering of 4.6 million shares of common stock at $5.50 per share, which the Company refers to as the 2014 public offering. Net proceeds to the Company in connection with the 2014 public offering were approximately $23.0 million after deducting underwriting discounts, commissions and offering expenses.
On November 7, 2014, the Company filed a $100 million registration statement on Form S-3 with the SEC and also entered into an at-the-market facility (ATM) to sell up to $25 million of common stock under the registration statement, under which, as of December 31, 2015, the Company has sold shares of common stock with aggregate net proceeds of $4.3 million.
On July 27, 2015, pursuant to a shelf registration statement on Form S-3, the Company completed the issuance of 8.2 million shares of its common stock at $2.81 per share in an underwritten public offering, which the Company refers to as the 2015 public offering. Net proceeds to the Company in connection with this offering were approximately $21.1 million after deducting underwriting discounts, commissions and other offering expenses.
Common Stock Warrants
In connection with a 2013 financing and the Company’s private placement of common stock and warrants in September 2013, October 2013 and January 2014, the Company issued five-year warrants to purchase 1,741,788 shares of the Company’s common stock at an exercise price of $5.75 per share (referred to as the 2013 financing warrants). The Company also issued seven-year warrants to purchase 121,739 shares of the Company’s common stock to certain lenders at an exercise price of $5.00 per share in September 2013 and in connection with the 2015 loan facility, the Company issued ten-year warrants to purchase 114,436 shares of its common stock to its lenders at an exercise price of $2.84 per share (referred to as the lender warrants).
The 2013 financing warrants contain anti-dilution provisions that are contingent on the occurrence of a major transaction (e.g. merger, reorganization, business combination, change in control or a similar transaction, liquidation or bankruptcy) which precludes them from being indexed to the Company’s common stock. Such provisions could also result in the settlement of the 2013 financing warrants for more shares of common stock than the Company has authorized. Due to these provisions, the Company is required to account for the 2013 financing warrants and the lender warrants as liabilities at fair value. In addition, the estimated liability related to these warrants is required to be revalued at each reporting period until the earlier of the exercise of the warrants, at which time the liability will be revalued and reclassified to stockholders’ equity, or expiration of the warrants. These warrants were recorded at fair value upon issuance and were revalued at fair value as of December 31, 2016 and 2015 using a binomial lattice option pricing model. The resulting decreases in fair value of $0.1 million for the year ended December 31, 2016 and $11.1 million for the year ended December 31, 2015 were recorded as revaluation gains in other income (expense), net in the Company’s statement of operations and comprehensive loss.
Shares of Common Stock Authorized for Issuance
As of December 31, 2016 and December 31, 2015, the Company had reserved shares of authorized but unissued common stock as follows:
No definition available.
The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.
Reference 1: http://www.xbrl.org/2003/role/presentationRef