(7) Equity Financings and Warrants

2015 Equity Financing

Private Investment in Public Entity (PIPE) Transaction

On June 16, 2015, the Company sold an aggregate of 42,021,579 security units, made up of an aggregate 42,021,579 shares of the Company’s common stock and warrants to purchase an aggregate of 16,808,632 shares of the Company’s common stock, at a purchase price of $0.8805 per unit, for aggregate net proceeds of approximately of $34 million.

The common stock and warrants were sold in units consisting of one share of common stock and a warrant to purchase 0.4 shares of common stock. The warrants will become exercisable on December 13, 2015, expire seven years from the date of issuance, and have an exercise price of $0.8716 per share. The warrants provide for cashless exercise and settlement in unregistered shares if there is no effective registration statement registering, or the prospectus contained therein is not available for the issuance of the shares of common stock underlying the warrants at the time of exercise. The Company’s Registration Statement on Form S-3 registering the shares of common stock, including the shares of common stock underlying the warrants, issued in the transaction for public resale was declared effective on July 20, 2015.

2014 Equity Financing

Registered Direct Offering

On February 7, 2014, the Company sold an aggregate of 5,116,228 shares of the Company’s common stock and warrants to purchase an aggregate of 1,279,057 shares of the Company’s common stock at a purchase price of $1.70 per share of Common Stock, for aggregate net proceeds of approximately $7.9 million.

The common stock and warrants were sold in units consisting of one share of common stock and a warrant to purchase 0.25 shares of common stock. The warrants were exercisable upon issuance, expire five years from the date of issuance, and have an exercise price of $2.125 per share, equal to 125% of the closing bid price of ARCA’s common stock on the Nasdaq Capital Market on February 3, 2014. The offering was effected as a takedown off the Company’s Registration Statement on Form S-3, as amended, which became effective on April 4, 2011, pursuant to a prospectus supplement filed with the Securities and Exchange Commission on February 4, 2014. The warrants provide for cashless exercise and settlement in unregistered shares if there is no effective registration statement registering, or the prospectus contained therein is not available for the issuance of the shares of common stock underlying the warrants at the time of exercise.

Warrants

Warrants to purchase shares of common stock were granted as part of various financing and business agreements. All outstanding warrants were recorded in additional paid-in capital at their estimated fair market value at the date of grant using a Black-Scholes option-pricing model.

As of June 30, 2015, these warrants, by year of expiration, are summarized below:

Year of Expiration	Number of Warrants		Weighted Average Exercise Price
2016		579,712	$	9.74
2017		168,866		2.56
2018		6,742,068		1.68
2019		1,570,262		2.25
2020		310,094		2.28
2022		16,808,632		0.87
		26,179,634	$	1.39