Stockholders' Equity

3 Months Ended

Mar. 31, 2020

Stockholders' Equity Note [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

Note 3 — Stockholders’ Equity:

Common Stock

The Company is a party to a sales agreement with B. Riley dated March 9, 2018 for the sale of up to $14.7 million of the Company’s common stock under the Company’s ATM program, pursuant to a registration statement filed on March 9, 2018 for an aggregate of $70.0 million of the Company’s securities, which became effective on April 16, 2018. In November 2018, the ATM program amount was increased by $25.0 million. Under the ATM program, the Company may issue and sell common stock from time to time through B. Riley acting as agent, subject to limitations imposed by the Company and subject to B. Riley’s acceptance, such as the number or dollar amount of shares registered under the registration statement to which the offering relates. B. Riley is entitled to a commission of up to 3% of the gross proceeds from the sale of common stock sold under the ATM program. At March 31, 2020, the Company has approximately $2.1 million available under its current ATM program and $30.3 million available under its current shelf registration for the issuance of equity, debt or equity-linked securities unrelated to the current ATM program.

During the three months ended March 31, 2020 and 2019, the Company sold 368,144 and 1,768,012 shares of common stock under the ATM program, respectively, and realized net proceeds of approximately $2.5 million and $15.2 million, respectively.

During the quarter ended March 31, 2020, the Company issued an aggregate of 91,500 shares of its common stock upon exercise of warrants, resulting in net proceeds to the Company of $412,000.

During the quarter ended March 31, 2020, the Company issued an aggregate of 2,073 shares of its common stock upon the vesting of restricted stock units issued to the Company’s board of directors.

Preferred Stock

The Company is authorized to issue up to 2,000,000 shares of preferred stock in one or more series without stockholder approval. The Company’s board of directors has the discretion to determine the rights, preferences, privileges and restrictions, including voting rights, dividend rights, conversion rights, redemption privileges and liquidation preferences, of each series of preferred stock. Of the 2,000,000 shares of preferred stock authorized, the Company’s board of directors has designated (all with par value of $0.001 per share) the following:

		As of March 31, 2020												As of December 31, 2019
		Preferred Shares Outstanding				Liquidation Preference (Per Share)				Total Liquidation Preference				Preferred Shares Outstanding				Liquidation Preference (Per Share)				Total Liquidation Preference
Series C-3			52,000			$	10.00			$	520,000				52,000			$	10.00			$	520,000
Series E			89,623			$	49.20			$	4,409,452				89,623			$	49.20			$	4,409,452
Series G			100,000			$	187.36			$	18,736,452				100,000			$	187.36			$	18,736,452
Total			241,623							$	23,665,904				241,623							$	23,665,904

Stock Options

During the three months ended March 31, 2020, the Company granted ten-year qualified and non-qualified stock options covering an aggregate of 380,234 shares of the Company’s common stock under the 2019 Stock Incentive Plan. The weighted average exercise price of these options is $5.91 per share.

During the three months ended March 31, 2020 and 2019, total compensation expense for stock options issued to employees, directors, officers and consultants was $670,000 and $759,000, respectively.

As of March 31, 2020, there was approximately $2,828,000 in total unrecognized compensation expense related to stock options granted, which expense will be recognized over an expected remaining weighted average period of 1.6 years.

The fair value of each stock option award estimated on the grant date is determined using the Black-Scholes option pricing model with the following assumptions, for the three months ended March 31, 2020:

Expected term, years			5 - 10
Volatility			102.73% - 107.87%
Dividend yield			0.0%
Risk-free interest rate			1.16% - 1.67%
Weighted average grant date fair value of options granted during the period			$ 4.47

The Company estimated the expected term of the stock options granted based on anticipated exercises in future periods. The expected term of the stock options granted to consultants is based upon the full term of the respective option agreements. The expected stock price volatility for the Company’s stock options is calculated based on the historical volatility since the initial public offering of the Company’s common stock in March 2010. The expected dividend yield of 0.0% reflects the Company’s current and expected future policy for dividends on the Company’s common stock. To determine the risk-free interest rate, the Company utilized the U.S. Treasury yield curve in effect at the time of grant with a term consistent with the expected term of the Company’s awards which is 5 years for employees and 10 years for non-employees.

The following table summarizes the Company’s stock options activity and related information for the three months ended March 31, 2020:

		Shares				Weighted Average Exercise Price				Weighted Average Remaining Contractual Term (Years)				Aggregate Intrinsic Value
Outstanding at beginning of period			1,376,394			$	8.98				6.8			$	1,232,545
Granted			380,234			$	5.91							$	-
Forfeited			(28,800	)		$	9.01							$	-
Expired			(6,891	)		$	12.53							$	-
Exercised			-				-							$	-
Outstanding at end of period			1,720,937			$	8.28				7.1			$	205,943
Exercisable at end of period			1,037,899			$	8.94				5.8			$	156,570

The aggregate intrinsic value is calculated as the difference between the exercise prices of the underlying options and the quoted closing price of the common stock of the Company at the end of the reporting period for those options that have an exercise price below the quoted closing price. There were no stock options exercised during the three months ended March 31, 2019.

Restricted Stock Units

During the three months ended March 31, 2020, the Company issued an aggregate of 2,073 shares of its common stock upon the vesting of RSUs issued to the Company’s board of directors.

During the three months ended March 31, 2020 and 2019, compensation expense recorded for the RSUs was $7,000 and $50,000, respectively. Unrecognized compensation expense for these RSUs amounted to $3,000. The expected weighted average period for the expense to be recognized is 0.18 years.

Warrants

During the three months ended March 31, 2020 and 2019, the Company issued an aggregate of 91,500 and 119,220 shares of its common stock upon exercise of warrants, respectively, resulting in net proceeds to the Company of $412,000 and $620,000, respectively.

As of March 31, 2020, there were 183,148 outstanding warrants with a weighted average exercise price of $4.96 per share and a weighted average remaining contractual life of 2.4 years.