v3.23.1
Stockholders' Equity
 3 Months Ended
Mar. 31, 2023
Stockholders' Equity [Abstract]  
Stockholders' Equity

Note 5 — Stockholders’ Equity:

 

Common Stock

 

In November 2020, the Company filed a shelf registration statement (the “2020 Shelf Registration”), under which the Company could issue and sell up to an aggregate of $100,000,000 of shares of its common stock, $0.001 par value per share. In November 2020, the Company allocated to its at-the-market program (“ATM program”), an aggregate of $50,000,000 out of the $100,000,000 total under the 2020 Shelf Registration, which has been fully sold.

 

On August 12, 2021, the Company entered into an At-The-Market Issuance Sales Agreement with Truist Securities, Inc. and JMP Securities LLC, as sales agents, pursuant to which the Company may sell, from time to time, an aggregate of up to $50,000,000, which was the remaining balance under the 2020 Shelf Registration, of its common stock through the sales agents under its ATM program, subject to limitations imposed by the Company and subject to the sales agents’ acceptance, such as the number or dollar amount of shares registered under the 2020 Shelf Registration to which the offering relates. The sales agents are entitled to a commission of up to 3% of the gross proceeds from the sale of common stock sold under the ATM program. As of March 31, 2023, the Company has $24,217,000 available under its ATM program relating to its 2020 Shelf Registration.

 

Also, on August 12, 2021, the Company filed a new shelf registration statement (the “2021 Shelf Registration”) for the issuance of up to $150,000,000 of shares of its common stock which is currently available for the issuance of equity, debt or equity-linked securities.

 

During the quarters ended March 31, 2023 and 2022, the Company sold an aggregate of 1,684,592 and 641,542 shares of its common stock under the ATM program, respectively, and realized net proceeds of $7,200,000 and $3,004,000, respectively.

 

Restricted Stock Units

 

As of March 31, 2023, the Company has 207,469 outstanding restricted stock units (the “RSUs”) for which the Company recorded $86,000 compensation expense for the quarter ended March 31, 2023. Unrecognized compensation expense for these RSUs amounted to $389,000 and the expected weighted average period for the expense to be recognized is 1.37 years at March 31, 2023.

 

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 and designated by the Company’s board of directors, all with par value of $0.001 per share, the following are outstanding:

 

   As of March 31, 2023 and December 31, 2022 
   Preferred Shares Outstanding   Liquidation Preference (Per Share)   Total Liquidation Preference 
Series C-3   2,000   $10.00   $20,000 
Series E   89,623   $49.20   $4,409,452 
Series G   89,999   $187.36   $16,862,213 
Total   181,622        $21,291,665 

 

Stock Options

 

During the three months ended March 31, 2023 and 2022, the Company granted ten-year qualified and non-qualified stock options covering an aggregate of 1,747,000 and 767,850 shares of the Company’s common stock under the Amended and Restated 2019 Omnibus Stock Incentive Plan, respectively. The weighted average exercise price of these options is $4.36 and $4.03 per share, respectively.

 

During the three months ended March 31, 2023 and 2022, total compensation expense for stock options issued to employees, directors, officers and consultants was $2,130,000 and $1,138,000, respectively.

 

As of March 31, 2023, there was approximately $8,606,000 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. The following assumptions were used for the Black-Scholes option pricing model for the stock options granted during the three months ended March 31, 2023:

 

Expected term  5 years 
Volatility weighted average   105.45%
Dividend yield weighted average   0.0%
Risk-free interest rate weighted average   3.65%
Weighted average grant date fair value of options granted during the period  $3.42 

 

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, if any, 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. 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.