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Stockholders' Equity
 9 Months Ended
Sep. 30, 2021
Stockholders Equity Note [Abstract]  
Stockholders' Equity

(9)

Stockholders’ Equity

 

Preferred Stock

 

Series E and Series E-1 Convertible Preferred Stock

 

During the nine months ended September 30, 2021, an aggregate of 8,924 shares of Series E and Series E-1 Convertible Preferred Stock were converted into 892,379 shares of the Company’s common stock.

 

As of September 30, 2021, there were an aggregate of 11,707 shares of Series E and Series E-1 Convertible Preferred Stock outstanding.

 

Other Common Stock Issuances

 

During the nine months ended September 30, 2021, the Company issued  465,173 shares of common stock associated with the exercise of warrants, including 215,000 prefunded warrants at an exercise price of $0.01 per share for aggregate cash proceeds of $2,458.

 

 

Stock Incentive Plan

 

2020 Omnibus Equity Incentive Plan

 

As of September 30, 2021, there were 2,475,000 shares of the Company’s common stock reserved under the Delcath Systems, Inc. Omnibus Equity Incentive Plan (the “2020 Plan”), of which 1,275,250 remained available to be issued.

Share-Based Compensation

The following is a summary of stock option activity for the nine months ended September 30, 2021:  

 

 

 

Number of Option

 

 

Weighted Average Exercise

Price Per Share

 

 

Weighted Average

Remaining Contractual Term

(in years)

 

Aggregate Intrinsic

Value

 

Outstanding at January 1, 2021

 

 

1,078,499

 

 

$

12.68

 

 

 

 

 

 

 

Granted

 

 

621,750

 

 

 

10.02

 

 

 

 

 

 

 

Exercised

 

 

—

 

 

 

—

 

 

 

 

 

 

 

Cancelled/Forfeited

 

 

(2,000

)

 

 

11.67

 

 

 

 

 

 

 

Outstanding at September 30, 2021

 

 

1,698,249

 

 

$

11.71

 

 

9.3

 

$

260

 

Exercisable at September 30, 2021

 

 

443,729

 

 

$

12.20

 

 

9.2

 

$

39

 

 

The Company values stock options using the Black-Scholes option pricing model and used the following assumptions during the reporting periods:

 

 

 

Three months ended September 30,

 

Nine months ended September 30,

 

 

2021

 

 

2020

 

2021

 

 

2020

Expected term (years)

 

5.1 - 6.3

 

 

N.A.

 

5.1 - 6.3

 

 

N.A.

Expected volatility

 

179.2% - 181.3%

 

 

N.A.

 

178.3% - 181.3%

 

 

N.A.

Risk-free interest rate

 

0.74% - 1.10%

 

 

N.A.

 

0.74% - 1.10%

 

 

N.A.

Expected dividends

 

0.00%

 

 

N.A.

 

0.00%

 

 

N.A.

 

The weighted average estimated fair value of the stock options granted during the three and nine months ended September 30, 2021, was approximately $9.70 and $9.69 per share, respectively.

 

The following table summarizes information for stock option shares outstanding and exercisable at September 30, 2021

 

 

 

 

 

 

 

Options Exercisable

 

Range of Exercise Prices

 

Outstanding Number of Options

 

 

Weighted Average

Remaining Option Term (in years)

 

 

Number of Options

 

$9.85 - $10.99

 

 

621,750

 

 

9.9

 

 

 

94,445

 

$11.00 - $14.99

 

 

944,000

 

 

 

9.0

 

 

 

314,785

 

$15.00 - $24.99

 

 

132,000

 

 

 

9.0

 

 

 

34,000

 

$25.00 +

 

 

499

 

 

7.3

 

 

 

499

 

 

 

 

1,698,249

 

 

9.2

 

 

 

443,729

 

 

The following is a summary of share-based compensation expense in the statement of operations for the three and nine months ended September 30, 2021  

 

 

 

Three months ended September 30,

 

 

Nine months ended September 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Cost of goods sold

 

 

60

 

 

 

—

 

 

 

152

 

 

 

—

 

Research and development

 

 

734

 

 

 

—

 

 

 

1,827

 

 

 

6

 

Selling, general and administrative

 

 

1,655

 

 

 

—

 

 

$

4,245

 

 

 

425

 

Total

 

$

2,449

 

 

$

—

 

 

$

6,224

 

 

 

431

 

 

 

At September 30, 2021, there was $8,653 of aggregate unrecognized compensation expense related employee and board stock option grants. This will be recognized over the next 2.2 years.

 

Warrants

 

The following is a summary of warrant activity for the nine months ended September 30, 2021:

 

 

 

Warrants

 

 

Weighted Average

Exercise Price

 

 

Weighted Average

Remaining Life

(in years)

 

Outstanding at January 1, 2021

 

 

4,236,687

 

 

$

9.13

 

 

 

 

 

Warrants issued

 

 

127,755

 

 

 

0.01

 

 

 

 

 

Warrants exercised

 

 

(469,933

)

 

 

5.88

 

 

 

 

 

Warrants expired

 

 

—

 

 

 

—

 

 

 

 

 

Outstanding at September 30, 2021

 

 

3,894,509

 

 

$

9.27

 

 

 

3.5

 

Exercisable at September 30, 2021

 

 

3,894,509

 

 

$

9.27

 

 

 

3.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

         The following table presents information related to stock warrants at September 30, 2021

 

 

 

 

 

 

 

 

 

Warrants Exercisable

 

Range of Exercise Prices

 

 

Outstanding Number of Warrants

 

 

Weighted Average

Remaining Warrant Term (in years)

 

Number of Warrants

 

$

0.01

 

 

 

283,755

 

 

4.2

 

 

283,755

 

$

10.00

 

 

 

3,610,754

 

 

3.4

 

 

3,610,754

 

 

 

 

 

 

3,894,509

 

 

3.5

 

 

3,894,509