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Stockholders' Equity
 3 Months Ended
Mar. 31, 2022
Stockholders' Equity Note [Abstract]  
Stockholders' Equity
(9)
Stockholders’ Equity
Authorized Shares
The Company is authorized to issue 40,000,000 shares of common stock, $0.01 par value, and
 10,000,000 shares of preferred stock, $0.01 par value. To date, the Company has designated the following preferred stock: Series A (4,200 shares), Series B (2,360 shares), Series C (590 shares), Series D (10,000 shares), Series E (40,000 shares) and Series
E-1
(12,960 shares).
Preferred Stock
As of March 30, 2022, there were an aggregate of 11,707 shares of Series E and Series E-1 Convertible Preferred Stock outstanding.
Omnibus Equity Incentive Plan
On September 30, 2020, the Company’s 2020 Omnibus Equity Incentive Plan (the “2020 Plan”) was adopted by the Company’s Board of Directors. On November 23, 2020, the Company’s stockholders approved the 2020 Plan. The 2020 Plan will continue in effect until the tenth anniversary of the date of its adoption by the Board or until earlier terminated by the Board. The 2020 Plan is administered by the Board of Directors or a committee designated by the Board of Directors. The 2020 Plan provides for the grant of incentive stock options,
non-qualified
stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards, performance awards, as well as other stock-based awards or cash awards that are deemed to be consistent with the purposes of the plan to Company employees, directors and consultants. As of March 31, 2022, there are 2,475,000 shares of common stock reserved under the 2020 Plan, of which 737,957 remained available to be issued.
Employee Stock Purchase Plan
In August 2021, the Company’s Board of Directors, with shareholder approval in May 2022, adopted the Employee Stock Purchase Plan (ESPP). The Company ESPP’s plan provides for a maximum of 260,295 shares of common stock to
be purchased by
participating employees. Employees who elect to participate in the Company’s ESPP will be able to purchase common stock at the lower of 85% of the fair market value of common stock on the first or last day of the applicable six-month offering period.
Equity Offerings and Placements
At-the-Market
Offering
On August 18, 2020, the Company entered into a sales agreement with Cantor Fitzgerald & Co. (“Cantor Fitzgerald”), pursuant to which the Company may offer and sell, from time to time, through Cantor Fitzgerald, as sales agent or principal, shares of the Company’s common stock, (the “Placement Shares”), having an aggregate offering price of up to $10.0 million (the “ATM Offering”). The Company has no obligation to sell any Placement Shares under the sales agreement. Subject to the terms and conditions of the sales agreement, Cantor Fitzgerald is required to use commercially reasonable efforts, consistent with its normal trading and sales practices, applicable state and federal law, rules and regulations and the rules of the Nasdaq Stock Market, to sell Placement Shares from time to time based upon the Company’s instructions, including any price, time or size limits specified by the Company. The Company will pay Cantor Fitzgerald a commission of 3.0% of the aggregate gross proceeds from each sale of Placement Shares, reimburse Cantor Fitzgerald’s legal fees and disbursements up to $50,000 and provide Cantor Fitzgerald with customary indemnification and contribution rights. The sales agreement may be terminated by Cantor Fitzgerald or the Company upon notice to the other party as provided in the sales agreement, or by Cantor Fitzgerald at any time in certain circumstances, including the occurrence of a material and adverse change in the Company’s business or financial condition that makes it impractical or inadvisable to market the Placement Shares or to enforce contracts for the sale of the Placement Shares.
 
In connection with the ATM Offering, in consideration for a fee equal to 1.05% of the gross sales price per share sold in the ATM Offering, ROTH Capital Advisors, LLC (“Roth”) waived, solely with respect to the ATM Offering, (i) Roth’s right, pursuant to certain engagement letters dated August 14, 2019 and January 13, 2020 between Roth and the Company, to act as placement agent or underwriter with respect to offerings of the Company’s securities and to receive a minimum of 35% of the fees paid to the agents or underwriters for such offerings and (ii) the
lock-up
provision included in a certain underwriting agreement dated May 1, 2020 between Roth and the Company requiring the prior written consent of Roth for any offer or sale of the Company’s common stock by the Company during the
90-day
period following the date of such underwriting agreement.
There were no shares sold during the three months ended March 31, 2022.    
Stock Options
The Company values stock options using the Black-Scholes option pricing model and used the following assumptions during the reporting periods:     
 
 
  
Three months ended March 31,
 
  
 2022
 
 
2021
Expected terms (years)

      5.46 
-
 
6.46
 
N/A
Expected volatility

      174.81% 
-
 177.09
%
N/A
Risk-free interest rate
      1.75% 
-
 1.90
%
N/A
Expected dividends
      0.00 
%
N/A
The weighted average estimated fair value of the stock options granted during the three months ended March 31, 2022 was approximately $6.86 per share.
 
The following is a summary of stock option activity for the three months ended March 31, 2022:
 
 
  
Number of Option
 
  
Weighted Average

Exercise

Price Per Share
 
  
Weighted Average

Remaining Contractual

Term

(in years)
 
  
Aggregate Intrinsic

Value
 
Outstanding at January 1, 2022
      1,732,460      $ 11.69                    
Granted
      549,333        7.10                    
Expired
      (6,650 )      10.88                    
Cancelled/Forfeited
      (37,040 )       10.42                    
    
 
 
     
 
 
     
 
 
     
 
 
  
Outstanding at March 31, 2022
      2,238,103      $ 10.60        9.2      $ —    
    
 
 
     
 
 
     
 
 
     
 
 
  
Exercisable at March 31, 2022
      766,619      $ 11.83        8.7      $ —    
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The following table summarizes information for stock option shares outstanding and exercisable at March 31, 2022:
 
 
  
 
 
  
Options Exercisable
 
Range of Exercise Prices
  
Outstanding Number

of Options
 
  
Weighted Average

Remaining Option Term (in

years)
 
  
Number of Options
 
$6.61 - $9.99
      825,256        9.2        110,389  
$10.00 - $14.99
      1,280,348        8.7        592,317  
$15.00 - $24.99
      132,000        8.5        63,414  
$25 +
      499        6.8        499  
    
 
 
     
 
 
     
 
 
  
       2,238,103        8.7        766,619  
    
 
 
     
 
 
     
 
 
  
The following is a summary of share-based compensation expense in the statement of operations for the three months ended March 31, 2022 (in thousands):
 
 
  
Three months ended March 31,
 
 
  
2022
 
  
2021
 
Selling, general and administrative
    $ 919      $ 1,466  
Research and development
      503        630  
Cost of goods sold
      52        52  
    
 
 
     
 
 
  
Total
    $ 1,474      $ 2,148  
    
 
 
     
 
 
  
At March 31, 2022, there was $9.2 
million of aggregate unrecognized compensation expense related employee and board stock option grants. The cost is expected to be recognized over a weighted average period of 3 years.
Warrants
The following is a summary of warrant activity for the three months ended March 31, 2022:
 
 
  
Warrants
 
  
Weighted Average
Exercise Price
 
  
Weighted Average
Remaining Life
(in years)
 
Outstanding at January 1, 2022
      3,894,498      $ 9.27           
Warrants issued
      —          —             
Warrants exercised
      —          —             
Warrants expired
      —          —             
    
 
 
     
 
 
     
 
 
  
Outstanding at March 31, 2022
      3,894,498      $ 9.27        3.0  
    
 
 
     
 
 
     
 
 
  
Exercisable at March 31, 2022
      3,894,498      $ 9.27        3.0  
    
 
 
     
 
 
     
 
 
  
 
The following table presents information related to stock warrants at March 31, 2022
 
 
  
 
 
  
Warrants Exercisable
 
Range of Exercise Prices
  
Outstanding Number
of Warrants
 
  
Weighted Average
Remaining Warrant Term
(in years)
 
  
Number of Warrants
 
$0.01
      283,755        3.7        283,755  
$10.00
      3,610,743        2.9        3,610,743  
    
 
 
     
 
 
     
 
 
  
       3,894,498        3.0        3,894,498