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Stockholders' Equity | 6 Months Ended
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Jun. 30, 2023
Stockholders' Equity Note [Abstract] |
Stockholders' Equity | Stockholders’ Equity Public and Private Placements Common Purchase Agreement On March 29, 2023, the Company closed the Common Offering. The aggregate exercise price of the Common Tranche A Warrants issued under the Common Offering is approximately $0.1 million, exercisable for an aggregate of 31,110 shares of common stock until the earlier of 21 days following the Company’s announcement of receipt of FDA Approval and March 31, 2026. The aggregate exercise price of the Common Tranche B Warrants issued under the Common Offering is approximately $0.1 million, exercisable for an aggregate of 16,666 shares of common stock until the earlier of 21 days following the Company’s announcement of receipt of recording at least $10 million in quarterly U.S. revenue from the commercialization of HEPZATO and March 31, 2026; provided, however, that if the FDA Approval occurs on or before February 15, 2024 and the holder of the Common Tranche B Warrant has not exercised its Common Tranche A Warrant by or before March 7, 2024, then any warrants not yet exercised pursuant to the Common Tranche B Warrant at such time shall expire. The Company determined that the Common Warrants should be liability-classified. See “Note 1 – Warrant Liabilities” for a discussion of the accounting treatment of the Common Warrants and Preferred Warrants. Registration Rights for Preferred and Common Offerings Pursuant to the Preferred Purchase Agreement and the Common Purchase Agreement (collectively, the “Purchase Agreements”), and the Stockholder Approval, the Company filed a registration statement on Form S-3 providing for the resale by the investors party thereto of the common stock issuable upon conversion of the Registrable Shares (as defined in the Purchase Agreements). The Form S-3 became effective on June 28, 2023. The securities issued in the Series F Preferred Offering and the Common Offering have not been registered under the Securities Act of 1933, as amended (the “Securities Act”). There is no established public trading market for the Series F Preferred Stock, the Preferred Warrants, or the Common Warrants and the Company does not intend to list such securities on any national securities exchange or nationally recognized trading system. At-the-Market Offering The Company has entered into a Controlled Equity Offering SM Sales Agreement (“ATM Sales Agreement”), with Cantor Fitzgerald & Co. (the “Sales Agent”), pursuant to which the Company may offer and sell, at its sole discretion through the Sales Agent, shares of common stock having an aggregate offering price of up to $17.0 million. To date, the Company has sold approximately $4.0 million of its common stock, prior to issuance costs, under the ATM Sales Agreement. No sales were made during the three and six months ended June 30, 2023. Authorized Shares Stockholders approved the amendment of the Company’s Amended and Restated Certificate of Incorporation to increase the total number of shares of its common stock authorized for issuance from 40 million shares to 80 million shares. The Company is authorized to issue 80 million shares of common stock, $0.01 par value, and 10 million shares of preferred stock, $0.01 par value. As of June 30, 2023, the Company has designated the following preferred stock:
Designated Preferred Shares |  | June 30, 2023
Series A |  | 4,200 |
Series B |  | 2,360 |
Series C |  | 590 |
Series D |  | 10,000 |
Series E |  | 40,000 |
Series E-1 |  | 12,960 |
Series F-1 |  | 24,900 |
Series F-2 |  | 24,900 |
Series F-3 |  | 34,860 |
Series F-4 |  | 24,900 |
Total |  | 179,670 |
Preferred Stock As of June 30, 2023, there were an aggregate of 11,357 shares of Series E and Series E-1 and 9,624 Series F-2 Convertible Preferred Stock outstanding, respectively. 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. On June 12, 2023, the stockholders approved the amendment to the Company’s 2020 Plan to increase the number of shares of common stock available under the plan by 2.65 million shares. 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 June 30, 2023, there are 5,125,000 shares of common stock reserved under the 2020 Plan, of which 1,861,160 remained available to be issued. Stock Options The Company values stock options using the Black-Scholes option pricing model and used the following assumptions during the reporting periods:
| Six Months Ended June 30,
| 2023 |  | 2022
Expected terms (years) | 5.2-5.8 |  | 5.2-6.5
Expected volatility | 129.8%-172.8% |  | 174.8% -180.3%
Risk-free interest rate | 3.88% -4.08% |  | 1.75% - 2.90%
Expected dividends | 0.00% |  | 0.00%
The following is a summary of stock option activity for the six months ended June 30, 2023:
| Number of Options |  | Weighted Average Exercise Price Per Share |  | Weighted Average Remaining Contractual Term (in years) |  | Aggregate Intrinsic Value
Outstanding at January 1, 2023 | 2,235,052 |  | $ | 10.30 |  |  |  |  |
Granted | 1,991,757 |  | 6.19 |  |  |  |  |
Exercised | (468) |  | 4.67 |  |  |  |  |
Expired | (75,772) |  | 9.49 |  |  |  |  |
Cancelled/Forfeited | (22,637) |  | 10.36 |  |  |  |  |
Outstanding at June 30, 2023 | 4,127,932 |  | $ | 8.33 |  |  | 8.7 |  | $ | 994 |
Exercisable at June 30, 2023 | 1,741,313 |  | $ | 10.56 |  |  | 7.7 |  | $ | 116 |
The following table summarizes information for stock option shares outstanding and exercisable at June 30, 2023:
|  |  |  | Options Outstanding
Range of Exercise Prices |  | Outstanding Number of Options |  | Weighted Average Remaining Option Term (in years) |  | Number of Options
$2.83 - $51.50 |  | 4,127,433 |  | 8.7 |  | 1,740,814
$51.50+ |  | 499 |  | 5.6 |  | 499
|  | 4,127,932 |  | 8.7 |  | 1,741,313
The following is a summary of share-based compensation expense in the statement of operations for the three and six months ended June 30, 2023:
| Three Months Ended June 30, |  | Six Months Ended June 30,
(In thousands) | 2023 |  | 2022 |  | 2023 |  | 2022
Selling, general and administrative | $ | 911 |  |  | $ | 1,467 |  |  | $ | 2,099 |  |  | $ | 2,866 |
Research and development | 651 |  |  | 613 |  |  | 1,068 |  |  | 1,416 |
Cost of goods sold | 99 |  |  | 39 |  |  | 155 |  |  | 108 |
Total | $ | 1,661 |  |  | $ | 2,119 |  |  | $ | 3,322 |  |  | $ | 4,390 |
At June 30, 2023, there was $10.0 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 2.6 years. Common Stock Warrants The following is a summary of common stock warrant activity for the six months ended June 30, 2023:
| Warrants |  | Weighted Average Exercise Price |  | Weighted Average Remaining Life (in years)
Outstanding at January 1, 2023 | 5,153,291 |  | $ | 7.01 |  |  |
Warrants issued | 81,849 |  | 2.94 |  |  |
Warrants exercised | (538,828) |  |  | 0.01 |  |  |
Outstanding at June 30, 2023 | 4,696,312 |  | $ | 7.74 |  |  | 2.1
Exercisable at June 30, 2023 | 4,696,312 |  | $ | 7.74 |  |  | 2.1
The following table presents information related to common stock warrants at June 30, 2023:
|  |  | Warrants Exercisable
Range of Exercise Prices | Outstanding Number of Warrants |  | Weighted Average Remaining Warrant Term (in years) |  | Number of Warrants
$0.01 | 1,037,792 |  | 3.7 |  | 1,037,792
$4.50-$6.00 | 47,777 |  | 2.8 |  | 47,777
$10.00 | 3,610,743 |  | 1.7 |  | 3,610,743
| 4,696,312 |  | 2.1 |  | 4,696,312
On April 18, 2023, there were 538,828 of $0.01 warrants exercised for 538,828 common shares. 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 (the “ESPP”). The ESPP provides for a maximum of 260,295 shares of common stock to be purchased by participating employees. Employees who elect to participate in the 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. In January 2023, an aggregate of 15,417 shares were purchased by participating employees for the offering period of July 1, 2022 to December 31, 2022. In July 2023, an aggregate of 26,018 shares were purchased by participating employees for the offering period of January 1, 2023 to June 30, 2023.

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