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Stockholders' Equity
 3 Months Ended
Mar. 31, 2024
Equity [Abstract]  
Stockholders' Equity

8. Stockholders’ Equity

Authorized, Issued, and Outstanding Common Stock

The Company’s authorized common stock has a par value of $0.001 per share and consists of 150,000,000 shares as of March 31, 2024, and December 31, 2023; 37,779,796 and 37,207,799 shares were issued and outstanding at March 31, 2024, and December 31, 2023, respectively. For the three months ended March 31, 2023, 363,000 of the prefunded warrants from the April 2022 public offering were exercised at $0.001 per share.

The following table summarizes common stock share activity for the three months ended March 31, 2024 and 2023 (dollars in thousands):

 

 

 

Three Months Ended March 31, 2024

 

 

 

Shares of
Common Stock

 

 

Common
Stock

 

 

Additional
Paid-in
Capital

 

 

Accumulated
Deficit

 

 

Total
Stockholders’ Equity

 

Balance, December 31, 2023

 

 

37,207,799

 

 

$

40

 

 

$

428,169

 

 

$

(355,247

)

 

$

72,962

 

Net income

 

 

—

 

 

 

—

 

 

 

—

 

 

 

411

 

 

 

411

 

Stock-based compensation expense

 

 

—

 

 

 

—

 

 

 

705

 

 

 

—

 

 

 

705

 

Common stock issued through employee stock purchase plan

 

 

18,815

 

 

 

—

 

 

 

26

 

 

 

—

 

 

 

26

 

Common stock issued for vested restricted stock units

 

 

553,182

 

 

 

1

 

 

 

—

 

 

 

—

 

 

 

1

 

Balance, March 31, 2024

 

 

37,779,796

 

 

$

41

 

 

$

428,900

 

 

$

(354,836

)

 

$

74,105

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2023

 

 

 

Shares of
Common Stock

 

 

Common
Stock

 

 

Additional
Paid-in
Capital

 

 

Accumulated
Deficit

 

 

Total
Stockholders’
(Deficit) Equity

 

Balance, December 31, 2022

 

 

32,682,342

 

 

$

36

 

 

$

425,485

 

 

$

(422,288

)

 

$

3,233

 

Net loss

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(33,876

)

 

 

(33,876

)

Stock-based compensation expense

 

 

—

 

 

 

—

 

 

 

707

 

 

 

—

 

 

 

707

 

Common stock issued through employee stock purchase plan

 

 

2,662

 

 

 

—

 

 

 

4

 

 

 

—

 

 

 

4

 

Common stock issued, net of expenses

 

 

363,000

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Common stock issued for vested restricted stock units

 

 

279,623

 

 

 

—

 

 

 

18

 

 

 

—

 

 

 

18

 

Balance, March 31, 2023

 

 

33,327,627

 

 

$

36

 

 

$

426,214

 

 

$

(456,164

)

 

$

(29,914

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares Reserved for Future Issuance

The Company had reserved shares of common stock for future issuance as follows:

 

 

 

March 31, 2024

 

 

December 31, 2023

 

Outstanding stock options

 

 

2,716,602

 

 

 

1,867,795

 

Outstanding restricted stock units

 

 

3,202,012

 

 

 

1,886,374

 

Warrants to purchase common stock associated with December 2020 public offering - Series 2

 

 

6,800,000

 

 

 

6,800,000

 

Prefunded warrants to purchase common stock associated with December 2020 public offering

 

 

3,200,000

 

 

 

3,200,000

 

Warrants to purchase common stock associated with April 2022 public offering

 

 

15,000,000

 

 

 

15,000,000

 

Prefunded warrants to purchase common stock associated with April 2022 public offering

 

 

7,516,267

 

 

 

7,516,267

 

Warrants to purchase common stock associated with Loan Agreement

 

 

198,811

 

 

 

198,811

 

Warrant to purchase common stock associated with Danforth

 

 

50,000

 

 

 

50,000

 

For possible future issuance for the conversion of the March 2019 Notes

 

 

1,138,200

 

 

 

1,138,200

 

For possible future issuance under 2014 Plan (Note 9)

 

 

—

 

 

 

848,202

 

For possible future issuance under employee stock purchase plan

 

 

1,458,171

 

 

 

1,474,045

 

For possible future issuance under 2015 Plan (Note 9)

 

 

637,050

 

 

 

633,590

 

Total common shares reserved for future issuance

 

 

41,917,113

 

 

 

40,613,284

 

Warrants Associated with the December 2020 and April 2022 Public Offerings

The outstanding warrants associated with the December 2020 public offering contains a provision where the warrant holder has the option to receive cash, equal to the Black-Scholes fair value of the remaining unexercised portion of the warrant,

as cash settlement in the event that there is a fundamental transaction (contractually defined to include various merger, acquisition or stock transfer activities). Due to this provision, ASC 480, Distinguishing Liabilities from Equity, requires that these warrants be classified as liabilities. The fair values of these warrants have been determined using the Black-Scholes valuation model, and the changes in the fair value are recorded in the accompanying unaudited condensed consolidated statements of operations. The outstanding warrants associated with the April 2022 public offering meet the definition of a derivative pursuant to ASC 815, Derivatives and Hedging, and do not meet the derivative scope exception given the warrants do not qualify under the indexation guidance. As a result, the April 2022 public offering warrants were initially recognized as liabilities and measured at fair value using the Black-Scholes valuation model. For the three months ended March 31, 2024 and 2023, the Company recognized a gain of $9.6 million and a loss of $21.7 million, respectively, on the warrant liabilities fair value adjustment. As of March 31, 2024 and December 31, 2023, the fair value of the warrant liabilities was $12.2 million and $21.8 million, respectively.