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Shareholders' Equity

12 Months Ended

Dec. 31, 2020

Stockholders' Equity Note [Abstract]

Shareholders' Equity

11. SHAREHOLDERS’ EQUITY

Warrants

In December 2016, the Company completed a registered direct offering of 100,000 shares of common stock at a net gross price of $15.00 per share. Concurrently, the investors received warrants to purchase 100,000 shares of common stock of the Company at an exercise price of $20.05 per share, for a period of five years from the final closing date of June 21, 2017. The warrants include anti-dilution rights. The total net proceeds received by the Company were approximately $1.32 million. The fair value of the warrants upon issuance were $1.24 million, with the remaining $0.08 million being attributed to common stock. On September 29, 2020, the Company received proceeds of $565 thousand related to the exercise of warrants to purchase 50,000 shares of common stock. The warrants have been classified as liabilities due to features in the warrant agreement that give the warrant holder an option to require the Company to redeem the warrant at a calculated fair value in the event of a “Fundamental Transaction,” as defined in the warrant agreement. The fair value of the warrants was $95 thousand and $73 thousand at December 31, 2020 and 2019, respectively

Pursuant to the original warrant agreement, as a result of common stock issuances made during the year ended December 31, 2018, the warrant exercise price was reduced from $20.50 to $11.30 per share. The warrant exercise price was further reduced to the floor of $3.92 per share during the year ended December 31, 2020, as a result of the underwritten offering of 1,150,000 shares of common stock which was completed on November 16, 2020.

Stock Option Plans

From time to time, the Company may grant stock options under its incentive plan covering shares of common stock to employees of the Company. Stock options, when exercised, are settled through the payment of the exercise price in exchange for new shares of stock underlying the option. These awards typically expire ten years from the grant date.

Total stock-based compensation expense related to stock options was $0 and $41 thousand for the years ended December 31, 2020 and 2019, respectively. As of December 31, 2019, all stock options had vested. No stock options were granted, forfeited or exercised; however, stock options to purchase 166 shares expired during the year ended December 31, 2020. During the year ended December 31, 2019, no stock options were granted, expired or exercised; however, as the result of an employee termination 500 unvested stock options were forfeited. Presented below is information about stock options outstanding and exercisable as of December 31, 2020 and December 31, 2019. All shares and prices per share have been adjusted for a one share-for-ten shares reverse stock split that took effect on January 6, 2020:

		2020								2019
		Shares				Price ⁽¹⁾				Shares				Price ⁽¹⁾

Outstanding, beginning of year			31,533			$	66.04				32,033			$	65.20
Granted			-				-				-				-
Forfeited			-				-				(500	)			11.60
Expired			(166	)			-				-				-
Exercised			-				-				-				-

Outstanding, end of year			31,367			$	64.78				31,533			$	66.04

Exercisable, end of year			31,367			$	64.78				31,533			$	66.04

⁽¹⁾

Represents the weighted average price.

The following table summarizes information for stock options outstanding and for stock options exercisable at December 31, 2019. All shares and prices per share have been adjusted for a one share-for-ten shares reverse stock split that took effect on January 6, 2020:

Options Outstanding																				Options Exercisable
				Exercise Price												Remaining								Weighted Average
Number of				Range								Weighted				Contractual				Number of				Exercise
Shares				Low				High				Average				Term (years)				Shares				Price

	16,500			$	7.20			$	11.60			$	10.00				6.8				16,500			$	10.00
	10,622				90.00				124.80				106.20				3.3				10,622				106.20
	2,913				139.20				171.00				147.39				1.4				2,913				147.39
	1,332				226.20				251.40				232.48				2.9				1,332				232.48

	31,367			$	7.20			$	251.40			$	64.78				4.9				31,367			$	64.78

In January 2020, the Company granted 48,000 restricted shares of common stock to the Company’s Chief Executive Officer as a discretionary bonus, of which 24,000 shares vest after one year and 24,000 vest after two years. In addition, the Company granted a total of 23,000 restricted shares of common stock to members of the board of directors, which vest on January 28, 2021. For the year ended December 31, 2020, the Company recognized $211 thousand in stock compensation expense related to these restricted stock grants. At December 31, 2020, the unrecognized expense related to the restricted stock grants was $137 thousand.