XML 28 R18.htm IDEA: XBRL DOCUMENT v3.21.2
SHAREHOLDERS’ EQUITY
 9 Months Ended
Sep. 30, 2021
Equity [Abstract]  
SHAREHOLDERS’ EQUITY

11. SHAREHOLDERS’ EQUITY

 

Common Stock

 

At September 30, 2021, the Company had 4,676,301 shares of common stock outstanding. On February 17, 2021, the Company sold 1,131,600 shares of common stock for net proceeds of $5.3 million.

 

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 $1.3 million. The fair value of the warrants upon issuance were $1.2 million, with the remaining $0.1 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 remaining warrants to purchase 50,000 shares of common stock was $93 thousand and $95 thousand at September 30, 2021 and December 31, 2020, respectively.

 

Pursuant to the original warrant agreement, as a result of common stock issuances at various prices, the warrant exercise price has been reduced from its original $20.50 exercise price to the floor price of $3.92, which is the exercise price of the warrants at September 30, 2021.

 

Stock Options

 

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.

 

For the nine months ended September 30, 2021 and 2020, there was no compensation expense related to stock options. As of December 31, 2019, all stock options had vested. No stock options were granted or exercised, during the nine months ended September 30, 2021 or 2020. During the nine months ended September 30, 2021 and 2020, options to purchase 332 shares and 166 shares, respectively, expired. Presented below is information about stock options outstanding and exercisable as of September 30, 2021 and December 31, 2020:

 

   September 30, 2021   December 31, 2020 
   Shares   Price   Shares   Price 
                
Stock options outstanding and exercisable   31,035   $62.79    31,367   $64.78 

 

The following table summarizes information for stock options outstanding and exercisable at September 30, 2021:

 

Options Outstanding   Options Exercisable 
        Weighted   Remaining       Weighted 
Number of   Exercise Price
Range		  

Average

Exercise

  

Contractual

Term

   Number of  

Average

Exercise

 
Shares   Low   High   Price   (years)   Shares   Price 
                          
 16,500   $7.20   $11.60   $10.00    6.0    16,500   $10.00 
 10,622    90.00    124.80    106.20    2.6    10,622    106.20 
 2,913    139.20    171.00    147.39    0.7    2,913    147.39 
 1,000    226.20    226.20    226.20    2.6    1,000    226.20 
                                 
 31,035   $7.20   $226.20   $62.79    4.2    31,035   $62.79 

 

 

Restricted Stock

 

Company grants restricted stock under its incentive plan covering shares of common stock to employees and directors of the Company. The restricted stock awards are time-based awards and are amortized ratably over the requisite service period. Restricted stock vests ratably on each anniversary following the grant date provided the grantee is employed on the vesting date. Restricted stock granted to employees, when vested are net settled through the issuance of shares, net of the number of shares required to pay withholding taxes.

 

The following table presents the changes in non-vested, time-based restricted stock awards to all employees and directors for the nine months ended September 30, 2021:

 

   Shares  

Weighted-Avg.

Grant Date

Fair Value

per Share

 
     
Non-vested restricted stock at December 31, 2020   71,000   $4.89 
Granted   150,000   $4.72 
Vested   (47,000)  $4.89 
Non-vested restricted stock at September 30, 2021   174,000   $4.75 

 

The following table presents the stock compensation expense related to restricted stock grants for the three and nine months ended September 30, 2021 and 2020:

 

   Three Months Ended
September 30,		   Nine Months Ended
September 30,		 
   2021   2020   2021   2020 
   (in thousands) 
Stock compensation expense  $115   $64   $310   $170 

 

Total compensation cost related to non-vested time-based awards not yet recognized in the Company’s condensed consolidated statements of operations as of September 30, 2021, is $534 thousand. This cost is expected to be recognized over a weighted average period of 2.5 years.