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Subsequent Events

6 Months Ended

Jun. 30, 2017

Subsequent Events [Abstract]

Subsequent Events

9.	Subsequent Events

On July 19, 2017, the Company entered into an underwriting agreement with Ladenburg Thalmann & Co. Inc., acting as the representative of the several underwriters named therein, relating to the issuance and sale of (i) 3,154,000 Class A Units, each consisting of one share of the Company’s common stock, and a warrant to purchase one share of common stock, and (ii) 8,872 Class B Units, each consisting of one share of the Company’s Series A Convertible Preferred Stock, par value $0.001 per share (the “Series A Preferred Stock”) convertible into 500 shares of common stock at the initial conversion price, and a warrant to purchase a number of shares of common stock equal to $1,000.00 divided by the conversion price. The price to the public in the offering was $2.00 per Class A Unit and $1,000.00 per Class B Unit. The closing of the offering occurred on July 21, 2017, and the net proceeds to the Company were approximately $13,800,000 after deducting underwriting discounts and commissions and other estimated offering expenses, and including the full exercise of the underwriters’ option for a period of 45 days to purchase up to 990,000 additional shares of common stock and/or warrants to purchase up to 990,000 shares of common stock solely to cover any over-allotments.

Each share of Series A Preferred Stock is convertible at any time at the option of the holder thereof, into a number of shares of common stock determined by dividing $1,000 by the initial conversion price of $2.00 per share, subject to a 4.99% blocker provision, or, upon election by a holder prior to the issuance of shares of Series A Preferred Stock, 9.99%. The Series A Preferred Stock will have the same dividend rights as the common stock, and no voting rights except as provided for in the Certificate of Designation or as otherwise required by law. In the event of any liquidation or dissolution of the Company, the Series A Preferred Stock ranks senior to the common stock in the distribution of assets, to the extent legally available for distribution.

Subsequent to the closing of the offering, holders of 7,613 (86%) shares of the Series A Preferred Stock elected to convert their shares into 3,806,500 shares of common stock. Following such conversions, 11,400,447 shares of common stock and 1,259 (14%) shares of Series A Preferred Stock remain outstanding as of August 8, 2017.