Quarterly report pursuant to Section 13 or 15(d)

WARRANTS

v3.19.2
WARRANTS
6 Months Ended
Jun. 30, 2019
Warrants and Rights Note Disclosure [Abstract]  
WARRANTS
WARRANTS
From time to time, we have issued warrants to purchase shares of common stock. These warrants have been issued in connection with the financing transactions and consulting services. Our warrants are subject to standard anti-dilution provisions applicable to shares of our common stock.
In January 2018, we entered into an agreement with our founders to exchange warrants to purchase an aggregate of 249,999 shares of our common stock, with an exercise price of $0.20 per share, for an amount of shares that would equal the number of shares they would have received if exercised under a cashless exercise. The effect of exchanging the warrants for shares of our common stock was considered a modification of the award which required us to record expense for the excess of the fair value of the common stock issued over the fair value of the exchanged warrants. On the date of the exchange the fair value of the warrants was determined to be $1.6 million and the fair value of the shares of common stock issued were $1.6 million. There was a difference in fair value of $2,000 which was recorded to sales, marketing and administration expenses during the six months ended June 30, 2018. No expense was recorded in the six months ended June 30, 2019.
A roll-forward of warrant share activity from January 1, 2018 to June 30, 2018 is shown in the following table:
 
Issued and
Outstanding
Warrants as of
January 1, 2018
 
Warrants
Exercised/
Expired
 
Issued and Outstanding Warrants as of June 30, 2018
Bridge Warrants
249,999

 
(249,999
)
(1)

Consulting Warrants
12,223

 
(5,556
)
(2)
6,667

Financing Warrants
62,530

 

 
62,530

Underwriting Warrants
310,500

 

 
310,500

IR Consulting Warrants
6,000

 

 
6,000

Private Placement Warrants - 2016
891,063

 
(73,000
)
(3)
818,063

Underwriting Warrants - Public Offering 2016
122,175

 

 
122,175

Private Placement Warrants - September 2017
1,976,919

 
(10,600
)
(4)
1,966,319

Placement Agent Warrants
98,846

 

 
98,846

 
3,730,255

 
(339,155
)
 
3,391,100


(1) During the six months ended June 30, 2018, there were 249,999 warrants that were exchanged for 242,913 shares of common stock in an exchange transaction where the warrant holders exchanged the warrants for the same number of shares they would have been entitled to in a cashless exercise.

(2) During the six months ended June 30, 2018, there were 5,556 warrants that were exercised through a cashless exercise which netted 5,542 shares being issued.

(3) During the six months ended June 30, 2018, there were 73,000 warrants exercised for cash.

(4) During the six months ended June 30, 2018, there were 10,600 warrants exercised for cash.

A roll-forward of warrant share activity from January 1, 2019 to June 30, 2019 is shown in the following table:
 
Exercise Price
 
Expiration Date
 
Issued and
Outstanding
Warrants as of
January 1, 2019
 
Warrants
Exercised/
Expired
 
Issued and Outstanding Warrants as of June 30, 2019
Consulting Warrants
$0.01
 
6/17/2020
 
6,667

 

 
6,667

Financing Warrants
$3.35
 
6/17/2020
 
62,530

 

 
62,530

Underwriting Warrants
$7.50
 
5/28/2019
 
310,500

 
(310,500
)
(1)

Private Placement Warrants - 2016
$2.86
 
4/25/2019
 
818,063

 
(818,063
)
(2)

Underwriting Warrants - Public Offering 2016
$4.25
 
9/9/2019
 
122,175

 

 
122,175

Private Placement Warrants - September 2017
$4.85
 
9/28/2020
 
1,966,319

 

 
1,966,319

Placement Agent Warrants
$4.85
 
9/28/2020
 
98,846

 

 
98,846

 
 
 
 
 
3,385,100

 
(1,128,563
)
 
2,256,537


(1)
During the six months ended June 30, 2019, there were 310,500 warrants that expired.
(2)
During the six months ended June 30, 2019, there were 485,000 warrants exercised for cash, 44,928 warrants that were exercised through a cashless exercise which netted 1,809 shares being issued and 288,135 warrants that expired.