Quarterly report pursuant to Section 13 or 15(d)

Warrants

v3.5.0.2
Warrants
9 Months Ended
Sep. 30, 2016
Equity [Abstract]  
Warrants
Warrants

On May 25, 2016, we issued 1,357,301 warrants to purchase shares of our common stock as part of our May Offering. Subject to certain ownership limitations, the warrants will be initially exercisable commencing six months from the issuance date at an exercise price equal to $2.25 per share of common stock. The warrants are exercisable for five years from the initial exercise date. These warrants contain a contingent net cash settlement feature and are described as derivative warrants.

On September 14, 2016, we issued 1,512,500 warrants to purchase shares of our common stock as part of our September Offering. Subject to certain ownership limitations, the warrants will be initially exercisable commencing six months from the issuance date at an exercise price equal to $2.25 per share of common stock. The warrants are exercisable for five years from the initial exercise date. These warrants also contain a contingent net cash settlement feature and are described as derivative warrants.

During the three and nine months ended September 30, 2016, we expensed $325,000 of offering costs associated with the derivative warrants issued in the 2016 Offerings. These costs are included in other expense on the Consolidated Statements of Operations.

The following table summarizes the warrant activity for the nine months ended September 30, 2016 (in thousands, except exercise price): 
Issued With / For
Exercise
Price
 
Warrants
Outstanding
January 1,
2016
 
2016 Warrants Issued
 
2016 Warrants Expired
 
Warrants Outstanding September 30, 2016
Non-Derivative Warrants:
 
 
 
 
 
 
 
 
 
Financing
$
10.00

  
243

 

 

 
243

Financing
15.00

  
436

 

 

 
436

Debt guarantee
15.00

  
233

 

 
(87
)
 
146

Consulting
10.00

 
10

 

 
(10
)
 

2015 Offering
5.00

  
3,450

 

 

 
3,450

Total non-derivative warrants
$
6.65

C
4,372

 

 
(97
)
 
4,275

Derivative Warrants:
 
 
 
 
 
 
 
 
 
Financing
4.00

A
60

 

 
(60
)
 

2016 Offerings
2.25

B

 
2,870

 

 
2,870

Total derivative warrants
2.25

C
60

 
2,870

 
(60
)
 
2,870

Total
$
4.88

C
4,432

 
2,870

 
(157
)
 
7,145


A
These warrants were subject to fair value accounting and contained an exercise price adjustment feature.
B
These warrants are subject to fair value accounting and contain a contingent net cash settlement feature.
C
Weighted-average exercise prices are as of September 30, 2016.