Quarterly report pursuant to Section 13 or 15(d)

Warrants

v3.7.0.1
Warrants
3 Months Ended
Mar. 31, 2017
Equity [Abstract]  
Warrants
Warrants

On March 22, 2017, we issued seven year warrants to PFG and certain of its affiliates to purchase an aggregate of 443,262 shares of our common stock at an exercise price of $2.82 per share, in conjunction with our debt refinancing described in Note 5. The number of warrants may be reduced by 20% subject to us achieving certain financial milestones set forth by PFG. The warrants can be net settled in common stock using the average 90-trading day price of our common stock. These warrants are defined in the table below as 2017 Debt derivative warrants.

During the three months ended March 31, 2017, the Company received approximately $1,750,000 from shareholders who exercised warrants to purchase 777,900 shares of common stock at $2.25. In addition, on March 28, 2017, warrant holders exercised warrants to purchase 90,063 shares of common stock at an exercise price of $2.25 per share using the net issuance exercise method whereby 45,162 shares were surrendered as payment in full of the exercise price resulting in a net issuance of 44,901 shares.

The following table summarizes the warrant activity for the three months ended March 31, 2017 (in thousands, except exercise price): 
Issued With / For
Exercise
Price
 
Warrants
Outstanding
January 1,
2017
 
2017 Warrants Issued
 
2017 Warrants Exercised
 
Warrants Outstanding March 31, 2017
Non-Derivative Warrants:
 
 
 
 
 
 
 
 
 
Financing
$
10.00

  
243

 

 

 
243

Financing
15.00

  
361

 

 

 
361

Debt guarantee
15.00

  
109

 

 

 
109

2015 Offering
5.00

  
3,450

 

 

 
3,450

Total non-derivative warrants
$
6.42

C
4,163

 

 

 
4,163

Derivative Warrants:
 
 
 
 
 
 
 
 
 
2016 Offerings
2.25

A
2,870

 

 
(868
)
 
2,002

2017 Debt
2.82

B

 
443

 

 
443

Total derivative warrants
2.35

C
2,870

 
443

 
(868
)
 
2,445

Total
$
4.92

C
7,033

 
443

 
(868
)
 
6,608


A
These warrants are subject to fair value accounting and contain a contingent net cash settlement feature.
B
These warrants are subject to fair value accounting and contain a net settlement provision that uses the 90-trading day price of our common stock. These warrants are subject to a 20% reduction if certain financial milestones are met.
C
Weighted-average exercise prices are as of March 31, 2017.