Annual report pursuant to Section 13 and 15(d)

Stockholders' Equity

v3.20.4
Stockholders' Equity
12 Months Ended
Dec. 31, 2020
Equity [Abstract]  
STOCKHOLDERS' EQUITY STOCKHOLDERS' EQUITY
Warrants

In connection with the issuance of debt, common stock and preferred stock, the Company has issued warrants to purchase shares of the Company's common stock. The following table summarizes warrant activity:
Number of Warrants Weighted Average Exercise Price per Warrant
Balance, December 31, 2018 17,818,844  $ 1.84 
Granted, Series B Preferred Stock 9,262,500  1.62 
Granted, Marathon Credit Agreement 3,379,466  2.26 
Granted, Other 66,966  5.28 
Exercised —  — 
Balance, December 31, 2019 30,527,776  1.82 
Granted, Marathon Credit Agreement 1,176,203  28.26 
Exercised (30,502,763) 1.78 
Expired (45,540) 1.60 
Balance, December 31, 2020 1,155,676  $ 28.74 

2019 Stock Offerings
In February 2019, the Company sold approximately 1.6 million shares of common stock to investors (the “February 2019 Investors”) for net proceeds of $1.5 million. Through July 2019, if the Company issued shares of its common stock for a lower price per share than the price paid by the February 2019 Investors (a “Down Round”), the Company was required to issue additional shares of common stock (for no additional consideration) resulting in the effective purchase price per share being equal to the purchase price per share paid in the Down Round. On May 1, 2019 the Down Round provision of the agreement was triggered and an additional 116,496 shares of common stock were issued to the February 2019 Investors which was
accounted for as a $86,207 deemed dividend. The deemed dividend was recorded as a reduction to Retained Earnings and increase in Additional Paid-in-Capital and increased the net loss to common stockholders by the same amount.
Benjamin Samuels and Gerald Budde, directors of the Company, acquired 841,928 and 26,310 shares of common stock, respectively, as part of the February 2019 offering at a price per share of $0.95, which was above the closing price the date prior to close. They did not receive the Down Round protection.
On June 22, 2017, the Company entered into an at the market issuance sales agreement with Cowen and Company, LLC, under which the Company may offer and sell shares of its common stock having an aggregate offering price of up to $25.0 million. During the three months ended March 31, 2019, the Company issued 1.6 million shares of common stock under the agreement for net proceeds of approximately $1.5 million. The agreement was canceled in the first quarter of 2019.
On May 1, 2019, the Company closed a registered public offering for the sale of approximately 4.0 million shares of common stock for a purchase price of $0.74 per share. The proceeds to the Company were approximately $2.9 million.