Quarterly report pursuant to Section 13 or 15(d)

Initial Public Offering

v3.7.0.1
Initial Public Offering
6 Months Ended
Jun. 30, 2017
Initial Public Offering [Abstract]  
Initial Public Offering

Note 2. Initial Public Offering

In June 2017, the Company completed its initial public offering (“IPO”) in which the Company sold 3,220,000 shares of its common stock at an IPO price of $11.00 per share, which includes the sale of 420,000 shares of common stock upon the full exercise of the underwriters’ over-allotment option. The Company received net proceeds of $32.4 million, excluding underwriting discounts and commissions, which was recorded to additional paid-in capital. The Company’s common stock commenced trading on the NASDAQ Capital Market on June 7, 2017 under the trading symbol “SSTI.”

 

Immediately prior to the IPO, all outstanding Series B-1 convertible preferred stock warrants were remeasured at fair value using the Black-Scholes model, resulting in a loss of $3.7 million which was recorded in other expense, net.

 

Upon the closing of the IPO, the entire balance of $5.7 million in convertible preferred stock warrant liability was reclassified to additional paid-in capital. All preferred stock warrants were converted into common stock warrants. In addition, the Company issued to the lead underwriter in the IPO a warrant to purchase up to 84,000 shares of its common stock. See Note 10, Convertible Preferred Stock Warrants and Common Stock Warrants, for further details regarding the warrants.

 

Upon the closing of the IPO, all shares of the then-outstanding convertible preferred stock were converted into 4,689,753 shares of common stock. This resulted in a reclassification of $42.1 million to additional paid-in capital.

 

Offering costs incurred by the Company were approximately $1.8 million, excluding underwriting  commissions and discounts, which was recorded to additional paid-in capital.