Annual report pursuant to Section 13 and 15(d)

Convertible Preferred Stock Warrants and Common Stock Warrants

v3.10.0.1
Convertible Preferred Stock Warrants and Common Stock Warrants
12 Months Ended
Dec. 31, 2018
Warrants And Rights Note Disclosure [Abstract]  
Convertible Preferred Stock Warrants and Common Stock Warrants

Note 14. Convertible Preferred Stock Warrants and Common Stock Warrants

Immediately prior to the Company’s IPO, all outstanding Series B-1 convertible preferred stock warrants were remeasured to their fair value, using the Black-Scholes model. Refer to Note 3, Basis of Presentation and Summary of Significant Accounting Policies, for a description of the valuation method. The final remeasurement of the convertible preferred stock warrant liability resulted in a $3.7 million loss which was recorded to 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 convertible 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.

During the year ended December 31, 2018, certain warrants were exercised on a cashless basis and converted into 25,145 shares of common stock.

 

At December 31, 2016, the Company had the following Series B-1 convertible preferred stock warrants issued and outstanding (in thousands, except share and per share data):

 

Warrant Class

 

Shares

 

 

Fair Value

 

 

Issuance

Date

 

Price per

Share

 

 

Expiration

Date

Series B-1

 

 

25,568

 

 

$

303

 

 

June 2012

 

$

5.8667

 

 

June 2022

Series B-1

 

 

167,428

 

 

$

263

 

 

July 2012

 

$

5.8667

 

 

July 2019

Series B-1

 

 

145,801

 

 

$

46

 

 

August 2012

 

$

5.8667

 

 

August 2019

Series B-1

 

 

10,517

 

 

$

19

 

 

November 2012

 

$

5.8667

 

 

November 2022

Series B-1

 

 

156,851

 

 

$

929

 

 

February 2014

 

$

0.1700

 

 

February 2021

Series B-1

 

 

173,862

 

 

$

315

 

 

September 2015

 

$

5.8667

 

 

September 2025

Total

 

 

680,027

 

 

$

1,875

 

 

 

 

 

 

 

 

 

 

At December 31, 2018 and 2017, the Company had the following common stock warrants issued and outstanding:

 

 

 

Shares

 

 

 

 

 

 

 

 

 

Warrant Class

 

2018

 

2017

 

 

Issuance

Date

 

Price

per Share

 

 

Expiration

Date

Common stock warrant

 

 

3,766

 

 

165,925

 

 

July 2012

 

$

5.8667

 

 

July 2019

Common stock warrant

 

 

25,231

 

 

61,502

 

 

August 2012

 

$

5.8667

 

 

August 2019

Common stock warrant

 

 

50,716

 

 

156,851

 

 

February 2014

 

$

0.1700

 

 

February 2021

Common stock warrant (1)

 

 

84,000

 

 

84,000

 

 

June 2017

 

$

13.2000

 

 

June 2020

 

 

 

163,713

 

 

468,278

 

 

 

 

 

 

 

 

 

 

(1)

This warrant was issued to the Company’s lead underwriter in connection with the IPO.    

In March 28, 2017, in connection with the amendment of the 2015 Term Note (see Note 9, Financing Arrangements for details regarding the amendment of the 2015 Term Note), the Company issued a warrant to purchase 76,704 shares of Series B-1 preferred stock at an exercise price of $5.8667 per share which was reduced to 61,363 shares upon the completion of the Company’s IPO because greater than $25 million in proceeds were raised. The Company determined the fair value of the warrants on the date of issuance to be $111,000. The warrants were immediately exercisable.

In June 2017, in connection with its public offering, the Company issued a warrant to purchase 84,000 shares of common stock to its lead underwriter (the “June 2017 Warrant”). The Company determined the fair value of the June 2017 Warrant on the date of issuance to be $0.3 million. The June 2017 Warrant was immediately exercisable.