Annual report pursuant to Section 13 and 15(d)

Warrants (Tables)

v3.7.0.1
Warrants (Tables)
12 Months Ended
Dec. 31, 2016
Debt Disclosure [Abstract]  
Summary of Warrant Activity

The following is a summary of activity in the number of warrants outstanding to purchase the Company’s common stock for the years ended December 31, 2016, 2015 and 2014 (in thousands):

 

    Warrants accounted for as:     Warrants accounted for as:        
    Equity     Liabilities        
    January 2012 warrants     March 2013 warrants     April 2013 warrants     February 2012 warrants     August 2013 warrants     October 2013 warrants     October 2013 Series A warrants     January 2015 warrants     Total  
                                                       
Outstanding, January 1, 2014     -       -       -       -       -       -       -       -       -  
Warrants acquired in merger with Biozone     650       455       1,864       1,000       10,000       200       7,000       -       21,169  
Warrants issued     -       -       -       -       -       -       -       5,500       5,500  
Outstanding, December 31, 2014     650       455       1,864       1,000       10,000       200       7,000       5,000       26,669  
Warrants exercised     -       -       (364 )     -       (10,000 )     (200 )     (6,225 )     (1,500 )     (18,289 )
Outstanding, December 31, 2015     650       455       1,500       1,000       -       -       775       4,000       8,380  
Warrants expired     (650 )     (455 )             (889 )                                     (1,994 )
Warrants exercised                     -       (111 )     -       -       -       -       (111 )
Outstanding, December 31, 2016     -       -       1,500       -       -       -       775       4,000       6,275  
                                                                         
Expiration date     January 11, 2016       March 1, 2016       April 25, 2018       February 28, 2016       August 26, 2023       October 18, 2018       October 24, 2023       January 16, 2024          

Schedule of Fair Value of the Warrants Classified as Liabilities

The fair value of the warrants classified as liabilities is estimated using the Black-Scholes option-pricing model with the following inputs as of December 31, 2016:

 

    October 2013
warrants
    January 2015
warrants
 
             
Strike price   $ 0.50     $ 0.50  
                 
Expected term (years)     6.8       7.0  
Cumulative volatility %     99.7 %     100 %
Risk-free rate %     2.24 %     2.25 %

 

The fair value of the warrants classified as liabilities is estimated using the Black-Scholes option-pricing model with the following inputs as of December 31, 2015:

 

    February
2012
warrants
    August
2013
warrants
    October
2013
warrants
    October
2013
warrants
    January
2014
warrants
 
                               
Strike price   $ 0.60     $ 0.40     $ 0.50     $ 0.50     $ 0.50  
                                         
Expected term (years)     0.2       7.7       2.8       7.8       8.0  
Cumulative volatility %     81 %     101 %     78 %     101 %     100 %
Risk-free rate %     0.49 %     2.18 %     1.26 %     2.14 %     2.15 %