| 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):
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|
Warrants accounted for as: |
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Warrants accounted for as: |
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Equity |
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|
Liabilities |
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|
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January 2012 warrants |
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March 2013 warrants |
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April 2013 warrants |
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February 2012 warrants |
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August 2013 warrants |
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October 2013 warrants |
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October 2013 Series A warrants |
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January 2015 warrants |
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Total |
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| |
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|
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|
|
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|
|
|
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|
|
|
|
|
|
|
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|
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|
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| 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 |
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|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
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 |
) |
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|
(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 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
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|
775 |
|
|
|
4,000 |
|
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|
6,275 |
|
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| Expiration date |
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January 11, 2016 |
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March 1, 2016 |
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April 25, 2018 |
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February 28, 2016 |
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August 26, 2023 |
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October 18, 2018 |
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October 24, 2023 |
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January 16, 2024 |
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| 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:
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|
October 2013
warrants
|
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|
January 2015
warrants
|
|
| |
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|
|
|
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| Strike price |
|
$ |
0.50 |
|
|
$ |
0.50 |
|
| |
|
|
|
|
|
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| 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:
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|
February
2012
warrants
|
|
|
August
2013
warrants
|
|
|
October
2013
warrants
|
|
|
October
2013
warrants
|
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|
January
2014
warrants
|
|
| |
|
|
|
|
|
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|
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|
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| Strike price |
|
$ |
0.60 |
|
|
$ |
0.40 |
|
|
$ |
0.50 |
|
|
$ |
0.50 |
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|
$ |
0.50 |
|
| |
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|
|
|
|
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|
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|
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|
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| 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 |
% |
|