Stockholders' Equity

9 Months Ended

Sep. 30, 2019

Stockholders' Equity Note [Abstract]

Preferred Stock

The Company is authorized to issue up to 50,000,000 shares of preferred stock. As of September 30, 2019 and December 31, 2018, there were 4,283 shares issued and zero outstanding.

Common Stock

The Company is authorized to issue up to 500,000,000 shares of common stock. As of September 30, 2019 and December 31, 2018, the issued and outstanding shares were 133,924,905 and 98,292,530, respectively.

In September 2019, the Company entered into a securities purchase agreement (the “Securities Purchase Agreement”) with institutional and accredited investors and sold:

a.18,852,272 common stock units at a price of $1.76 per unit. Each common stock unit consists of one share of common stock (18,852,272 shares of common stock in the aggregate), one Series A Warrant (for the purchase of 18,852,272 shares of common stock in the aggregate), and one Series B Warrant (for the purchase of 9,426,136 shares of common stock in the aggregate); and

b.3,875,000 pre-funded warrants for the purchase of common stock units at price of $1.75 per unit. The exercise of each pre-funded warrant, at an exercise price of $0.01, entitles the investor to receive one common stock unit which consists of one share of common stock (3,875,000 shares of common stock in the aggregate), one Series A Warrant (for the purchase of 3,875,000 shares of common stock in the aggregate), and one Series B Warrant (for the purchase of 1,937,500 shares of common stock in the aggregate).

The Company received net proceeds of $37,680 after deducting expenses of approximately $2,281. In connection with the Securities Purchase Agreement, the Company issued warrants to a placement agent to purchase 909,091 shares of its common stock. These warrants have an exercise price of $3.00 per warrant and expire in September 2024. All the warrants issued related to the Securities Purchase Agreement are classified as equity in accordance with ASC 480, Distinguishing Liabilities from Equity, and the Series A and Series B warrants are participating securities for purposes of calculating loss per share.

The Series A Warrants are exercisable at $2.25 per share beginning September 2020 and expire in September 2024. The Series B Warrants are exercisable at $1.84 per share beginning September 2019 and expire in March 2021, although the Company’s board of directors has since resolved to waive the Company’s enforcement of the expiration date until June 30, 2021 and permit the holders of the Series B Warrants to exercise the Series B Warrants, and otherwise continue to be entitled to all rights pertaining to holding the Series B Warrants, until June 30, 2021. The pre-funded warrants do not expire and are immediately exercisable, except that the pre-funded warrants cannot be exercised by the holder if, after giving effect thereto, the holder would beneficially own more than 9.99% of the Company’s common stock, subject to certain exceptions.

The following table summarizes common stock activity for the nine months ended September 30, 2019 and 2018:


	Nine Months Ended
	September 30, 2019	September 30, 2018
Common stock outstanding, beginning of period	98,292,530	46,617,093
Shares issued for acquisition purchase consideration	10,265,412	—
Shares issued for warrants exercised	858,344	10,428,047
Shares issued in equity fundraises	18,852,272	2,453,400
Shares issued under share-based payment arrangements	1,960,768	1,113,791
Shares issued upon conversion of notes	84,220	387,913
Shares issued in connection with debt facility	1,175,000	—
Shares issued for settlement of accounts payable	2,436,359	119,996
Common stock outstanding, end of period	133,924,905	61,120,240

Warrants

The Company has issued warrants with varying terms and conditions related to multiple financing rounds, acquisitions, and other transactions. The following table summarizes warrant activity for the nine months ended September 30, 2019 and the year ended December 31, 2018:


	Nine Months Ended September 30, 2019	Year Ended December 31, 2018
Warrants outstanding, beginning of period	3,789,482	18,135,832
Issued	39,199,998	196,750
Exercised	(943,269)	(14,463,097)
Expired	(60,000)	(80,003)
Warrants outstanding, end of period	41,986,211	3,789,482

As of September 30, 2019 and December 31, 2018, all of the outstanding warrants have been recorded and classified as equity. As of September 30, 2019, exercise prices for the outstanding warrants range from $1.05 to $5.375; the weighted average exercise price for the warrants outstanding is $2.21; and the outstanding warrants expire from 2019 to 2026.