XML 33 R22.htm IDEA: XBRL DOCUMENT v3.7.0.1
Subsequent Events
3 Months Ended
Mar. 31, 2017
Subsequent Events [Abstract]  
Subsequent Events

Note 15. Subsequent Events

 

Cantor Fitzgerald & Co. Market Offering

 

On April 13, 2017, the Company entered into a Controlled Equity Offering Sales Agreement (the “Sales Agreement”) with Cantor Fitzgerald & Co., as sales agent (“Cantor Fitzgerald”), pursuant to which the Company may offer and sell, from time to time, through Cantor Fitzgerald, shares of the Company’s common stock, par value $0.001 per share, having an aggregate offering price of up to $20.0 million (the “ATM Offering”). The shares are being offered and sold pursuant to the Company’s shelf registration statement on Form S-3 (File No. 333-216977), which was filed with the SEC in March 2017 and became effective in April 2017. Under the Sales Agreement, Cantor Fitzgerald may sell shares by any method deemed to be an “at the market offering” as defined in Rule 415 under the Securities Act of 1933, as amended, or any other method permitted by law.

 

As of May 12, 2017, the Company has sold 1,775,367 shares of common stock under the ATM Offering at then-market prices for total gross proceeds of approximately $10.0 million. After sales commissions and other expenses payable by the Company in connection with the ATM Offering, the Company’s aggregate net proceeds through May 12, 2017 were approximately $9.6 million.

 

Legal fees incurred in connection with the S-3 offering of approximately $77,700 have been capitalized as deferred offering costs in the condensed balance sheets as of March 31, 2017.

 

Nasdaq Market Transfer

 

The Company’s common stock is currently listed on The NASDAQ Capital Market under the symbol “HTGM.” Effective April 17, 2017, the listing of the Company’s common stock was transferred to The NASDAQ Capital Market from The NASDAQ Global Market following the Company’s appeal to a NASDAQ Hearings Panel (“Panel”) of the delisting notice received from NASDAQ on February 14, 2017. On April 12, 2017, the Panel found the Company in compliance with the applicable market value of listed securities (MVLS) requirement for listing on The NASDAQ Capital Market. Notwithstanding this result, there can be no assurance that the Company will be able to maintain compliance with the continued listing requirements, including the MVLS requirement, of The NASDAQ Capital Market.

 

Compensatory Arrangements of Certain Officers

 

On April 13, 2017, the Company’s Board of Directors approved a performance-based retention and incentive bonus award (“Bonus Award”) aggregating approximately $302,000 for the Company’s named executive officers. The Bonus Awards are, in part, in consideration of the Company’s performance during 2016, but are expressly conditioned upon the completion by the Company of a financing transaction, or series of related financing transactions, in which the Company raises aggregate gross proceeds in excess of $12.0million and with respect to each named executive officer, his continued employment through the completion of such financing transaction(s) (the “Financing Goal”). No Bonus Awards will be earned or paid if the Financing Goal does not occur. Because payment of the Bonus Awards is expressly conditioned on the Financing Goal, compensation expense related to the Bonus Awards, in excess of the amount accrued as of December 31, 2016 (which accrual was based in part on the determination by the Company’s Board of Directors that the 2016 corporate goals had been achieved at an aggregate level of 47.5%), will be recognized upon consummation of the Financing Goal.