Note 14 - Stockholders' Equity

9 Months Ended

Sep. 30, 2021

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

14. Stockholders’ Equity

On  February 19, 2021, the Company entered into a Securities Purchase Agreement (the "Purchase Agreement") for the sale of 2,000,000 shares (the "Registered Direct Shares") of common stock at a purchase price of $7.00 per share, in a registered direct offering. The closing of the sale of the Registered Direct Shares under the Purchase Agreement occurred on February 23, 2021. The gross proceeds to the Company from the transaction were $14 million, before deducting the placement agent’s fees and other estimated offering expenses. Under the Company’s engagement letter with H.C. Wainwright & Co., LLC ("Wainwright"), pursuant to which Wainwright agreed to serve as exclusive placement agent for the issuance and sale of the Registered Direct Shares, the Company also issued to designees of Wainwright warrants to purchase up to 150,000 shares of Common Stock (the "Placement Agent Warrants"). Subject to certain ownership limitations, the Placement Agent Warrants are immediately exercisable at a price of $8.75 per share of Common Stock, subject to customary adjustments as provided under the terms of the Placement Agent Warrants. The Placement Agent Warrants are exercisable for five years from the commencement of sales of the shares being offered.

Following the closing of the Merger, Wainwright notified the Company of its election to cause the Company to repurchase the Placement Agent Warrants, as well as another series of warrants issued to Wainwright in 2020, for an amount of cash equal to the Black Scholes Value, as determined under the terms of the Placement Agent Warrants. The Company is in discussions with Wainwright about Wainwright’s purported exercise of the repurchase right.

The Company has granted options to employees and Board members to purchase shares of common stock. The following is a summary of option award activity during the nine months ended September 30, 2021:

	Total Stock Options Outstanding			Weighted Average Exercise Price per Share
December 31, 2020		76,064		$	27.35
Granted		—			—
Vested		—			—
Forfeited, Canceled		(30,596	)		46.77
September 30, 2021		45,468		$	14.28

The following is a summary of outstanding stock options as of September 30, 2021:

	As of September 30, 2021
	Stock Options Outstanding		Vested Stock Options
Quantity		45,468		45,468
Weighted Average Exercise Price	$	14.28	$	14.28
Weighted Average Remaining Contractual Term (in Years)		2.76		2.76
Intrinsic Value	$	—	$	—

For the nine months ended September 30, 2021 and 2020, the Company granted no stock options.

As of September 30, 2021, there was no total compensation cost not yet recognized related to unvested stock options.

As of September 30, 2021, there are 1,387,368 restricted stock units outstanding to employees from the old Cytocom plan.