WARRANT DERIVATIVE LIABILITY

12 Months Ended

Dec. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Warrant Derivative Liability

WARRANT DERIVATIVE LIABILITY

In connection with the Company’s August 2019 Public Offering, the Company issued immediately exercisable warrants ("Series 1 warrants") to purchase up to 5,750,000 shares of common stock and, under certain circumstances, each warrant to purchase 10 shares of common stock will be exercisable, at the irrevocable election of the holder, for one share of Series 1 Preferred Stock. The Company recorded the Series 1 warrants as a derivative liability in the accompanying consolidated balance sheet and is measured at fair value using a binomial model with gains or losses recognized in the consolidated statement of operations and comprehensive loss at the end of each reporting period. Offering expenses arising from the issuance of warrants were expensed as incurred.

The following table reflects the fair value roll forward reconciliation of the warrant derivative liability for the year ended December 31, 2019:

(in thousands)	Warrant Derivative Liability
Fair value of Series 1 warrants at the date of issuance, August 21, 2019	$	32,992
Change in fair value	19,192
Fair value at December 31, 2019	$	52,184