Stockholder's Equity

Common Stock

During the year ended December 31, 2019

Common Stock

During the year ended December 31, 2019 the Company issued 299,167 shares of Common Stock as a result of employee stock option exercises presented in the tables below, and received net cash proceeds of approximately $2.7 million.

During the year ended December 31, 2019, the Company issued 19,122 shares of its Common Stock in relation to the cashless exercise of stock options that were granted outside of the Company's 2017 Long-Term Incentive Stock Plan (the "2017 Plan"). A total of 80,000 stock options were exercised with exercise prices between $10.00 and $15.00 per share.

During the year ended December 31, 2019, the Company issued 11,000 shares of its Common Stock as a result of the exercise of stock purchase warrants with an exercise price of $10.00 per share for total proceeds of $110,000.

During the year ended December 31, 2019 the Company issued 11,788 shares of its Common stock with an aggregate value of $160.9 thousand for services provided to the Company.

During the year ended December 31, 2018

During the year ended December 31, 2018, the Company issued 50,497 shares of its Common Stock in relation to the cashless exercise of stock options that were granted outside of the Company's 2017 Long-Term Incentive Stock Plan (the "2017 Plan"). A total of 95,000 stock options were exercised with exercise prices between $7.25 and $10.00 per share.

During the year ended December 31, 2018, the Company issued 3,400 shares of its Common Stock as a result of the exercise of stock purchase warrants with an exercise price of $10.00 per share for total proceeds of $34,000.

During the year ended December 31, 2018 the Company issued 38,166 shares of its Common stock with an aggregate value of $782 thousand for services provided to the Company.

On September 5, 2018, the Company also issued 160,000 shares of Common Stock to Valour Fund, LLC, as a result of Valour's exercise of its option to exchange its interest in certain product revenues for Common Stock of the Company.

On December 18, 2018, the Company issued 6,498 shares of its Common Stock to Torreya. These shares were issued as payment in full for a $100 thousand accrued liability owed by the Company to Torreya pursuant to that certain Supplemental Engagement Letter between the Company and Torreya, dated September 8, 2017 (the "Supplemental Engagement Letter").

During October 2017 the Company entered into a Controlled Equity Offering sales agreement (the "Sales Agreement") with Cantor Fitzgerald & Co., as agent ("Cantor Fitzgerald"), pursuant to which the Company may offer and sell, from time to time through Cantor Fitzgerald, shares of Common Stock having an aggregate offering price as set forth in the Sales Agreement and a related prospectus supplement filed with the SEC on March 19, 2018. The Company agreed to pay Cantor Fitzgerald a cash commission of 3.0% of the aggregate gross proceeds from each sale of shares under the Sales Agreement.

During the year ended December 31, 2018 under the Sales Agreement with Cantor, the Company sold 239,270 shares of Common Stock for gross proceeds of $4.31 million and received net proceeds of $4.18 million after deducting sales commissions.

On September 27, 2018, the Company also completed a registered public offering with Cantor Fitzgerald as underwriter and sold 811,764 shares its Common stock (including 105,882 shares purchased by Cantor Fitzgerald upon the exercise in full of its right to purchase up to an additional 105,882 shares to cover over-allotments) at a price of $17.00 per share. The Company received approximately $13.0 million of net proceeds from the offering after deducting sales commissions.

Stock Options

On September 8, 2017, the Company held its Annual Meeting of Stockholders (the “Annual Meeting”), at which time the 2017 Plan was approved by stockholder vote. The 2017 Plan allows the Company to grant both incentive stock options (“ISOs”) and non-qualified stock options (“NSOs”) to purchase a maximum of 400,000 shares of the Company's Common Stock. Under the terms of the 2017 Plan, ISOs may only be granted to Company employees and directors, while NSOs may be granted to employees, directors, advisors, and consultants. The Board has the authority to determine to whom options will be granted, the number of options, the term, and the exercise price. Options are to be granted at an exercise price not less than fair value for an ISO or an NSO. The vesting period is normally over a period of four years from the vesting date. The contractual term of an option is no longer than ten years. As of December 31, 2019, the Company had 136,295 shares available for future issuance under the 2017 Plan.

Prior to adopting the 2017 Plan, the Company did not have a formal long-term incentive stock plan. Prior to the implementation of the 2017 Plan, the Company had discretion to provide designated employees of the Company and its affiliates, certain consultants, and advisors who perform services for the Company and its affiliates, and non-employee members of the Board and its affiliates with the opportunity to receive grants of non-qualified stock options (the "Pre-2017 Non-Qualified Stock Options"). All of the Pre-2017 Non-Qualified Stock Option Grants were intended to qualify as non-qualified stock options. There were no Pre-2017 Non-Qualified Stock Option Grants that were intended to qualify as incentive stock options.

Stock option activity for the Pre-2017 Non-Qualified Stock Options for the years ended December 31, 2019 and 2018, is presented in the table below:



	Number of Shares		Weighted- average Exercise Price		Weighted- average Remaining Contractual Term (years)	Aggregate Intrinsic Value
Outstanding at December 31, 2017	2,980,500		$	7.33	7.06	$	46,606,210
Exercised	(95,000	)	$	8.24
Forfeited	—		$	—
Outstanding at December 31, 2018	2,885,500		$	7.30	6.04	$	20,633,100
Exercised	(379,167	)	$	9.03
Forfeited	(5,833	)	$	10.00
Outstanding at December 31, 2019	2,500,500		$	7.03	5.05	$	18,426,235
Exercisable at December 31, 2019	2,454,390		$	6.98	5.10	$	18,212,329

A summary of the status of the Company's vested and non-vested Pre-2017 Non-Qualified Stock Options as of December 31, 2019 and 2018, are presented below:



	Number of Options	Weighted Average Grant Date Fair Value
Vested at December 31, 2018	150,552	$	7.92
Non-vested at December 31, 2018	138,350	$	7.84

Vested at December 31, 2019	86,407	$	7.84
Non-vested at December 31, 2019	46,110	$	7.71

During the years ended December 31, 2019 and 2018, the Company recognized approximately $0.2 million and $0.9 million of non-cash expense related to vested Pre-2017 Non-Qualified Stock Options granted in prior periods. As of December 31, 2019, there was $1,235 of unrecognized compensation costs related to non-vested stock options.

The 2017 Plan

The assumptions used in the valuation of options granted under the 2017 Plan during the years ended December 31, 2019 and 2018 were as follows:



	Year Ended December 31, 2019		Year Ended December 31, 2018
Market value of stock on measurement date	$11.26 to $15.65		$14.31 to $24.84
Risk-free interest rate	1.67 % to 2.57%		2.47 % to 3.05%
Dividend yield	—	%	—	%
Volatility factor	104% to 139%		121% to 324%
Term (years)	5.5 to 6.25		5.5 to 10.0

Stock option activity for options granted under the 2017 Plan during the years ended December 31, 2019 and 2018 is presented in the table below:



	Number of Shares Outstanding		Weighted- average Exercise Price		Weighted- average Remaining Contractual Term (years)	Aggregate Intrinsic Value
Outstanding at December 31, 2017	174,000		$	34.78	9.71	$	14,430
Granted	196,550		$	23.26
Expired	—
Forfeited	(27,000	)	$	24.84
Balance at December 31, 2018	343,550		$	28.97	8.95	840
Granted	193,700		$	13.82
Expired	—
Forfeited	(45,300	)	$	17.90
Balance at December 31, 2019	491,950		$	24.08	8.43	$	81,888

A summary of the status of the Company’s vested and non-vested options granted under the 2017 Plan as of December 31, 2019 and 2018 are presented in the following table:



	Number of Shares	Weighted Average Grant Date Fair Value Per Share
Non-vested at December 31, 2018	288,047	$	27.62
Vested at December 31, 2018	55,503	$	34.66

Non-vested at December 31, 2019	299,590	$	20.35
Vested at December 31, 2019	192,360	$	27.67

During the year ended December 31, 2019 and 2018, the Company recognized approximately $3.0 million and $4.9 million of non-cash expense related to vested options granted during these periods. As of December 31, 2019, there was approximately $2.4 million of unrecognized compensation costs related to non-vested stock options that were granted under the 2017 Plan.

Restricted Stock Units

Restricted stock activity during the year ended December 31, 2019 is presented in the following table.

During the year ended December 31, 2019, the Company recognized approximately $68.0 thousand of non-cash expense related to restricted stock.

Warrants

Warrant activity for the years ended December 31, 2019 and 2018 is presented in the table below:



	Number of Warrants		Weighted- average Exercise Price		Weighted- average Remaining Contractual Term (years)	Aggregate Intrinsic Value
Outstanding at December 31, 2017	357,010		$	9.78	5.57	$	4,708,020
Exercised	(3,400	)	$	10.00
Outstanding at December 31, 2018	353,610		$	9.78	4.60	$	1,651,165
Exercised	(11,000	)	$	10.00
Outstanding at December 31, 2019	342,610		$	9.77	3.71	$	1,585,084

Number of Shares

Grant Date Fair Value Per Share

Restricted stock units outstanding and non-vested