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Stockholders’ Equity and Stock-Based Compensation
 3 Months Ended
Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Stockholders’ Equity and Stock-Based Compensation Stockholders’ Equity and Stock-Based Compensation
Reverse Stock Split
On August 4, 2023, the Company completed a reverse stock split of its outstanding shares of common stock pursuant to which every 10 shares of issued and outstanding common stock were exchanged for one share of common stock. No fractional shares were issued in the reverse stock split. Instead, the Company paid cash (without interest) equal to such fraction multiplied by $5.90 per share (a price equal to the average of the closing sales prices of the common stock on The Nasdaq Capital Market during regular trading hours for the five consecutive trading days immediately preceding August 4, with such average closing sales prices being adjusted to give effect to a Reverse Stock Split). All share and per share amounts included within these condensed consolidated financial statements have been retrospectively adjusted to reflect the reverse stock split.
Cowen At-the-Market Facility
On March 23, 2021, the Company entered into a Sales Agreement with Cowen and Company, LLC (“Cowen”) which provides for the sale, in the Company’s sole discretion, of shares of common stock having an aggregate offering price of up to $350.0 million through or to Cowen, acting as sales agent or principal, which was amended on March 9, 2023 to decrease the maximum aggregate offering price to $200.0 million for sales made on and after the date of the amendment (the “Cowen ATM”). The Company agreed to pay Cowen a commission of up to 3.0% of the aggregate gross proceeds from each sale of shares, reimburse legal fees and disbursements and provide Cowen with customary indemnification and contribution rights. During the three months ended March 31, 2024, the Company sold approximately 11.8 million shares of common stock under the Cowen ATM at an average share price of $1.31 per share, and received gross proceeds of approximately $15.4 million before deducting offering costs of $0.4 million.
Stock Warrants
A summary of the Company’s warrant activity during the three months ended March 31, 2024 was as follows:
Shares of Stock under WarrantsWeighted-
Average
Exercise
Price		Weighted-
Average
Remaining
Contractual
Term		Aggregate
Intrinsic
Value
Outstanding at January 1, 2024
21,696,000 $4.38 4.78$— 
Granted— — — — 
Exercised— — — — 
Canceled— — — — 
Outstanding at March 31, 2024
21,696,000 $4.38 4.54$— 
Stock Options
A summary of the Company’s stock option activity during the three months ended March 31, 2024 was as follows:   
Shares of Stock under Stock OptionsWeighted-
Average
Exercise
Price		Weighted-
Average
Remaining
Contractual
Term		Aggregate
Intrinsic
Value
Outstanding at January 1, 2024
3,268,000 $24.79 7.80$3,000 
Granted51,000 1.18 — 
Exercised— — — — 
Canceled(258,000)25.47 — 
Outstanding and expected to vest at March 31, 2024
3,061,000 $24.34 7.92$— 
Vested and exercisable at March 31, 2024
1,563,000 $29.48 7.34$— 
For the three months ended March 31, 2024, the weighted-average grant date fair value of stock options granted was $0.84 per share.
Stock-Based Compensation
The Company recognized stock-based compensation expense for the periods presented as follows: 
 Three Months Ended
March 31,
20242023
Cost of product revenue$81,000 $102,000 
Cost of service and other revenue47,000 44,000 
Research and development1,171,000 1,357,000 
General and administrative1,716,000 2,379,000 
Total stock-based compensation expense$3,015,000 $3,882,000 
The weighted-average assumptions used in the Black-Scholes option pricing model to determine the fair value of the employee stock option grants during the periods presented were as follows:
Three Months Ended
March 31,
20242023
Risk-free interest rate4.0 %4.0 %
Expected volatility80.8 %72.7 %
Expected term (in years)6.16.0
Expected dividend yield0.0 %0.0 %

Restricted Stock Units and Performance Stock Units
The following table summarizes RSU activity during the three months ended March 31, 2024:
Stock UnitsWeighted- Average Grant Date Fair Value per Share
Outstanding at January 1, 2024
239,000 $16.30 
Granted— —
Released(48,000)16.30 
Forfeited(7,000)16.30 
Outstanding at March 31, 2024
184,000$16.30
The total fair value of the RSUs that vested during the three months ended March 31, 2024 was $0.8 million, determined as of the date of vesting. The weighted average remaining contractual term for the RSUs is 2.6 years as of March 31, 2024.
The following table summarizes PSU activity during the three months ended March 31, 2024:
Stock UnitsWeighted- Average Grant Date Fair Value per Share
Outstanding at January 1, 2024
29,000$47.4 
Granted——
Released— —
Forfeited——
Outstanding at March 31, 2024
29,000$47.4
During the year ended December 31, 2023, the Company reassessed the implicit service period on its performance-based stock units relative to specified revenue targets and determined that the performance conditions were met from an accounting perspective, but subject to certain certifications and approval from the Compensation Committee; therefore, the remaining
expense was accelerated as of December 31, 2023. As a result of the accelerated vesting terms, the weighted average remaining contractual term for the PSUs is 0 years as of March 31, 2024.
Executive Option Grants and RSUs
On February 15, 2023, the compensation committee of the Company’s board of directors granted various executive officers stock options to purchase an aggregate of 0.3 million shares of common stock at an exercise price of $16.30 per share, and RSUs amounting to 0.1 million shares of common stock at a grant date fair value of $16.30 per share, in each case with an effective grant date and vesting commencement date of February 15, 2023 (the “Grant Date”). These stock option grants and RSUs were issued from the 2018 Equity Incentive Plan. The shares subject to the option shall vest monthly over 48 months beginning on the one-month anniversary of the Grant Date, such that the option shall be fully vested and exercisable on the four-year anniversary of the Grant Date. The RSUs shall vest annually over four years beginning one year after the Grant Date, and the balance of the shares vest in a series of three successive equal annual installments measured from the first anniversary of the Grant Date, such that the RSU shall be fully vested on the four-year anniversary of the Grant Date.
Registered Direct Offering
On April 4, 2024, the Company entered into a securities purchase agreement (the “Purchase Agreement”) with certain institutional investors (the “Purchasers”), pursuant to which the Company agreed to issue and sell, in a registered direct offering priced at-the-market consistent with the rules of the Nasdaq Stock Market (the “Registered Direct Offering”): (i) an aggregate of 6.5 million shares of the Company’s common stock, (ii) pre-funded warrants to purchase up to an aggregate of 2.2 million shares of common stock (the “Pre-Funded Warrants”), and (iii) warrants to purchase up to 8.7 million shares of common stock (the “Purchase Warrants”). The combined purchase price of each share of common stock and accompanying Warrant is $1.15 per share. The combined purchase price of each Pre-Funded Warrant and accompanying Warrant is $1.14 (equal to the combined purchase price per share of common stock and accompanying Warrant, minus $0.001). The gross proceeds to the Company from the Registered Direct Offering was $10.0 million. The Company received net proceeds of $9.3 million after deducting placement agent fees and other offering expenses of $0.7 million payable by the Company.
Each Warrant is exercisable for one share of common stock at an exercise price of $1.02 per share. The Purchase Warrants are immediately exercisable as of the date of issuance of April 8, 2024, and will expire on the five-year anniversary of the date of issuance. The Pre-Funded Warrants are offered in lieu of shares of common stock and provide that the holder may not exercise any portion of a Pre-Funded Warrant to the extent that immediately prior to or after giving effect to such exercise the holder would own more than 4.99% (or, at the election of the holder, 9.99%) of the Company’s outstanding common stock immediately following the consummation of the Registered Direct Offering. Each Pre-Funded Warrant is exercisable for one share of common stock at an exercise price of $0.001 per share. The Pre-Funded Warrants are immediately exercisable and were exercised in full at the time of closing.