7. Warrants

As of December 31, 2018, outstanding warrants to purchase common stock consisted of the following:


December 31, 2018
	Number of Shares
Date Exercisable	Issuable	Exercise Price		Exercisable for	Classification
1/23/2017	54,516	$	0.01	Common Stock	Equity
11/14/2017	2,758,094		6.085	Common Stock	Liability
	2,812,610

2017 Warrants

On November 14, 2017, in connection with the Private Placement (see Note 9), the Company issued immediately exercisable warrants to purchase 2,958,094 shares of common stock to investors. The warrants had an initial exercise price of $6.085 per share, and expire on November 14, 2024. During the year ended December 31, 2018, 200,000 warrants were exercised resulting in gross proceeds to the Company of $1,217.

The warrants contain full ratchet anti-dilution protection provisions. The Company classifies the warrants as a liability on its consolidated balance sheet because each warrant represents a freestanding financial instrument that, due to the potential variable nature of the exercise price, is not considered to be indexed to the Company’s own shares. The warrant liability was initially recorded at fair value upon entering into the Private Placement and is subsequently remeasured to fair value at each reporting date. Changes in the fair value of the warrant liability are recognized as a component of other income (expense), net in the Company’s consolidated statement of operations. Changes in the fair value of the warrant liability will continue to be recognized until the warrants are exercised, expire or qualify for equity classification.

As a result of the consummation of the February 2019 Public Offering, the exercise price of the 2017 Warrants automatically was adjusted pursuant to, and in accordance with, their terms, to $1.75 per share.

The fair value of the warrant liability was determined to be $12,335 on the date of issuance. The Company remeasured the liability as of December 31, 2017 and determined that the fair value of the warrant liability was $11,862, resulting in income of $473 recorded in the consolidated statements of operations for the year ended December 31, 2017. As of December 31, 2018, the fair value of the warrant liability was $3,448, resulting in income of $7,284 recorded in the consolidated statements of operations for the year ended December 31, 2018.