Stockholder's Equity

9 Months Ended

Sep. 30, 2020

11. Stockholder’s Equity

Authorized Stock

As of December 31, 2019, the Company had authorized capital of 81,244,834 shares of stock, consisting of 49,019,607 shares of common stock, par value $0.001 per share, and 32,225,227 shares of Preferred Stock, par value $0.001 per share, 6,299,019 of which were designated Series A Preferred Stock, 11,270,319 of which were designated Series B Preferred Stock and 14,655,889 of which were designated Series C Preferred Stock.

Upon the closing of the IPO in May 2020, and as of September 30, 2020, the Company had authorized 310,000,000 shares of stock, of which 300,000,000 shares are designated as common stock and 10,000,000 shares are designated as preferred stock. All stock has a par value of $0.001 per share. There are no shares of preferred stock outstanding as of September 30, 2020.

Warrants

The Company previously issued common stock warrants and redeemable convertible preferred stock warrants.

Warrants issued and outstanding as of September 30, 2020 are as follows:

	Warrants Outstanding
	Number of warrants		Exercise Price		Expiration
Common stock warrants		179,558	$	1.67	4/28/2026 - 3/30/2027
Total outstanding warrants		179,558

Warrants issued and outstanding as of December 31, 2019 were as follows:

	Warrants Outstanding
	Number of warrants		Exercise Price		Expiration
Common stock warrants		27,810	$	0.14	10/19/2025
Series A preferred stock warrants		77,030	$	1.43	12/10/2021
Series B preferred stock warrants		179,558	$	1.67	4/28/2026 - 3/30/2027
Total preferred stock warrants		256,588
Total outstanding warrants		284,398

The Series A and Series B redeemable convertible preferred stock warrants (“Preferred Warrants”) allowed the holders to obtain shares of redeemable convertible preferred stock that contain a liquidation preference. Because this liquidation preference may have been payable in cash upon a change in control of the Company or upon exercise of redemption rights and because such a transaction was considered to be outside of the control of the Company, the Preferred Warrants were classified as liabilities on the accompanying balance sheets and were presented at their estimated fair values at each reporting date. On the completion of the IPO, all the outstanding Preferred Warrants were converted into warrants to purchase an aggregate of 256,588 shares of common stock, which resulted in the reclassification of the convertible preferred stock warrant liability to additional paid-in capital.

In June 2020, 27,810 common stock warrants were exercised for cash. In addition, 77,030 warrants were net exercised and the Company issued 74,723 shares of common stock.

The fair value of the Preferred Warrants was determined using the Black Scholes option pricing model with the following assumptions:

	May 21, 2020 (1)						December 31, 2019
	Series A			Series B			Series A			Series B
Expected volatility		51.10	%		50.00	%		41.40	%		39.80	%
Preferred stock fair value (per share)	$	19.00		$	19.00		$	5.88		$	5.94
Dividend yield		0.00	%		0.00	%		0.00	%		0.00	%
Risk free interest rates		0.17	%		0.53	%		1.58	%		1.83	%
Expected remaining term in years		1.55		5.94-6.86				1.95		6.33-7.25

(1) Date the Company’s registration statement on Form S-1 was declared effective