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Subsequent Events
9 Months Ended
Sep. 30, 2022
Subsequent Events [Abstract]  
Subsequent Events

(19) Subsequent Events

Subsequent events have been evaluated through the November 14, 2022 issuance date of the financial statements and there were no events that would materially impact the consolidated financial statement disclosures, except for the following:

Settlement of GEM Drawdown

On October 3, 2022, the Company settled the second draw on the GEM Agreement and received $1.7 million in cash and 280,000 shares were returned to the Company.

Corporate Restructuring

The Company implemented a restructuring plan on October 3, 2022 after an extensive review of its organization and programs and in response to current market conditions. In connection with this restructuring plan the Company reduced staff by 11%, from 141 to 126 full-time employees, pursuant to which it expects to incur severance expenses of approximately $130 thousand. The Company expects to substantially complete this workforce reduction by the end of December 2022.

Reverse Stock Split

On October 6, 2022, the Company effected a 1-for-20 reverse stock split of its Common Stock. The accompanying condensed consolidated financial statements and footnotes retroactively reflect the impact of this reverse stock split on the Company’s Common Stock and per share amounts.

Underwritten Public Offering

On October 30, 2022, the Company entered into an Underwriting Agreement (the “Underwriting Agreement”) with Maxim Group LLC (the “Underwriter”), pursuant to which the Company agreed to issue and sell, in a registered public offering, (the “Public Offering”), 9,800,000 Units, with each Unit consisting of one share of Common Stock and two warrants with a term of five years (each, a “Unit Warrant”) to purchase one share of Common Stock at an exercise price per share of $1.70, with each Unit to be offered to the public at an offering price of $1.70 per Unit (the “Units”).

In addition, pursuant to the Underwriting Agreement, the Company granted the Underwriter a 30-day option (the “Overallotment Option”) to purchase up to (i) 1,470,000 additional shares of Common Stock and/or (ii) 2,940,000 additional warrants, solely to cover over-allotments. The Underwriter partially exercised the Overallotment Option on October 31, 2022 to purchase 2,940,000 additional warrants to purchase up to 2,940,000 shares of Common Stock (the “Option Warrants”). The Company also issued warrants to the Underwriter to purchase up to a total of 392,000 shares of Common Stock (equal to 4.0% of the total number of Units sold in the offering) (the “Underwriter’s Warrants”). The Underwriter’s Warrants are exercisable at a per share price of $1.87 on April 28, 2023 and will expire on the five-year anniversary of such date.

On November 2, 2022, the Public Offering closed for gross proceeds of $16.7 million, and the Company issued and sold (i) 9,800,000 Units consisting of (a) 9,800,000 shares of Common Stock, and (b) 19,800,000 Unit Warrants, and (ii) an additional 2,940,000 Option Warrants. Net proceeds to the Company, after deducting the underwriting discounts and commissions and estimated offering expenses payable by the Company, were approximately $15.4 million.