Stockholders' Equity

3 Months Ended

Mar. 31, 2023

Stockholders' Equity

Stockholders' Equity

Note 9. Stockholders’ Equity

Common and Preferred Stock Warrants

In connection with various financing transactions, the Company has issued warrants to purchase shares of the Company’s common stock and preferred stock. The Company accounts for common and preferred stock warrants as equity instruments or liabilities, depending on the specific terms of the warrant agreement.

In connection with the Aceragen Acquisition, the Company issued warrants to Legacy Aceragen warrant holders to purchase shares of its common stock and Series Z Preferred Stock. The Series Z Preferred Stock warrants are liability classified and remeasured at each reporting period until the warrants are exercised, reclassified, expire, or otherwise settled.

The following table summarizes outstanding warrants to purchase shares of the Company’s common stock and/or preferred stock as of March 31, 2023 and December 31, 2022:

	Number of Warrants
	March 31,	December 31,	Weighted-Average
Description	2023	2022	Exercise Price		Expiration Date
Equity-classified warrants:
May 2013 warrants	908	908		$ 1.36	None
September 2013 warrants	241	241		$ 1.36	None
February 2014 warrants	128	128		$ 1.36	None
April 2020 Private Placement first closing warrants	178,794	178,794		$ 38.76	Apr 2023
April 2020 Private Placement second closing warrants	80,801	80,801		$ 46.07	Dec 2023
July 2020 Private Placement first closing warrants	162,601	162,601		$ 43.86	Jul 2023
Assumed Legacy Aceragen warrants	915,772	79,596		$ 7.82	Mar 2031
	1,339,245	503,069
Liability-classified warrants:
Assumed Legacy Aceragen Series Z Warrants (1)	—	14,215		$ 460.00	Mar 2031
	—	14,215
Total outstanding	1,339,245	517,284

The table below is a summary of the Company's warrant activity for the three months ended March 31, 2023.

	Number of Warrants
	Common	Series Z		Weighted-Average
	Warrants	Warrants	Total	Exercise Price (1)
Outstanding at December 31, 2022	503,069	14,215	517,284	$	17.58
Issued	—	—	—		—
Exercised	—	—	—		—
Expired	—	—	—		—
Conversion	836,176	(14,215)	821,961		7.82
Outstanding at March 31, 2023	1,339,245	—	1,339,245	$	17.58

(1) During the three months ended March 31, 2023, the Company’s Series Z Preferred Stock Warrants were converted into warrants to purchase common stock.

“At-The-Market" Equity Program

In November 2018, the Company entered into an Equity Distribution Agreement (the “ATM Agreement”) with JMP Securities LLC (“JMP”) pursuant to which the Company may issue and sell shares of its common stock through JMP as its agent. During each of the three months ended March 31, 2023 and 2022, the Company sold no shares of common stock pursuant to the ATM Agreement.