v3.22.2.2
Common Stock
 9 Months Ended
Sep. 30, 2022
Equity [Abstract]  
Common Stock

8. Common Stock

As of September 30, 2022, the Company had reserved the following shares of common stock for future issuance:

 

Options issued and outstanding under the 2019 Equity Incentive Plan and
   2015 Stock Plan

 

 

2,972,047

 

Restricted stock units issued and outstanding under the 2019 Equity
   Incentive Plan

 

 

27,000

 

Options available for future grants under the 2019 Equity Incentive Plan

 

 

2,850,944

 

Pre-funded warrants issued and outstanding

 

 

4,000,000

 

Shares reserved under the 2019 Employee Stock Purchase Plan

 

 

518,870

 

Total

 

 

10,368,861

 

 

During the three and nine months ended September 30, 2022, the Company sold 209,349 shares of common stock in “at the market” offerings pursuant to the Controlled Equity OfferingSM Sales Agreement with Cantor Fitzgerald & Co. and Stifel, Nicolaus & Company, Incorporated (the “ATM Sales Agreement”), for net proceeds of $5.0 million after deducting commissions and other offering related costs. As of September 30, 2022, there was up to $85.7 million available for future issuance of shares of common stock under the ATM Sales Agreement.

In May 2022, through a private placement financing (“PIPE financing”), the Company issued pre-funded warrants to purchase an aggregate of 4,000,000 shares of the Company’s common stock. Each pre-funded warrant has an exercise price of $0.0001 per share. The purchase price per pre-funded warrant was $12.4999 (representing the $12.50 per share closing price of the common stock on May 24, 2022, less the exercise price of $0.0001 per pre-funded warrant). The PIPE financing resulted in net proceeds of $49.8 million, after deducting $0.2 million of offering expenses. As of September 30, 2022, all the pre-funded warrants issued in the PIPE financing were outstanding.

The pre-funded warrants provide that the holder will not have the right to exercise any portion of the pre-funded warrants if such holder, together with its affiliates, would beneficially own in excess of 9.99% of the number of shares of the Company's common stock outstanding immediately after giving effect to such exercise (the “Beneficial Ownership Limitation”); provided, however, that the holder may increase or decrease the Beneficial Ownership Limitation by giving 61 days’ notice to the Company, but not to any percentage in excess of 19.99%.

The pre-funded warrants were classified as a component of permanent equity in the Company's condensed consolidated balance sheet as they are freestanding financial instruments that are immediately exercisable, do not embody an obligation for the Company to repurchase its shares and permit the holders to receive a fixed number of shares of common stock upon exercise.