v3.26.1
Stockholders' Equity
6 Months Ended
Jun. 30, 2026
Equity [Abstract]  
Stockholders' Equity

Note 6 – Stockholders’ Equity

At-The-Market Offering

In November 2024, the Company entered into a sales agreement under which the Company may offer and sell shares of its common stock having an aggregate offering price of up to $75.0 million through "at-the-market" offerings (the ATM), pursuant to its shelf registration statement on Form S-3 (File No. 333-270760), which became effective in April 2023. The Company did not sell any shares of common stock under the ATM during the three and six months ended June 30, 2026 or during the three months ended June 30, 2025. During the six months ended June 30, 2025, the Company sold 161,645 shares of common stock under the ATM, for which the Company received net proceeds of approximately $1.9 million, after deducting commissions, fees and expenses.

Underwritten Offering

In May 2026, the Company issued and sold 3,358,602 shares of common stock and pre-funded warrants to purchase up to 415,000 shares of common stock in an underwritten offering. The offering price per share of common stock was $26.50, while the purchase price per pre-funded warrant was $26.499. In addition, the Company granted the underwriters a 30-day option to purchase up to 566,040 shares of common stock on the same terms, which was exercised in full in May 2026. The Company received aggregate gross proceeds of $115.0 million and net proceeds of approximately $108.1 million, after deducting underwriting discounts, commissions and estimated offering expenses payable by the Company.

Warrants

The following warrants and pre-funded warrants to purchase shares of the Company's common stock were issued and outstanding:

Issue Date

 

Exercisable Date

 

Expiration Date

 

Exercise Price per Share

 

 

June 30,
2026

 

 

December 31,
2025

 

6/16/2024

 

6/16/2024

 

6/18/2029

 

$

17.00

 

 

 

634,500

 

 

 

634,500

 

6/17/2024

 

6/17/2024

 

6/18/2029

 

$

17.00

 

 

 

179,500

 

 

 

179,500

 

8/11/2025

 

8/11/2025

 

No expiration

 

$

0.001

 

 

 

1,040,820

 

 

 

1,040,820

 

8/11/2025

 

8/11/2025

 

8/11/2030 (1)

 

$

21.60

 

 

 

4,209,187

 

 

 

4,209,187

 

8/11/2025

 

11/15/2026 (2)

 

12/31/2026 (2)

 

$

21.60

 

 

 

4,464,290

 

 

 

4,464,290

 

5/26/2026

 

5/26/2026

 

No expiration

 

$

0.001

 

 

 

415,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10,943,297

 

 

 

10,528,297

 

(1)
These Class A warrants will expire 30 days following the public announcement that the Company completed enrollment (of at least 200 patients total) in the Phase 2 clinical study evaluating 5366 versus valacyclovir if prior to August 11, 2030.
(2)
These Class B warrants will be cancelled if the Company publicly announces the receipt of at least $75.0 million in the aggregate of non-dilutive capital in connection with a collaboration agreement prior to November 15, 2026.

The warrants and pre-funded warrants are equity classified because they are freestanding financial instruments that are legally detachable and separately exercisable from the equity instruments, do not embody an obligation for the Company to repurchase its shares, permit the holders to receive a fixed number of common shares upon exercise, are indexed to the Company’s common stock and meet the equity classification criteria. In addition, such warrants and pre-funded warrants do not provide any guarantee of value or return.

Holders of all warrants and pre-funded warrants cannot exercise any portion of the warrants to the extent they would beneficially own more than the limits defined in the warrant agreements. The exercise price and number of shares of the Company's common stock issuable upon the exercise of the warrants are subject to adjustment in the event of any stock dividends and distributions, stock splits, stock combinations or stock reclassifications, as described in the
respective warrant agreements. Under certain circumstances, the warrants may be exercised on a “cashless” basis.
No warrants were exercised during the three and six months ended June 30, 2026 and 2025. In July 2026, holders exercised 510,205 Class A warrants, generating proceeds to the Company of approximately $11.0 million.