|6 Months Ended|
Jun. 30, 2020
|Subsequent Events [Abstract]|
10. Subsequent Events
Termination of Oral Mucositis Development Program and ECC. On July 9, 2020, the Company determined to cease further development of AG013 for the treatment of oral mucositis discontinued the Phase 2 trial and withdrew the applicable Investigational New Drug application. The Company, Precigen, Inc. (“Precigen”) and Precigen’s wholly owned subsidiary, also mutually agreed to terminate the Exclusive Channel Collaboration (“ECC”) agreement for AG013 as a treatment of severe oral mucositis in cancer patients. The Company expects to continue to comply with any applicable regulatory requirements with respect to the discontinuation of the clinical trial.
Warrant Exercises. Between June 30, 2020 and July 28, 2020 the Company issued an additional 5,632,115 shares of common stock as a result of the exercise of certain outstanding warrants as follows: (i) an additional 750,000 warrants of the Company’s previously reported remaining outstanding warrants to acquire 4,294,500 shares of Common Stock at an exercise price of $1.00 per share issued in connection with its July 2018 public offering (the “2018 Warrants”), were exercised and (ii) 4,882,115 warrants of the Company’s previously reported outstanding warrants to acquire 9,583,334 shares of Common Stock at an exercise price of $0.90 per share issued in connection with its March 2019 public offering (the “2019 Warrants”), were exercised (the “Warrant Exercises”). The Warrant Exercises provided aggregate gross proceeds to the Company of $5,143,903.
Additional Consideration Payment – NTI Acquisition. As a result of the Warrant Exercises, the Company paid $1,216,281 of additional consideration to the sole former shareholder of NTI. The additional consideration payment will be included in operating expenses.
The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef