Quarterly report pursuant to Section 13 or 15(d)

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)

9 Months Ended

Sep. 30, 2017

During the nine months ended September 30, 2017, 1,175,796 shares were issued pursuant to cash and cashless warrant exercises as detailed below. Generally, the warrants specify using the preceding five-day average of closing prices for the Company’s common stock in the calculation of common stock to be issued pursuant to a cashless exercise.

Date of		Average Closing				Warrant		Common
Warrant		Market Price		Exercise Price		Shares		Shares
Exercise		Per Share		Per Share		Exercised		Issued

	2/10/2017	$	11.016	$	0.0034375		392,728		392,605
	2/13/2017	$	13.062	$	3.00		25,119		19,349
	2/13/2017	$	13.062	$	6.00		72,420		39,154
	2/15/2017	$	16.768	$	6.00		65,177		41,856
	2/16/2017	$	16.768	$	6.00		35,000		22,470
	3/17/2017	$	20.262	$	6.00		2,500		2,500
	3/20/2017	$	20.304	$	3.00		226,068		192,666
	3/20/2017	$	20.304	$	6.00		586,596		413,253
	4/3/2017	$	19.148	$	0.0034375		43,636		43,628
	4/11/2017	$	17.920	$	6.00		12,500		8,315

							1,461,744		1,175,796

Schedule of warrants outstanding

Warrants to purchase shares of the Company’s common stock at a weighted average exercise price of $8.45 per share are as follows.

Exercise Price		Expiration		Shares Subject to purchase
per Share		Date		at September 30, 2017

$	7.12		5/18/2018		702,247
$	9.00		5/18/2019		1,605,131
$	10.00		11/21/2019		33,450
					2,340,828

Schedule of the allocation of stock-based compensation

The stock-based compensation expense attributable to option grants was allocated as follows:

	Three months ended September 30,				Nine months ended September 30,
	2017		2016		2017		2016
Cost of product sales	$	17	$	—	$	41	$	—
Research and development cost		62		120		222		226
General and administrative expense		46		40		329		672
Total	$	125	$	160	$	592	$	898

Schedule of assumptions used in the black-scholes-Merton option-pricing model

The following assumptions were used in the Black-Scholes-Merton pricing model to estimate the fair value of options granted during the periods presented.

	Three months ended September 30,						Nine months ended September 30,
	2017			2016			2017			2016

Expected stock volatility		70.7% - 71.4	%		72.9% - 73.9	%		70.7% - 72.7	%		72%-80	%
Risk free interest rate		1.50% - 1.65	%		0.92% - 1.02	%		1.38% - 1.79	%		0.92%-1.77	%
Expected years until exercise		3.5			3.5			2.5-3.5			2.5-3.5
Dividend yield		0	%		0	%		0	%		0	%

- Definition

Tabular disclosure of warrants or rights issued. Warrants and rights outstanding are derivative securities that give the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue to entice investors by a higher return potential. The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months. Disclose the title of issue of securities called for by warrants and rights outstanding, the aggregate amount of securities called for by warrants and rights outstanding, the date from which the warrants or rights are exercisable, and the price at which the warrant or right is exercisable.

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