☒ |
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
☐ |
TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
California
(State or other jurisdiction of
incorporation or organization)
|
87-0673375
(I.R.S. Employer Identification No.)
|
|
1330 Lake Robbins Drive, Suite 250
The Woodlands, TX
(Address of Principal Executive Offices)
|
77380
(Zip Code)
|
Large accelerated filer ☐
|
Accelerated filer ☐
|
Non-accelerated filer ☒
|
Smaller reporting company ☒
|
Emerging growth company ☐
|
Title of each class
|
Trading symbol
|
Name of each exchange on which registered
|
||
Common Stock, no par value per share
|
RIBT
|
The NASDAQ Capital Market
|
PART I. FINANCIAL INFORMATION
|
Page
|
||
Item 1.
|
3
|
||
3 |
|||
4 |
|||
5 |
|||
6 | |||
7 | |||
Item 2.
|
18
|
||
Item 3.
|
20
|
||
Item 4.
|
20
|
||
PART II. OTHER INFORMATION
|
|||
Item 1.
|
20 | ||
Item 1A.
|
20
|
||
Item 2.
|
20
|
||
Item 3.
|
21
|
||
Item 4.
|
21
|
||
Item 5.
|
21
|
||
Item 6.
|
21
|
||
22
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
2020
|
2019
|
2020
|
2019
|
|||||||||||||
Revenues
|
$
|
5,903
|
$
|
6,219
|
$
|
14,233
|
$
|
12,583
|
||||||||
Cost of goods sold
|
7,127
|
6,463
|
15,862
|
12,484
|
||||||||||||
Gross profit (loss)
|
(1,224
|
)
|
(244
|
)
|
(1,629
|
)
|
99
|
|||||||||
Selling, general and administrative expenses
|
2,615
|
3,422
|
5,165
|
6,763
|
||||||||||||
Operating loss
|
(3,839
|
)
|
(3,666
|
)
|
(6,794
|
)
|
(6,664
|
)
|
||||||||
Other income (expense):
|
||||||||||||||||
Interest income
|
8
|
23
|
19
|
23
|
||||||||||||
Interest expense
|
(76
|
)
|
(19
|
)
|
(125
|
)
|
(31
|
)
|
||||||||
Other expense
|
(42
|
)
|
(3
|
)
|
(87
|
)
|
(4
|
)
|
||||||||
Other income
|
-
|
6
|
5
|
6
|
||||||||||||
Total other income (expense), net
|
(110
|
)
|
7
|
(188
|
)
|
(6
|
)
|
|||||||||
Loss before income taxes
|
(3,949
|
)
|
(3,659
|
)
|
(6,982
|
)
|
(6,670
|
)
|
||||||||
Income tax benefit
|
-
|
-
|
-
|
-
|
||||||||||||
Loss from continuing operations
|
(3,949
|
)
|
(3,659
|
)
|
(6,982
|
)
|
(6,670
|
)
|
||||||||
Loss from discontinued operations
|
-
|
-
|
-
|
(216
|
)
|
|||||||||||
Net loss
|
$
|
(3,949
|
)
|
$
|
(3,659
|
)
|
$
|
(6,982
|
)
|
$
|
(6,886
|
)
|
||||
Basic loss per common share:
|
||||||||||||||||
Continuing operations
|
$
|
(0.10
|
)
|
$
|
(0.11
|
)
|
$
|
(0.17
|
)
|
$
|
(0.21
|
)
|
||||
Discontinued operations
|
-
|
-
|
-
|
(0.01
|
)
|
|||||||||||
Basic loss per common share
|
$
|
(0.10
|
)
|
$
|
(0.11
|
)
|
$
|
(0.17
|
)
|
$
|
(0.22
|
)
|
||||
Diluted loss per common share:
|
||||||||||||||||
Continuing operations
|
$
|
(0.10
|
)
|
$
|
(0.11
|
)
|
$
|
(0.17
|
)
|
$
|
(0.21
|
)
|
||||
Discontinued operations
|
-
|
-
|
-
|
(0.01
|
)
|
|||||||||||
Diluted loss per common share
|
$
|
(0.10
|
)
|
$
|
(0.11
|
)
|
$
|
(0.17
|
)
|
$
|
(0.22
|
)
|
||||
Weighted average number of shares outstanding:
|
||||||||||||||||
Basic
|
40,052,163
|
33,204,332
|
40,007,660
|
31,382,927
|
||||||||||||
Diluted
|
40,052,163
|
33,204,332
|
40,007,660
|
31,382,927
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
2020
|
2019
|
2020
|
2019
|
|||||||||||||
Net loss
|
$
|
(3,949
|
)
|
$
|
(3,659
|
)
|
$
|
(6,982
|
)
|
$
|
(6,886
|
)
|
||||
Derivative financial instruments designated as cash flow hedges:
|
||||||||||||||||
Losses arising during the period
|
(100
|
)
|
-
|
(100
|
)
|
-
|
||||||||||
Reclassification of losses realized to cost of goods sold
|
52 |
- |
52
|
-
|
||||||||||||
Net other comprehensive loss
|
(48
|
)
|
-
|
(48
|
)
|
-
|
||||||||||
Comprehensive loss
|
$
|
(3,997
|
)
|
$
|
(3,659
|
)
|
$
|
(7,030
|
)
|
$
|
(6,886
|
)
|
June 30,
2020 |
December 31,
2019 |
|||||||
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
3,347
|
$
|
8,444
|
||||
Accounts receivable, net of allowance for doubtful accounts of $24 and $347
|
2,718
|
3,738
|
||||||
Inventories
|
2,009
|
898
|
||||||
Other current assets
|
1,392
|
691
|
||||||
Total current assets
|
9,466
|
13,771
|
||||||
Property and equipment, net
|
18,523
|
19,077
|
||||||
Operating lease right-of-use assets
|
2,604
|
2,752
|
||||||
Goodwill
|
3,915
|
3,915
|
||||||
Intangible assets
|
833
|
950
|
||||||
Other long-term assets
|
-
|
27
|
||||||
Total assets
|
$
|
35,341
|
$
|
40,492
|
||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$
|
949
|
$
|
833
|
||||
Commodities payable
|
198
|
829
|
||||||
Accrued salary, wages and benefits
|
1,051
|
877
|
||||||
Accrued expenses
|
473
|
884
|
||||||
Customer prepayments
|
-
|
12
|
||||||
Operating lease liabilities, current portion
|
325
|
309
|
||||||
Due under insurance premium finance agreements
|
307
|
116
|
||||||
Due under factoring agreement
|
2,053
|
1,823
|
||||||
Finance lease liabilities, current portion
|
96
|
101
|
||||||
Long-term debt, current portion
|
29
|
28
|
||||||
Total current liabilities
|
5,481
|
5,812
|
||||||
Operating lease liabilities, less current portion
|
2,474
|
2,674
|
||||||
Finance lease liabilities, less current portion
|
150
|
190
|
||||||
Long-term debt, less current portion
|
1,847
|
73
|
||||||
Total liabilities
|
9,952
|
8,749
|
||||||
Commitments and contingencies
|
||||||||
Shareholders’ equity:
|
||||||||
Preferred stock, 20,000,000 shares authorized: Series G, convertible, 3,000 shares authorized, stated value $225, 225 shares, issued and outstanding
|
112
|
112
|
||||||
Common stock, no par value, 150,000,000 shares authorized, 40,207,398 shares and 40,074,483 shares, issued and outstanding
|
319,487
|
318,811
|
||||||
Accumulated deficit
|
(294,162
|
)
|
(287,180
|
)
|
||||
Accumulated other comprehensive loss
|
(48
|
)
|
-
|
|||||
Total shareholders’ equity
|
25,389
|
31,743
|
||||||
Total liabilities and shareholders’ equity
|
$
|
35,341
|
$
|
40,492
|
2020
|
2019
|
|||||||
Cash flow from operating activities:
|
||||||||
Net loss
|
$
|
(6,982
|
)
|
$
|
(6,886
|
)
|
||
Loss from discontinued operations
|
-
|
216
|
||||||
Loss from continuing operations
|
(6,982
|
)
|
(6,670
|
)
|
||||
Adjustments to reconcile net loss from continuing operations to net cash used in operating activities
|
||||||||
Depreciation
|
1,157
|
853
|
||||||
Amortization
|
117
|
20
|
||||||
Stock and share-based compensation
|
664
|
643
|
||||||
Loss on disposition of property and equipment
|
308
|
-
|
||||||
Other
|
(107
|
)
|
(2
|
)
|
||||
Changes in operating assets and liabilities, net of impact of acquisitions:
|
||||||||
Accounts receivable
|
1,090
|
(774
|
)
|
|||||
Inventories
|
(1,111
|
)
|
(5
|
)
|
||||
Accounts payable and accrued expenses
|
(201
|
)
|
(348
|
)
|
||||
Commodities payable
|
(631
|
)
|
(768
|
)
|
||||
Other
|
(675
|
)
|
(398
|
)
|
||||
Net cash used in operating activities
|
(6,371
|
)
|
(7,449
|
)
|
||||
Cash flows from investing activities:
|
||||||||
Purchases of property and equipment
|
(843
|
)
|
(2,319
|
)
|
||||
Acquisition of MGI
|
-
|
(3,795
|
)
|
|||||
Net cash used in investing activities
|
(843
|
)
|
(6,114
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Payments on factoring agreement
|
(14,946
|
)
|
-
|
|||||
Advances on factoring agreement
|
15,131
|
-
|
||||||
Advances on insurance premium finance agreements
|
506
|
418
|
||||||
Payments on insurance premium finance agreements
|
(316
|
)
|
(138
|
)
|
||||
Advances on debt and finance lease liabilities
|
1,792
|
-
|
||||||
Payments on debt and finance lease liabilities
|
(62
|
)
|
(302
|
)
|
||||
Proceeds from common stock warrant exercises
|
12
|
1,990
|
||||||
Proceeds from common stock option exercises
|
-
|
147
|
||||||
Proceeds from issuance of common stock and pre-funded warrant, net of issuance costs
|
-
|
11,593
|
||||||
Net cash provided by financing activities
|
2,117
|
13,708
|
||||||
Net change in cash and cash equivalents and restricted cash
|
$
|
(5,097
|
)
|
$
|
145
|
|||
Cash and cash equivalents and restricted cash, beginning of period
|
||||||||
Cash and cash equivalents
|
$
|
8,444
|
$
|
7,044
|
||||
Restricted cash
|
-
|
225
|
||||||
Cash and cash equivalents and restricted cash, beginning of period
|
8,444
|
7,269
|
||||||
Cash and cash equivalents and restricted cash, end of period
|
||||||||
Cash and cash equivalents
|
3,347
|
7,189
|
||||||
Restricted cash
|
-
|
225
|
||||||
Cash and cash equivalents and restricted cash, end of period
|
3,347
|
7,414
|
||||||
Net change in cash and cash equivalents and restricted cash
|
$
|
(5,097
|
)
|
$
|
145
|
|||
Supplemental disclosures:
|
||||||||
Cash paid for interest
|
$
|
79
|
$
|
43
|
||||
Cash paid for income taxes
|
$
|
-
|
$
|
-
|
Three Months Ended
June 30, 2019
|
Six Months Ended
June 30, 2019
|
|||||||
Revenues (in thousands)
|
$
|
6,277
|
$
|
13,783
|
||||
Loss from continuing operations (in thousands)
|
$
|
(3,803
|
)
|
$
|
(6,539
|
)
|
||
Loss per share - continuing operations
|
$
|
(0.11
|
)
|
$
|
(0.21
|
)
|
||
Weighted average number of common shares outstanding - basic and diluted
|
33,204,332
|
31,382,927
|
Customer
|
||||||||||||
A |
|
B |
|
C |
|
|||||||
% of revenues, three months ended June 30, 2020
|
10
|
%
|
8
|
%
|
3
|
%
|
||||||
% of revenues, three months ended June 30, 2019
|
10
|
%
|
14
|
%
|
1
|
%
|
||||||
% of revenues, six months ended June 30, 2020
|
9
|
%
|
13
|
%
|
2
|
%
|
||||||
% of revenues, six months ended June 30, 2019
|
10
|
%
|
16
|
%
|
1
|
%
|
||||||
% of accounts receivable, as of June 30, 2020
|
14
|
%
|
32
|
%
|
8
|
%
|
||||||
% of accounts receivable, as of December 31, 2019
|
10
|
%
|
31
|
%
|
10
|
%
|
Three Months Ended June 30
|
Six Months Ended June 30
|
|||||||||||||||
2020
|
2019
|
2020
|
2019
|
|||||||||||||
Food
|
$
|
3,967
|
$
|
4,365
|
$
|
10,159
|
$
|
9,112
|
||||||||
Animal nutrition
|
|
1,936
|
1,854
|
4,074
|
3,471
|
|||||||||||
Revenues
|
$
|
5,903
|
$
|
6,219
|
$
|
14,233
|
$
|
12,583
|
June 30,
2020
|
December 31,
2019
|
|||||||
Finished goods
|
$
|
1,799
|
$
|
698
|
||||
Raw materials
|
80
|
90
|
||||||
Packaging
|
130
|
110
|
||||||
Inventories
|
$
|
2,009
|
$
|
898
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||
2020
|
2019
|
2020
|
2019
|
|||||||||||||
Finance lease cost:
|
||||||||||||||||
Amortization of right-of use assets, included in cost of goods sold
|
$
|
20
|
$
|
14
|
$
|
41
|
$
|
18
|
||||||||
Interest on lease liabilities
|
4
|
2
|
8
|
4
|
||||||||||||
Operating lease cost, included in selling, general and administrative expenses:
|
||||||||||||||||
Fixed leases cost
|
131
|
131
|
261
|
261
|
||||||||||||
Variable lease cost
|
33
|
32
|
48
|
64
|
||||||||||||
Short-term lease cost
|
-
|
7
|
3
|
16
|
||||||||||||
Total lease cost
|
$
|
188
|
$
|
186
|
$
|
361
|
$
|
363
|
||||||||
Cash paid for amounts included in the measurement of lease liabilities:
|
||||||||||||||||
Operating cash flows from finance leases
|
$
|
4
|
$
|
3
|
$
|
8
|
$
|
5
|
||||||||
Operating cash flows from operating leases
|
$
|
131
|
$
|
131
|
$
|
261
|
$
|
261
|
||||||||
Financing cash flows from finance leases
|
$
|
20
|
$
|
20
|
$
|
46
|
$
|
31
|
Operating
Leases
|
Finance
Leases
|
|||||||
Remaining leases terms (in years)
|
3.3-12.7
|
0.6-4.0
|
||||||
Weighted average remaining lease terms (in years)
|
7.3
|
2.9
|
||||||
Discount rates
|
6.3%-9.0
|
%
|
4.3%-7.3
|
%
|
||||
Weighted average discount rate
|
7.6
|
%
|
5.8
|
%
|
Operating
Leases |
Finance
Leases
|
|||||||
2020 (six months ended December 31, 2020)
|
$ |
232
|
$ |
62
|
||||
2021
|
536
|
91
|
||||||
2022
|
548
|
68
|
||||||
2023
|
528
|
38
|
||||||
2024
|
428
|
11
|
||||||
Thereafter
|
1,469
|
-
|
||||||
Total lease payments
|
3,741
|
270
|
||||||
Amounts representing interest
|
(942
|
)
|
(24
|
)
|
||||
Present value of lease obligations
|
$
|
2,799
|
$
|
246
|
June 30,
2020 |
December 31,
2019 |
|||||||
Borrowings outstanding
|
$
|
2,174
|
$
|
1,989
|
||||
Debt issuance costs, net
|
(121
|
)
|
(166
|
)
|
||||
Due under factoring agreement
|
$
|
2,053
|
$
|
1,823
|
June 30,
2020 |
December 31,
2019 |
|||||||
Payroll Protection Program note - Dated April 2020. Interest accrues at an annual rate of 1.0%.
|
||||||||
Due in monthly installments from November 2020 to April 2022, unless forgiven as described below.
|
$
|
1,792
|
$ |
-
|
||||
Equipment notes - Initially recorded in November 2018, in the acquisition of Golden Ridge, at the present value of future payments using a
discount rate of 4.8% per year , which we determined approximated the market rate for similar debt with similar maturities as of the date of acquisition. Payable in monthly installments. Expire at dates ranging through 2022.
|
47
|
62
|
||||||
Equipment note - Dated December 2019. Due in monthly installments through December 2024.
|
||||||||
Interest accrues at the effective discount rate of 9.3% per year .
|
37
|
39
|
||||||
Total long term debt
|
$
|
1,876
|
$
|
101
|
Shares
|
Accumulated
Other
|
|||||||||||||||||||||||||||
Preferred
Series G |
Common
|
Preferred
Stock |
Common
Stock |
Accumulated
Deficit |
Comprehensive
Loss
|
Equity
|
||||||||||||||||||||||
Balance, December 31, 2019
|
225
|
40,074,483
|
$
|
112
|
$
|
318,811
|
$
|
(287,180
|
)
|
$
|
-
|
$
|
31,743
|
|||||||||||||||
Common stock awards under equity incentive plans
|
-
|
17,534
|
-
|
312
|
-
|
-
|
312
|
|||||||||||||||||||||
Net loss
|
-
|
-
|
-
|
-
|
(3,033
|
)
|
-
|
(3,033
|
)
|
|||||||||||||||||||
Balance, March 31, 2020
|
225
|
40,092,017
|
$
|
112
|
$
|
319,123
|
$
|
(290,213
|
)
|
$
|
-
|
$
|
29,022
|
|||||||||||||||
Common stock awards under equity incentive plans
|
-
|
16,500
|
-
|
316
|
-
|
-
|
316
|
|||||||||||||||||||||
Commn stock issued to vendors
|
-
|
31,304
|
-
|
36
|
-
|
-
|
36
|
|||||||||||||||||||||
Exercise of common stock warrants
|
-
|
67,577
|
-
|
12
|
-
|
-
|
12
|
|||||||||||||||||||||
Other comprehensive loss
|
-
|
-
|
-
|
-
|
-
|
(48
|
)
|
(48
|
)
|
|||||||||||||||||||
Net loss
|
-
|
-
|
-
|
-
|
(3,949
|
)
|
-
|
(3,949
|
)
|
|||||||||||||||||||
Balance, June 30, 2020
|
225
|
40,207,398
|
$
|
112
|
$
|
319,487
|
$
|
(294,162
|
)
|
$
|
(48
|
)
|
$
|
25,389
|
Shares
|
||||||||||||||||||||||||
Preferred
Series G |
Common
|
Preferred
Stock |
Common
Stock |
Accumulated
Deficit |
Equity
|
|||||||||||||||||||
Balance, December 31, 2018
|
405
|
29,098,207
|
$
|
201
|
$
|
296,739
|
$
|
(273,229
|
)
|
$
|
23,711
|
|||||||||||||
Proceeds from sale of common stock and prefunded warrant, net of costs
|
-
|
3,046,668
|
-
|
11,593
|
-
|
11,593
|
||||||||||||||||||
Common stock awards under equity incentive plans
|
-
|
36,881
|
-
|
364
|
-
|
364
|
||||||||||||||||||
Exercise of common stock warrants
|
-
|
600,000
|
-
|
1,980
|
-
|
1,980
|
||||||||||||||||||
Conversion of preferred stock into common stock
|
(180
|
)
|
170,818
|
(89
|
)
|
89
|
-
|
-
|
||||||||||||||||
Exercise of common stock options
|
-
|
77,078
|
-
|
60
|
-
|
60
|
||||||||||||||||||
Other
|
-
|
-
|
-
|
28
|
-
|
28
|
||||||||||||||||||
Net loss
|
-
|
-
|
-
|
-
|
(3,227
|
)
|
(3,227
|
)
|
||||||||||||||||
Balance, March 31, 2019
|
225
|
33,029,652
|
112
|
310,853
|
(276,456
|
)
|
34,509
|
|||||||||||||||||
Exercise of prefunded warrant
|
-
|
1,003,344
|
-
|
10
|
-
|
10
|
||||||||||||||||||
Common stock awards under equity incentive plans
|
-
|
134,984
|
-
|
219
|
-
|
219
|
||||||||||||||||||
Exercise of common stock options
|
-
|
78,734
|
-
|
87
|
-
|
87
|
||||||||||||||||||
Other
|
-
|
-
|
-
|
32
|
-
|
32
|
||||||||||||||||||
Net loss
|
-
|
-
|
-
|
-
|
(3,659
|
)
|
(3,659
|
)
|
||||||||||||||||
Balance, June 30, 2019
|
225
|
34,246,714
|
$
|
112
|
$
|
311,201
|
$
|
(280,115
|
)
|
$
|
31,198
|
Three Months Ended
|
||||||||
June 30, 2020
|
March 31, 2020
|
|||||||
Common stock, vested at issuance and nonvested at issuance
|
$
|
95
|
$
|
105
|
||||
Stock options
|
99
|
85
|
||||||
Restricted stock units
|
122
|
122
|
||||||
Compensation expense related to common stock awards issued under equity incentive plan
|
$
|
316
|
$
|
312
|
Shares
Under
Options
|
Weighted
Average
Exercise
Price
|
Weighted
Average
Grant
Date Fair
Value
|
Weighted
Average
Remaining
Contractual
Life (Years)
|
|||||||||||||
Outstanding at December 31, 2019
|
996,009
|
$
|
3.23
|
8.1
|
||||||||||||
Granted
|
653,004
|
1.22
|
$
|
0.73
|
10.0
|
|||||||||||
Forfeited
|
(125,173
|
)
|
4.74
|
7.2
|
||||||||||||
Outstanding at March 31, 2020
|
1,523,840
|
2.24
|
8.8
|
|||||||||||||
Forfeited
|
(77,357
|
)
|
4.28
|
7.2
|
||||||||||||
Outstanding at June 30, 2020
|
1,446,483
|
$
|
2.13
|
8.6
|
RSU Shares
Issued to
Employees
and
Directors
|
Unrecognized
Stock
Compensation
(in thousands)
|
Weighted
Average
Expense
Period
(Years)
|
||||||||||
Nonvested at December 31, 2019
|
1,148,062
|
$
|
377
|
1.4
|
||||||||
Cancelled
|
(625,000
|
)
|
-
|
|||||||||
Forfeited (1)
|
(175,000
|
)
|
(142
|
)
|
||||||||
Expensed (2)
|
-
|
(122
|
)
|
|||||||||
Nonvested at March 31, 2020
|
348,062
|
113
|
1.2
|
|||||||||
Granted to Directors (3)
|
477,018
|
426
|
||||||||||
Forfeited
|
(30,000
|
)
|
(24
|
)
|
||||||||
Vested (4)
|
(115,904
|
)
|
-
|
|||||||||
Expensed
|
-
|
(122
|
)
|
|||||||||
Nonvested at June 30, 2020 (5)(6)
|
679,176
|
$
|
393
|
0.8
|
(1) |
In the three months ended March 31, 2020, we reversed $0.1 million of expense recognized prior to January 1, 2020 on forfeited RSU shares.
|
(2) |
We expensed $0.1 million related to recognition of the unrecognized compensation associated with the cancelled RSU shares.
|
(3) |
The shares of common stock subject to the RSUs were vested when granted or vest within one year of grant, and issuance of shares thereunder is deferred to the date the holder is no longer providing service to
RiceBran Technologies.
|
(4) |
Represents shares of common stock subject to RSUs which were vested when granted.
|
(5) |
RSUs for a total of 361,114 shares of common stock vest in June 2021, and issuance of shares of common stock subject to each of those RSUs is deferred to the date the holder is no longer providing service to
RiceBran Technologies.
|
(6) |
A total of 318,062 shares of common stock subject to the RSUs vest based upon a vesting price equal to the volume weighted average trading price of our common stock over sixty-five consecutive trading days.
Subject to a minimum service period, as described in the next sentence, the RSU shares vest as to (i) 31,806 shares on the date the vesting price equals or exceeds $5.00 per share (ii) 95,419 shares the date the vesting price equals or
exceeds $10.00 per share and (iii) 190,837 shares the date the vesting price equals or exceeds $15.00 per share. Vesting on the RSU shares occurs the later of the one-year anniversary of the grant and the date the shares reach the vesting
price indicated in the preceding sentence. The RSUs expire on the fifth anniversary of each grant at dates ranging through August 2024.
|
Shares
Under
Warrants
|
Weighted
Average
Exercise
Price
|
Weighted
Average
Remaining
Contractual
Life (Years) |
||||||||||
Outstanding, December 31, 2019
|
7,532,280
|
$
|
1.32
|
1.9
|
||||||||
Expired
|
(265,000
|
)
|
5.25
|
-
|
||||||||
Outstanding, March 31, 2020
|
7,267,280
|
1.18
|
1.7
|
|||||||||
Cash exercised
|
(12,948
|
)
|
0.96
|
-
|
||||||||
Cashless exercised (1)
|
(215,740
|
)
|
0.96
|
-
|
||||||||
Expired
|
(392,676
|
)
|
4.60
|
-
|
||||||||
Outstanding, June 30, 2020 (2)
|
6,645,916
|
$
|
0.98
|
1.7
|
(1) |
In the three months ended June 30, 2020, we issued 54,629 shares of common stock upon the cashless exercise of the warrants.
|
(2) |
Under the terms of certain outstanding warrants, the holders may elect to exercise the warrants under a cashless exercise feature. As of June 30, 2020, warrant holders may elect to exercise cashless warrants for 3,484,675 shares of common
stock at an exercise price of $0.96 per share and 25,000 shares of common stock at an average exercise price of $5.25 per share. If we register for resale the shares subject to warrants, the holders of some of the warrants may no longer have
the right to elect a cashless exercise. If we fail to maintain a registration statement for the resale of shares under certain other warrants, the shares under those warrants may again become exercisable using a cashless exercise feature.
|
Three Months Ended June 30
|
Six Months Ended June 30
|
|||||||||||||||
2020
|
2019
|
2020
|
2019
|
|||||||||||||
NUMERATOR (in thousands):
|
||||||||||||||||
Basic and diluted - loss from continuing operations
|
$
|
(3,949
|
)
|
$
|
(3,659
|
)
|
$
|
(6,982
|
)
|
$
|
(6,670
|
)
|
||||
DENOMINATOR:
|
||||||||||||||||
Weighted average number of shares of shares of common stock outstanding
|
40,041,888
|
33,204,332
|
40,002,522
|
31,382,927
|
||||||||||||
Weighted average number of shares of common stock underlying vested restricted stock units
|
10,275
|
-
|
5,138
|
-
|
||||||||||||
Basic EPS - weighted average number of shares outstanding
|
40,052,163
|
33,204,332
|
40,007,660
|
31,382,927
|
||||||||||||
Effect of dilutive securities outstanding
|
-
|
-
|
-
|
-
|
||||||||||||
Diluted EPS - weighted average number of shares outstanding
|
40,052,163
|
33,204,332
|
40,007,660
|
31,382,927
|
|
|
|
|
Incorporated by Reference
|
|
|
||||||
Exhibit
Number
|
|
Exhibit Description
|
|
Form
|
|
File No.
|
|
Exhibit
Number
|
|
Filing/Effective
Date
|
|
Filed
Here-with
|
Certificate of Amendment of Articles of Incorporation filed with the Secretary of State of California on June 18, 2020
|
X
|
|||||||||||
Promissory Note dated as of April 15, 2020
|
8-K
|
001-36245
|
10.1
|
April 16, 2020
|
||||||||
Amended and Restated 2014 Equity Incentive Plan (2)
|
8-K
|
001-36245
|
10.2
|
July 17, 2020
|
||||||||
Form of Award of Deferred and Restricted Stock Units for 2014 Equity Incentive Plan (2)
|
8-K
|
001-36245
|
10.3
|
July 17, 2020
|
||||||||
|
Certification by CEO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
|
X
|
||||||||
|
Certification by CFO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
X
|
||||||||
|
Certification by CEO and CFO pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
X
|
||||||||
101.INS (1)
|
|
XBRL Instance Document
|
|
|
X
|
|||||||
101.SCH (1)
|
|
XBRL Taxonomy Extension Schema Document
|
|
|
X
|
|||||||
101.CAL (1)
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
X
|
|||||||
101.DEF (1)
|
|
XBRL Taxonomy Extension Calculation Definition Linkbase Document
|
|
|
X
|
|||||||
101.LAB (1)
|
|
XBRL Taxonomy Extension Calculation Label Linkbase Document
|
|
|
X
|
|||||||
101.PRE (1)
|
|
XBRL Taxonomy Extension Calculation Presentation Linkbase Document
|
|
|
X
|
(1) |
XBRL (Extensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as
amended, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.
|
(2) |
Indicates a management contract or compensatory plan, contract or arrangement.
|
Dated: August 12, 2020
|
|
|
|
|
|
|
/s/ Brent R. Rystrom
|
|
|
Brent R. Rystrom
|
|
|
Director and Chief Executive Officer
|
/s/ Todd T. Mitchell
|
||
Todd T. Mitchell
|
||
Chief Financial Officer
|