Quarterly report pursuant to Section 13 or 15(d)

Common Stock Warrants

v3.5.0.2
Common Stock Warrants
6 Months Ended
Jun. 30, 2016
Warrants And Rights Note Disclosure [Abstract]  
Common Stock Warrants

9. Common Stock Warrants

As of June 30, 2016 and December 31, 2015, the following common stock warrants were outstanding (in thousands, except for per share amounts):

Issuance Date

 

Expiration Date

 

Balance Sheet Classification

 

Exercise Price

per Share

 

 

June 30,

2016

 

 

December 31,

2015

 

December 2011

 

December 2016

 

Stockholders' deficit

 

$

1.14

 

 

 

263

 

 

 

263

 

March 2012

 

March 2017

 

Contingent warrant liabilities

 

$

1.76

 

 

 

9,585

 

 

 

9,585

 

September 2012

 

September 2017

 

Stockholders' deficit

 

$

3.54

 

 

 

39

 

 

 

39

 

December 2014

 

December 2016

 

Contingent warrant liabilities

 

$

7.90

 

 

 

8,097

 

 

 

8,097

 

February 2015

 

February 2020

 

Stockholders' deficit

 

$

3.31

 

 

 

181

 

 

 

181

 

February 2016

 

February 2021

 

Stockholders' deficit

 

$

0.77

 

 

 

165

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

18,330

 

 

 

18,165

 

In February 2016, in conjunction with services to be provided by a third-party consultant, the Company issued a warrant to purchase up to an aggregate of 165,000 unregistered shares of XOMA’s common stock at an exercise price equal to $0.77 per share. These warrants were exercisable immediately and have a five-year term expiring in February 2021. The estimated fair value of the warrants in the amount of $0.1 million was calculated using the Black-Scholes Model and was classified in stockholders’ deficit on the condensed consolidated balance sheet.

The Company revalued the December 2014 warrants at June 30, 2016 using the Black-Scholes Model and recorded a $44,000 and $3.0 million decrease in the estimated fair value as a gain in the revaluation of contingent warrant liabilities line of the Company’s condensed consolidated statements of comprehensive loss for the three and six months ended June 30, 2016, respectively. The Company revalued the March 2012 warrants at June 30, 2016 using the Black-Scholes Model and recorded a $3.2 million and $7.2 million decrease in the estimated fair value as a gain in the revaluation of contingent warrant liabilities line of the Company’s condensed consolidated statements of comprehensive loss for the three and six months ended June 30, 2016, respectively. The decrease in these liabilities is primarily due to the decrease in the market price of XOMA’s common stock at June 30, 2016 as compared to December 31, 2015. 

As of June 30, 2016 and December 31, 2015, the December 2014 warrants had an estimated fair value of zero and $3.0 million, respectively. As of June 30, 2016 and December 31, 2015, the March 2012 warrants had an estimated fair value of $0.3 million and $7.5 million, respectively.