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|DURECT CORP filed this Form 10-Q on 11/08/2018|
Under these leases, the Company is required to pay certain maintenance expenses in addition to monthly rent. Rent expense is recognized on a straight-line basis over the lease term for leases that have scheduled rental payment increases. Rent expense under all operating leases was $475,000 and $1.4 million for the three and nine months ended September 30, 2018, compared to $464,000 and $1.4 million for the corresponding periods in 2017.
Future minimum payments under these noncancelable leases are as follows (in thousands):
Note 7. Stockholders’ Equity
During the nine months ended September 30, 2018, the Company raised net proceeds (net of commissions) of approximately $16.8 million from the sale of 9,629,426 shares of the Company’s common stock in the open market at a weighted average price of $1.80 per share, through its Controlled Equity Offering sales agreement with Cantor Fitzgerald, entered into in November 2015 (Controlled Equity Offering).
Note 8.Subsequent Events
In November 2015, the Company filed a shelf registration statement on Form S-3 with the SEC, which upon being declared effective in November 2015, allowed the Company to offer up to $125.0 million of securities from time to time in one or more public offerings, inclusive of $40.0 million of common stock which the Company was permitted to sell pursuant to a Controlled Equity Offering sales agreement (the “2015 Sales Agreement”) entered into in November 2015 with Cantor Fitzgerald & Co. (“Cantor Fitzgerald”), acting as agent. As of September 30, 2018, approximately 24.6 million shares of common stock were sold through the 2015 Sales Agreement for an aggregate purchase price of approximately $39.5 million. In August 2018, the Company filed a new shelf registration statement on Form S-3 with the SEC, which upon being declared effective in October 2018, terminated the November 2015 registration statement and allowed the Company to offer up to $175.0 million of securities from time to time in one or more public offerings, inclusive of up to $75.0 million of additional shares of common stock which the Company may sell, subject to certain limitations, under the 2015 Sales Agreement through Cantor Fitzgerald, acting as agent.
On November 1, 2018, the Company and Oxford Finance entered into a Second Amendment of the Loan Agreement, which modified the terms of the Loan Agreement to change the first principal payment date from December 1, 2018 to June 1, 2020 and the final maturity date from August 1, 2020 to November 1, 2022. If the Company elects to prepay the loan, there is also a prepayment fee of between 0.75% and 2.5% of the principal amount of the term loan depending on the timing of prepayment. The interest rate and the final payment remain unchanged, and the Company paid Oxford Finance a Second Amendment fee of $900,000.