AKAO 2017 Annual Report

94 Change in Warrant and Derivative Liabilities Change in warrant and derivative liabilities increased $19.8 million for the year ended December 31, 2016 from zero for the year ended December 31, 2015. The increase is primarily due to the change in the estimated fair value of the warrant liability, which increased due to the increase in the price of our common stock. Liquidity and Capital Resources Since our inception, we have financed our operations with the proceeds from our IPO of our common stock, proceeds from the underwritten public offering of our common stock, proceeds from sales of our common stock through the use of our ATM equity offering program, funding under our contracts with U.S. government agencies and non-profit foundations, private placements of our equity securities and certain debt related financing arrangements. In addition, we have historically received funding provided under U.S. government contracts and non-profit foundations in connection with the development of our product candidates. Our plazomicin and C-Scape programs have been funded in part with contracts from BARDA. Our other programs are currently funded primarily with company funds. Historically, our preclinical programs have received funding support from organizations such as the Gates Foundation, the National Institutes of Health, the U.S. Department of Defense, the Combating Antibiotic Resistant Bacteria Biopharmaceutical Accelerator (“CARB-X”) and The Wellcome Trust, a global charitable foundation. We intend to continue to seek further collaborations with government agencies, non-profit foundations, and other research and development funding organizations to support our discovery efforts and advance the product candidates in our pipeline. On March 17, 2014, we completed our IPO of common stock. We sold 6,900,000 shares of our common stock, which included 900,000 shares issued as a result of the underwriters exercising their over-allotment option in full. We received cash proceeds of approximately $73.9 million from the IPO, net of underwriting commissions and related expenses. On August 5, 2015, we entered into a loan and security agreement with Solar Capital Ltd., pursuant to which Solar Capital Ltd. agreed to make available to us term loans with an aggregate principal amount of up to $25.0 million, $15.0 million of which was provided to us on August 5, 2015 and $10.0 million of which was provided to us on June 20, 2016. On April 7, 2015, we filed a Registration Statement on Form S-3 (File No. 333-203282), declared effective by the Securities and Exchange Commission on April 21, 2015 (the “Shelf Registration Statement”), covering the offering of up to $150 million of common stock, preferred stock, debt securities, warrants, purchase contracts and units. The Shelf Registration Statement included a prospectus covering the offering, issuance and sale of up to $30.0 million of shares of our common stock from time to time in “at the market” offerings pursuant to a Common Stock Sales Agreement entered into with Cowen and Company, LLC (the “Sales Agreement”) on April 7, 2015. Through the date of this report, we have sold 3,250,003 shares of common stock under the Sales Agreement, at a weighted- average price of approximately $9.23 per share for aggregate gross proceeds of $30.0 million and aggregate net proceeds of $29.3 million. No shares remain available for sale under the Sales Agreement as of the date of this report. On June 3, 2016, we sold 7,999,996 shares of common stock and warrants to purchase 1,999,999 shares of common stock pursuant to a Securities Purchase Agreement (“Purchase Agreement”) for aggregate gross proceeds of $25.4 million and aggregate net proceeds of $25.1 million, after deducting the issuance costs, in a private placement financing transaction (the "Private Placement"). The warrants have an exercise price of $3.66 and are exercisable up to five years from the date of issuance. On December 19, 2016, we completed an underwritten public offering of common stock made under a prospectus supplement and related prospectus pursuant to the Shelf Registration Statement. This offering resulted in the sale of 7,475,000 shares, at a price of $13.50 per share to the public, including the full exercise of the underwriter’s option to purchase an additional 975,000 shares of common stock. We received net proceeds from the offering of $94.6 million, after deducting the underwriting discounts and commissions and estimated offering expenses. As of December 31, 2017, approximately $43.8 million in securities remained unissued under the Shelf Registration Statement.