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has authorized 150,000,000 shares of Common Stock, of which 10,679,790 and 4,437,346 shares were issued and outstanding as of June
30, 2013 and December 31, 2012, respectively.&lt;/p&gt;

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&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&lt;b&gt;&lt;i&gt;January 2013 Financing&lt;/i&gt;&lt;/b&gt;&lt;/p&gt;

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&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 9pt"&gt;&amp;#160;On
January 31, 2013 and February 1, 2013, the Company entered into underwriting agreements (collectively, the &amp;#147;Underwriting
Agreements&amp;#148;) with Aegis Capital Corp., with respect to the issuance and sale in an underwritten public offering by the
Company of an aggregate of 1,567,833 shares of the Company&amp;#146;s Common Stock (including 204,500 shares sold pursuant to the
over-allotment option), at a price to the public of $7.50 per share.&amp;#160;&amp;#160;The net proceeds to the Company, after
deducting the underwriting discount and other offering expenses payable by the Company, from the sale of the shares in the
offering were approximately $10,626,000.&amp;#160; Subsequent to the offering, the Company used a portion of the net proceeds of
the offering to pay off the Promissory Note issued to Platinum-Montaur Life Sciences, LLC (&amp;#147;Montaur&amp;#148;) in connection
with the $20 million non-revolving draw credit facility with Montaur.&amp;#160;&amp;#160;The Note will mature on August 31,
2017.&amp;#160;&amp;#160;See Note 13.&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&lt;b&gt;&lt;i&gt;June 2013 Financing&lt;/i&gt;&lt;/b&gt;&lt;/p&gt;

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&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 9pt"&gt;&amp;#160;On June 13,
2013, the Company entered into an underwriting agreement with Aegis Capital Corp., as a representative of several underwriters
(collectively, the &amp;#147;Underwriters&amp;#148;), with respect to the issuance and sale in an underwritten public offering by the
Company of an aggregate of 4,628,750 shares of the Company&amp;#146;s Common Stock (including 603,750 shares sold pursuant to the
over-allotment option), at a price to the public of $2.70 per share.&amp;#160;&amp;#160;The net proceeds to the Company, after deducting
the underwriting discount and other offering expenses payable by the Company, from the sale of the shares in the offering were
approximately $11,338,000.&lt;/p&gt;

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&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&lt;b&gt;&lt;i&gt;Stock Issued in Exchange for Services&lt;/i&gt;&lt;/b&gt;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 9pt"&gt;&amp;#160;During the six
months ended June 30, 2013 and 2012, the Company issued 7,450 and 2,867 shares, respectively, of Common Stock with a fair value
of $89,970 and $50,299, respectively, to vendors in exchange for their services.&amp;#160;&amp;#160;Expenses associated with these transactions
were included in Selling, General and Administrative Expenses in the Consolidated Statements of Operations.&lt;/p&gt;

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