Note 14

Stockholders’ Equity:

Preferred Stock

The Company is authorized to issue 10,000,000 shares of preferred stock with a par value of $0.10 per share with such designation, rights and preferences as may be determined from time to time by the Company’s Board of Directors.

Other than the limitations on conversions to keep each such holder’s beneficial ownership below 9.99%, the terms of the Series C Convertible Preferred Stock generally bestow the same rights to each holder as such holder would receive if they were common stock shareholders and are not redeemable by the holders, except that the Series C Convertible Preferred Stock shares do not have voting rights. The Series C Convertible Preferred Stock have the same level of subordination as common stock. Each share of Series C Convertible Preferred Stock has a stated value of $1,000 and is convertible into shares of common stock at a conversion price equal to $2.69 for a total of approximately 15,049,000 shares of common stock. There were 9,968 and 36,182 shares of Series C Convertible Preferred Stock issued and outstanding on December 31, 2018 and 2017, respectively. For the years ended December 31, 2018 and 2017, investors converted shares of Series C Preferred Stock into 9,744,916 and 1,598,346 shares of common stock, respectively. In 2017 all Series B Convertible Preferred Stock was converted into 467,836 shares of common stock. There were no shares of Series B Convertible Preferred Stock outstanding as of December 31, 2018 and 2017, respectively.

Common Stock and Warrants

The Company is authorized to issue 150,000,000 shares of common stock with a par value of $0.001 per share. There were 29,943,086 and 4,304,425 shares of common stock issued and outstanding at December 31, 2018 and 2017, respectively.

Outstanding common stock warrants at December 31, 2018 consist of the following:

Issue Date	Expiration Date	Total Warrants		Exercise Price

October 31, 2013*	April 30, 2019		137,143	$	3.75
February 5, 2014*	February 5, 2019		265,947	$	3.75
July 24, 2014	July 24, 2019		1,239,769	$	3.75 - $ 12.25
June 22, 2015	June 22, 2020		600,000	$	3.75
December 30, 2015	December 30, 2020		130,089	$	5.65
January 29, 2016	January 29, 2021		19,812	$	5.30
			2,392,760

*These warrants are classified as liabilities (See Note 13, Warrants).