13.

WARRANTS

For the year ended December 31, 2017

On August 3, 2017, upon approval of the Company’s board of directors, the Company issued outside its 2015 Equity Plan, 30,000 warrants to purchase the Company’s common stock to consultants for services provided. These warrants are immediately vested, are exercisable at an exercise price of $1.00 per share and expire on August 3, 2021. The Company recognized $19,269 in compensation cost during the twelve months ended December 31, 2017.

On August 3, 2017, the Company issued a warrant to purchase 2,000,000 shares of the Company’s common stock to Dr. Philip Frost for services to be provided under the terms of his service to the Strategic Advisory Board through April 2018. These warrants immediately vested, are exercisable at an exercise price of $1.00 per shares and expire on August 3, 2022. The Company recognized $1,391,793 in compensation cost during the twelve months ended December 31, 2017.

On November 9, 2017, upon approval of the Company’s board of directors, the Company issued outside its 2015 Equity Plan, 20,000 warrants to purchase the Company’s common stock to consultants for services provided. These warrants are immediately vested, are exercisable at an exercise price of $1.35 per share and expire on November 9, 2021. The Company recognized $18,456 in compensation cost during the twelve months ended December 31, 2017.

The following table summarizes the assumptions used to estimate the fair value of the 2,050,000 warrants granted during 2017 as of re-measurement dates:

	2017

Expected dividend yield		0	%
Expected volatility		190-212	%
Risk-free interest rate		1.52-1.88	%
Expected life of warrants		4-5 years

For the year ended December 31, 2016

For the year 2016, 60,000 common stock purchase warrants were granted to four consultants for services provided. Each warrant was granted with the exercise price of $2.91, which immediately vested, and the expiration date is April 27, 2019.

During 2016, 10,472 MacroSolve warrants expired that were issued in 2011 with exercise prices ranging between $141.00 and $404.50 on a post-reverse split basis.

The Company used the Black-Scholes warrant pricing model to estimate the fair value on the re-measurement dates of the 12,500 warrants that vested on June 10, 2017.

The following table summarizes the assumptions used to estimate the fair value of the 12,500 warrants granted during 2015 as of re-measurement dates:

	2017

Expected dividend yield		0	%
Expected volatility		107	%
Risk-free interest rate		1.53	%
Expected life of warrants		1 year

Under the Black-Scholes warrant pricing model, fair value of the 12,500 warrants granted during 2015 is estimated at $0 as of re-measurement dates. During the twelve months ended December 31, 2017, $(3,467) compensation expense was recognized on these 12,500 warrants.

During 2016, $118,681 compensation expense was recognized.

The following table represents warrant activity as of and for the period ended December 31, 2017 and 2016:

	Number of Warrants			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life in Years		Aggregate Intrinsic Value
Outstanding – December 31, 2015		134,209		$	23.87		3.66
Exercisable – December 31, 2015		104,209		$	27.87		4.01	$	0.00
Granted		60,000		$	2.91
Forfeited or Expired		(10,472	)	$	193.72
Outstanding – December 31, 2016		183,737		$	7.35		2.70
Exercisable – December 31, 2016		171,237		$	7.15		2.79	$	0.00
Granted		2,050,000		$	1.00
Forfeited or Expired		(1,237	)	$	303.37
Outstanding – December 31, 2017		2,232,500		$	1.36		4.34
Exercisable – December 31, 2017		2,232,500		$	1.36		4.34	$	0.00