NOTE 9 – WARRANTS

On March 3, 2016, the Company completed the first tranche of the Financing, pursuant to which the Purchaser acquired a warrant to purchase 375,000 shares of common stock. The warrant was immediately exercisable upon issuance, will expire five years after issuance and has an exercise price of $7.00 per share.

The warrant was determined to have an estimated aggregate fair value of $480 at issuance.

The following table summarizes information about outstanding and exercisable warrants at September 30, 2017:

				Shares
		Number of		Underlying			Shares
		Shares		Warrants			Underlying
		Underlying		Exchanged,			Warrants
		Warrants		Exercised			Outstanding				Expiration
		Originally		or			and		Exercise		Term
Description	Grant Date	Granted		Expired			Exercisable		Price		in years
Series A⁽¹⁾	January 27, 2014		315,676		(315,676	)		-		N/A		N/A
Series B⁽¹⁾	January 27, 2014		157,846		-			157,846	$	45.00		1.33
Series C⁽²⁾	November 19, 2014		145,399		(142,957	)		2,442	$	12.00		2.63
					142,957			142,957	$	9.00		2.63
Series D⁽²⁾	November 19, 2014		193,865		(193,865	)		-		N/A		N/A
Series E⁽²⁾	November 19, 2014		145,399		(145,399	)		-		N/A		N/A
					142,957			142,957	$	9.00		4.63
Rens⁽³⁾	March 3, 2016		375,000		-			375,000	$	7.00		3.42
			1,333,185		(511,983	)		821,202

(1)	Issued in connection with the January 27, 2014 private placement transaction.
(2)	Issued in connection with the November 19, 2014 registered direct public offering, and subsequently revised pursuant to Warrant Exercise Agreements entered into on May 18, 2015.
(3)	Shares issued pursuant to the closing of the first tranche of the Financing with RENS Technology Inc.

The following table summarizes the activities in warrants for the nine months ended September 30, 2017:

	Shares Underlying Warrants			Average Exercise Price
Balance at December 31, 2016		1,136,878		$	15.01
Warrants expired		(315,676	)	$	15.00
Balance at September 30, 2017		821,202		$	15.02

The following table summarizes the assumptions used to value the warrants at the issuance date using the Black-Scholes option pricing model:

		Number of
		Shares		Stock
	Grant /	Underlying		Price on
	Modification	Warrants		Measurement		Exercise		Expected		Expected			Dividend			Risk Free
Description	Date	Granted		Date		Price		Term		Volatility			Yield			Rate
Series B	1/27/2014		157,846	$	7.00	$	45.00		5.00		150.00	%		0.00	%		1.61	%
Series C	11/19/2014		145,399	$	9.37	$	12.00		5.50		94.60	%		0.00	%		1.64	%
Repricing Series C	5/18/2015		142,957	$	5.95	$	9.00		5.00		96.34	%		0.00	%		1.46	%
Repricing Series E	5/18/2015		142,957	$	5.95	$	9.00		7.00		96.34	%		0.00	%		1.87	%
Rens Technology	3/3/2016		375,000	$	7.00	$	7.00		4.00		96.34	%		0.00	%		1.87	%