COMMON STOCK WARRANTS

3 Months Ended

Mar. 31, 2018

NOTE 10 – COMMON STOCK WARRANTS

Our warrant activity for the three months ended March 31, 2018 and 2017 consisted of the following (in thousands except price data):

	March 31,
	2018				2017
	Number		WAvg Exercise Price		Number		WAvg Exercise Price
Outstanding, Jan. 1		1,842	$	0.59		60	$	2.52
Issued		-		-		-		-
Exercised		-		-		-		-
Expired		-		-		-		-
Modification		-		-		-		-
Outstanding, Mar. 31		1,842	$	0.59		60	$	2.52

In connection with the issuance of the $10.0 million secured promissory notes in December 2013, we issued common stock purchase warrants (“warrants”) exercisable for 60 thousand shares of our common stock having an exercise price of $2.52 per share (after giving effect to our one-for-five reverse stock split) with an expiration date in December 2020. See Note 8 for a discussion of the reduction of the exercise price of these warrants to $2.52 per share. These warrants contain a cashless exercise feature.

As part of our July 2017 private placement transaction with John Schutte, we issued warrants to purchase 1,782,531 shares of our common stock. The Warrants are immediately exercisable at a price of $0.528 per share and expire five years after issuance (see Note 9). We have assigned a relative fair value of $495 thousand to the warrants out of the total $4.0 million proceeds from the private placement transaction and have accounted these warrants as equity.