| Convertible Preferred Stock, Common Stock and Warrants | Dividends on Preferred Stock We immediately recognize
the changes in the redemption value on preferred stock as they occur and the carrying value of the security is adjusted to equal
what the redemption amount would be as if redemption were to occur at the end of the reporting date based on the conditions that
exist as of that date. No dividends were ever declared
by our Board of Directors since our inception on any series of convertible preferred stock. Series D Preferred Stock As of September 30, 2017,
and December 31, 2016, there were 44,104 and 132,489 shares of Series D convertible preferred stock (“Series D Preferred
Stock”) issued and outstanding that are convertible into an aggregate of 596,000 and 1,790,392 shares of common stock, respectively. The Series D Preferred Stock
had been issued on March 25, 2015, to certain holders of the Company’s Series A-1 Preferred Stock and Merger warrants (the
“Series A-1 Exchange Securities”) and holders of the Company’s Series B Preferred Stock and Series B warrants
(the “Series B Exchange Securities” and, collectively with the Series A-1 Exchange Securities, the “Exchange
Securities”), all previously issued by the Company. Pursuant to the exchange agreements, the holders exchanged the Exchange
Securities and relinquished any and all other rights they may have had pursuant to the Exchange Securities, their respective governing
agreements and certificates of designation, including any related registration rights, in exchange for an aggregate of 342,906
shares of the Company’s common stock and an aggregate of 238,156 shares of the Company’s newly designated Series D
Preferred Stock, convertible into 3,218,325 shares of common stock. As contemplated by the exchange
agreements and as approved by the Company’s Board of Directors, the Company filed with the Secretary of State of the State
of Delaware a Certificate of Designation of Preferences, Rights and Limitations of Series D Convertible Preferred Stock (the “Series
D Certificate of Designations”), on March 25, 2015. Pursuant to the Series D Certificate of Designations, the Company
designated 1,000,000 shares of its blank check preferred stock as Series D Preferred Stock. Each share of Series D Preferred Stock
has a stated value of $0.01 per share. In the event of a liquidation, dissolution or winding up of the Company, each share
of Series D Preferred Stock will be entitled to a per share preferential payment equal to the stated value. Each share of Series
D Preferred Stock is convertible into 13.5135 shares of common stock. The conversion ratio is subject to adjustment in the
event of stock splits, stock dividends, combination of shares and similar recapitalization transactions. The Company is prohibited
from effecting the conversion of the Series D Preferred Stock to the extent that, as a result of such conversion, the holder beneficially
would own more than 4.99% (provided that certain investors elected to block their beneficial ownership initially at 2.49% in the
exchange agreements), in the aggregate, of the issued and outstanding shares of the Company’s common stock calculated immediately
after giving effect to the issuance of shares of common stock upon the conversion of the Series D Preferred Stock. Each share
of Series D Preferred Stock entitles the holder to vote on all matters voted on by holders of common stock. With respect to any
such vote, each share of Series D Preferred Stock entitles the holder to cast such number of votes equal to the number of shares
of common stock such shares of Series D Preferred Stock are convertible into at such time, but not in excess of the beneficial
ownership limitations. Series E Preferred Stock As of September 30, 2017,
and December 31, 2016, there were 33,333 shares of Series E convertible preferred stock (“Series E Preferred Stock”)
issued and outstanding, convertible into 519,751 shares of common stock. On March 30, 2015, the Company
filed with the Secretary of State of the State of Delaware a Certificate of Designation of Preferences, Rights and Limitations
of Series E Convertible Preferred Stock (the “Series E Certificate of Designations”) to designate 100,000 shares of
its blank check preferred stock as Series E Preferred Stock. The shares of Series E Preferred
Stock are convertible into shares of common stock based on a conversion calculation equal to the stated value of such preferred
share, plus all accrued and unpaid dividends, if any, on such share of Series E Preferred Stock, as of such date of determination,
divided by the conversion price. The stated value of each share of Series E Preferred Stock is $75 and the initial conversion price
is $5.55 per share, each subject to adjustment for stock splits, stock dividends, recapitalizations, combinations, subdivisions
or other similar events. In addition, during the period proscribed for in the Series E Certificate of Designations, in the event
the Company issues or sells, or is deemed to issue or sell, shares of common stock at a per share price that is less than the conversion
price then in effect, the conversion price shall be reduced to such lower price, subject to certain exceptions. The Company is
prohibited from effecting a conversion of the share of Series E Preferred Stock to the extent that, as a result of such conversion,
such holder would beneficially own more than 4.99% of the number of shares of common stock outstanding immediately after giving
effect to the issuance of shares of common stock upon conversion of the Series E Preferred Stock, which beneficial ownership limitation
may be increased by the holder up to, but not exceeding, 9.99%. Each holder is entitled to vote on all matters submitted to stockholders
of the Company, and shall have the number of votes equal to the number of shares of common stock issuable upon conversion of such
holder’s share of Series E Preferred Stock, but not in excess of beneficial ownership limitations. The shares of Series E
Preferred Stock bear no interest. On August 22, 2016, when
the Company closed on the August 2016 Public Offering, the current Series E Preferred Stock conversion price of $5.55 per share
was reduced to $4.81 per share under the terms of the Series E Certificate of Designations, resulting in an increase in the number
of shares of common stock to 519,751 that the Series E Preferred Stock may be converted into. There is no further adjustment required
by the Series E Certificate of Designations in the event of an offering of shares below $4.81 per share by the Company. Series F Preferred Stock As of September 30, 2017,
and December 31, 2016, there were 665,281 shares of Series F convertible preferred stock (the “Series F Preferred Stock”),
par value of $0.01 per share, issued and outstanding, convertible into 665,281 shares of common stock. On August 16, 2016, we filed
a Certificate of Designations, Preferences and Rights of the 0% Series F Convertible Preferred Stock with the Delaware Secretary
of State, designating 1,559,252 shares of preferred stock as 0% Series F Preferred Stock. The shares of Series F Preferred
Stock are convertible into shares of common stock based on a conversion calculation equal to the stated value of such Series F
Preferred Stock, plus all accrued and unpaid dividends, if any, on such Series F Preferred Stock, as of such date of determination,
divided by the conversion price. The stated value of each share of Series F Preferred Stock is $4.81 and the initial conversion
price is $4.81 per share, each subject to adjustment for stock splits, stock dividends, recapitalizations, combinations, subdivisions
or other similar events. In the event of a liquidation, dissolution or winding up of the Company, each share of Series F Preferred
Stock will be entitled to a per share preferential payment equal to the par value. All shares of the Company’s capital stock
will be junior in rank to Series F Preferred Stock with respect to the preferences as to dividends, distributions and payments
upon the liquidation, dissolution and winding-up of the Company, except for the Company’s Series D Preferred Stock and Series
E Preferred Stock. The holders of Series F
Preferred Stock will be entitled to receive dividends if and when declared by our Board of Directors. The Series F Preferred Stock
shall participate on an “as converted” basis, with all dividends declared on the Company’s common stock. In addition,
if we grant, issue or sell any rights to purchase our securities pro rata to all our record holders of our common stock, each holder
will be entitled to acquire such securities applicable to the granted purchase rights as if the holder had held the number of shares
of common stock acquirable upon complete conversion of all Series F Preferred Stock then held. We are prohibited from effecting
a conversion of the Series F Preferred Stock to the extent that, as a result of such conversion, the holder would beneficially
own more than 4.99% of the number of shares of common stock outstanding immediately after giving effect to the issuance of shares
of common stock upon conversion of the Series F Preferred Stock, which beneficial ownership limitation may be increased by the
holder up to, but not exceeding, 9.99%. Each holder is entitled to vote on all matters submitted to stockholders of the Company,
and shall have the number of votes equal to the number of shares of common stock issuable upon conversion of such holder’s
Series F Preferred Stock, but not in excess of the beneficial ownership limitations. Series G Preferred Stock As of September 30, 2017,
and December 31, 2016, there were 1,000,000 and no shares of our Series G Preferred Stock issued and outstanding and convertible
into 1,000,000 and no shares of our common stock, respectively. Pursuant to a Series G Preferred
Stock Certificate of Designations, on May 15, 2017, we designated 5,000,000 shares of our blank check preferred stock as Series
G Preferred Stock, par value of $0.01 per share. The shares of Series G Preferred Stock are convertible into shares of common stock
based on a conversion calculation equal to the stated value of the of such Series G Preferred Stock, plus all accrued and unpaid
dividends, if any, on such Series G Preferred Stock, as of such date of determination, divided by the conversion price. The stated
value of each share of Series G Preferred Stock is $1.75 and the initial conversion price is $1.75 per share, each subject to adjustment
for stock splits, stock dividends, recapitalizations, combinations, subdivisions or other similar events. The holder
of a majority of the Series G Preferred Stock shall have the right to nominate a candidate for the Board, such right to expire
on December 31, 2017. In the event of a liquidation,
dissolution or winding up of the Company, each share of Series G Preferred Stock will be entitled to a per share preferential payment
equal to the par value. All shares our capital stock will be junior in rank to Series
G Preferred Stock with respect to the preferences as to dividends, distributions and payments upon the liquidation, dissolution
and winding-up of the Company, except for the Company’s Series D Preferred Stock, Series E Preferred Stock and Series F Preferred
Stock. We are prohibited from effecting
a conversion of the Series G Preferred Stock to the extent that, as a result of such conversion, the holder would beneficially
own more than 4.99% of the number of shares of common stock outstanding immediately after giving effect to the issuance of shares
of common stock upon conversion of the Series G Preferred Stock, which beneficial ownership limitation may be increased by the
holder up to, but not exceeding, 9.99%. Each holder is entitled to vote on all matters submitted to stockholders of the Company,
and shall have the number of votes equal to the number of shares of common stock issuable upon conversion of such holder’s
Series G Preferred Stock, but not in excess of the beneficial ownership limitations. Series H Preferred Stock As of September 30, 2017,
and December 31, 2016, there were 850 and no shares of our Series H Preferred Stock issued and outstanding and convertible into
485,714 and no shares of our common stock, respectively. Pursuant to a Series H Preferred
Stock Certificate of Designations, on May 3, 2017, we designated 2,000 shares of our blank check preferred stock as Series H Preferred
Stock, par value of $0.01 per share. The shares of Series H Preferred
Stock are convertible into shares of common stock based on a conversion calculation equal to the stated value of the Series H Preferred
Stock, plus the base amount, if any, on such Series H Preferred Stock, as of such date of determination, divided by the conversion
price. The stated value of each share of Series H Preferred Stock is $1,000 and the initial conversion price is $1.75 per share,
each subject to adjustment for stock splits, stock dividends, recapitalizations, combinations, subdivisions or other similar events. In the event of a liquidation,
dissolution or winding up of the Company, each share of Series H Preferred Stock will be entitled to a per share preferential payment
equal to the base amount. All shares of our capital stock will be junior in rank to
Series H Preferred Stock with respect to the preferences as to dividends, distributions and payments upon the liquidation, dissolution
and winding-up of the Company other than Series A through G Preferred Stock. We are prohibited from effecting
a conversion of the Series H Preferred Stock to the extent that, as a result of such conversion, the holder would beneficially
own more than 4.99% of the number of shares of common stock outstanding immediately after giving effect to the issuance of shares
of common stock upon conversion of the Series H Preferred Stock, which beneficial ownership limitation may be increased by the
holder up to, but not exceeding, 9.99%. Each holder is entitled to vote on all matters submitted to stockholders of the Company,
and shall have the number of votes equal to the number of shares of common stock issuable upon conversion of such holder’s
Series H Preferred Stock, but not in excess of the beneficial ownership limitations. Series I Preferred Stock As of September 30, 2017,
and December 31, 2016, there were 1,048,460 and no shares of our Series I convertible preferred stock (the “Series I Preferred
Stock”) issued and outstanding and convertible into 1,048,460 and no shares of our common stock, respectively. Pursuant to a Series I Preferred
Stock Certificate of Designations, on May 26, 2017, we designated 1,968,664 shares of our blank check preferred stock as Series
I Preferred Stock, par value of $0.01 per share. Each share of Series
I Preferred Stock has a stated value of $0.01 per share. In the event of a liquidation, dissolution or winding up of the Company,
each share of Series I Preferred Stock will be entitled to a per share preferential payment equal to the stated value. Each share
of Series I Preferred Stock is convertible into one share of common stock. The conversion ratio is subject to adjustment in
the event of stock splits, stock dividends, combination of shares and similar recapitalization transactions. The Company is
prohibited from effecting the conversion of the Series I Preferred Stock to the extent that, as a result of such conversion, the
holder beneficially owns more than 4.99%, in the aggregate, of the issued and outstanding shares of the Company’s Common
Stock calculated immediately after giving effect to the issuance of shares of Common Stock upon the conversion of the Series I
Preferred Stock (the “Beneficial Ownership Limitation”), which beneficial ownership limitation may be increased by
the holder up to, but not exceeding, 9.99%. Each share of Series I Preferred Stock entitles the holder to vote on all matters
voted on by holders of Common Stock. With respect to any such vote, each share of Series I Preferred Stock entitles the holder
to cast such number of votes equal to the number of shares of Common Stock such shares of Series I Preferred Stock are convertible
into at such time, but not in excess of the Beneficial Ownership Limitation. Series J Preferred Stock As of September 30, 2017,
and December 31, 2016, there were 818.18 and no shares of our Series J Preferred Stock issued and outstanding and convertible into
818,180 and no shares of our common stock, respectively. On August 14, 2017, the
Company filed a Certificate of Designations, Preferences and Rights of the 0% Series J Convertible Preferred Stock with the Delaware
Secretary of State, designating 3,400 shares of preferred stock as Series J Preferred Stock. The shares of Series J Preferred
Stock are convertible into shares of common stock based on a conversion calculation equal to the stated value of the Series J Preferred
Stock, plus all accrued and unpaid dividends, if any, on such Series J Preferred Stock, as of such date of determination, divided
by the conversion price. The stated value of each share of Series J Preferred Stock is $550 and the initial conversion price is
$0.55 per share, each subject to adjustment for stock splits, stock dividends, recapitalizations, combinations, subdivisions or
other similar events. For so long as the holder
has Series J Preferred Stock, if the Company sells, or is deemed to have sold, common stock, or common equivalent shares, for consideration
per share less than the conversion price in effect immediately prior to the issuance (the “Lower Issuance Price”),
then the conversion price in effect immediately prior to such issuance will be adjusted to the Lower Issuance Price, provided however
the Lower Issuance Price shall not be less than $0.10. The holders of Series J
Preferred Stock will be entitled to receive dividends if and when declared by our board of directors. The Series J Preferred Stock
shall participate on an “as converted” basis, with all dividends declared on our common stock. In addition,
if we grant, issue or sell any rights to purchase our securities pro rata to all our record holders of our common stock, each holder
will be entitled to acquire such securities applicable to the granted purchase rights as if the holder had held the number of shares
of common stock acquirable upon complete conversion of all Series J Preferred Stock then held. We are prohibited from effecting
a conversion of the Series J Preferred Stock to the extent that, as a result of such conversion, the holder would beneficially
own more than 4.99% of the number of shares of common stock outstanding immediately after giving effect to the issuance of shares
of common stock upon conversion of the Series J Preferred Stock, which beneficial ownership limitation may be increased by the
holder up to, but not exceeding, 9.99%. Each holder is entitled to vote on all matters submitted to stockholders of the Company,
and shall have the number of votes equal to the number of shares of common stock issuable upon conversion of such holder’s
Series J Preferred Stock, substituting the consolidated closing bid price of the common stock on August 10, 2017 for the then-applicable
conversion price, and not in excess of the beneficial ownership limitations. The Company shall not be
obligated to issue any shares of common stock upon conversion of the Series J Preferred Stock, and the holder of any shares of
Series J Preferred Stock shall not have the right to receive upon conversion of any shares of the Series J Preferred Stock if the
issuance of such shares of common stock would exceed the aggregate number of shares of common stock which the Company may issue
upon conversion of the Series J Preferred Stock without breaching the Company's obligations under the rules or regulations of the
Nasdaq Capital Market, which aggregate number equals 19.99% of the number of shares outstanding on the closing date, except that
such limitation shall not apply in the event that the Company obtains the approval of its stockholders as required by the applicable
rules of the Nasdaq Capital Market for issuances of common stock in excess of such amount. Such approval was obtained in October
2017. Holders of Series J Preferred
Stock will be entitled to a preferential payment of cash per share equal to the greater of 125% of the base amount on the date
of payment or the amount per share had the holders converted such preferred shares immediately prior to the date of payment upon
the liquidation, dissolution or winding up of the affairs of the Company, or a consolidation or merger of the Company with or into
any other corporation or corporations, or a sale of all or substantially all of the assets of the Company, or the effectuation
by the Company of a transaction or series of transactions in which more than 50% of the voting shares of the Company is disposed
of or conveyed. Series K Preferred Stock As of September 30, 2017,
and December 31, 2016, there were 65,000 and no shares of our Series K convertible preferred stock (“Series K Preferred Stock”)
issued and outstanding and convertible into 6,500,000 and no shares of our common stock, respectively. On August 14, 2017, the
Company filed a Certificate of Designations, Preferences and Rights of the Series K Convertible Preferred Stock with the Delaware
Secretary of State, designating 65,000 shares of preferred stock as Series K Preferred Stock. The shares of Series K Preferred
Stock are convertible into shares of common stock based on a conversion calculation equal to the stated value of the Series K Preferred
Stock divided by the conversion price. The stated value of each share of Series K Preferred Stock is $0.01 and the initial conversion
price is $0.0001 per share, each subject to adjustment for stock splits, stock dividends, recapitalizations, combinations, subdivisions
or other similar events. The holders of Series K
Preferred Stock will be entitled to receive dividends if and when declared by our board of directors. The Series K Preferred Stock
shall participate on an “as converted” basis, with all dividends declared on our common stock. In addition,
if we grant, issue or sell any rights to purchase our securities pro rata to all our record holders of our common stock, each holder
will be entitled to acquire such securities applicable to the granted purchase rights as if the holder had held the number of shares
of common stock acquirable upon complete conversion of all Series K Preferred Stock then held. We are prohibited from effecting
any conversion of the Series K Preferred Stock if the Company has not obtained shareholder approval for the full conversion of
the Series J Preferred Stock and Series K Preferred Stock in accordance with the rules of the NASDAQ Capital Market or to the extent
that, as a result of such conversion, the holder would beneficially own more than 4.99% of the number of shares of common stock
outstanding immediately after giving effect to the issuance of shares of common stock upon conversion of the Series K Preferred
Stock, which beneficial ownership limitation may be increased by the holder up to, but not exceeding, 9.99%. Each holder is entitled
to vote on all matters submitted to stockholders of the Company, and shall have the number of votes equal to the number of shares
of common stock issuable upon conversion of such holder’s Series K Preferred Stock, substituting the consolidated closing
bid price of the common stock on August 10, 2017 for the then-applicable conversion price, and not in excess of the beneficial
ownership limitations. Such approval was obtained in October 2017. Warrants Issued in Connection with April 2015 Private Placement As of September 30, 2017,
there were warrants outstanding to purchase 481,036 shares at $11.10 per share and 324,324 shares at $2.00 per share; and as of
December 31, 2016, there were warrants outstanding to purchase 805,361 shares of common stock at $11.10 per share. All of the warrants
at $11.10 and $2.00 per share that were outstanding on September 30, 2017, expired on October 10, 2017. The warrants priced at $11.10
and $2.00 per share were remaining from our private offering in March and April 2015 (the “April 2015 Private Placement”)
in which we sold $8,546,348 worth of units (the “Units”), net of $668,150 in issuance costs, of which $2,500,000 of
the Units consisted of Series E Preferred Stock and the balance consisted of 1,660,271 shares of common stock, together with warrants
to all investors to purchase 1,055,361 shares of common stock at $11.10 per share. Each Unit was sold at a purchase
price of $5.55 per Unit. OPKO Health, Inc., the lead investor in the April 2015 Private Placement, purchased $2,500,000 worth of
Units consisting of all of the shares of the Series E Preferred Stock. In connection with the May
2017 Public Offering, the Company had agreed to amend the terms of a portion of the outstanding warrants, or warrants to purchase
324,324 shares of common stock that had an exercise price of $11.10 per share, such that the amended warrants shall have an exercise
price of $2.00 per share and no cashless exercise feature, for those investors who made a certain minimum required investment to
qualify for repricing. After the repricing, the stock price never reached above $2.00 in order for the warrants to be exercised
prior to the expiration date of October 10, 2017. Warrants Issued in Connection with October
2015 Public Offering As of September 30, 2017,
and December 31, 2016, there were warrants outstanding to purchase 168,919 shares of common stock at $9.77 per share in connection
with a public offering on October 5, 2015. The warrants at $9.77 per
share were issued in connection with our public offering on October 5, 2015, which consisted of 337,838 shares of common stock
and warrants to purchase 168,919 shares of common stock, at an offering price of $8.14 per share. For every two shares of
common stock sold, the Company issued one warrant to purchase one share of common stock. We received $2,750,000 in gross
proceeds, before underwriting discounts and commissions and offering expenses totaling approximately $586,608. The shares and warrants
were separately issued and sold in equal proportions. The warrants are immediately exercisable, expire September 30, 2018, and
have an exercise price of $9.77 per share. The warrants are not listed on any securities exchange or other trading market. August 2016 Registered Direct Offering As of September 30, 2017,
there were warrants outstanding to purchase 436,332 shares at $5.55 per share and 436,332 shares at $6.29 per share. As of December
31, 2016, there were warrants outstanding to purchase 1,962,319 shares at $5.55 per share and 1,962,319 shares at $6.29 per share. The warrants at $5.55 per
share and $6.29 per share were issued on August 22, 2016, in connection with a public offering of 1,297,038 shares of common stock
and 665,281 shares of Series F preferred stock, and warrants to purchase 1,962,319 shares of common stock at $5.55 per share and
warrants to purchase 1,962,319 shares of common stock at $6.29 per share, at an offering price of $4.81 per share. For every
one share of common stock or Series F preferred stock sold, we issued one warrant to purchase one share of common stock at $5.55
per share and one warrant to purchase one share of common stock at $6.29 per share. We received $9,438,753 in gross proceeds,
before underwriting discounts and commissions and offering expenses totaling $871,305. The gross proceeds include the underwriter’s
over-allotment option, which it exercised on the closing date. May 2017 Private Placement On May 3, 2017, we entered
into separate subscription agreements with accredited investors pursuant to which we sold an aggregate of $850,000, or 850 shares,
of Series H Preferred Stock, . In the event of a liquidation,
dissolution or winding up of the Company, each share of Series H Preferred Stock will be entitled to a per share preferential payment
equal to the base amount. All shares of our capital stock will be junior in rank to Series
H Preferred Stock with respect to the preferences as to dividends, distributions and payments upon the liquidation, dissolution
and winding-up of the Company other than Series A through G Preferred Stock. We are prohibited from effecting
a conversion of the Series H Preferred Stock to the extent that, as a result of such conversion, the holder would beneficially
own more than 4.99% of the number of shares of common stock outstanding immediately after giving effect to the issuance of shares
of common stock upon conversion of the Series H Preferred Stock, which beneficial ownership limitation may be increased by the
holder up to, but not exceeding, 9.99%. Each holder is entitled to vote on all matters submitted to stockholders of the Company,
and shall have the number of votes equal to the number of shares of common stock issuable upon conversion of such holder’s
Series H Preferred Stock, but not in excess of the beneficial ownership limitations. The shares were offered
and sold solely to “accredited investors” in reliance on the exemption from registration afforded by Rule 506 of Regulation
D and Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”). On the closing date, we entered
into registration rights agreements with each of the investors, pursuant to which we agreed to undertake to file a registration
statement to register the resale of the shares within thirty (30) days following the closing date, to cause such registration statement
to be declared effective by the Securities and Exchange Commission (“SEC”) within sixty (60) days of the closing date
and to maintain the effectiveness of the registration statement until all of such shares have been sold or are otherwise able to
be sold pursuant to Rule 144 under the Securities Act, without any restrictions. On May 10, 2017, we entered
into exchange agreements with each of the holders of our Series H Preferred Stock representing an aggregate of $850,000 of our
Series H Preferred Stock with such exchange to be effective on the closing of our May 2017 Public Offering. Prior to the closing
of the May 2017 Public Offering, we and the holders rescinded and cancelled the exchange agreements and they have no force and
effect and no transaction contemplated by the Exchange Agreements was consummated. May 2017 Public Offering On May 19, 2017, we closed
a public offering of 1,342,858 shares of common stock and 1,000,000 shares of newly designated 0% Series G Convertible Preferred
Stock, or Series G Preferred Stock, at $1.75 per share of common stock and Series G Preferred Stock, or the May 2017 Public Offering.
The Series G Preferred Stock is initially convertible into 1,000,000 shares of common stock, subject to adjustment for stock
splits, stock dividends, recapitalizations, combinations, subdivisions or other similar events and was purchased by certain existing
investors of the Company who, as a result of their purchases of common stock, would hold in excess of 4.99% of our issued and outstanding
common stock. We received $4,100,000 in gross proceeds, before estimated underwriting discounts, commissions and offering expenses
of $452,609. The May 2017 Public Offering
was consummated pursuant to an underwriting agreement that we signed on May 15, 2017, with Laidlaw & Company (UK) Ltd. (“Laidlaw”),
as underwriter (the “Underwriter”) pursuant to which, among other things, we agreed to issue and sell to the Underwriter,
and the Underwriter agreed to purchase from us, in an underwritten public offering, an aggregate of 1,342,858 shares of common
stock and 1,000,000 shares of Series G Preferred Stock. We granted the Underwriters an option for a period of up to 45 days from
the date of our prospectus to purchase up to an aggregate of 201,428 additional shares of our common stock at the public offering
price of $1.75 per share, less the underwriting discount, solely to cover overallotments, which was not exercised. In connection with the May
2017 Public Offering, we agreed with the lead investor of the August 2016 Public Offering (the “August Lead Investor”)
pursuant to a Letter Agreement, dated May 18, 2017, to issue the Inducement Shares to the investors in the August 2016 Public Offering
(the “August 2016 Investors”), as incentive shares to those investors to make a minimum required investment in this
public offering of at least 50% of their investment in the $9,400,000 August 2016 Public Offering, or the Minimum Required Investment,
and who still hold 100% of the shares of common stock previously acquired. Such August 2016 Investors shall be entitled to receive
their pro rata share of 2,900,000 shares |
