Subsequent Events

3 Months Ended

Mar. 31, 2018

11.

Subsequent Events

Subsequent to March 31, 2018, the Company formed a committee to explore the sale of the WPCS business. The Company is currently seeking qualified buyers and the sale of the business will have a material effect on the Company’s consolidated financial statements.

On April 19, 2018, the Company entered into separate Warrant Exchange Agreements (the “Exchange Agreements”) with the holders (the “Merger Warrant Holders”) of existing merger warrants (the “Merger Warrants”) to purchase shares of Common Stock, pursuant to which, on the closing date, the Merger Warrant Holders would exchange each Merger Warrant for 1/3rd of a share of Common Stock and ½ of a warrant to purchase a share of Common Stock (collectively, the “Series I Warrants”). The Series I Warrants have an exercise price of $2.30 per share. In connection with the Exchange Agreements, the Company will issue an aggregate of (i) 292,714 new shares of common stock and (ii) Series I Warrants to purchase an aggregate of 439,070 shares of common stock. The closing is expected to take place on or about May 16, 2018, subject to satisfaction of customary closing conditions.

On May 15, 2018, the Company’s Board of Directors approved the issuance of 183,699 options to an employee not under the stock option plan which vest over a three-year period to purchase shares of the Company’s common stock at $1.81 per share, the closing share price of the Company’s common stock on the Nasdaq Capital Market on May 15, 2018.