STOCKHOLDERS' EQUITY

12 Months Ended

Dec. 31, 2017

NOTE 9 — STOCKHOLDERS’ EQUITY:

(a)

Common Stock

In August of 2016, the Company closed on an underwritten public offering of 2,300,000 shares of its common stock at $6.00 per share. The net proceeds of the offering, after deducting the underwriters' discounts and other offering expenses payable by the Company, was approximately $12,493,000.

During 2017, options to purchase 56,969 shares of the Company’s common stock were exercised for 22,487 shares of common stock at exercise prices ranging from $3.48 to $4.45 by surrendering options and shares of common stock already owned.

During 2016, options to purchase 191,804 shares of the Company’s common stock were exercised for 98,599 shares of common stock at exercise prices ranging from $2.80 to $5.56 by paying cash or surrendering options already owned.

During 2015, options to purchase 41,141 shares of the Company’s common stock were exercised for 17,109 shares of common stock at exercise prices ranging from $2.16 to $3.60 by paying cash or surrendering options already owned

(b)

Preferred Stock

The Company has 10,000,000 shares of preferred stock authorized and none outstanding. These shares can become issuable upon an approved resolution by the board of directors and the filing of a Certificate of Designation with the state of Nevada.

(c)

Options

The Compensation Committee of the Board of Directors may issues options persuant to employee stock option plans that have been approved by the Company's stockholders.

(d)

Warrants

As of December 31, 2017 and 2016, the Company had no warrants outstanding to purchase shares of common stock.