Preferred Stock

The Company’s Articles of Incorporation authorize the issuance of up to

5,000,000

shares of “blank check” preferred stock with designations, rights and preferences as

may

be determined from time to time by the board of directors. On

January 12, 2016,

the Company filed a Certificate of Designation of Preferences, Rights and Limitations for Series B Convertible Preferred Stock of the Company (the “Certificate of Designation”) with the Nevada Secretary of State. The Certificate of Designation amends the Company’s Articles of Incorporation to designate

293

shares of preferred stock, par value

$0.001

per share, as Series B Convertible Preferred Stock. The Series B Convertible Preferred Stock has a stated value of

$1,000

per share. On

January 13, 2016,

in connection with the Series A Warrant Conversion, the Company issued

293

shares of Series B Convertible Preferred Stock (for a more detailed discussion regarding the Series A Warrant Conversion, see Note

Under the Certificate of Designation, holders of Series

B Convertible Preferred Stock are entitled to receive dividends equal (on an as-if-converted-to-common-stock basis) to and in the same form as dividends (other than dividends in the form of common stock) actually paid on shares of the common stock when, as and if such dividends are paid. Such holders will participate on an equal basis per-share with holders of common stock in any distribution upon winding up, dissolution, or liquidation of the Company. Holders of Series B Convertible Preferred Stock are entitled to convert each share of Series A Convertible Preferred Stock into

2,000

shares of common stock, provided that after giving effect to such conversion, such holder, together with its affiliates, shall

not

beneficially own in excess of

9.99%

of the number of shares of common stock outstanding (the “Beneficial Ownership Limitation”). Holders of the Series B Convertible Preferred Stock are entitled to vote on all matters affecting the holders of the common stock on an “as converted” basis, provided that such holder shall only vote such shares of Series B Convertible Preferred Stock eligible for conversion without exceeding the Beneficial Ownership Limitation.

April 29, 2016,

the holders of Series B Convertible Preferred Stock

converted the outstanding

293

shares of Series B Convertible Preferred Stock into

3,657,278

shares of common stock. As of

April 29, 2016,

there were

outstanding shares of Series B Convertible Preferred Stock.

March 14, 2014,

the Company filed a Certificate of Designation of Preferences, Rights and Limitations for Series A Convertible Preferred Stock of the Company (the “Certificate of Designation”) with the Nevada Secretary of State. The Certificate of Designation amends the Company

’s Articles of Incorporation to designate

6,175

shares of preferred stock, par value

$0.001

per share, as Series A Convertible Preferred Stock. The Series A Convertible Preferred Stock has a stated value of

$1,000

per share. On

March 17, 2014,

in connection with a Private Placement, the Company issued

6,175

shares of Series A Convertible Preferred Stock. As of

January 6, 2015,

there were

outstanding shares of Series A Convertible Preferred Stock.