Stockholders

’

Equity

Common Stock

March 28, 2018,

the Company sold

609,636

shares of common stock at a price of

$2.27

per share. The net proceeds to the Company from the sale and issuance of the shares, after deducting the offering expenses borne by the Company of approximately

$171,000,

were

$1,213,000.

Additionally, the investors received unregistered warrants in a simultaneous private placement to purchase up to

304,818

shares of common stock. The warrants have an exercise price of

$2.68

per share and shall be exercisable commencing

six

months following the issuance date. They have a term of

5.5

years and were accounted for as equity by the Company.

Stock Based Compensation

The Company recorded stock-based compensation of

$81,000

and

$137,000

for the

three

months ended

March 31, 2019

and

2018,

respectively.

The following is a summary of option activity for the Company’s stock option plans:

	Number of Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life		Aggregate Intrinsic Value

Outstanding at December 31, 2018		3,023,639		$	1.40

Forfeited		(114,301	)	$	1.11

Outstanding at March 31, 2019		2,909,338		$	1.41		9		--

Vested and expected to vest at March 31, 2019		1,911,105		$	1.73		8.8		--

Exercisable at March 31, 2019		876,955		$	2.79		7.9		--

The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted price of the Company’s common stock. There were

options exercised during the

three

months ended

March 31, 2019.

Warrants

A summary of warrant activity for the

three

months ended

March 31, 2019

follows:

	Number of Shares			Weighted-Average Exercise Price Per Share
Balance at December 31, 2018		17,265,208		$	2.99
Warrants expired		(83,420	)	$	56.20
Warrants exercised		(500,000	)	$	0.01

Outstanding at March 31, 2019		16,681,788		$	2.81

Exercisable at March 31, 2019		15,983,259		$	2.58