8.	Common Stock

June 8, 2018,

the Company issued

100,000

restricted shares of its common stock at a value of

$2.56

a share, or an aggregate value of approximately

$256,000.

February 12, 2018,

in connection with the closing of the

February 2018

Offering, the Company issued an aggregate of

11,500,000

shares of common stock, including the shares issued in connection with the exercise of the underwriters’ overallotment option, at a public offering price of

$3.00

per share for gross proceeds of approximately

$34,500,000.

The net proceeds to the Company, after deducting underwriting discounts and commissions and other offering expenses, were approximately

$32,213,000.

Through the

November 2017

ATM Facility, the Company

may

offer and sell, from time-to-time, up to

$25,000,000

aggregate offering price of shares of its common stock. During the

three

and

six

months ended

June 30, 2018,

the Company sold

65,252

shares and

273,529

shares, respectively, of common stock under the

November 2017

ATM Facility for net proceeds of approximately

$172,000

and

$1,183,000.

As of

June 30, 2018,

the Company has sold

332,778

shares of common stock under the

November 2017

ATM Facility for net proceeds of approximately

$1,308,000.

Warrants for Common Stock

As of

June 30, 2018,

outstanding warrants to purchase shares of common stock were as follows:

					Number of
					Shares
					Outstanding
	Exercisable	Expiration	Exercise		Under
Issuance Date	for	Date	Price		Warrants

September 2014	Common Shares	September 23, 2019	$	4.24		86,831
October 2014	Common Shares	October 13, 2019	$	4.24		29,000
November 2014	Common Shares	November 12, 2019	$	4.24		12,500
February 2015	Common Shares	February 17, 2025	$	4.00		75,697
March 2015	Common Shares	March 26, 2025	$	2.72		1,454
May 2015	Common Shares	May 12, 2025	$	4.24		36,229
May 2015	Common Shares	May 17, 2020	$	4.24		21,585
December 2015	Common Shares	December 16, 2025	$	5.60		26,875
April 2016	Common Shares	April 1, 2026	$	6.08		25,000
May 2016	Common Shares	May 11, 2021	$	7.74		5,000
June 2016	Common Shares	June 20, 2026	$	4.98		100,402
May 2017	Common Shares	May 25, 2027	$	9.50		222,049
						642,622

In connection with the

2016

Loan Agreement, the Company issued a warrant to purchase a total of

100,402

shares of common stock at an exercise price of

$4.98

per share. The Company determined the fair value of the warrant on the date of issuance to be

$350,000.

The fair value along with legal fees totaling

$90,000,

was recorded as debt issuance costs and was amortized to interest expense over the loan term. The debt issuance costs were presented in the condensed consolidated balance sheet as a deduction from the carrying amount of the note payable. The outstanding indebtedness was repaid in

May 2017

from the proceeds of the new term loan in connection with the

2017

Loan Agreement and the remaining unamortized balance of debt issuance costs was recorded to interest expense for the quarter ended

June 30, 2017.

During the

three

and

six

months ended

June 30, 2017,

the Company recorded

$336,000

and

$371,000

respectively, of interest expense relating to the debt issuance costs.

In connection with the

2017

Loan Agreement, the Company issued warrants to purchase a total of

222,049,

shares of common stock at an exercise price of

$9.50

per share. The warrants have a contractual life of

ten

years and are exercisable immediately in whole or in part. The Company determined the fair value of the warrants on the date of issuance to be

$940,000

using the Black-Scholes option pricing model. Assumptions used were dividend yield of

0%,

volatility of

55.1%,

risk free interest rate of

2.25%

and a contractual life of

ten

years. The fair value of the warrants along with financing and legal fees totaling

$786,000,

are recorded as debt issuance costs and presented in the condensed consolidated balance sheets as a deduction from the carrying amount of the note payable. The debt issuance costs are amortized to interest expense over the loan term. During the

three

and

six

months ended

June 30, 2018,

the Company recorded

$83,000

and

$160,000,

respectively, of interest expense relating to the debt issuance costs using the effective interest method. During the

three

and

six

months ended

June 30, 2017,

the Company recorded

$38,000

of interest expense relating to the debt issuance costs using the effective interest method. As of

June 30, 2018,

the unamortized debt discount was

$1,388,000.

shares issuable pursuant to warrants have been exercised during the

three

and

six

months ended

June 30, 2018

and

2017.

shares issuable pursuant to warrants have been cancelled during the

three

and

six

months ended

June 30, 2018

and

2017.

The stock-based compensation expense related to warrants issued was

zero

for both the

three

and

six

months ended

June 30, 2018

and

2017.