7. Warrants

On January 4, 2016, the Company entered into an Asset Purchase Agreement with Novolytics Limited (the “Purchase Agreement”), to purchase certain preclinical materials and intangible assets, including patent rights, from Novolytics, an unrelated third party. In consideration for the assets acquired, the Company paid cash consideration of approximately $205,000 and issued warrants to purchase an aggregate of 170,000 shares of the Company’s common stock. The warrants have an exercise price of $12.00 per share and contain certain registration rights. The fair value of the warrants issued was $204,000, based on a Monte Carlo valuation model and are classified as equity within the consolidated balance sheet. The Company expensed the total value provided for the acquired assets of $409,000 as in-process research and development as of the acquisition date given there was no alternative future use of the acquired assets due to the early stage nature of the technology and pre-clinical materials.

The following table provides a summary of warrants outstanding, issued or exercised for the three months ended March 31, 2016. Also included is the average exercise price per share and the aggregate proceeds to the Company if exercised as of March 31, 2016.



		Series
									June 2013 and July 2013
	Novolytics				March 2015				Series B Warrants				December 2013				2013 Convertible Notes				2011				Totals
																											Weighted
																											Average
			Exercise				Exercise				Exercise				Exercise				Exercise				Exercise				Exercise
	Shares		Price		Shares		Price		Shares		Price		Shares		Price		Shares		Price		Shares		Price		Shares		Price
Balance, December 31, 2015		-	$	-		488,484	$	10.75		467,046	$	7.00		86,408	$	8.25		140,608	$	7.00		27,103	$	23.00		1,209,649	$	8.96
Issuances		170,000		12.00		-		-		-		-		-		-		-		-		-		-		170,000		12.00
Exercises		-		-		-		-		-		-		-		-		-		-		-		-		-		-
Balance, March 31, 2016		170,000	$	12.00		488,484	$	10.75		467,046	$	7.00		86,408	$	8.25		140,608	$	7.00		27,103	$	23.00		1,379,649	$	9.34

Aggregate proceeds if exercised	$	2,040,000			$	5,251,203			$	3,269,322			$	712,866			$	984,256			$	623,369			$	12,881,016