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.

On April 8, 2016, the Company modified 315,244 warrants held by the Holders, in accordance with the terms of the CSIA dated April 8, 2016 (see Note 6).

On June 3, 2016, the Company issued warrants exercisable for an aggregate of 1,063,830 shares of common stock at an exercise price of $2.25 per share in connection with the closing of a common stock and warrant financing (see Note 8).

The following table provides a summary of warrants outstanding, issued or exercised for the six months ended June 30, 2016. Also included is the average exercise price per share and the aggregate proceeds to the Company if exercised as of June 30, 2016.



	Warrants Outstanding by Exercise Price Range

	$2.25				$4.05 - $8.25				$10.75 - $23.00				Totals
			Weighted				Weighted				Weighted				Weighted
			Average				Average				Average				Average
			Exercise				Exercise				Exercise				Exercise
	Shares		Price		Shares		Price		Shares		Price		Shares		Price
Balance, December 31, 2015		-	$	-		694,062	$	5.82		515,587	$	11.39		1,209,649	$	8.19
Issuances		1,063,830		2.25		-		-		170,000		12.00		1,233,830		3.59
Exercises		-		-		-		-		-		-		-		-
Balance, March 31, 2016		1,063,830	$	2.25		694,062	$	5.82		685,587	$	11.54		2,443,479	$	5.87

Aggregate proceeds if exercised	$	2,393,618			$	4,036,474			$	7,914,572			$	14,344,664