false
--12-31
Q1
2017
2017-03-31
10-Q
0001446159
6189428
Yes
Smaller Reporting Company
Skyline Medical Inc.
No
No
skln
0.0499
0.0499
0.43
P2D
10.05
10.2
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Certificates of Deposit</div></div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">Short-term interest bearing investments are those with maturities of less than <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> year but greater than <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> months when purchased. Certificates with maturity dates beyond <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> year are classified as noncurrent assets. These investments are readily convertible to cash and are stated at cost plus accrued interest, which approximates fair value.</div></div></div></div></div>
0.43
6141115
1251510
0
0.2
499102
P4Y299D
P4Y244D
P346D
P3Y153D
P346D
P299D
P2Y127D
P255D
P2Y131D
P2Y222D
P1Y80D
P1Y58D
P1Y321D
P1Y310D
P3Y
P5Y
P180D
243.75
243.75
243.75
2567
28
-29
-1
167031
0.4
1548792
933074
1600000
1603260
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Interim Financial Statements</div></div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">The Company has prepared the unaudited interim financial statements and related unaudited financial information in the footnotes in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial statements. These interim financial statements reflect all adjustments consisting of normal recurring accruals, which, in the opinion of management, are necessary to present fairly the Company’s financial position, the results of its operations and its cash flows for the interim periods. These interim financial statements should be read in conjunction with the annual financial statements and the notes thereto contained in the Form <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div>-K filed with the SEC on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017.</div> The nature of the Company’s business is such that the results of any interim period <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may</div> not be indicative of the results to be expected for the entire year.</div></div></div></div></div>
P5Y
P3Y
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Summary of Significant Accounting Policies</div></div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;"> </div></div> <div style=" font-size: 10pt; margin: 0pt 0">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> the FASB issued ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09,</div> “improvements to Employee Share-Based Payment Accounting”, which requires companies to recognize additional tax benefits or expenses related to the vesting or settlement of employee share based awards as income tax provision or benefit in the income statement in the reporting period in which they occur. In addition, ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09</div> requires that all tax related cash flows resulting from share-based payments, including the excess tax benefits related to settlement of stock-based awards, be classified as cash flows from operating activities in the statement of cash flows. The new standard is effective for annual reporting periods beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> with early adoption permitted. The Company did not elect to early adopt ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09,</div> but rather is adopting the guidance in the current quarter.</div> <div style=" font-size: 10pt; margin: 0pt 0">The adoption of ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09</div> required no retrospective adjustments to the financial statements. In addition there was no material cumulative-effect adjustment to retained earnings, nor did the adoption impact the tax provision for the current quarter.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Income Tax Balance Sheet Classification</div></div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;"> </div></div> <div style=" font-size: 10pt; margin: 0pt 0">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> November</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015,</div> the FASB issued ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">17,</div> “Income Taxes (Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">740)”</div> providing guidance on the balance sheet classification of deferred taxes. The guidance requires that deferred tax assets and liabilities to be classified as noncurrent in the Balance Sheet. The guidance is effective for fiscal years beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div> with early adoption permitted. The Company adopted ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">17</div> in the current quarter on a prospective basis and therefore prior periods were not retrospectively adjusted.</div></div></div></div></div>
6
16
16
16
1480021
2187391
250000
P45D
0.11
0.11
487.50
0.01
100
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Presentation of Taxes Collected from Customers</div></div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">Sales taxes are imposed on the Company’s sales to nonexempt customers. The Company collects the taxes from customers and remits the entire amounts to the governmental authorities. The Company’s accounting policy is to exclude the taxes collected and remitted from revenues and expenses.</div></div></div></div></div>
1739770
1739770
<div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse;"> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="font-size: 10pt"> </td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td nowrap="nowrap" colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1.1pt solid">Years</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">Computers and office equipment</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div></td> <td style="font-size: 10pt; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt"> -</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 84%; font-size: 10pt; text-align: left">Leasehold improvements</td> <td style="width: 2%; font-size: 10pt"> </td> <td style="width: 5%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="width: 4%; font-size: 10pt; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5</div></td> <td style="width: 5%; font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">Manufacturing tooling</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div></td> <td style="font-size: 10pt; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">Demo Equipment</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="font-size: 10pt; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> </tr> </table></div>
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Risks and Uncertainties</div></div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">The Company is subject to risks common to companies in the medical device industry, including, but not limited to, development by the Company or its competitors of new technological innovations, dependence on key personnel, protection of proprietary technology, and compliance with regulations of the FDA and other governmental agencies.</div></div></div></div></div>
0.01
175000
35000
P45D
<div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse;"> <tr style="vertical-align: bottom"> <td nowrap="nowrap" colspan="3" style="font-size: 10pt; color: Black; font-weight: bold; font-style: italic; text-align: center">Range of Prices</td> <td style="font-size: 10pt; color: Black; font-weight: bold; font-style: italic"> </td> <td nowrap="nowrap" colspan="3" style="font-size: 10pt; color: Black; font-weight: bold; font-style: italic; text-align: center">Shares</td> <td style="font-size: 10pt; color: Black; font-weight: bold; font-style: italic"> </td> <td nowrap="nowrap" colspan="3" style="font-size: 10pt; color: Black; font-weight: bold; font-style: italic; text-align: center">Weighted Remaining Life</td> </tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" colspan="3" style="font-size: 10pt; color: Black">Options</td> <td style="font-size: 10pt; color: Black"> </td> <td nowrap="nowrap" colspan="3" style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black"> </td> <td nowrap="nowrap" colspan="3" style="font-size: 10pt; color: Black"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 12%; font-size: 10pt; color: Black; text-align: right">$</td> <td style="width: 19%; font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.10</div></td> <td style="width: 1%; font-size: 10pt; color: Black; text-align: left"> </td> <td style="width: 2%; font-size: 10pt; color: Black"> </td> <td style="width: 1%; font-size: 10pt; color: Black; text-align: left"> </td> <td style="width: 30%; font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">14,286</div></td> <td style="width: 1%; font-size: 10pt; color: Black; text-align: left"> </td> <td style="width: 2%; font-size: 10pt; color: Black"> </td> <td style="width: 1%; font-size: 10pt; color: Black; text-align: left"> </td> <td style="width: 30%; font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10.00</div></td> <td style="width: 1%; font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.25</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">293</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">9.41</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.42</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">28,896</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">9.39</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.80</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">57,145</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">9.76</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3.75</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">44,000</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">9.26</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4.125</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3,636</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">9.51</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4.1975</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7,147</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">9.47</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4.25</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3,529</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">9.01</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5.125</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3,902</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">9.44</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">65.75</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">266</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8.56</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">73.50</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,157</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8.76</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">77.50</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,323</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8.25</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">80.25</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">187</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8.51</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">86.25</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">232</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8.01</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">131.25</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">81</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5.44</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">148.125</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">928</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5.97</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">150.00</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,760</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5.38</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">162.50</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">123</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7.76</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">206.25</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">121</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7.51</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">248.4375</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">121</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6.29</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">262.50</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">130</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6.29</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">281.25</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">529</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5.80</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">318.75</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6.11</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">346.875</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">72</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7.01</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">431.25</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">306</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6.94</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">506.25</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">188</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6.76</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">543.75</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">53</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6.52</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">596.25</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">42</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6.50</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.1pt; font-size: 10pt; color: Black; text-align: right"> </td> <td style="padding-bottom: 1.1pt; font-size: 10pt; color: Black; text-align: right"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; padding-bottom: 1.1pt"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; color: Black; text-align: left"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; color: Black; text-align: right"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; padding-bottom: 1.1pt"> </td> <td style="padding-bottom: 1.1pt; font-size: 10pt; color: Black; text-align: left"> </td> <td style="padding-bottom: 1.1pt; font-size: 10pt; color: Black; text-align: right"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt; font-size: 10pt; color: Black; text-align: right"> </td> <td style="padding-bottom: 2.5pt; font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; color: Black; text-align: left"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">171,457</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; font-size: 10pt; color: Black; text-align: left"> </td> <td style="padding-bottom: 2.5pt; font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td colspan="2" style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td colspan="2" style="font-size: 10pt; color: Black; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt; color: Black">Warrants</div></div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.25</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">385,000</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4.82</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4.46</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">756,999</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4.67</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">93.75</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,255</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0.95</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">123.75</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">94,084</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3.42</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">150.00</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4,114</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0.95</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">225.00</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">107</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0.82</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">243.75</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,529</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.35</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">281.25</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5,897</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0.70</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">309.375</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,850</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.36</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">309.50</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">222</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.61</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">337.50</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">178</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.22</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">371.25</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">944</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.16</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">506.25</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">59</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.88</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.1pt; font-size: 10pt; color: Black; text-align: right">$</td> <td style="padding-bottom: 1.1pt; font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">609.375</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; padding-bottom: 1.1pt"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; color: Black; text-align: left"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">862</div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; padding-bottom: 1.1pt"> </td> <td style="padding-bottom: 1.1pt; font-size: 10pt; color: Black; text-align: left"> </td> <td style="padding-bottom: 1.1pt; font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.85</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt; font-size: 10pt; color: Black; text-align: right"> </td> <td style="padding-bottom: 2.5pt; font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; color: Black; text-align: left"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,256,101</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; font-size: 10pt; color: Black; text-align: left"> </td> <td style="padding-bottom: 2.5pt; font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> </table></div>
1
400000
100000
100000
100000
100000
66396
2318663
564
20122
2318663
628237
-18158
664
17494
0
23187
556479
579666
6282
150777
157059
3157186
8.28
70000
0.01
0.08
0.72
1
1
4
11.25
1.25
83333
0.05
228343
1666667
1
4.319
186922
309649
79264
220112
68506
38919
1202939
1346105
230582
214897
1501
52277328
47894196
468158
165271
165271
587444
587444
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Advertising</div></div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">Advertising costs are expensed as incurred. Advertising expenses were <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$4,271</div> in the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div> and were <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$3,996</div> in the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016.</div></div></div></div></div></div>
4271
3996
99307
37775
2888
1832
1427558
167986
79246
5466248
2807546
5258367
2608183
284329
1837
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Nature of Operations and Continuance of Operations</div></div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">Skyline Medical Inc. (the "Company") was incorporated under the laws of the State of Minnesota in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2002.</div> Effective <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2013,</div> the Company changed its name to Skyline Medical Inc. As of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> the registrant had <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6,489,428</div> shares of common stock, par value <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$.01</div> per share, outstanding, adjusted for a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div>-for-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">25</div> reverse stock split effective <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> October</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">27,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016.</div> In this Report, all numbers of shares and per share amounts, as appropriate, have been stated to reflect the reverse stock split. Pursuant to an Agreement and Plan of Merger dated effective <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">16,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2013,</div> the Company merged with and into a Delaware corporation with the same name that was its wholly-owned subsidiary, with such Delaware corporation as the surviving corporation of the merger. The Company has developed an environmentally safe system for the collection and disposal of infectious fluids that result from surgical procedures and post-operative care. The Company also makes ongoing sales of our proprietary cleaning fluid and filters to users of our systems. In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> April</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2009,</div> the Company received <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">510(k)</div> clearance from the FDA to authorize the Company to market and sell its STREAMWAY® SYSTEM products.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">The accompanying financial statements have been prepared assuming the Company will continue as a going concern. The Company has suffered recurring losses from operations and had a stockholders’ deficit until <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015</div> whereupon the Company closed its public offering of units consisting of common stock, Series B Convertible Preferred Stock and Series A Warrants (the “Units”). There remains though, substantial doubt about its ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.</div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">Since inception to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> the Company raised approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$27,765,934</div> in equity, inclusive of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$2,055,000</div> from a private placement of Series A Convertible Preferred Stock, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$13,555,003</div> from the public offering of Units completed in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,739,770</div> from a registered direct offering completed in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$3,421,188</div> from the public offering of Units completed in the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div> quarter of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$358,312</div> from the underwriter exercising their option to purchase up to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">175,000</div> additional shares of common stock and to acquire additional warrants to purchase up to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">35,000</div> additional shares of common stock, and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$5,685,000</div> in debt financing. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources.”</div></div></div></div></div>
1764090
4856232
2086408
1535792
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Cash Equivalents</div></div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">The Company considers all highly liquid debt instruments with a maturity of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> months or less when purchased to be cash equivalents. Cash equivalents are stated at cost, which approximates fair value.</div></div></div></div></div>
322318
-3320440
1866875
2693985
100000
123.75
4.46
2.25
2.25
4.46
93.75
123.75
150
225
243.75
281.25
309.375
309.50
337.50
371.25
506.25
609.375
281.25
93.75
371.25
243.75
609.38
0
243.75
4.46
2.25
0
609.38
1
0.4
1
1770556
18059671
756999
5431
2851
35084
385000
756999
2255
94084
4114
107
2529
5897
2850
222
178
944
59
862
1256101
2792
10703
6455
94152
756999
385000
0.01
0.01
0.01
0.01
0.01
0.01
0.01
24000000
24000000
100000000
200000000
8000000
6489428
4564428
64894
45644
-1341847
-2173519
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Credit Risk </div></div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash. The Company places its cash with high credit quality financial institutions and, by policy, generally limits the amount of credit exposure to any <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> financial institution. The Company has a credit risk concentration because of depositing <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,866,875</div> of funds in excess of insurance limits in a single bank.</div> <div style=" font-size: 10pt; margin: 0pt 0"></div> <!-- Field: Page; Sequence: 12; Value: 4 --></div></div></div></div>
36992
85883
1800000
122196
275000
5685000
1.4
14407
7998
11208000
10944000
0
0
10865000
10755000
343000
189000
11208000
10944000
9770
11117
1
1
0.04
0.04
15685
19207
18574
21040
<div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse;"> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">Stock Options:</td> <td style="font-size: 10pt"> </td> <td nowrap="nowrap" colspan="3" style="font-size: 10pt; text-align: center"> </td> <td style="font-size: 10pt"> </td> <td nowrap="nowrap" colspan="3" style="font-size: 10pt; text-align: center"> </td> </tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">Year</td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td nowrap="nowrap" colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1.1pt solid">Shares</td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td nowrap="nowrap" colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1.1pt solid">Price</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 67%; font-size: 10pt; text-align: left">2011</td> <td style="width: 2%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> <td style="width: 12%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">173</div></td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> <td style="width: 2%; font-size: 10pt"> </td> <td style="width: 5%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="width: 5%; font-size: 10pt; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$281.25</div></td> <td style="width: 5%; font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">2012</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,841</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">131.25</div></td> <td style="font-size: 10pt; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt"> – </div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">150.00</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">2013</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,606</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">148.125</div></td> <td style="font-size: 10pt; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt"> –</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> 596.25</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">2014</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">835</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">162.50</div></td> <td style="font-size: 10pt; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt"> – </div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">431.25</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">2015</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4,164</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">65.75</div></td> <td style="font-size: 10pt; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">–</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> 86.25</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">2016</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">148,551</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.25</div></td> <td style="font-size: 10pt; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">– </div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5.13</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1.1pt">2017</td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">14,286</div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.10</div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; padding-bottom: 2.5pt; text-align: left; padding-left: 10pt">Total</td> <td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">171,457</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$2.10</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">– </div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">596.25</div></td> </tr> </table></div><div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse;"> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">Warrants:</td> <td style="font-size: 10pt"> </td> <td nowrap="nowrap" colspan="3" style="font-size: 10pt; text-align: center"> </td> <td style="font-size: 10pt"> </td> <td nowrap="nowrap" colspan="3" style="font-size: 10pt; text-align: center"> </td> </tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">Year</td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td nowrap="nowrap" colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1.1pt solid">Shares</td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td nowrap="nowrap" colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1.1pt solid">Price</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 67%; font-size: 10pt; text-align: left">2012</td> <td style="width: 2%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> <td style="width: 12%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,792</div></td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> <td style="width: 2%; font-size: 10pt"> </td> <td style="width: 5%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="width: 5%; font-size: 10pt; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$281.25</div></td> <td style="width: 5%; font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">2013</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10,703</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">93.75</div></td> <td style="font-size: 10pt; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">- </div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">371.25</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">2014</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6,455</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">243.75</div></td> <td style="font-size: 10pt; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt"> – </div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">609.38</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">2015</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">94,152</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0.00</div></td> <td style="font-size: 10pt; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">– </div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">243.75</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">2016</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">756,999</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="font-size: 10pt; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4.46</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1.1pt">2017</td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">385,000</div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.25</div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; padding-bottom: 2.5pt; padding-left: 10pt; text-align: left">Total</td> <td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,256,101</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.00</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt"> – </div></div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">609.38</div></td> </tr> </table></div>
-0.21
-3.01
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">NOTE <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4</div> - LOSS PER SHARE</div></div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">The following table presents the shares used in the basic and diluted loss per common share computations:</div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse;"> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="font-size: 10pt"> </td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1.1pt"> </td> <td nowrap="nowrap" colspan="7" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1.1pt solid">Three Months Ended March 31,</td> </tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="font-size: 10pt"> </td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1.1pt"> </td> <td nowrap="nowrap" colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1.1pt solid">2017</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1.1pt"> </td> <td nowrap="nowrap" colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1.1pt solid">2016</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt">Numerator:</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 68%; font-size: 10pt; text-align: left">Net loss available in basic and diluted calculation</td> <td style="width: 2%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 12%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(1,341,847</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">)</td> <td style="width: 2%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 12%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(2,176,369</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">Other comprehensive income:</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1.1pt">Unrealized gain from marketable securities</td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,850</div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">Comprehensive (loss)</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(1,341,847</div></td> <td style="font-size: 10pt; text-align: left">)</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(2,173,519</div></td> <td style="font-size: 10pt; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt">Denominator:</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt">Weighted average common shares outstanding-basic</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6,450,967</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">723,848</div></td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">Effect of diluted stock options, warrants and preferred stock (1)</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; padding-bottom: 1.1pt">Weighted average common shares outstanding-basic</td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6,450,967</div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">723,848</div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 2.5pt">Loss per common share-basic and diluted</td> <td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(0.21</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">)</td> <td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(3.01</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">)</td> </tr> </table> </div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(1)</div> The number of shares underlying options and warrants outstanding as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div> are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,427,558</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">167,986</div> respectively. The number of shares underlying the preferred stock as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div> is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">79,246.</div> The effect of the shares that would be issued upon exercise of such options, warrants and preferred stock has been excluded from the calculation of diluted loss per share because those shares are anti-dilutive.</div></div>
155514
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Fair Value Measurements</div></div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">Under generally accepted accounting principles as outlined in the Financial Accounting Standards Board’s <div style="display: inline; font-style: italic;">Accounting Standards Codification </div>(ASC) <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">820,</div> fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The accounting standards ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">820</div> establishes a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div>-level fair value hierarchy that prioritizes information used in developing assumptions when pricing an asset or liability as follows:</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0; text-indent: 0.5in">Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> – Observable inputs such as quoted prices in active markets;</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0; text-indent: 0.5in">Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2</div> – Inputs other than quoted prices in active markets, that are observable either directly or indirectly; and</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0 0pt 0.5in">Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div> – Unobservable inputs where there is little or no market data, which requires the reporting entity to develop its own assumptions.</div> <div style=" font-size: 10pt; margin: 0pt 0 0pt 0.5in"> </div> <div style=" font-size: 10pt; margin: 0pt 0"></div> <!-- Field: Page; Sequence: 10; Value: 4 --> <!-- Field: /Page --> <div style=" font-size: 10pt; margin: 0pt 0"></div> <div style=" font-size: 10pt; margin: 0pt 0"></div> <div style=" font-size: 10pt; margin: 0pt 0">The Company uses observable market data, when available, in making fair value measurements. Fair value measurements are classified according to the lowest level input that is significant to the valuation.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">The fair value of the Company’s investment securities were determined based on Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> inputs.</div></div></div></div></div>
-145
1132073
1688577
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Valuation of Intangible Assets</div></div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">We review identifiable intangible assets for impairment in accordance with ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">350</div> — Intangibles —Goodwill and Other, whenever events or changes in circumstances indicate the carrying amount <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may</div> not be recoverable. Our intangible assets are currently solely the costs of obtaining trademarks and patents. Events or changes in circumstances that indicate the carrying amount <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may</div> not be recoverable include, but are not limited to, a significant change in the medical device marketplace and a significant adverse change in the business climate in which we operate. If such events or changes in circumstances are present, the undiscounted cash flows method is used to determine whether the intangible asset is impaired. Cash flows would include the estimated terminal value of the asset and exclude any interest charges. If the carrying value of the asset exceeds the undiscounted cash flows over the estimated remaining life of the asset, the asset is considered impaired, and the impairment is measured by reducing the carrying value of the asset to its fair value using the discounted cash flows method. The discount rate utilized is based on management’s best estimate of the related risks and return at the time the impairment assessment is made.</div></div></div></div></div>
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Intangible Assets</div></div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">Intangible assets consist of trademarks and patent costs. Amortization expense was <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$2,888</div> in the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> and was <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,832</div> in the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016.</div> The assets are reviewed for impairment annually, and impairment losses, if any, are charged to operations when identified.</div> <div style=" font-size: 10pt; margin: 0pt 0"></div></div></div></div></div>
138174
11022
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">NOTE <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5</div> – INCOME TAXES</div></div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">The provision for income taxes consists of an amount for taxes currently payable and a provision for tax consequences deferred to future periods. Deferred income taxes are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which whose temporary differences are expected to be recovered or settled.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0"></div> <div style=" font-size: 10pt; margin: 0pt 0">There is no income tax provision in the accompanying statements of operations and comprehensive income due to the cumulative operating losses that indicate <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">100%</div> valuation allowance for the deferred tax assets and state income taxes is appropriate.</div> <div style=" font-size: 10pt; margin: 0pt 0"></div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0"></div> <!-- Field: Page; Sequence: 19; Value: 4 --> <!-- Field: /Page --> <div style=" font-size: 10pt; margin: 0pt 0"></div><div style=" font-size: 10pt; margin: 0pt 0">During <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2013,</div> the Company experienced an "ownership change" as defined in Section <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">382</div> of the Internal Revenue Code which could potentially limit the ability to utilize the Company’s net operating losses (NOLs). The Company <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may</div> have experienced additional “ownership change(s)” since <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2013,</div> but a formal study has not yet been performed. The general limitation rules allow the Company to utilize its NOLs subject to an annual limitation that is determined by multiplying the federal long-term tax-exempt rate by the Company’s value immediately before the ownership change.</div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">At <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> the Company had approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$30.9</div> million of gross NOLs to reduce future federal taxable income, the majority of which are expected to be available for use in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> subject to the Section <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">382</div> limitation described above. The federal NOLs will expire beginning in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2022</div> if unused. The Company also had approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$13.0</div> million of gross NOLs to reduce future state taxable income at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> which will expire in years <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2022</div> through <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2036</div> if unused. The Company’s net deferred tax assets, which include the NOLs, are subject to a full valuation allowance. At <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> the federal and state valuation allowances were <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$10.7</div> million and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.2</div> million, respectively.</div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">At <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> the Company had approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$31.4</div> million of gross NOLs to reduce future federal taxable income, the majority of which are expected to be available for use in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2018,</div> subject to the Section <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">382</div> limitation described above. The federal NOLs will expire beginning in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2022</div> if unused. The Company also had approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$13.2</div> million of gross NOLs to reduce future state taxable income at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> which will expire in years <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2022</div> through <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2037</div> if unused. The Company's net deferred tax assets, which include the NOLs, are subject to a full valuation allowance. At <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> the federal and state valuation allowances were <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$11.0</div> million and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.2</div> million, respectively.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">The valuation allowance has been recorded due to the uncertainty of realization of the benefits associated with the net operating losses. Future events and changes in circumstances could cause this valuation allowance to change.</div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">The components of deferred income taxes at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div> are as follows:</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse;"> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="font-size: 10pt"> </td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td nowrap="nowrap" colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1.1pt solid">March 31,<br /> 2017</td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td nowrap="nowrap" colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1.1pt solid">December 31,<br /> 2016</td> </tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="font-size: 10pt"> </td> <td style="font-size: 10pt"> </td> <td nowrap="nowrap" colspan="3" style="font-size: 10pt"> </td> <td style="font-size: 10pt"> </td> <td nowrap="nowrap" colspan="3" style="font-size: 10pt; text-align: right"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">Deferred Tax Asset:</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 68%; font-size: 10pt; text-align: left">Net Operating Loss</td> <td style="width: 2%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 12%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10,865,000</div></td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> <td style="width: 2%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 12%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10,755,000</div></td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; padding-bottom: 1.1pt">Other</td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">343,000</div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">189,000</div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">Total Deferred Tax Asset</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">11,208,000</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10,944,000</div></td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1.1pt">Less Valuation Allowance</td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">11,208,000</div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10,944,000</div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-bottom: 2.5pt">Net Deferred Income Taxes</td> <td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">—</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">—</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td> </tr> </table> </div></div>
0
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Income Taxes</div></div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">The Company accounts for income taxes in accordance with ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">740</div>- Income Taxes (“ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">740”).</div> Under ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">740,</div> deferred tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and net operating loss and credit carryforwards using enacted tax rates in effect for the year in which the differences are expected to impact taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized.</div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"></div> <div style=" font-size: 10pt; margin: 0pt 0">There is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> income tax provision in the accompanying statements of operations due to the cumulative operating losses that indicate a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">100%</div> valuation allowance for the deferred tax assets and state income taxes is appropriate.</div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"></div> <div style=" font-size: 10pt; margin: 0pt 0">The Company reviews income tax positions expected to be taken in income tax returns to determine if there are any income tax uncertainties. The Company recognizes tax benefits from uncertain tax positions only if it is more likely than not that the tax positions will be sustained on examination by taxing authorities, based on technical merits of the positions. The Company has identified <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> income tax uncertainties.</div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">Tax years subsequent to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2013</div> remain open to examination by federal and state tax authorities.</div></div></div></div></div>
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<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Patents and Intellectual Property</div></div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">25th,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014,</div> the Company filed a non-provisional PCT Application No. <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">PCT/US2014/013081</div> claiming priority from the U.S. Provisional Patent Application, number <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">61756763</div> which was filed <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> year earlier on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">25th,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2013.</div> The Patent Cooperation Treaty (“PCT”) allows an applicant to file a single patent application to seek patent protection for an invention simultaneously in each of the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">148</div> countries of the PCT, including the United States. By filing this single “international” patent application through the PCT, it is easier and more cost effective than filing separate applications directly with each national or regional patent office in which patent protection is desired.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">Our PCT patent application is for the new model of the surgical fluid waste management system. We obtained a favorable International Search Report from the PCT searching authority indicating that the claims in our PCT application are patentable (i.e., novel and non-obvious) over the cited prior art. A feature claimed in the PCT application is the ability to maintain continuous suction to the surgical field while measuring, recording and evacuating fluid to the facilities sewer drainage system. This provides for continuous operation of the STREAMWAY System unit in suctioning waste fluids, which means that suction is not interrupted during a surgical operation, for example, to empty a fluid collection container or otherwise dispose of the collected fluid.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">The Company holds the following granted patents in the United States and a pending application in the United States on its earlier models: <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">US7469727,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">US8123731</div> and U.S. Publication No. <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">US20090216205</div> (collectively, the “Patents”). These Patents will begin to expire on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2023.</div></div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015,</div> Skyline Medical filed an international (PCT) patent application for its fluid waste collection system and received a favorable determination by the International Searching Authority finding that all of the claims satisfy the requirements for novelty, inventive step and industrial applicability. Skyline anticipates that the favorable International Search Report will result in allowance of its various national applications.</div></div></div></div></div>
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249186
272208
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Inventories</div></div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;"> </div></div> <div style=" font-size: 10pt; margin: 0pt 0">Inventories are stated at the lower of cost or market, with cost determined on a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div>-in, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div>-out basis. Inventory balances are as follows:</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div> <table style="border-collapse: collapse;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt" nowrap="nowrap"> </td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1.1pt solid" nowrap="nowrap">March 31,<br /> 2017</td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1.1pt solid" nowrap="nowrap">December 31,<br /> 2016</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt" nowrap="nowrap"> </td> <td style="font-size: 10pt"> </td> <td colspan="3" style="font-size: 10pt" nowrap="nowrap"> </td> <td style="font-size: 10pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: right" nowrap="nowrap"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 68%; font-size: 10pt; text-align: left">Finished goods</td> <td style="width: 2%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 12%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">28,003</div></td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> <td style="width: 2%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 12%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">38,201</div></td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">Raw materials</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">159,972</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">165,812</div></td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; padding-bottom: 1.1pt">Work-In-Process</td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">61,211</div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">68,195</div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; padding-bottom: 2.5pt">Total</td> <td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">249,186</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">272,208</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td> </tr> </table> </div></div></div></div></div>
159972
165812
61211
68195
16895
16750
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">NOTE <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6</div> – RENT OBLIGATION</div></div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">The Company leases its principal office under a lease that can be cancelled after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> years with proper notice per the lease and an amortized schedule of adjustments that will be due to the landlord. The lease extends <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">five</div> years and expires <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2018.</div> In addition to rent, the Company pays real estate taxes and repairs and maintenance on the leased property. Rent expense was <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$16,895</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$16,750</div> for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div> respectively.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0"></div> <div style=" font-size: 10pt; margin: 0pt 0">The Company’s rent obligation for the next <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">two</div> years is as follows:</div> <div style=" font-size: 10pt; margin: 0pt 0"></div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse;"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 84%; font-size: 10pt; text-align: left">2017</td> <td style="width: 2%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 12%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">29,250</div></td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">2018</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3,000</div></td> <td style="font-size: 10pt; text-align: left"> </td> </tr> </table> </div></div>
1483532
1883864
5466248
2807546
1296610
1574215
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Investment Securities</div></div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">Readily marketable investments in debt and equity securities are classified as available-for-sale and are reported at fair value with unrealized gains and losses recorded in other comprehensive income. Unrealized gains are charged to earnings when an incline in fair value above the cost basis is determined to be other-than-temporary. Realized gains and losses on dispositions are based on the net proceeds and the adjusted book value of the securities sold, using the specific identification method.</div></div></div></div></div>
3814938
86253
-2336412
-1818811
-1156208
-1587882
-1341847
-2176369
-6526014
-6526014
-1341847
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Recent Accounting Developments</div></div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014,</div> the Financial Accounting Standards Board (“FASB”) issued ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09,</div> <div style="display: inline; font-style: italic;">Revenue from Contracts with Customers </div>and created a new topic in the FASB Accounting Standards Codification ("ASC"), Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">606,</div> and has since amended the standard with ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">14,</div> <div style="display: inline; font-style: italic;">“Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net),” </div>ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10,</div> <div style="display: inline; font-style: italic;">“Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing,” </div>and ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12,</div> <div style="display: inline; font-style: italic;">“Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients.”.</div> These new standards provide a single comprehensive revenue recognition framework for all entities and supersede nearly all existing U.S. GAAP revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that an entity should recognize revenue in a manner that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard is designed to create greater comparability for financial statement users across industries and also requires enhanced disclosures. The amendments are effective for annual reporting periods beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> including interim periods within that reporting period. Early application is not permitted. The FASB allows <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">two</div> adoption methods under ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">606.</div> We currently plan to adopt the standard using the “modified retrospective method.” Under that method, we will apply the rules to all contracts existing as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2018,</div> recognizing in the beginning retained earnings an adjustment for the cumulative effect of the change and providing additional disclosure comparing results to previous accounting standards. Upon initial evaluation, we believe the requirements of this standard will not result in a significant change to our results.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014,</div> the FASB issued ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12,</div> <div style="display: inline; font-style: italic;">"Compensation - Stock Compensation" </div>providing explicit guidance on how to account for share-based payments granted to employees in which the terms of the award provide that a performance target that affects vesting could be achieved after the requisite service period. The amendments in this Update are effective.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0"></div> <div style=" font-size: 10pt; margin: 0pt 0">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014,</div> the FASB issued ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15,</div> <div style="display: inline; font-style: italic;">Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern</div>. The new standard requires management to assess an entity’s ability to continue as a going concern, and to provide related footnote disclosures in certain circumstances. The standard is effective for public entities for annual and interim periods beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> with early adoption permitted. We implemented in the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div> quarter of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017.</div></div> <div style=" font-size: 10pt; margin: 0pt 0"></div> <div style=" font-size: 10pt; margin: 0pt 0; color: #252525"> </div> <div style=" font-size: 10pt; margin: 0pt 0; color: #252525">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> April</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015,</div> the FASB issued ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">03,</div> <div style="display: inline; font-style: italic;">Simplifying the Presentation of Debt Issuance Costs</div>. Debt issuance costs related to a recognized debt liability will be presented on the balance sheet as a direct deduction from the debt liability, similar to the presentation of debt discounts, rather than as an asset. Amortization of these costs will continue to be reported as interest expense. ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">03</div> is effective.</div> <div style=" font-size: 10pt; margin: 0pt 0; color: #252525"></div> <!-- Field: /Page --> <div style=" font-size: 10pt; margin: 0pt 0; color: #252525"></div> <div style=" font-size: 10pt; margin: 0pt 0; color: #252525"></div> <div style=" font-size: 10pt; margin: 0pt 0; color: #252525"></div> <div style=" font-size: 10pt; margin: 0pt 0; color: #252525"> </div> <div style=" font-size: 10pt; margin: 0pt 0; color: #252525">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015,</div> the FASB issued ASU No. <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">11</div><div style="display: inline; font-style: italic;">, Inventory (Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">330):</div> Simplifying the Measurement of Inventory</div>, requiring that inventory be measured at the lower of cost and net realizable value. Net realizable value is defined as estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This ASU is effective within annual periods beginning on or after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> including interim periods within that reporting period. This ASU is implemented.</div> <div style=" font-size: 10pt; margin: 0pt 0; color: #252525"> </div> <div style=" font-size: 10pt; margin: 0pt 0; color: #252525">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> November</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015,</div> the FASB issued ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">17,</div> <div style="display: inline; font-style: italic;">“Income Taxes (Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">740)”</div> </div>providing guidance on the balance sheet classification of deferred taxes. The guidance requires that deferred tax assets and liabilities to be classified as noncurrent in the Balance Sheet. The guidance is effective for fiscal years beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div> and for interim periods within those fiscal years, with early adoption permitted. This ASU is implemented.</div> <div style=" font-size: 10pt; margin: 0pt 0; color: #252525"></div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> the FASB issued ASU No. <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">01,</div> <div style="display: inline; font-style: italic;">“Financial Instruments-Overall (Subtopic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">825</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10):</div> Recognition and Measurement of Financial Assets and Financial Liabilities”</div> (“ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">01”).</div> The standard changes how entities measure certain equity investments and present changes in the fair value of financial liabilities measured under the fair value option that are attributable to their own credit. Under the new guidance, entities will be required to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and recognize any changes in fair value in net income unless the investments qualify for the new practicability exception. The standard is effective for fiscal years beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> including interim periods within those fiscal years. The Company does not believe that the adoption of this guidance will have a material impact on the Company’s financial statements and disclosures.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> February</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> the FASB issued ASU No. <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">02,</div> “<div style="display: inline; font-style: italic;">Leases (Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">842)</div></div>” (“ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">02”),</div> which requires lessees to put most leases on their balance sheets but recognize the expenses on their income statements in a manner similar to current practice. The standard states that a lessee would recognize a lease liability for the obligation to make lease payments and a right-to-use asset for the right to use the underlying asset for the lease term. The standard is effective for fiscal years and interim periods within those fiscal years beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2018.</div> Early adoption is permitted. We are currently evaluating the timing of our adoption and the impact that the updated standard will have on our financial statements.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> the FASB issued ASU No. <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09,</div> “<div style="display: inline; font-style: italic;">Compensation - Stock Compensation (Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">718):</div> Improvements to Employee Share-Based Payment Accountin</div>g” (“ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09”).</div> ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09</div> simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The standard is effective for fiscal years and interim periods within those fiscal years beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016.</div> Early adoption is permitted. We are currently evaluating the timing of our adoption and the impact that the updated standard will have on our financial statements.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">During <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> the FASB issued ASU No. <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15,</div> <div style="display: inline; font-style: italic;">“Statement of Cash Flows (Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">230):</div> Classification of Certain Cash Receipts and Cash Payments”, </div>to address diversity in how certain cash receipts and cash payments are presented and classified in the statements of cash flows. The amendments are effective for public business entities for fiscal years beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> and interim periods within those fiscal years. The amendments should be applied using a retrospective transition method to each period presented. If retrospective application is impractical for some of the issues addressed by the update, the amendments for those issues would be applied prospectively as of the earliest date practicable. Early adoption is permitted, including adoption in an interim period. The Company does not expect the adoption of ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15</div> to have a material impact on its financial statements.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">We reviewed all other significant newly issued accounting pronouncements and determined they are either not applicable to our business or that no material effect is expected on our financial position and results of our operations.</div></div></div></div></div>
2
2013
200494
390366
29250
3000
30900000
13000000
31400000
13200000
10700000
200000
11000000
200000
2850
1501
1501
-1501
800000
194
1424
26898
17387
2593985
1000000
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">NOTE <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8</div> – RETIREMENT SAVINGS PLAN</div></div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">We have a pre-tax salary reduction/profit-sharing plan under the provisions of Section <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">401(k)</div> of the Internal Revenue Code, which covers employees meeting certain eligibility requirements. In fiscal <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> we matched <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">100%,</div> of the employee’s contribution up to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4%</div> of their earnings. The employer contribution was <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$9,770</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$11,117</div> for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> months ending <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> respectively.</div></div>
0.06
0.06
0.01
0.01
20000000
20000000
79246
79246
792
792
160282
148637
1475000
100000
250000
3814938
86253
358312
13800000
1983337
3937500
284665
4343
29889
176360
164318
25635
25635
103204
103204
38092
23236
343291
316393
112709
101496
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Property and Equipment</div></div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation of property and equipment is computed using the straight-line method over the estimated useful lives of the respective assets. Estimated useful asset life by classification is as follows:</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div> <table style="border-collapse: collapse;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt" nowrap="nowrap"> </td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1.1pt solid" nowrap="nowrap">Years</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">Computers and office equipment</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div></td> <td style="font-size: 10pt; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt"> -</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 84%; font-size: 10pt; text-align: left">Leasehold improvements</td> <td style="width: 2%; font-size: 10pt"> </td> <td style="width: 5%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="width: 4%; font-size: 10pt; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5</div></td> <td style="width: 5%; font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">Manufacturing tooling</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div></td> <td style="font-size: 10pt; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">Demo Equipment</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="font-size: 10pt; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> </tr> </table> </div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">The Company’s investment in Fixed Assets consists of the following:</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div> <table style="border-collapse: collapse;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt" nowrap="nowrap"> </td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1.1pt"> </td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1.1pt solid" nowrap="nowrap">March 31,<br /> 2017</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1.1pt"> </td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1.1pt solid" nowrap="nowrap">December 31,<br /> 2016</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 68%; font-size: 10pt; font-weight: bold; text-align: left">Computers and office equipment</td> <td style="width: 2%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 12%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">176,360</div></td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> <td style="width: 2%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 12%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">164,318</div></td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; font-weight: bold; text-align: left">Leasehold improvements</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">25,635</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">25,635</div></td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; font-weight: bold; text-align: left">Manufacturing tooling</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">103,204</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">103,204</div></td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 1.1pt">Demo Equipment</td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">38,092</div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">23,236</div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; font-weight: bold; text-align: left; padding-left: 10pt">Total</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">343,291</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">316,393</div></td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 1.1pt">Less: Accumulated depreciation</td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">230,582</div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">214,897</div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 2.5pt; padding-left: 10pt">Total Fixed Assets, Net</td> <td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">112,709</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">101,496</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td> </tr> </table> </div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">Upon retirement or sale, the cost and related accumulated depreciation are removed from the balance sheet and the resulting gain or loss is reflected in operations. Maintenance and repairs are charged to operations as incurred.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">Depreciation expense was <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$15,685</div> in the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> and was <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$19,207</div> for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016.</div></div></div></div></div></div>
<div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse;"> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="font-size: 10pt"> </td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1.1pt"> </td> <td nowrap="nowrap" colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1.1pt solid">March 31,<br /> 2017</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1.1pt"> </td> <td nowrap="nowrap" colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1.1pt solid">December 31,<br /> 2016</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 68%; font-size: 10pt; font-weight: bold; text-align: left">Computers and office equipment</td> <td style="width: 2%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 12%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">176,360</div></td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> <td style="width: 2%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 12%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">164,318</div></td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; font-weight: bold; text-align: left">Leasehold improvements</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">25,635</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">25,635</div></td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; font-weight: bold; text-align: left">Manufacturing tooling</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">103,204</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">103,204</div></td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 1.1pt">Demo Equipment</td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">38,092</div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">23,236</div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; font-weight: bold; text-align: left; padding-left: 10pt">Total</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">343,291</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">316,393</div></td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 1.1pt">Less: Accumulated depreciation</td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">230,582</div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">214,897</div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 2.5pt; padding-left: 10pt">Total Fixed Assets, Net</td> <td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">112,709</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">101,496</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td> </tr> </table></div>
P3Y
P7Y
P5Y
P3Y
P7Y
P3Y
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Receivables</div></div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">Receivables are reported at the amount the Company expects to collect on balances outstanding. The Company provides for probable uncollectible amounts through charges to earnings and credits to the valuation based on management’s assessment of the current status of individual accounts, changes to the valuation allowance have not been material to the financial statements.</div></div></div></div></div>
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">NOTE <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7</div> – RELATED PARTY TRANSACTIONS</div></div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">The Audit Committee has the responsibility to review and approve all transactions to which a related party and the Company <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may</div> be a party prior to their implementation, to assess whether such transactions meet applicable legal requirements.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">One of the Company’s directors, Richard L. Gabriel, is the Chief Operating Officer and serves as a director of GLG Pharma (“GLG”). Another Company director, Tim Krochuk, is on the supervisory board for GLG. In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">20,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> the Company entered into a partnership and exclusive reseller agreement with GLG. Under the terms of the agreement, GLG would develop rapid diagnostic tests that utilize fluid and tissue collected by the STREAMWAY System during procedures. The Company agreed to issue an aggregate of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">400,000</div> shares of common stock to GLG in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">four</div> separate tranches of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">100,000</div> shares of common stock in each tranche. The shares reserved in each tranche would be released after the achievement of certain development milestones designated in the agreement. In addition, the Company would pay a royalty to GLG on the sale of individual tests. Also, on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> November</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> the Company announced that it agreed to grant GLG exclusive rights to market and distribute the STREAMWAY System in the U.K. On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> November</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> the Company announced that it agreed to grant GLG the same rights in Poland and certain other countries in Central Europe. In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> April</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> the partnership and exclusive reseller agreement and the distribution agreements between the Company and GLG were terminated.</div></div>
84472
122161
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Research and Development</div></div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">Research and development costs are charged to operations as incurred. Research and development expenses were <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$84,472</div> in the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$122,161</div> in the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016.</div></div></div></div></div></div>
-48360298
-47018451
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Revenue Recognition</div></div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">The Company recognizes revenue in accordance with the SEC’s Staff Accounting Bulletin Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">13</div> Revenue Recognition and ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">605</div>-Revenue Recognition.</div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">Revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed and determinable and collectability is probable. Delivery is considered to have occurred upon either shipment of the product or arrival at its destination based on the shipping terms of the transaction. The Company’s standard terms specify that shipment is FOB Skyline and the Company will, therefore, recognize revenue upon shipment in most cases. This revenue recognition policy applies to shipments of the STREAMWAY SYSTEM units as well as shipments of filters and fluids. When these conditions are satisfied, the Company recognizes gross product revenue, which is the price it charges generally to its customers for a particular product. Under the Company’s standard terms and conditions, there is no provision for installation or acceptance of the product to take place prior to the obligation of the customer. The customer’s right of return is limited only to the Company’s standard <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div>-year warranty whereby the Company replaces or repairs, at its option, and it would be rare that the STREAMWAY SYSTEM unit or significant quantities of cleaning solution or filters <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may</div> be returned. Additionally, since the Company buys the STREAMWAY SYSTEM units, cleaning solution and filters from “turnkey” suppliers, the Company would have the right to replacements from the suppliers if this situation should occur.</div></div></div></div></div>
175166
96905
<div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse;"> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="font-size: 10pt"> </td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td nowrap="nowrap" colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1.1pt solid">March 31,<br /> 2017</td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td nowrap="nowrap" colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1.1pt solid">December 31,<br /> 2016</td> </tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="font-size: 10pt"> </td> <td style="font-size: 10pt"> </td> <td nowrap="nowrap" colspan="3" style="font-size: 10pt"> </td> <td style="font-size: 10pt"> </td> <td nowrap="nowrap" colspan="3" style="font-size: 10pt; text-align: right"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">Deferred Tax Asset:</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 68%; font-size: 10pt; text-align: left">Net Operating Loss</td> <td style="width: 2%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 12%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10,865,000</div></td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> <td style="width: 2%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 12%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10,755,000</div></td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; padding-bottom: 1.1pt">Other</td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">343,000</div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">189,000</div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">Total Deferred Tax Asset</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">11,208,000</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10,944,000</div></td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1.1pt">Less Valuation Allowance</td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">11,208,000</div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10,944,000</div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-bottom: 2.5pt">Net Deferred Income Taxes</td> <td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">—</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">—</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td> </tr> </table></div>
<div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse;"> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="font-size: 10pt"> </td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1.1pt"> </td> <td nowrap="nowrap" colspan="7" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1.1pt solid">Three Months Ended March 31,</td> </tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="font-size: 10pt"> </td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1.1pt"> </td> <td nowrap="nowrap" colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1.1pt solid">2017</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1.1pt"> </td> <td nowrap="nowrap" colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1.1pt solid">2016</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt">Numerator:</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 68%; font-size: 10pt; text-align: left">Net loss available in basic and diluted calculation</td> <td style="width: 2%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 12%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(1,341,847</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">)</td> <td style="width: 2%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 12%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(2,176,369</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">Other comprehensive income:</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1.1pt">Unrealized gain from marketable securities</td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,850</div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">Comprehensive (loss)</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(1,341,847</div></td> <td style="font-size: 10pt; text-align: left">)</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(2,173,519</div></td> <td style="font-size: 10pt; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt">Denominator:</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt">Weighted average common shares outstanding-basic</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6,450,967</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">723,848</div></td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">Effect of diluted stock options, warrants and preferred stock (1)</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; padding-bottom: 1.1pt">Weighted average common shares outstanding-basic</td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6,450,967</div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">723,848</div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 2.5pt">Loss per common share-basic and diluted</td> <td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(0.21</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">)</td> <td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(3.01</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">)</td> </tr> </table></div>
<div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse;"> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="font-size: 10pt"> </td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td nowrap="nowrap" colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1.1pt solid">March 31,<br /> 2017</td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td nowrap="nowrap" colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1.1pt solid">December 31,<br /> 2016</td> </tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="font-size: 10pt"> </td> <td style="font-size: 10pt"> </td> <td nowrap="nowrap" colspan="3" style="font-size: 10pt"> </td> <td style="font-size: 10pt"> </td> <td nowrap="nowrap" colspan="3" style="font-size: 10pt; text-align: right"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 68%; font-size: 10pt; text-align: left">Finished goods</td> <td style="width: 2%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 12%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">28,003</div></td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> <td style="width: 2%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 12%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">38,201</div></td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">Raw materials</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">159,972</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">165,812</div></td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; padding-bottom: 1.1pt">Work-In-Process</td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">61,211</div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">68,195</div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; padding-bottom: 2.5pt">Total</td> <td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">249,186</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">272,208</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td> </tr> </table></div>
<div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse;"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 84%; font-size: 10pt; text-align: left">2017</td> <td style="width: 2%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 12%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">29,250</div></td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">2018</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3,000</div></td> <td style="font-size: 10pt; text-align: left"> </td> </tr> </table></div>
<div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse;"> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="font-size: 10pt"> </td> <td style="font-size: 10pt; font-weight: bold"> </td> <td nowrap="nowrap" colspan="7" style="font-size: 10pt; font-weight: bold; text-align: center">Stock Options</td> <td style="font-size: 10pt; font-weight: bold"> </td> <td nowrap="nowrap" colspan="7" style="font-size: 10pt; font-weight: bold; text-align: center">Warrants</td> </tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="font-size: 10pt; font-weight: bold; text-align: center"> </td> <td style="font-size: 10pt; font-weight: bold"> </td> <td nowrap="nowrap" colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center">Number of<br /> Shares</td> <td style="font-size: 10pt; font-weight: bold"> </td> <td nowrap="nowrap" colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center"><div style="display: inline; font-weight: bold;">Average<br /> <div style="display: inline; font-size: 10pt">Exercise</div><br /> <div style="display: inline; font-size: 10pt">Price</div></div></td> <td style="font-size: 10pt; font-weight: bold"> </td> <td nowrap="nowrap" colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center">Number of<br /> Shares</td> <td style="font-size: 10pt; font-weight: bold"> </td> <td nowrap="nowrap" colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center"><div style="display: inline; font-weight: bold;">Average<br /> Exercise<br /> <div style="display: inline; font-size: 10pt">Price</div></div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 52%; font-size: 10pt">Outstanding at December 31, 2015</td> <td style="width: 1%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> <td style="width: 9%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,350</div></td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> <td style="width: 1%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 9%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">133.23</div></td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> <td style="width: 1%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> <td style="width: 9%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">323,099</div></td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> <td style="width: 1%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 9%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">128.40</div></td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt">Issued</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">157,982</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3.14</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,487,881</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0.71</div></td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt">Expired</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(22,377</div></td> <td style="font-size: 10pt; text-align: left">)</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">122.13</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; padding-bottom: 1.1pt">Exercised</td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(1,312</div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left">)</td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">65.75</div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(939,879</div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left">)</td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt">Outstanding at December 31, 2016</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">165,643</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">11.22</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">871,101</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">52.22</div></td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt">Issued</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">14,286</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.10</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">385,000</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.25</div></td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt">Expired</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(8,472</div></td> <td style="font-size: 10pt; text-align: left">)</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10.41</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; padding-bottom: 1.1pt">Exercised</td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; padding-bottom: 2.5pt">Outstanding at March 31, 2017</td> <td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">171,457</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10.50</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,256,101</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">36.90</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td> </tr> </table></div>
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Segments</div></div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">The Company operates in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">two</div> segments for the sale of its medical device and consumable products. Predominantly most of the Company’s assets, revenues, and expenses for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> months ending <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div> and for <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div> in entirety were located at or derived from operations in the United States. The Company completed its <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div> sale outside of the United States in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017.</div></div></div></div></div></div>
147454
108448
587444
37775
P3Y
0.71
2.25
128.40
52.22
36.90
0
0
0
0.66
0.66
0.66
0.59
0.59
0.59
0.0163
0.0235
0.0146
0.0245
0.0192
0.024
939879
1487881
385000
323099
871101
1256101
22377
8472
40000
157982
14286
1.6329
3.7195
1.0293
1.5489
3.14
2.10
14286
293
28896
57145
44000
3636
7147
3529
3902
266
1157
2323
187
232
81
928
1760
123
121
121
130
529
3
72
306
188
53
42
171457
31350
165643
171457
173
1841
1606
835
4164
148551
14286
171457
2.10
2.25
2.42
2.80
3.75
4.125
4.1975
4.25
5.125
65.75
73.50
77.50
80.25
86.25
131.25
148.125
150
162.50
206.25
248.4375
262.50
281.25
318.75
346.875
431.25
506.25
543.75
596.25
133.23
11.22
10.50
112263
14.13
65.75
65.75
122.13
10.41
6.875
139.2375
3.75
281.25
131.25
150
148.125
596.25
162.50
431.25
65.75
86.25
2.25
5.13
2.10
2.10
596.25
P10Y
P10Y
4.125
2.62
2.25
P3Y
P10Y
P5Y
P10Y
P5Y
P5Y
P10Y
P9Y149D
P9Y142D
P9Y277D
P9Y94D
P9Y186D
P9Y171D
P9Y3D
P9Y160D
P8Y204D
P8Y277D
P8Y91D
P8Y186D
P8Y3D
P5Y160D
P5Y354D
P5Y138D
P7Y277D
P7Y186D
P6Y105D
P6Y105D
P5Y292D
P6Y40D
P7Y3D
P6Y343D
P6Y277D
P6Y189D
P6Y182D
P9Y164D
3.75
4.50
4.50
9
208259
4564428
6489428
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Shipping and Handling</div></div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">Shipping and handling charges billed to customers are recorded as revenue. Shipping and handling costs are recorded within cost of goods sold on the statement of operations.</div></div></div></div></div>
0
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">NOTE <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div> – SHORT-TERM NOTES PAYABLE</div> </div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">From <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July</div> through <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014,</div> we entered into a series of securities purchase agreements pursuant to which we issued approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1.8</div> million original principal amount (subsequently reduced to approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1.6</div> million aggregate principal amount in accordance with their terms) of convertible promissory notes (the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">“2014</div> Convertible Notes”) and warrants exercisable for shares of our common stock for an aggregate purchase price of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,475,000.</div> Of this amount, we issued to SOK Partners, LLC, an affiliate of the Company, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$122,196</div> original principal amount of the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014</div> Convertible Notes and warrants exercisable for <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5,431</div> shares of our common stock for an aggregate purchase price of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$100,000.</div> In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> April</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015,</div> we issued and sold to a private investor additional Convertible Notes in an aggregate original principal amount of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$275,000</div> for an aggregate purchase price of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$250,000,</div> containing terms substantially similar to the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014</div> Convertible Notes (the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">“2015</div> Convertible Notes” and, together with the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014</div> Convertible Notes, the “Convertible Notes”). No warrants were issued with the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015</div> Convertible Notes.</div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">Under a provision in the existing agreements, upon effectiveness of a resale registration statement covering certain shares, on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">9,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014,</div> the principal amount of the notes was reduced by <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">11%,</div> to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,603,260</div> and the number of Warrants was reduced by <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">11%,</div> to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,851</div> shares.</div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">In connection with the Offering, the holders of the Convertible Notes agreed to not exercise their right to convert the Convertible Notes into shares of the Company’s common stock, in exchange for the Company’s agreement to redeem all of the outstanding Convertible Notes promptly following the consummation of the Offering at a redemption price equal to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">140%</div> of the principal amount, plus accrued and unpaid interest to the redemption date. On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015,</div> the closing date of the offering, the Company redeemed the remaining <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$933,074</div> aggregate principal amount of Convertible Notes plus interest and a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">40%</div> redeemable premium, for a total payment of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,548,792.</div> Of this amount, approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$167,031</div> was paid to its affiliates in redemption of their Convertible Notes. Each holder of the Convertible Notes agreed to the foregoing terms and entered into an Amendment to Senior Convertible Notes and Agreement with the Company. As of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> none of the Convertible Notes were outstanding.</div></div>
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">NOTE <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</div></div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Nature of Operations and Continuance of Operations</div></div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">Skyline Medical Inc. (the "Company") was incorporated under the laws of the State of Minnesota in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2002.</div> Effective <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2013,</div> the Company changed its name to Skyline Medical Inc. As of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> the registrant had <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6,489,428</div> shares of common stock, par value <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$.01</div> per share, outstanding, adjusted for a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div>-for-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">25</div> reverse stock split effective <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> October</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">27,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016.</div> In this Report, all numbers of shares and per share amounts, as appropriate, have been stated to reflect the reverse stock split. Pursuant to an Agreement and Plan of Merger dated effective <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">16,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2013,</div> the Company merged with and into a Delaware corporation with the same name that was its wholly-owned subsidiary, with such Delaware corporation as the surviving corporation of the merger. The Company has developed an environmentally safe system for the collection and disposal of infectious fluids that result from surgical procedures and post-operative care. The Company also makes ongoing sales of our proprietary cleaning fluid and filters to users of our systems. In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> April</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2009,</div> the Company received <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">510(k)</div> clearance from the FDA to authorize the Company to market and sell its STREAMWAY® SYSTEM products.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">The accompanying financial statements have been prepared assuming the Company will continue as a going concern. The Company has suffered recurring losses from operations and had a stockholders’ deficit until <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015</div> whereupon the Company closed its public offering of units consisting of common stock, Series B Convertible Preferred Stock and Series A Warrants (the “Units”). There remains though, substantial doubt about its ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.</div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">Since inception to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> the Company raised approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$27,765,934</div> in equity, inclusive of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$2,055,000</div> from a private placement of Series A Convertible Preferred Stock, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$13,555,003</div> from the public offering of Units completed in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,739,770</div> from a registered direct offering completed in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$3,421,188</div> from the public offering of Units completed in the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div> quarter of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$358,312</div> from the underwriter exercising their option to purchase up to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">175,000</div> additional shares of common stock and to acquire additional warrants to purchase up to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">35,000</div> additional shares of common stock, and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$5,685,000</div> in debt financing. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources.”</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Recent Accounting Developments</div></div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014,</div> the Financial Accounting Standards Board (“FASB”) issued ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09,</div> <div style="display: inline; font-style: italic;">Revenue from Contracts with Customers </div>and created a new topic in the FASB Accounting Standards Codification ("ASC"), Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">606,</div> and has since amended the standard with ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">14,</div> <div style="display: inline; font-style: italic;">“Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net),” </div>ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10,</div> <div style="display: inline; font-style: italic;">“Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing,” </div>and ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12,</div> <div style="display: inline; font-style: italic;">“Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients.”.</div> These new standards provide a single comprehensive revenue recognition framework for all entities and supersede nearly all existing U.S. GAAP revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that an entity should recognize revenue in a manner that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard is designed to create greater comparability for financial statement users across industries and also requires enhanced disclosures. The amendments are effective for annual reporting periods beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> including interim periods within that reporting period. Early application is not permitted. The FASB allows <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">two</div> adoption methods under ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">606.</div> We currently plan to adopt the standard using the “modified retrospective method.” Under that method, we will apply the rules to all contracts existing as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2018,</div> recognizing in the beginning retained earnings an adjustment for the cumulative effect of the change and providing additional disclosure comparing results to previous accounting standards. Upon initial evaluation, we believe the requirements of this standard will not result in a significant change to our results.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014,</div> the FASB issued ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12,</div> <div style="display: inline; font-style: italic;">"Compensation - Stock Compensation" </div>providing explicit guidance on how to account for share-based payments granted to employees in which the terms of the award provide that a performance target that affects vesting could be achieved after the requisite service period. The amendments in this Update are effective.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0"></div> <div style=" font-size: 10pt; margin: 0pt 0">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014,</div> the FASB issued ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15,</div> <div style="display: inline; font-style: italic;">Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern</div>. The new standard requires management to assess an entity’s ability to continue as a going concern, and to provide related footnote disclosures in certain circumstances. The standard is effective for public entities for annual and interim periods beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> with early adoption permitted. We implemented in the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div> quarter of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017.</div></div> <div style=" font-size: 10pt; margin: 0pt 0"></div> <div style=" font-size: 10pt; margin: 0pt 0; color: #252525"> </div> <div style=" font-size: 10pt; margin: 0pt 0; color: #252525">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> April</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015,</div> the FASB issued ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">03,</div> <div style="display: inline; font-style: italic;">Simplifying the Presentation of Debt Issuance Costs</div>. Debt issuance costs related to a recognized debt liability will be presented on the balance sheet as a direct deduction from the debt liability, similar to the presentation of debt discounts, rather than as an asset. Amortization of these costs will continue to be reported as interest expense. ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">03</div> is effective.</div> <div style=" font-size: 10pt; margin: 0pt 0; color: #252525"></div> <!-- Field: /Page --> <div style=" font-size: 10pt; margin: 0pt 0; color: #252525"></div> <div style=" font-size: 10pt; margin: 0pt 0; color: #252525"></div> <div style=" font-size: 10pt; margin: 0pt 0; color: #252525"></div> <div style=" font-size: 10pt; margin: 0pt 0; color: #252525"> </div> <div style=" font-size: 10pt; margin: 0pt 0; color: #252525">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015,</div> the FASB issued ASU No. <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">11</div><div style="display: inline; font-style: italic;">, Inventory (Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">330):</div> Simplifying the Measurement of Inventory</div>, requiring that inventory be measured at the lower of cost and net realizable value. Net realizable value is defined as estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This ASU is effective within annual periods beginning on or after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> including interim periods within that reporting period. This ASU is implemented.</div> <div style=" font-size: 10pt; margin: 0pt 0; color: #252525"> </div> <div style=" font-size: 10pt; margin: 0pt 0; color: #252525">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> November</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015,</div> the FASB issued ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">17,</div> <div style="display: inline; font-style: italic;">“Income Taxes (Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">740)”</div> </div>providing guidance on the balance sheet classification of deferred taxes. The guidance requires that deferred tax assets and liabilities to be classified as noncurrent in the Balance Sheet. The guidance is effective for fiscal years beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div> and for interim periods within those fiscal years, with early adoption permitted. This ASU is implemented.</div> <div style=" font-size: 10pt; margin: 0pt 0; color: #252525"></div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> the FASB issued ASU No. <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">01,</div> <div style="display: inline; font-style: italic;">“Financial Instruments-Overall (Subtopic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">825</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10):</div> Recognition and Measurement of Financial Assets and Financial Liabilities”</div> (“ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">01”).</div> The standard changes how entities measure certain equity investments and present changes in the fair value of financial liabilities measured under the fair value option that are attributable to their own credit. Under the new guidance, entities will be required to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and recognize any changes in fair value in net income unless the investments qualify for the new practicability exception. The standard is effective for fiscal years beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> including interim periods within those fiscal years. The Company does not believe that the adoption of this guidance will have a material impact on the Company’s financial statements and disclosures.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> February</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> the FASB issued ASU No. <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">02,</div> “<div style="display: inline; font-style: italic;">Leases (Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">842)</div></div>” (“ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">02”),</div> which requires lessees to put most leases on their balance sheets but recognize the expenses on their income statements in a manner similar to current practice. The standard states that a lessee would recognize a lease liability for the obligation to make lease payments and a right-to-use asset for the right to use the underlying asset for the lease term. The standard is effective for fiscal years and interim periods within those fiscal years beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2018.</div> Early adoption is permitted. We are currently evaluating the timing of our adoption and the impact that the updated standard will have on our financial statements.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> the FASB issued ASU No. <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09,</div> “<div style="display: inline; font-style: italic;">Compensation - Stock Compensation (Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">718):</div> Improvements to Employee Share-Based Payment Accountin</div>g” (“ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09”).</div> ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09</div> simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The standard is effective for fiscal years and interim periods within those fiscal years beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016.</div> Early adoption is permitted. We are currently evaluating the timing of our adoption and the impact that the updated standard will have on our financial statements.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">During <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> the FASB issued ASU No. <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15,</div> <div style="display: inline; font-style: italic;">“Statement of Cash Flows (Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">230):</div> Classification of Certain Cash Receipts and Cash Payments”, </div>to address diversity in how certain cash receipts and cash payments are presented and classified in the statements of cash flows. The amendments are effective for public business entities for fiscal years beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> and interim periods within those fiscal years. The amendments should be applied using a retrospective transition method to each period presented. If retrospective application is impractical for some of the issues addressed by the update, the amendments for those issues would be applied prospectively as of the earliest date practicable. Early adoption is permitted, including adoption in an interim period. The Company does not expect the adoption of ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15</div> to have a material impact on its financial statements.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">We reviewed all other significant newly issued accounting pronouncements and determined they are either not applicable to our business or that no material effect is expected on our financial position and results of our operations.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Valuation of Intangible Assets</div></div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">We review identifiable intangible assets for impairment in accordance with ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">350</div> — Intangibles —Goodwill and Other, whenever events or changes in circumstances indicate the carrying amount <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may</div> not be recoverable. Our intangible assets are currently solely the costs of obtaining trademarks and patents. Events or changes in circumstances that indicate the carrying amount <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may</div> not be recoverable include, but are not limited to, a significant change in the medical device marketplace and a significant adverse change in the business climate in which we operate. If such events or changes in circumstances are present, the undiscounted cash flows method is used to determine whether the intangible asset is impaired. Cash flows would include the estimated terminal value of the asset and exclude any interest charges. If the carrying value of the asset exceeds the undiscounted cash flows over the estimated remaining life of the asset, the asset is considered impaired, and the impairment is measured by reducing the carrying value of the asset to its fair value using the discounted cash flows method. The discount rate utilized is based on management’s best estimate of the related risks and return at the time the impairment assessment is made.</div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;"> </div></div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Accounting Policies and Estimates</div></div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">The presentation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.</div> <div style=" font-size: 10pt; margin: 0pt 0"></div> <!-- Field: /Page --> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;"></div></div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Presentation of Taxes Collected from Customers</div></div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">Sales taxes are imposed on the Company’s sales to nonexempt customers. The Company collects the taxes from customers and remits the entire amounts to the governmental authorities. The Company’s accounting policy is to exclude the taxes collected and remitted from revenues and expenses.</div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Shipping and Handling</div></div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">Shipping and handling charges billed to customers are recorded as revenue. Shipping and handling costs are recorded within cost of goods sold on the statement of operations.</div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Advertising</div></div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">Advertising costs are expensed as incurred. Advertising expenses were <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$4,271</div> in the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div> and were <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$3,996</div> in the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016.</div></div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Research and Development</div></div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">Research and development costs are charged to operations as incurred. Research and development expenses were <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$84,472</div> in the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$122,161</div> in the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016.</div></div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Revenue Recognition</div></div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">The Company recognizes revenue in accordance with the SEC’s Staff Accounting Bulletin Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">13</div> Revenue Recognition and ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">605</div>-Revenue Recognition.</div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">Revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed and determinable and collectability is probable. Delivery is considered to have occurred upon either shipment of the product or arrival at its destination based on the shipping terms of the transaction. The Company’s standard terms specify that shipment is FOB Skyline and the Company will, therefore, recognize revenue upon shipment in most cases. This revenue recognition policy applies to shipments of the STREAMWAY SYSTEM units as well as shipments of filters and fluids. When these conditions are satisfied, the Company recognizes gross product revenue, which is the price it charges generally to its customers for a particular product. Under the Company’s standard terms and conditions, there is no provision for installation or acceptance of the product to take place prior to the obligation of the customer. The customer’s right of return is limited only to the Company’s standard <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div>-year warranty whereby the Company replaces or repairs, at its option, and it would be rare that the STREAMWAY SYSTEM unit or significant quantities of cleaning solution or filters <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may</div> be returned. Additionally, since the Company buys the STREAMWAY SYSTEM units, cleaning solution and filters from “turnkey” suppliers, the Company would have the right to replacements from the suppliers if this situation should occur.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Cash Equivalents</div></div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">The Company considers all highly liquid debt instruments with a maturity of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> months or less when purchased to be cash equivalents. Cash equivalents are stated at cost, which approximates fair value.</div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;"> </div></div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Certificates of Deposit</div></div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">Short-term interest bearing investments are those with maturities of less than <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> year but greater than <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> months when purchased. Certificates with maturity dates beyond <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> year are classified as noncurrent assets. These investments are readily convertible to cash and are stated at cost plus accrued interest, which approximates fair value.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Investment Securities</div></div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">Readily marketable investments in debt and equity securities are classified as available-for-sale and are reported at fair value with unrealized gains and losses recorded in other comprehensive income. Unrealized gains are charged to earnings when an incline in fair value above the cost basis is determined to be other-than-temporary. Realized gains and losses on dispositions are based on the net proceeds and the adjusted book value of the securities sold, using the specific identification method.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Fair Value Measurements</div></div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">Under generally accepted accounting principles as outlined in the Financial Accounting Standards Board’s <div style="display: inline; font-style: italic;">Accounting Standards Codification </div>(ASC) <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">820,</div> fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The accounting standards ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">820</div> establishes a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div>-level fair value hierarchy that prioritizes information used in developing assumptions when pricing an asset or liability as follows:</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0; text-indent: 0.5in">Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> – Observable inputs such as quoted prices in active markets;</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0; text-indent: 0.5in">Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2</div> – Inputs other than quoted prices in active markets, that are observable either directly or indirectly; and</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0 0pt 0.5in">Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div> – Unobservable inputs where there is little or no market data, which requires the reporting entity to develop its own assumptions.</div> <div style=" font-size: 10pt; margin: 0pt 0 0pt 0.5in"> </div> <div style=" font-size: 10pt; margin: 0pt 0"></div> <!-- Field: Page; Sequence: 10; Value: 4 --> <!-- Field: /Page --> <div style=" font-size: 10pt; margin: 0pt 0"></div> <div style=" font-size: 10pt; margin: 0pt 0"></div> <div style=" font-size: 10pt; margin: 0pt 0">The Company uses observable market data, when available, in making fair value measurements. Fair value measurements are classified according to the lowest level input that is significant to the valuation.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">The fair value of the Company’s investment securities were determined based on Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> inputs.</div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;"> </div></div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Receivables</div></div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">Receivables are reported at the amount the Company expects to collect on balances outstanding. The Company provides for probable uncollectible amounts through charges to earnings and credits to the valuation based on management’s assessment of the current status of individual accounts, changes to the valuation allowance have not been material to the financial statements.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Inventories</div></div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;"> </div></div> <div style=" font-size: 10pt; margin: 0pt 0">Inventories are stated at the lower of cost or market, with cost determined on a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div>-in, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div>-out basis. Inventory balances are as follows:</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div> <table style="border-collapse: collapse;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt" nowrap="nowrap"> </td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1.1pt solid" nowrap="nowrap">March 31,<br /> 2017</td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1.1pt solid" nowrap="nowrap">December 31,<br /> 2016</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt" nowrap="nowrap"> </td> <td style="font-size: 10pt"> </td> <td colspan="3" style="font-size: 10pt" nowrap="nowrap"> </td> <td style="font-size: 10pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: right" nowrap="nowrap"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 68%; font-size: 10pt; text-align: left">Finished goods</td> <td style="width: 2%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 12%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">28,003</div></td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> <td style="width: 2%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 12%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">38,201</div></td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">Raw materials</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">159,972</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">165,812</div></td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; padding-bottom: 1.1pt">Work-In-Process</td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">61,211</div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">68,195</div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; padding-bottom: 2.5pt">Total</td> <td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">249,186</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">272,208</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td> </tr> </table> </div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Property and Equipment</div></div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation of property and equipment is computed using the straight-line method over the estimated useful lives of the respective assets. Estimated useful asset life by classification is as follows:</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div> <table style="border-collapse: collapse;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt" nowrap="nowrap"> </td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1.1pt solid" nowrap="nowrap">Years</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">Computers and office equipment</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div></td> <td style="font-size: 10pt; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt"> -</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 84%; font-size: 10pt; text-align: left">Leasehold improvements</td> <td style="width: 2%; font-size: 10pt"> </td> <td style="width: 5%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="width: 4%; font-size: 10pt; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5</div></td> <td style="width: 5%; font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">Manufacturing tooling</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div></td> <td style="font-size: 10pt; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">Demo Equipment</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="font-size: 10pt; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> </tr> </table> </div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">The Company’s investment in Fixed Assets consists of the following:</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div> <table style="border-collapse: collapse;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt" nowrap="nowrap"> </td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1.1pt"> </td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1.1pt solid" nowrap="nowrap">March 31,<br /> 2017</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1.1pt"> </td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1.1pt solid" nowrap="nowrap">December 31,<br /> 2016</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 68%; font-size: 10pt; font-weight: bold; text-align: left">Computers and office equipment</td> <td style="width: 2%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 12%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">176,360</div></td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> <td style="width: 2%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 12%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">164,318</div></td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; font-weight: bold; text-align: left">Leasehold improvements</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">25,635</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">25,635</div></td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; font-weight: bold; text-align: left">Manufacturing tooling</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">103,204</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">103,204</div></td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 1.1pt">Demo Equipment</td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">38,092</div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">23,236</div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; font-weight: bold; text-align: left; padding-left: 10pt">Total</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">343,291</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">316,393</div></td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 1.1pt">Less: Accumulated depreciation</td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">230,582</div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">214,897</div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 2.5pt; padding-left: 10pt">Total Fixed Assets, Net</td> <td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">112,709</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">101,496</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td> </tr> </table> </div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">Upon retirement or sale, the cost and related accumulated depreciation are removed from the balance sheet and the resulting gain or loss is reflected in operations. Maintenance and repairs are charged to operations as incurred.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">Depreciation expense was <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$15,685</div> in the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> and was <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$19,207</div> for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016.</div></div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Intangible Assets</div></div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">Intangible assets consist of trademarks and patent costs. Amortization expense was <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$2,888</div> in the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> and was <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,832</div> in the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016.</div> The assets are reviewed for impairment annually, and impairment losses, if any, are charged to operations when identified.</div> <div style=" font-size: 10pt; margin: 0pt 0"></div> <!-- Field: /Page --> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"></div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Income Taxes</div></div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">The Company accounts for income taxes in accordance with ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">740</div>- Income Taxes (“ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">740”).</div> Under ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">740,</div> deferred tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and net operating loss and credit carryforwards using enacted tax rates in effect for the year in which the differences are expected to impact taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized.</div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"></div> <div style=" font-size: 10pt; margin: 0pt 0">There is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> income tax provision in the accompanying statements of operations due to the cumulative operating losses that indicate a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">100%</div> valuation allowance for the deferred tax assets and state income taxes is appropriate.</div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"></div> <div style=" font-size: 10pt; margin: 0pt 0">The Company reviews income tax positions expected to be taken in income tax returns to determine if there are any income tax uncertainties. The Company recognizes tax benefits from uncertain tax positions only if it is more likely than not that the tax positions will be sustained on examination by taxing authorities, based on technical merits of the positions. The Company has identified <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> income tax uncertainties.</div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">Tax years subsequent to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2013</div> remain open to examination by federal and state tax authorities.</div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;"> </div></div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;"></div></div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Summary of Significant Accounting Policies</div></div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;"> </div></div> <div style=" font-size: 10pt; margin: 0pt 0">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> the FASB issued ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09,</div> “improvements to Employee Share-Based Payment Accounting”, which requires companies to recognize additional tax benefits or expenses related to the vesting or settlement of employee share based awards as income tax provision or benefit in the income statement in the reporting period in which they occur. In addition, ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09</div> requires that all tax related cash flows resulting from share-based payments, including the excess tax benefits related to settlement of stock-based awards, be classified as cash flows from operating activities in the statement of cash flows. The new standard is effective for annual reporting periods beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> with early adoption permitted. The Company did not elect to early adopt ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09,</div> but rather is adopting the guidance in the current quarter.</div> <div style=" font-size: 10pt; margin: 0pt 0">The adoption of ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09</div> required no retrospective adjustments to the financial statements. In addition there was no material cumulative-effect adjustment to retained earnings, nor did the adoption impact the tax provision for the current quarter.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Income Tax Balance Sheet Classification</div></div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;"> </div></div> <div style=" font-size: 10pt; margin: 0pt 0">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> November</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015,</div> the FASB issued ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">17,</div> “Income Taxes (Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">740)”</div> providing guidance on the balance sheet classification of deferred taxes. The guidance requires that deferred tax assets and liabilities to be classified as noncurrent in the Balance Sheet. The guidance is effective for fiscal years beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div> with early adoption permitted. The Company adopted ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">17</div> in the current quarter on a prospective basis and therefore prior periods were not retrospectively adjusted.</div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;"> </div></div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Patents and Intellectual Property</div></div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">25th,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014,</div> the Company filed a non-provisional PCT Application No. <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">PCT/US2014/013081</div> claiming priority from the U.S. Provisional Patent Application, number <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">61756763</div> which was filed <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> year earlier on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">25th,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2013.</div> The Patent Cooperation Treaty (“PCT”) allows an applicant to file a single patent application to seek patent protection for an invention simultaneously in each of the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">148</div> countries of the PCT, including the United States. By filing this single “international” patent application through the PCT, it is easier and more cost effective than filing separate applications directly with each national or regional patent office in which patent protection is desired.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">Our PCT patent application is for the new model of the surgical fluid waste management system. We obtained a favorable International Search Report from the PCT searching authority indicating that the claims in our PCT application are patentable (i.e., novel and non-obvious) over the cited prior art. A feature claimed in the PCT application is the ability to maintain continuous suction to the surgical field while measuring, recording and evacuating fluid to the facilities sewer drainage system. This provides for continuous operation of the STREAMWAY System unit in suctioning waste fluids, which means that suction is not interrupted during a surgical operation, for example, to empty a fluid collection container or otherwise dispose of the collected fluid.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">The Company holds the following granted patents in the United States and a pending application in the United States on its earlier models: <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">US7469727,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">US8123731</div> and U.S. Publication No. <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">US20090216205</div> (collectively, the “Patents”). These Patents will begin to expire on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2023.</div></div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015,</div> Skyline Medical filed an international (PCT) patent application for its fluid waste collection system and received a favorable determination by the International Searching Authority finding that all of the claims satisfy the requirements for novelty, inventive step and industrial applicability. Skyline anticipates that the favorable International Search Report will result in allowance of its various national applications.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Credit Risk </div></div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash. The Company places its cash with high credit quality financial institutions and, by policy, generally limits the amount of credit exposure to any <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> financial institution. The Company has a credit risk concentration because of depositing <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,866,875</div> of funds in excess of insurance limits in a single bank.</div> <div style=" font-size: 10pt; margin: 0pt 0"></div> <!-- Field: Page; Sequence: 12; Value: 4 --> <!-- Field: /Page --> <div> <div style=" font-size: 10pt; margin: 0pt 0"></div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;"> </div></div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Product Warranty Costs</div></div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">In the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> months ending <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> the Company incurred approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$4,343</div> in current warranty costs and incurred <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$29,889</div> in warranty costs for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> months ending <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016.</div></div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;"> </div></div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Segments</div></div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">The Company operates in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">two</div> segments for the sale of its medical device and consumable products. Predominantly most of the Company’s assets, revenues, and expenses for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> months ending <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div> and for <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div> in entirety were located at or derived from operations in the United States. The Company completed its <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div> sale outside of the United States in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017.</div></div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;"> </div></div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Risks and Uncertainties</div></div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">The Company is subject to risks common to companies in the medical device industry, including, but not limited to, development by the Company or its competitors of new technological innovations, dependence on key personnel, protection of proprietary technology, and compliance with regulations of the FDA and other governmental agencies.</div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;"> </div></div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;"></div></div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;"></div></div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Interim Financial Statements</div></div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">The Company has prepared the unaudited interim financial statements and related unaudited financial information in the footnotes in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial statements. These interim financial statements reflect all adjustments consisting of normal recurring accruals, which, in the opinion of management, are necessary to present fairly the Company’s financial position, the results of its operations and its cash flows for the interim periods. These interim financial statements should be read in conjunction with the annual financial statements and the notes thereto contained in the Form <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div>-K filed with the SEC on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017.</div> The nature of the Company’s business is such that the results of any interim period <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may</div> not be indicative of the results to be expected for the entire year.</div> </div></div>
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Product Warranty Costs</div></div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">In the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> months ending <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> the Company incurred approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$4,343</div> in current warranty costs and incurred <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$29,889</div> in warranty costs for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> months ending <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016.</div></div></div></div></div></div>
1895010
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125
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90151
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260
116740
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4000
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13
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<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">NOTE <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2</div> – STOCKHOLDERS’ EQUITY (DEFICIT), STOCK OPTIONS AND WARRANTS</div></div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">The Company has an equity incentive plan, which allows issuance of incentive and non-qualified stock options to employees, directors and consultants of the Company, where permitted under the plan. The exercise price for each stock option is determined by the Board of Directors. Vesting requirements are determined by the Board of Directors when granted and currently range from immediate to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> years. Options under this plan have terms ranging from <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">ten</div> years.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015</div> Public Offering of Units</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015</div> (the “Issuance Date”), the Company completed a public offering (the “Offering”) of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,666,667</div> Units (the “Units”) as described below. The public offering price in the Offering was <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$9.00</div> per Unit, and the purchase price for the underwriter of the Offering (the “Underwriter”) was <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$8.28</div> per Unit, resulting in an underwriting discount and commission of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.72</div> (or <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8.00%)</div> per Unit and total net proceeds to the Company before expenses of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$13.8</div> million. The Company had granted the Underwriter an option for a period of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">45</div> days to purchase up to an additional <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">250,000</div> Units solely to cover over-allotments. The Underwriter chose not to purchase any additional Units under the over-allotment option. The Company paid to the Underwriter a non-accountable expense allowance equal to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1%</div> of the gross proceeds of the Offering and agreed to reimburse expenses incurred by the Underwriter up to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$70,000.</div></div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015,</div> because of the consummation of the Offering and the issuance of the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">228,343</div> Exchange Units in the Unit Exchange described below, the Company issued a total of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,895,010</div> Units, comprised of a total of aggregate of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">75,801</div> shares of Common Stock, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,895,010</div> shares of Series B Preferred Stock and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7,580,040</div> Series A Warrants.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">Each Unit consisted of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> share of common stock, par value <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.01</div> per share (the “Common Stock”), <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> share of Series B Convertible Preferred Stock (“Series B Preferred Stock”) and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">four</div> Series A Warrants. The shares of Common Stock, the shares of Series B Preferred Stock and the Series A Warrants that comprise the Units automatically separated on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> February</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">29,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016.</div></div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">For a description of the terms of the Series B Convertible Preferred Stock included within the Units, see “Series B Preferred Stock” below. For a description of the terms of the Series A Warrants included within the Units, see “Series A Warrants” below.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-style: italic;">Series A Warrants</div>. The Series A Warrants separated from the Series B Convertible Preferred Stock and the Common Stock included within the Units as described above and are currently exercisable. The Series A Warrants terminate on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2020.</div> Each Series A Warrant is exercisable into <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> share of Common Stock at an initial cash exercise price of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$123.75</div> per share. The cash exercise price and number of shares of common stock issuable upon cash exercise is subject to appropriate adjustment in the event of stock dividends, stock splits, reorganizations or similar events affecting the Common Stock and the exercise price.</div> <div style=" font-size: 10pt; margin: 0pt 0"></div> <!-- Field: /Page --> <div> <div style=" font-size: 10pt; margin: 0pt 0"></div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0.75pt">Holders <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may</div> exercise Series A Warrants by paying the exercise price in cash or, in lieu of payment of the exercise price in cash, by electing to receive a number of shares of Common Stock equal to the Black-Scholes Value (as defined below) based upon the number of shares the holder elects to exercise. The number of shares of Common Stock to be delivered will be determined according to the following formula, referred to as the “Cashless Exercise.”</div> <div style=" font-size: 10pt; margin: 0pt 0.75pt"> </div> <div style=" font-size: 10pt; margin: 0pt 0.75pt">Total Shares = (A x B) / C</div> <div style=" font-size: 10pt; margin: 0pt 0.75pt"> </div> <div style=" font-size: 10pt; margin: 0pt 0.75pt">Where:</div> <div style=" font-size: 10pt; margin: 0pt 0.75pt"> </div> <table cellspacing="0" cellpadding="0" style="; font-size: 10pt;"> <tr style="vertical-align: top"> <td style="width: 25px"> </td> <td style="width: 24px"><div style="display: inline; font-family: Symbol; font-size: 10pt">·</div></td> <td><div style="display: inline; font-size: 10pt">Total Shares is the number of shares of Common Stock to be issued upon a Cashless Exercise.</div></td> </tr> <tr style="vertical-align: top"> <td> </td> <td> </td> <td> </td> </tr> <tr style="vertical-align: top"> <td> </td> <td><div style="display: inline; font-family: Symbol; font-size: 10pt">·</div></td> <td><div style="display: inline; font-size: 10pt">A is the total number of shares with respect to which the Series A Warrant is then being exercised.</div></td> </tr> </table> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <table cellspacing="0" cellpadding="0" style="; font-size: 10pt;"> <tr style="vertical-align: top"> <td style="width: 25px"> </td> <td style="width: 24px"><div style="display: inline; font-family: Symbol; font-size: 10pt">·</div></td> <td><div style="display: inline; font-size: 10pt">B is the Black-Scholes Value (as defined below).</div></td> </tr> </table> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0"></div> <table cellspacing="0" cellpadding="0" style="; font-size: 10pt;"> <tr style="vertical-align: top"> <td style="width: 25px"> </td> <td style="width: 24px"><div style="display: inline; font-family: Symbol; font-size: 10pt">·</div></td> <td><div style="display: inline; font-size: 10pt">C is the closing bid price of the Common Stock as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">two</div> trading days prior to the time of such exercise, provided that in no event <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may</div> “C” be less than <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.43</div> per share (subject to appropriate adjustment in the event of stock dividends, stock splits or similar events affecting the Common Stock).</div></td> </tr> </table> <div style=" font-size: 10pt; margin: 0pt 0.75pt"> </div> <div style=" font-size: 10pt; margin: 0pt 0.75pt">The Black-Scholes Value (as defined above) as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">30,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div> was <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$4.319,</div> and the closing bid price of Common Stock as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">30,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> was <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$4.125.</div> Therefore, an exercise on that date would have resulted in the issuance of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">40</div> shares of Common Stock for each Series A Warrant. Approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6,141,115</div> Series A Warrants have been exercised in cashless exercises as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">30,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> resulting in the issuance of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,318,663</div> shares of Common Stock. If all of the remaining <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">35,084</div> Series A Warrants that were issued as part of the Units sold in the Offering and part of the Units issued on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015</div> were exercised pursuant to a cashless exercise and the closing bid price of our common stock as of the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">two</div> trading days prior to the time of such exercise was <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.43</div> per share or less and the Black-Scholes Value were <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$4.319</div> (the Black-Scholes Value as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">30,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016),</div> then a total of an additional approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">564</div> shares of our common stock would be issued to the holders of such Series A Warrants.</div> <div style=" font-size: 10pt; margin: 0pt 0.75pt"> </div> <div style=" font-size: 10pt; margin: 0pt 0.75pt">The Series A Warrants will not be exercisable or exchangeable by the holder of such warrants to the extent (and only to the extent) that the holder or any of its affiliates would beneficially own in excess of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4.99%</div> of the common stock of the Company, determined in accordance with Section <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">13(d)</div> of the Securities Exchange Act of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1934,</div> as amended, and the regulations promulgated thereunder.</div> <div style=" font-size: 10pt; margin: 0pt 0.75pt"> </div> <div style=" font-size: 10pt; margin: 0pt 0.75pt">In addition to (but not duplicative of) the adjustments to the exercise price and the number of shares of Common Stock issuable upon exercise of the Series A Warrants in the event of stock dividends, stock splits, reorganizations or similar events, the Series A Warrants provide for certain adjustments if the Company, at any time prior to the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> year anniversary of the Issuance Date, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(1)</div> declares or makes any dividend or other distribution of its assets (or rights to acquire its assets) to all or substantially all of the holders of shares of Common Stock at any time after the Issuance Date, or <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(2)</div> grants, issues or sells any options, convertible securities or rights to purchase stock, warrants, securities or other property pro rata to all or substantially all of the record holders of any class of shares of Common Stock. Further, if at any time a Series A Warrant is outstanding, the Company consummates any fundamental transaction, as described in the Series A Warrants and generally including any consolidation or merger into another corporation, or the sale of all or substantially all of our assets, or other transaction in which the Common Stock is converted into or exchanged for other securities or other consideration, the holder of any Series A Warrants will thereafter receive, the securities or other consideration to which a holder or the number of shares of Common Stock then deliverable upon the exercise or exchange of such Series A Warrants would have been entitled upon such consolidation or merger or other transaction.</div> <div style=" font-size: 10pt; margin: 0pt 0.75pt"> </div> <div style=" font-size: 10pt; margin: 0pt 0.75pt"><div style="display: inline; font-style: italic;">Unit Purchase Option.</div> The Company, in connection with the Offering, entered into a Unit Purchase Option Agreement, dated as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015</div> (the “Unit Purchase Option”), pursuant to which the Company granted the Underwriter the right to purchase from the Company up to a number of Units equal to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5%</div> of the Units sold in the Offering (or up to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">83,333</div> Units) or the component securities of such Units at an exercise price equal to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">125%</div> of the public offering price of the Units in the Offering, or <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$11.25</div> per Unit. The Unit Purchase Option was terminated in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div> in exchange for <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">135,995</div> shares of common stock.</div> <div style=" font-size: 10pt; margin: 0pt 0.75pt"> </div> <div style=" font-size: 10pt; margin: 0pt 0.75pt"><div style="display: inline; font-style: italic;">Series B Preferred Stock.</div> Each share of Series B Preferred Stock became convertible into <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> share of Common Stock (subject to appropriate adjustment in the event of stock dividends, stock splits, reorganizations or similar events) on the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">six</div>-month anniversary of the Issuance Date or on the date of an Early Separation. In addition, the Series B Preferred Stock will automatically convert into shares of common stock upon the occurrence of a fundamental transaction, as described in the certificate of designations for the Series B Preferred Stock but including mergers, sales of the company’s assets, changes in control and similar transactions. The Series B Preferred Stock is not convertible by the holder of such preferred stock to the extent (and only to the extent that the holder or any of its affiliates would beneficially own in excess of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4.99%</div> of the common stock of the Company. The Series B Preferred Stock has no voting rights, except for the right to approve certain amendments to the certificate of designations or similar actions. With respect to payment of dividends and distribution of assets upon liquidation or dissolution or winding up of the Company, the Series B Preferred Stock shall rank equal to the common stock of the Company. No sinking fund has been established for the retirement or redemption of the Series B Preferred Stock.</div> <div style=" font-size: 10pt; margin: 0pt 0.75pt"></div> </div> <!-- Field: /Page --> <div> <div style=" font-size: 10pt; margin: 0pt 0.75pt"> </div> <div style=" font-size: 10pt; margin: 0pt 0.75pt"><div style="display: inline; font-style: italic;">Unit Exchange.</div> On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> February</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014,</div> the Company raised <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$2,055,000</div> in gross proceeds from a private placement of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">20,550</div> shares of Series A Convertible Preferred Stock, par value <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.01,</div> with a stated value of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$100</div> per share (the “Series A Preferred Shares”) and warrants to purchase shares of the Company’s common stock. The Series A Preferred Shares and warrants were sold to investors pursuant to a Securities Purchase Agreement, dated as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> February</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014.</div> On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015,</div> the Company issued a total of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">228,343</div> Units (the “Exchange Units”) in exchange for the outstanding Series A Preferred Stock which were then cancelled pursuant to an agreement with the holders of the Series A Preferred Shares. The warrants that were issued in connection with the issuance of the Series A Preferred Shares remained outstanding; however, the warrant amounts were reduced so that the warrants are exercisable into an aggregate of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3,991</div> shares of the Company’s common stock. The Exchange Units were exempt from registration under Section <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3(a)(9)</div> of the Securities Act. On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015,</div> the Company filed a termination certificate with the Delaware Secretary of State. Following that date there were no shares of Series A Preferred Stock outstanding, and the previously authorized shares of Series A Preferred Stock resumed the status of authorized but unissued and undesignated shares of preferred stock of the Company.</div> <div style=" font-size: 10pt; margin: 0pt 0.75pt"> </div> <div style=" font-size: 10pt; margin: 0pt 0"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><div style="display: inline; font-style: italic;">Redemption of Convertible Notes. </div>In connection with the closing of the Offering, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$933,074</div> aggregate principal amount of Convertible Notes plus interest and a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">40%</div> redeemable premium were redeemed for total payments of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,548,792.</div> See Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3.</div> Of this amount, approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$167,031</div> was paid to its affiliates in redemption of their Convertible Notes.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-style: italic;">Registered Exchange Offer for Warrants.</div> On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">25,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> the Company commenced a registered exchange offer (the “Exchange Offer”) to exchange Series B Warrants (the “Series B Warrants”) to purchase shares of our common stock, par value <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.01</div> per share (the “Warrant Shares”), for up to an aggregate of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3,157,186</div> outstanding Series A Warrants (the “Series A Warrants”). On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> each Series A Warrant could be exercised on a cashless basis for <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10.05</div> shares of common stock. Each Series B Warrant <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may</div> be exercised on a cashless basis for <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> share of common stock. For each outstanding Series A Warrant <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">tendered</div> by holders, we offered to issue <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10.2</div> Series B Warrants, which are subject to cashless exercise at a fixed rate of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> share of common stock per Series B Warrant (subject to further adjustment for stock splits, etc.). The Exchange Offer expired at midnight, Eastern time, on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> April</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">21,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,770,556</div> Series A Warrants were <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">tendered</div> by holders. The Company delivered an aggregate of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">18,059,671</div> Series B Warrants pursuant to the terms of the Exchange Offer. In addition, between <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,251,510</div> Series A Warrants were exercised in cashless exercises, resulting in the issuance of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">20,122</div> shares of common stock.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0"></div> <div style=" font-size: 10pt; margin: 0pt 0"></div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-style: italic;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div> Registered Direct Offering</div></div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> November</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">29,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> the Company closed a registered direct offering for gross proceeds of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,983,337.</div> The offering consisted of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">756,999</div> shares of common stock priced at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$2.62</div> per share and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">five</div>-year warrants for <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">756,999</div> shares of common stock that become exercisable in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">six</div> months, with a strike price of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$4.46</div> per share. The net proceeds from the sale of securities, after deducting placement agent fees and related offering expenses, was <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,739,770.</div></div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-style: italic;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div> Firm Commitment Public Offering</div></div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">13,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> the Company announced the pricing of a firm commitment underwritten public offering of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,750,000</div> Units at an offering price of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$2.25</div> per Unit, with each Unit consisting of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> share of the Company’s common stock and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0.2</div> of a Series D Warrant, with each whole Series D Warrant purchasing <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> share of our common stock at an exercise price <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$2.25</div> per whole share. The shares of common stock and the Series D Warrants were immediately separable and were issued separately. Gross proceeds to the Company from the offering was approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$3,937,500</div> before deducting underwriting discounts and commissions and other estimated offering expenses payable by the Company. The Company has granted the underwriter a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">45</div>-day option to purchase an additional (i) up to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">175,000</div> additional shares of common stock at the public offering price per unit less the price per warrant included in the unit and less the underwriting discount and/or (ii) additional warrants to purchase up to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">35,000</div> additional shares of common stock at a purchase price of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.01</div> per warrant to cover over-allotments, if any. The offering closed on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">19,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017.</div> The underwriter exercised this option, and on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> February</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">22,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> the Company received gross proceeds of approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$358,312.</div></div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">The Company’s stockholders’ equity now exceeds <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$2.5</div> million. On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> February</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> the Company received confirmation from Nasdaq that it now exceeds all applicable requirements for continued listing and is in compliance.</div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-style: italic;"> </div></div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-style: italic;">Accounting for share-based payment</div></div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">The Company has adopted ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">718</div>- Compensation-Stock Compensation ("ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">718").</div> Under ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">718</div> stock-based employee compensation cost is recognized using the fair value based method for all new awards granted after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2006</div> and unvested awards outstanding at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2006.</div> Compensation costs for unvested stock options and non-vested awards that were outstanding at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2006,</div> are being recognized over the requisite service period based on the grant-date fair value of those options and awards, using a straight-line method. We elected the modified-prospective method under which prior periods are not retroactively restated.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">718</div> requires companies to estimate the fair value of stock-based payment awards on the date of grant using an option-pricing model or other acceptable means. The Company uses the Black-Scholes option valuation model which requires the input of significant assumptions including an estimate of the average period of time employees will retain vested stock options before exercising them, the estimated volatility of the Company's common stock price over the expected term, the number of options that will ultimately be forfeited before completing vesting requirements, the expected dividend rate and the risk-free interest rate. Changes in the assumptions can materially affect the estimate of fair value of stock-based compensation and, consequently, the related expense recognized. The assumptions the Company uses in calculating the fair value of stock-based payment awards represent the Company's best estimates, which involve inherent uncertainties and the application of management's judgment. As a result, if factors change and the Company uses different assumptions, the Company's equity-based compensation expense could be materially different in the future.</div> <div style=" font-size: 10pt; margin: 0pt 0"></div> </div> <!-- Field: /Page --> <div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">Since the Company's common stock has no significant public trading history, and the Company has experienced no significant option exercises in its history, the Company is required to take an alternative approach to estimating future volatility and estimated life and the future results could vary significantly from the Company's estimates. The Company compiled historical volatilities over a period of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2</div> to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7</div> years of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15</div> small-cap medical companies traded on major exchanges and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div> mid-range medical companies on the OTC Bulletin Board and combined the results using a weighted average approach. In the case of ordinary options to employees the Company determined the expected life to be the midpoint between the vesting term and the legal term. In the case of options or warrants granted to non-employees, the Company estimated the life to be the legal term unless there was a compelling reason to make it shorter.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">When an option or warrant is granted in place of cash compensation for services, the Company deems the value of the service rendered to be the value of the option or warrant. In most cases, however, an option or warrant is granted in addition to other forms of compensation and its separate value is difficult to determine without utilizing an option pricing model. For that reason the Company also uses the Black-Scholes option-pricing model to value options and warrants granted to non-employees, which requires the input of significant assumptions including an estimate of the average period the investors or consultants will retain vested stock options and warrants before exercising them, the estimated volatility of the Company's common stock price over the expected term, the number of options and warrants that will ultimately be forfeited before completing vesting requirements, the expected dividend rate and the risk-free interest rate. Changes in the assumptions can materially affect the estimate of fair value of stock-based consulting and/or compensation and, consequently, the related expense recognized.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">Since the Company has limited trading history in its stock and no <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div>-hand experience with how its investors and consultants have acted in similar circumstances, the assumptions the Company uses in calculating the fair value of stock-based payment awards represent its best estimates, which involve inherent uncertainties and the application of management's judgment. As a result, if factors change and the Company uses different assumptions, the Company's equity-based consulting and interest expense could be materially different in the future.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0"></div> <div style=" font-size: 10pt; margin: 0pt 0"></div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-style: italic;">Valuation and accounting for options and warrants</div></div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">The Company determines the grant date fair value of options and warrants using a Black-Scholes option valuation model based upon assumptions regarding risk-free interest rate, expected dividend rate, volatility and estimated term.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015,</div> the Company issued a dividend adjustment to the Purchasers of the Preferred Shares as described above. Certain previous dividends paid were calculated with an exercise price of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$487.50</div> per share, but should have been calculated at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$243.75</div> per share. As a result, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">125</div> shares of common stock were issued to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">16</div> holders of Preferred Shares.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015,</div> the Company issued dividends to the Purchasers of the Preferred Shares as described above. The dividends are at an annual rate of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6%</div> of the stated value of the Preferred Shares paid on a quarterly basis in the form of common stock per a stipulated <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$243.75</div> per share. Thus, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">125</div> shares of common stock were issued to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">16</div> holders of Preferred Shares.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">30,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015,</div> the Company issued dividends to Purchases of the Preferred Shares as described above. The dividends are at an annual rate of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6%</div> of the stated value of the Preferred Shares paid on a quarterly basis in the form of common stock per a stipulated <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$243.75</div> per share. Thus, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">125</div> shares of common stock were issued to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">16</div> holders of Preferred Shares.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">For grants of stock options and warrants in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015</div> the Company used a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.63%</div> to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.35%</div> risk-free interest rate, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0%</div> dividend rate, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">59%</div> to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">66%</div> volatility and estimated terms of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5</div> to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div> years. Value computed using these assumptions ranged from <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$6.875</div> to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$139.2375</div> per share.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">25,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> the Company commenced the Exchange Offer which was completed on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> April</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">20,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> as described above.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> the Company issued inducement stock options in accordance with NASDAQ listing rule for <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">40,000</div> shares of common stock, par value <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.01</div> at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$3.75</div> per share to the Company’s newly hired Vice President of Sales. The options will vest in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">six</div> equal increments: on the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">second,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">third,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">fourth,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">fifth</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">sixth</div> quarters of the hiring date anniversary.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> October</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> the Company issued <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">400,000</div> shares of common stock, par value <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.01,</div> to be held in escrow in connection with the Company’s Partnership and Exclusive Reseller Agreement with GLG Pharma, LLC.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">For grants of stock options and warrants in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div> the Company used a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.46%</div> to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.45%</div> risk free interest rate, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0%</div> dividend rate, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">59%</div> to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">66%</div> volatility and estimated terms of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5</div> to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div> years. Value computed using these assumptions ranged from <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1.6329</div> to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$3.7195</div> per share.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">For grants of stock option and warrants in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div> the Company used a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.92%</div> to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.40%</div> risk free interest rate, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0%</div> dividend rate, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">59%</div> to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">66%</div> volatility and estimated terms of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5</div> to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div> years. Value computed using these assumptions ranged from <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1.0293</div> to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1.5489</div> per share.</div> <div style=" font-size: 10pt; margin: 0pt 0"></div> </div> <!-- Field: /Page --> <div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">The following summarizes transactions for stock options and warrants for the periods indicated:</div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse;"> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="font-size: 10pt"> </td> <td style="font-size: 10pt; font-weight: bold"> </td> <td nowrap="nowrap" colspan="7" style="font-size: 10pt; font-weight: bold; text-align: center">Stock Options</td> <td style="font-size: 10pt; font-weight: bold"> </td> <td nowrap="nowrap" colspan="7" style="font-size: 10pt; font-weight: bold; text-align: center">Warrants</td> </tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="font-size: 10pt; font-weight: bold; text-align: center"> </td> <td style="font-size: 10pt; font-weight: bold"> </td> <td nowrap="nowrap" colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center">Number of<br /> Shares</td> <td style="font-size: 10pt; font-weight: bold"> </td> <td nowrap="nowrap" colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center"><div style="display: inline; font-weight: bold;">Average<br /> <div style="display: inline; font-size: 10pt">Exercise</div><br /> <div style="display: inline; font-size: 10pt">Price</div></div></td> <td style="font-size: 10pt; font-weight: bold"> </td> <td nowrap="nowrap" colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center">Number of<br /> Shares</td> <td style="font-size: 10pt; font-weight: bold"> </td> <td nowrap="nowrap" colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center"><div style="display: inline; font-weight: bold;">Average<br /> Exercise<br /> <div style="display: inline; font-size: 10pt">Price</div></div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 52%; font-size: 10pt">Outstanding at December 31, 2015</td> <td style="width: 1%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> <td style="width: 9%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,350</div></td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> <td style="width: 1%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 9%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">133.23</div></td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> <td style="width: 1%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> <td style="width: 9%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">323,099</div></td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> <td style="width: 1%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 9%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">128.40</div></td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt">Issued</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">157,982</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3.14</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,487,881</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0.71</div></td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt">Expired</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(22,377</div></td> <td style="font-size: 10pt; text-align: left">)</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">122.13</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; padding-bottom: 1.1pt">Exercised</td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(1,312</div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left">)</td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">65.75</div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(939,879</div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left">)</td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt">Outstanding at December 31, 2016</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">165,643</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">11.22</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">871,101</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">52.22</div></td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt">Issued</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">14,286</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.10</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">385,000</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.25</div></td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt">Expired</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(8,472</div></td> <td style="font-size: 10pt; text-align: left">)</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10.41</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; padding-bottom: 1.1pt">Exercised</td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; padding-bottom: 2.5pt">Outstanding at March 31, 2017</td> <td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">171,457</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10.50</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,256,101</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">36.90</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td> </tr> </table> </div> <div style=" font-size: 10pt; margin: 0pt 0; text-indent: 0.5in"> </div> <div style=" font-size: 10pt; margin: 0pt 0"></div> <div style=" font-size: 10pt; margin: 0pt 0">At <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">112,263</div> stock options are fully vested and currently exercisable with a weighted average exercise price of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$14.13</div> and a weighted average remaining term of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">9.45</div> years. There are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">499,102</div> warrants that are fully vested and exercisable. Stock-based compensation recognized for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> months ending <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div> was <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$99,307</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$37,775,</div> respectively. The Company has <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$155,514</div> of unrecognized compensation expense related to non-vested stock options that are expected to be recognized over the next <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">9</div> months.</div> <div style=" font-size: 10pt; margin: 0pt 0"></div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0"></div> <div style=" font-size: 10pt; margin: 0pt 0"></div> <div style=" font-size: 10pt; margin: 0pt 0">The following summarizes the status of options and warrants outstanding at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017:</div></div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse;"> <tr style="vertical-align: bottom"> <td nowrap="nowrap" colspan="3" style="font-size: 10pt; color: Black; font-weight: bold; font-style: italic; text-align: center">Range of Prices</td> <td style="font-size: 10pt; color: Black; font-weight: bold; font-style: italic"> </td> <td nowrap="nowrap" colspan="3" style="font-size: 10pt; color: Black; font-weight: bold; font-style: italic; text-align: center">Shares</td> <td style="font-size: 10pt; color: Black; font-weight: bold; font-style: italic"> </td> <td nowrap="nowrap" colspan="3" style="font-size: 10pt; color: Black; font-weight: bold; font-style: italic; text-align: center">Weighted Remaining Life</td> </tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" colspan="3" style="font-size: 10pt; color: Black">Options</td> <td style="font-size: 10pt; color: Black"> </td> <td nowrap="nowrap" colspan="3" style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black"> </td> <td nowrap="nowrap" colspan="3" style="font-size: 10pt; color: Black"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 12%; font-size: 10pt; color: Black; text-align: right">$</td> <td style="width: 19%; font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.10</div></td> <td style="width: 1%; font-size: 10pt; color: Black; text-align: left"> </td> <td style="width: 2%; font-size: 10pt; color: Black"> </td> <td style="width: 1%; font-size: 10pt; color: Black; text-align: left"> </td> <td style="width: 30%; font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">14,286</div></td> <td style="width: 1%; font-size: 10pt; color: Black; text-align: left"> </td> <td style="width: 2%; font-size: 10pt; color: Black"> </td> <td style="width: 1%; font-size: 10pt; color: Black; text-align: left"> </td> <td style="width: 30%; font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10.00</div></td> <td style="width: 1%; font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.25</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">293</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">9.41</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.42</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">28,896</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">9.39</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.80</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">57,145</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">9.76</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3.75</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">44,000</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">9.26</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4.125</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3,636</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">9.51</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4.1975</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7,147</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">9.47</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4.25</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3,529</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">9.01</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5.125</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3,902</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">9.44</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">65.75</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">266</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8.56</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">73.50</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,157</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8.76</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">77.50</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,323</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8.25</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">80.25</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">187</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8.51</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">86.25</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">232</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8.01</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">131.25</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">81</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5.44</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">148.125</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">928</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5.97</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">150.00</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,760</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5.38</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">162.50</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">123</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7.76</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">206.25</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">121</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7.51</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">248.4375</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">121</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6.29</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">262.50</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">130</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6.29</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">281.25</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">529</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5.80</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">318.75</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6.11</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">346.875</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">72</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7.01</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">431.25</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">306</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6.94</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">506.25</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">188</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6.76</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">543.75</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">53</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6.52</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">596.25</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">42</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6.50</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.1pt; font-size: 10pt; color: Black; text-align: right"> </td> <td style="padding-bottom: 1.1pt; font-size: 10pt; color: Black; text-align: right"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; padding-bottom: 1.1pt"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; color: Black; text-align: left"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; color: Black; text-align: right"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; padding-bottom: 1.1pt"> </td> <td style="padding-bottom: 1.1pt; font-size: 10pt; color: Black; text-align: left"> </td> <td style="padding-bottom: 1.1pt; font-size: 10pt; color: Black; text-align: right"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt; font-size: 10pt; color: Black; text-align: right"> </td> <td style="padding-bottom: 2.5pt; font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; color: Black; text-align: left"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">171,457</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; font-size: 10pt; color: Black; text-align: left"> </td> <td style="padding-bottom: 2.5pt; font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td colspan="2" style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td colspan="2" style="font-size: 10pt; color: Black; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt; color: Black">Warrants</div></div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.25</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">385,000</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4.82</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4.46</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">756,999</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4.67</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">93.75</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,255</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0.95</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">123.75</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">94,084</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3.42</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">150.00</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4,114</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0.95</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">225.00</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">107</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0.82</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">243.75</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,529</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.35</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">281.25</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5,897</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0.70</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">309.375</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,850</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.36</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">309.50</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">222</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.61</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">337.50</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">178</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.22</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">371.25</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">944</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.16</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: Black; text-align: right">$</td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">506.25</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">59</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black"> </td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.88</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.1pt; font-size: 10pt; color: Black; text-align: right">$</td> <td style="padding-bottom: 1.1pt; font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">609.375</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; padding-bottom: 1.1pt"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; color: Black; text-align: left"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">862</div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; padding-bottom: 1.1pt"> </td> <td style="padding-bottom: 1.1pt; font-size: 10pt; color: Black; text-align: left"> </td> <td style="padding-bottom: 1.1pt; font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.85</div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt; font-size: 10pt; color: Black; text-align: right"> </td> <td style="padding-bottom: 2.5pt; font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; color: Black; text-align: left"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,256,101</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; color: Black; text-align: left"> </td> <td style="font-size: 10pt; color: Black; padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; font-size: 10pt; color: Black; text-align: left"> </td> <td style="padding-bottom: 2.5pt; font-size: 10pt; color: Black; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="font-size: 10pt; color: Black; text-align: left"> </td> </tr> </table> </div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0"></div> <!-- Field: Page; Sequence: 17; Value: 4 --> <!-- Field: /Page --> <div style=" font-size: 10pt; margin: 0pt 0"></div> <div style=" font-size: 10pt; margin: 0pt 0">Stock options and warrants expire on various dates from <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div> to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2027.</div></div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">At a special meeting of stockholders held on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> the Company’s stockholders (i) approved an amendment to the Company’s certificate of incorporation to increase the number of authorized shares of common stock from <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">100,000,000</div> to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">200,000,000</div> and (ii) approved an amendment to the Company’s certificate of incorporation to affect a reverse stock split of the outstanding shares of its common stock within certain limits. On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">16,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> the Company filed a Certificate of Amendment to its Certificate of Incorporation to affect the increase in the authorized capital stock. On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> October</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">26,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2106,</div> the Company filed a Certificate of Amendment to its Certificate of Incorporation to affect a reverse stock split of the outstanding shares of its common stock at a ratio of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div>-for-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">twenty</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">five</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(1:25),</div> and a proportionate decrease of the authorized common stock from <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">200,000,000</div> shares to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8,000,000</div> shares. The reverse stock split took effect at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5:00</div> p.m. New York time on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> October</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">27,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> and the Company’s common stock commenced trading on a post-split basis on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> October</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">28,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016.</div> The Company’s board of directors has determined the Company <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may</div> require additional shares for anticipated equity financings, future equity offerings, strategic acquisition opportunities, and the continued issuance of equity awards under our stock incentive plan to recruit and retain key employees, and for other proper corporate purposes. As a result, the board of directors called another special meeting of the stockholders that took place on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">29,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017.</div> The vote, a proposal to increase the number of authorized shares of common stock from <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8,000,000</div> shares to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">24,000,000</div> shares of common stock under the Company’s certificate of incorporation passed.</div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;"> </div></div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Stock Options and Warrants Granted by the Company</div></div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">The following table is the listing of stock options and warrants as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div> by year of grant:</div> <div style=" font-size: 10pt; text-align: center; text-indent: 0.5in; margin: 0pt 0"> </div> <div> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse;"> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">Stock Options:</td> <td style="font-size: 10pt"> </td> <td nowrap="nowrap" colspan="3" style="font-size: 10pt; text-align: center"> </td> <td style="font-size: 10pt"> </td> <td nowrap="nowrap" colspan="3" style="font-size: 10pt; text-align: center"> </td> </tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">Year</td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td nowrap="nowrap" colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1.1pt solid">Shares</td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td nowrap="nowrap" colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1.1pt solid">Price</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 67%; font-size: 10pt; text-align: left">2011</td> <td style="width: 2%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> <td style="width: 12%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">173</div></td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> <td style="width: 2%; font-size: 10pt"> </td> <td style="width: 5%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="width: 5%; font-size: 10pt; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$281.25</div></td> <td style="width: 5%; font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">2012</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,841</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">131.25</div></td> <td style="font-size: 10pt; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt"> – </div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">150.00</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">2013</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,606</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">148.125</div></td> <td style="font-size: 10pt; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt"> –</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> 596.25</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">2014</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">835</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">162.50</div></td> <td style="font-size: 10pt; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt"> – </div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">431.25</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">2015</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4,164</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">65.75</div></td> <td style="font-size: 10pt; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">–</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> 86.25</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">2016</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">148,551</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.25</div></td> <td style="font-size: 10pt; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">– </div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5.13</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1.1pt">2017</td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">14,286</div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.10</div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; padding-bottom: 2.5pt; text-align: left; padding-left: 10pt">Total</td> <td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">171,457</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$2.10</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">– </div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">596.25</div></td> </tr> </table> </div> <div style=" font-size: 10pt; text-align: center; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; text-align: center; text-indent: 0.5in; margin: 0pt 0"> </div> <div> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse;"> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">Warrants:</td> <td style="font-size: 10pt"> </td> <td nowrap="nowrap" colspan="3" style="font-size: 10pt; text-align: center"> </td> <td style="font-size: 10pt"> </td> <td nowrap="nowrap" colspan="3" style="font-size: 10pt; text-align: center"> </td> </tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">Year</td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td nowrap="nowrap" colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1.1pt solid">Shares</td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td nowrap="nowrap" colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1.1pt solid">Price</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 67%; font-size: 10pt; text-align: left">2012</td> <td style="width: 2%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> <td style="width: 12%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,792</div></td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> <td style="width: 2%; font-size: 10pt"> </td> <td style="width: 5%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="width: 5%; font-size: 10pt; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$281.25</div></td> <td style="width: 5%; font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">2013</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10,703</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">93.75</div></td> <td style="font-size: 10pt; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">- </div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">371.25</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">2014</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6,455</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">243.75</div></td> <td style="font-size: 10pt; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt"> – </div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">609.38</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">2015</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">94,152</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0.00</div></td> <td style="font-size: 10pt; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">– </div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">243.75</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">2016</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">756,999</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="font-size: 10pt; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4.46</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1.1pt">2017</td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">385,000</div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.25</div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; padding-bottom: 2.5pt; padding-left: 10pt; text-align: left">Total</td> <td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,256,101</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.00</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt"> – </div></div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">609.38</div></td> </tr> </table> </div> <div style=" font-size: 10pt; text-align: center; text-indent: 0.5in; margin: 0pt 0"> </div> </div></div>
25
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<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">NOTE <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">9</div> – SUBSEQUENT EVENTS</div></div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> April</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> the partnership and exclusive reseller agreement and the distribution agreements between the Company and GLG Pharma, LLC were terminated.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> April</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">24,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> the Company issued <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">100,000</div> shares of common stock, par value <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.01,</div> to a consultant for general business consulting services.</div></div>
0
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Accounting Policies and Estimates</div></div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">The presentation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.</div> <div style=" font-size: 10pt; margin: 0pt 0"></div></div></div></div></div>
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The number of shares underlying options and warrants outstanding as of March 31, 2017 and March 31, 2016 are 1,427,558 and 167,986 respectively. The number of shares underlying the preferred stock as of March 31, 2017 is 79,246. The effect of the shares that would be issued upon exercise of such options, warrants and preferred stock has been excluded from the calculation of diluted loss per share because those shares are anti-dilutive.
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