Common Stock

In connection with the November 2016 public offering and by action of the terms of the APA, a $500,000 10% convertible promissory note issued to our controlling stockholder, Pharmsynthez, in July 2016 was converted into shares of common stock. The associated 125,397 shares comprising both owed principal and interest were issued in March 2017.

During the three months ended March 31, 2017, 120,000 shares of Series B preferred stock were converted into 120,000 shares of common stock.

Warrants

In connection with the Company’s issuance of the Initial APA Note in March 2016, the Company issued a warrant to purchase 353,540 shares of common stock at the Exercise Price (the “Initial APA Warrant”). The Initial APA Warrant has a five-year term and is exercisable commencing March 31, 2016. The fair value of the warrant was calculated using the Black-Scholes option pricing model. The key valuation assumptions used consist of the Company’s stock price, a risk free rate of 1.42% and an expected volatility of 135%.

As of March 31, 2017, and December 31, 2016, there were warrants to purchase an aggregate of 3,522,225 shares of common stock at a weighted average exercise price of $4.30 outstanding which had been issued in connection with debt and equity financing arrangements.