Quarterly report pursuant to Section 13 or 15(d)


6 Months Ended
Jun. 30, 2017
Notes to Financial Statements  

On July 14, 2017, the Company entered into a Securities Purchase Agreement with selected accredited investors whereby the Company sold an aggregate of 2,956,043 shares of common stock and 1,478,022 warrants to purchase common stock. The Offering resulted in $2,657,000 in net proceeds to the Company. The common stock shares were sold at $0.91 per share which was the closing price of the Company's common stock on July 13, 2017, the day prior to the agreement. Each warrant has an exercise price of $1.15 and is exercisable for a period of five years commencing six months from the date of issuance.


Nasdaq continues to monitor the Company’s ongoing compliance with the stockholders’ equity requirement after a deficiency notice was received in August 2016 for non-compliance with listing rule 5550(b), which requires a minimum $2,500,000 stockholders’ equity for continued listing on the Nasdaq capital market. The Company’s stockholders’ equity of $794,212, as reported in this current quarterly report on form 10-Q for the quarter ended June 30, 2017, evidenced non-compliance with the listing rule. However, as reported in the Form 8-K dated August 4, 2017, after receiving net proceeds of approximately $2,657,000 in a private placement of equity, the Company received a letter from the Nasdaq hearings panel which determined to grant the Company’s request for continued listing on The Nasdaq Stock Market subject to the conditions described therein.