<SEC-DOCUMENT>0001615774-18-003227.txt : 20180503
<SEC-HEADER>0001615774-18-003227.hdr.sgml : 20180503
<ACCEPTANCE-DATETIME>20180503081318
ACCESSION NUMBER:		0001615774-18-003227
CONFORMED SUBMISSION TYPE:	S-1/A
PUBLIC DOCUMENT COUNT:		11
FILED AS OF DATE:		20180503
DATE AS OF CHANGE:		20180503

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			ATOSSA GENETICS INC
		CENTRAL INDEX KEY:			0001488039
		STANDARD INDUSTRIAL CLASSIFICATION:	PHARMACEUTICAL PREPARATIONS [2834]
		IRS NUMBER:				264753208
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		S-1/A
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-223949
		FILM NUMBER:		18801866

	BUSINESS ADDRESS:	
		STREET 1:		107 SPRING STREET
		CITY:			SEATTLE
		STATE:			WA
		ZIP:			98104
		BUSINESS PHONE:		206.588.0256

	MAIL ADDRESS:	
		STREET 1:		107 SPRING STREET
		CITY:			SEATTLE
		STATE:			WA
		ZIP:			98104
</SEC-HEADER>
<DOCUMENT>
<TYPE>S-1/A
<SEQUENCE>1
<FILENAME>s109823_s1a.htm
<DESCRIPTION>S-1/A
<TEXT>
<HTML>
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     <TITLE></TITLE>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>As
filed with the Securities and Exchange Commission on May 3, 2018</B></FONT> </P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Registration
Statement No.&nbsp;333-223949</B></FONT></P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>UNITED
STATES&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>SECURITIES
AND EXCHANGE COMMISSION</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Washington,
D.C. 20549</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>AMENDMENT
NO. 2 TO</B></FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>FORM
S-1</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>REGISTRATION
STATEMENT</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>UNDER</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>THE
SECURITIES ACT OF 1933</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>ATOSSA
GENETICS INC.</B>&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(Exact
name of registrant as specified in its charter)</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Delaware</B></FONT></TD>
    <TD STYLE="width: 50%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>26-4753208</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(State&nbsp;or&nbsp;other
    </B></FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(I.R.S.&nbsp;Employer</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Jurisdiction&nbsp;of
    </B></FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Identification&nbsp;No.)</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>incorporation&nbsp;or
    </B></FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>organization)</B></FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>107
Spring Street</B>&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Seattle,
Washington 98104</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Telephone:
(866) 893-4927</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(Address,
including zip code, and telephone number, including area code, of Registrant&rsquo;s principal executive offices)</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Steven
C. Quay&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Chairman,
Chief Executive Officer and President</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>107
Spring Street</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Seattle,
Washington 98104</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Telephone:
(866) 893-4927</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(Name,
address, including zip code, and telephone&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">number,
including area code, of agent for service)</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font-size: 10pt; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="border-top: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; padding-left: 5.4pt; padding-right: 5.4pt; border-top: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Copies
    to:</I></FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: center; border-top: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; padding-left: 5.4pt; padding-right: 5.4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 34%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Ryan
                           A. Murr</B></FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Gibson,
        Dunn &amp; Crutcher LLP</B></FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>555
        Mission Street</B></FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>San
        Francisco, California 94105</B></FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Telephone:
        (415) 393-8373</B></FONT></P></TD>
    <TD STYLE="width: 33%; padding-left: 5.4pt; padding-right: 5.4pt"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Kyle
                                         Guse&nbsp;</B></FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Chief
        Financial Officer and General Counsel</B></FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>107
        Spring Street</B></FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Seattle,
        Washington 98104</B></FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(866)
        893-4927&nbsp;</B></FONT></P>
        </TD>
    <TD STYLE="width: 33%; font: 12pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Barry
    I. Grossman, Esq.</B></FONT><BR>
    <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Sarah E. Williams, Esq.</B></FONT><BR>
    <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Ellenoff Grossman &amp; Schole LLP</B></FONT><BR>
    <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>1345 Avenue of the Americas</B></FONT><BR>
    <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>New York, New York 10105</B></FONT><BR>
    <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Telephone: (212) 370-1300</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-left: 5.4pt; padding-right: 5.4pt; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Approximate
Date of Commencement of Proposed Sale to the Public:</B> From time to time after this Registration Statement becomes effective,
as determined by the registrant.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
the only securities being registered on this Form are being offered pursuant to dividend or interest reinvestment plans, please
check the following box.&nbsp;&nbsp;&#9744;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under
the Securities Act of 1933, other than securities offered only in connection with dividend or interest reinvestment plans, check
the following box.&nbsp;&nbsp;</FONT>&#9744;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please
check the following box and list the Securities Act Registration Statement number of the earlier effective registration statement
for the same offering.&nbsp;&#9744;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list
the Securities Act Registration Statement number of the earlier effective registration statement for the same offering.&nbsp;&nbsp;&#9744;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list
the Securities Act Registration Statement number of the earlier effective registration statement for the same offering.&nbsp;&nbsp;&#9744;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Indicate
by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller
reporting company. See the definitions of &ldquo;large accelerated filer,&rdquo; &ldquo;accelerated filer,&rdquo; &ldquo;smaller
reporting company&rdquo; and &ldquo;emerging growth company&rdquo; in Rule&nbsp;12b-2 of the Exchange Act. (Check one):</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="CENTER" STYLE="font: 10pt Times New Roman, Times, Serif; width: 90%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="width: 20%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Large&nbsp;accelerated&nbsp;filer</FONT></TD>
    <TD NOWRAP STYLE="width: 52%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9744;</FONT></TD>
    <TD NOWRAP STYLE="width: 23%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Accelerated&nbsp;filer</FONT></TD>
    <TD NOWRAP STYLE="width: 5%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9744;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD NOWRAP><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD NOWRAP><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD NOWRAP></TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Non-accelerated filer</FONT></TD>
    <TD NOWRAP><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9744;&nbsp;&nbsp; (Do not check if
    a smaller reporting company)</FONT></TD>
    <TD NOWRAP><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Smaller&nbsp;reporting&nbsp;company</FONT></TD>
    <TD NOWRAP><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9746;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD NOWRAP><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD NOWRAP><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Emerging growth company</FONT></TD>
    <TD NOWRAP><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9744;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for
complying with any new or revised financial accounting standards provided to Section 7(a)(2)(B) of the Securities Act. &nbsp;&nbsp;&#9744;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: center"> <B>CALCULATION OF REGISTRATION FEE</B> </P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: center; text-indent: 0.5in"> <B>&nbsp;</B> </P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: center; text-indent: 0.5in"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; padding-bottom: 1pt; border-bottom: Black 1pt solid"> <P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: center"> <B>Title&nbsp;of&nbsp;each&nbsp;class&nbsp;of</B> </P> <P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0"> <B>securities&nbsp;to&nbsp;be&nbsp;registered</B> </P></TD><TD STYLE="font-weight: bold; padding-bottom: 1pt"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Proposed Maximum<BR> Aggregate&nbsp;<BR>
    Offering&nbsp;Price&nbsp;(1) </TD><TD STYLE="padding-bottom: 1pt; font-weight: bold"> &nbsp; </TD><TD STYLE="font-weight: bold; padding-bottom: 1pt"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Amount&nbsp;of<BR> Registration&nbsp;<BR>
    Fee </TD><TD STYLE="padding-bottom: 1pt; font-weight: bold"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 58%"> Units consisting of shares of Series B Convertible Preferred Stock, par value $0.001 per share,
    and warrants to purchase shares of common stock, par value $0.18 per share </TD><TD STYLE="width: 1%"> &nbsp; </TD>
    <TD STYLE="width: 1%; text-align: left"> $ </TD><TD STYLE="width: 18%; text-align: right"> 25,000,000 </TD><TD STYLE="width: 1%; text-align: left"> &nbsp; </TD><TD STYLE="width: 1%"> &nbsp; </TD>
    <TD STYLE="width: 1%; text-align: left"> $ </TD><TD STYLE="width: 18%; text-align: right"> 3,113 </TD><TD STYLE="width: 1%; text-align: left"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"> Non-transferable rights to purchase units (2) </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &mdash; </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &mdash; </TD><TD STYLE="text-align: left"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"> Series B Convertible Preferred Stock included as part of the units </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">Included with
                                         units above</FONT> </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &mdash; </TD><TD STYLE="text-align: left"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"> Warrants to purchase shares of common stock included as part of the units (3) </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">Included with
                                         units above</FONT> </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &mdash; </TD><TD STYLE="text-align: left"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"> Common stock issuable upon conversion of the Series B Convertible Preferred Stock (4)(5) </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &mdash; </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &mdash; </TD><TD STYLE="text-align: left"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"> Common stock issuable upon exercise of the warrants (5) </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> $ </TD><TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> $ </TD><TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD><TD STYLE="text-align: left"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD> Total </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> $ </TD><TD STYLE="text-align: right"> 25,000,000 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> $ </TD><TD STYLE="text-align: right"> 3,113 </TD><TD STYLE="text-align: left"> &nbsp; </TD></TR>
</TABLE>




<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: center; text-indent: 0.5in"> <B>&nbsp;</B> </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font-size: 10pt">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0px"></TD>
    <TD STYLE="width: 24px; font-family: Times New Roman,serif"> <FONT STYLE="font-size: 10pt">(1)</FONT> </TD>
    <TD STYLE="font-family: Times New Roman,serif"> <FONT STYLE="font-size: 10pt">Estimated solely for purposes of calculating
    the registration fee in accordance with Rule 457(o) of the Securities Act of 1933, as amended (the &ldquo;Act&rdquo;).&nbsp;&nbsp;Total
    reflects $2,490 in filing fees previously paid in connection with the offering.</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-family: Times New Roman,serif"></TD>
    <TD STYLE="font-family: Times New Roman,serif"> <FONT STYLE="font-size: 10pt">(2)</FONT> </TD>
    <TD STYLE="font-family: Times New Roman,serif"> <FONT STYLE="font-size: 10pt">The rights are being issued without consideration.
    Pursuant to Rule 457(g), no separate registration fee is payable with respect to the rights being offered hereby since the
    rights are being registered in the same registration statement as the securities to be offered upon exercise of such rights.</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-family: Times New Roman,serif"></TD>
    <TD STYLE="font-family: Times New Roman,serif"> <FONT STYLE="font-size: 10pt">(3)</FONT> </TD>
    <TD STYLE="font-family: Times New Roman,serif"> <FONT STYLE="font-size: 10pt">Pursuant to Rule 457(g) of the Act, no separate
    registration fee is required for the warrants because the warrants are being registered in the same registration statement
    as the common stock of the Registrant issuable upon exercise of the warrants.</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-family: Times New Roman,serif"></TD>
    <TD STYLE="font-family: Times New Roman,serif"> <FONT STYLE="font-size: 10pt">(4)</FONT> </TD>
    <TD STYLE="font-family: Times New Roman,serif"> <FONT STYLE="font-size: 10pt">Pursuant to Rule 457(i) of the Act, no separate
    registration fee is required for the common stock issuable upon conversion of the Series B Convertible Preferred Stock because
    no additional consideration will be received in connection with the exercise of the conversion privilege.</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-family: Times New Roman,serif"></TD>
    <TD STYLE="font-family: Times New Roman,serif"> <FONT STYLE="font-size: 10pt">(5)</FONT> </TD>
    <TD STYLE="font-family: Times New Roman,serif"> <FONT STYLE="font-size: 10pt">In addition to the shares of common stock
    set forth in this table, pursuant to Rule 416 under the Act, this registration statement also registers such indeterminate
    number of shares of common stock as may become issuable upon conversion or exercise of these securities as the same may be
    adjusted as a result of stock splits, stock dividends, recapitalizations or other similar transactions.</FONT> </TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>The
Registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay its effective date until
the Registrant shall file a further amendment which specifically states that this Registration Statement shall thereafter become
effective in accordance with Section&nbsp;8(a) of the Securities Act of 1933, as amended, or until the Registration Statement
shall become effective on such date as the Securities and Exchange Commission, acting pursuant to said Section&nbsp;8(a), may
determine.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: red"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: red"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>The
information in this prospectus is not complete and may be changed. We may not sell these securities until the registration statement
filed with the Securities and Exchange Commission is effective. This prospectus is not an offer to sell these securities and it
is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: red"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; color: red"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Subject
to Completion, dated&nbsp;May 3, 2018</B></FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; color: red"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: red"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>PRELIMINARY
PROSPECTUS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: red"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Sans-Serif; margin: 0pt 0; text-align: center; color: Red"><IMG SRC="img001_v1.jpg" ALT="(ATOSSA LOGO)"></P>

<P STYLE="font: 10pt Sans-Serif; margin: 0pt 0; text-align: center; color: Red">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Subscription
Rights to Purchase Up to 25,000 Units&nbsp;</B></FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Consisting
of an Aggregate of Up to 25,000 Shares of Series B Convertible Preferred Stock</B></FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>and
Warrants to Purchase Up to 7,100,000 Shares of Common Stock</B></FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>at
a Subscription Price of $1,000 Per Unit</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
are distributing to holders of our common stock and warrants we issued on December 22, 2017, at no charge, non-transferable subscription
rights to purchase units. Each unit consists of one share of Series B Convertible Preferred Stock and 284 warrants. Each warrant
will be exercisable for one share of our common stock. We refer to the offering that is the subject of this prospectus as the
rights offering. In the rights offering, you will receive one subscription right for each share of common stock owned at 5:00
p.m., Eastern Time, on May 9, 2018, the record date of the rights offering. The Series B Convertible Preferred Stock and the warrants
comprising the units will be separate upon the closing of the rights offering and will be issued separately, however, they may
only be purchased as a unit, and the units will not trade as a separate security. The subscription rights will not be tradable.
Holders of warrants as of the record date that we issued on December 22, 2017 will also receive subscription rights pursuant to
the terms of those warrants.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Each
subscription right will entitle you to purchase one unit, at a subscription price of $1,000 per unit, which we refer to as the
basic subscription right. Each warrant entitles you to purchase one share of common stock at an exercise price of $4.05 per share
from the date of issuance through its expiration four years after the date of issuance. The subscription price was determined
by our board of directors after a review of recent historical trading prices of our common stock on the Nasdaq Capital Market.
If you fully exercise your basic subscription right, you may also exercise an over-subscription privilege to purchase additional
units that remain unsubscribed to at the expiration of the rights offering, subject to the availability and pro rata allocation
of units among holders of common stock and warrants entitled to receive subscription rights pursuant to this rights offering (which
we refer to as participating warrants) exercising this over-subscription privilege. If all the rights are exercised, the total
purchase price of the units offered in the rights offering will be approximately $25 million.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
subscription rights will expire if they are not exercised by 5:00 p.m., Eastern Time, on May 24, 2018, unless we extend the rights
offering period. In our sole discretion, we may extend the rights offering and the period for exercising your subscription rights.
You should carefully consider whether to exercise your subscription rights prior to the expiration of the rights offering. All
exercises of subscription rights are irrevocable, even if the rights offering is extended by our board of directors.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have not entered into any standby purchase agreement or other similar arrangement in connection with the rights offering. The
rights offering is being conducted on a best-efforts basis and there is no minimum amount of proceeds necessary to be received
in order for us to close the rights offering.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
board of directors is making no recommendation regarding your exercise of the subscription rights. The subscription rights may
not be sold, transferred or assigned and will not be listed for trading on any stock exchange or market or on the NASDAQ Capital
Market. Our board of directors may cancel the rights offering at any time prior to the expiration of the rights offering for any
reason. In the event the rights offering is cancelled, all subscription payments received by the subscription agent will be returned,
without interest, as soon as practicable.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have engaged Maxim Group LLC to act as dealer-manager for this offering.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Broadridge
Corporate Issuer Solutions, Inc. will serve as the subscription agent for the rights offering. The subscription agent will hold
in escrow the funds we receive from subscribers until we complete, abandon or terminate the rights offering. If you want to participate
in this rights offering and as of the record date you are the record holder of your shares of common stock or December 22, 2017
warrants, we recommend that you submit your subscription documents to the subscription agent well before the deadline of the rights
offering period. If you want to participate in this rights offering and you hold shares through your broker, dealer, custodian
bank or other nominee, you should promptly contact your broker, dealer, custodian, bank or other nominee and submit your subscription
documents in accordance with the instructions and within the time period provided by your nominee.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our board of directors reserves the right to terminate the
rights offering for any reason any time before the closing of the rights offering. If we terminate the rights offering, all subscription
payments received will be returned within 10 business days, without interest or deduction. We expect the rights offering to expire
on or about May 24, 2018, subject to our right to extend the rights offering as described above, and that we would close on subscriptions
within five business days.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt -0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
common stock is currently quoted on the NASDAQ Capital Market under the symbol &ldquo;ATOS&rdquo;. On May 2<I>, </I>2018, the
last reported sale price per share of our common stock on the NASDAQ Capital Market was $3.83. We do not currently intend to apply
for listing of the Series B Convertible Preferred Stock or the warrants on any securities exchange or recognized trading system.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
principal executive offices are located at 107 Spring Street, Seattle, Washington 98104.&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD COLSPAN="2"> &nbsp; </TD><TD> &nbsp; </TD><TD> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="text-align: center"> &nbsp; </TD><TD> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD> &nbsp; </TD><TD STYLE="font-weight: bold; padding-bottom: 1pt"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Per Unit </TD><TD STYLE="padding-bottom: 1pt; font-weight: bold"> &nbsp; </TD><TD STYLE="font-weight: bold; padding-bottom: 1pt"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Total (2) </TD><TD STYLE="padding-bottom: 1pt; font-weight: bold"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 74%"> Subscription price </TD><TD STYLE="width: 2%"> &nbsp; </TD>
    <TD STYLE="width: 1%; text-align: left"> $ </TD><TD STYLE="width: 9%; text-align: right"> 1,000 </TD><TD STYLE="width: 1%; text-align: left"> &nbsp; </TD><TD STYLE="width: 2%"> &nbsp; </TD>
    <TD STYLE="width: 1%; text-align: left"> $ </TD><TD STYLE="width: 9%; text-align: right"> 25,000,000 </TD><TD STYLE="width: 1%; text-align: left"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"> Dealer-manager fees and expenses (1) </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> $ </TD><TD STYLE="text-align: right"> 70 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> $ </TD><TD STYLE="text-align: right"> 1,750,000 </TD><TD STYLE="text-align: left"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"> Proceeds to us, before expenses </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> $ </TD><TD STYLE="text-align: right"> 930 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> $ </TD><TD STYLE="text-align: right"> 23,250,000 </TD><TD STYLE="text-align: left"> &nbsp; </TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</FONT></TD>
    <TD STYLE="width: 97%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In connection with the rights
    offering, we have agreed to pay Maxim Group LLC as the dealer-manager a cash fee equal to 7.0% of the gross proceeds received
    by us directly from exercises of the subscription rights. We have also agreed to reimburse the dealer-manager for its expenses
    up to $85,000. Please see &ldquo;<I>Plan of Distribution</I>.&rdquo;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Assumes the rights offering is fully subscribed,
    but excludes proceeds from the exercise of warrants included in the units.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Investing
in our securities involves risks. You should carefully consider the <U>Risk Factors</U> beginning on page&nbsp;18 of this prospectus
before you make an investment in our securities.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Neither
the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or
determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Dealer-Manager</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Maxim
Group LLC</B></FONT></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>The
date of this prospectus is &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2018</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>TABLE
OF CONTENTS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR>
    <TD STYLE="width: 95%"><A HREF="#a001_v1">PROSPECTUS SUMMARY</A></TD>
    <TD STYLE="vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 4%; text-align: right">1</TD></TR>
<TR STYLE="background-color: white">
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD><A HREF="#a002_v1">SUMMARY OF THE RIGHTS OFFERING</A></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">7</TD></TR>
<TR STYLE="background-color: white">
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD><A HREF="#a003_v1">QUESTIONS AND ANSWERS ABOUT THE RIGHTS OFFERING</A></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">10</TD></TR>
<TR STYLE="background-color: white">
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD><A HREF="#a004_v1">RISK FACTORS</A></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">18</TD></TR>
<TR STYLE="background-color: white">
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD><A HREF="#a005_v1">USE OF PROCEEDS</A></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">24</TD></TR>
<TR STYLE="background-color: white">
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD><A HREF="#a006_v1">DIVIDEND POLICY</A></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">26</TD></TR>
<TR STYLE="background-color: white">
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD><A HREF="#a007_v1">DILUTION</A></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">27</TD></TR>
<TR STYLE="background-color: white">
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD><A HREF="#a008_v1">THE RIGHTS OFFERING</A></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">28</TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD><A HREF="#a009_v1">MATERIAL U.S. FEDERAL INCOME TAX CONSEQUENCES</A></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">35</TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD><A HREF="#a010_v1">DESCRIPTION OF SECURITIES</A></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">46</TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD><A HREF="#a011_v1">PLAN OF DISTRIBUTION</A></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">50</TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD><A HREF="#a012_v1">DISCLOSURE OF COMMISSION POSITION ON INDEMNIFICATION FOR SECURITIES ACT LIABILITIES</A></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">53</TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD><A HREF="#a013_v1">EXPERTS</A></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">53</TD></TR>
<TR STYLE="background-color: white">
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD><A HREF="#a014_v1">LEGAL MATTERS</A></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">53</TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD><A HREF="#a015_v1">WHERE YOU CAN FIND ADDITIONAL INFORMATION</A></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">54</TD></TR>
<TR STYLE="background-color: white">
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD><A HREF="#a016_v1">INFORMATION INCORPORATED BY REFERENCE</A></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">54</TD></TR>
<TR STYLE="background-color: white">
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD><A HREF="#a017_v1">PART II INFORMATION NOT REQUIRED IN PROSPECTUS</A></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">II-1</TD></TR>
<TR STYLE="background-color: white">
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD><A HREF="#a018_v1">SIGNATURES</A></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">II-4</TD></TR>
<TR STYLE="background-color: white">
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD><A HREF="#a019_v1">EXHIBIT INDEX</A></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">II-6</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Neither
we nor the dealer-manager has authorized anyone to provide any information or to make any representations other than those contained
in this prospectus or in any free writing prospectus prepared by or on behalf of us or to which we have referred you. We take
no responsibility for, and can provide no assurance as to the reliability of, any other information that others may give you.
This prospectus is an offer to sell only the units offered hereby, but only under the circumstances and in the jurisdictions where
it is lawful to do so. The information contained in this prospectus or in any applicable free writing prospectus is current only
as of its date, regardless of its time of delivery or any sale of shares of our common stock. Our business, financial condition,
results of operations and prospects may have changed since that date. We are not, and the dealer-manager is not, making an offer
of these securities in any jurisdiction where such offer is not permitted.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">For
investors outside the United States: Neither we nor the dealer-manager has done anything that would permit this offering or possession
or distribution of this prospectus in any jurisdiction where action for that purpose is required, other than in the United States.
Persons outside the United States who come into possession of this prospectus must inform themselves about, and observe any restrictions
relating to, the offering of securities and the distribution of this prospectus outside the United States.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Unless
the context otherwise requires, references in this prospectus to &ldquo;Atossa&rdquo; &ldquo;the Company,&rdquo; &ldquo;we,&rdquo;
&ldquo;us&rdquo; and &ldquo;our&rdquo; refer to Atossa Genetics Inc. Solely for convenience, our trademarks and tradenames referred
to in this registration statement, may appear without the &reg; or &trade; symbols, but such references are not intended to indicate
in any way that we will not assert, to the fullest extent under applicable law, our rights to these trademarks and tradenames.
All other trademarks, service marks and trade names included or incorporated by reference into this prospectus supplement or the
accompanying prospectus are the property of their respective owners.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">You
should read this prospectus, any applicable prospectus supplement and the information incorporated by reference in this prospectus
before making an investment in the securities of Atossa Genetics Inc. See &ldquo;<I>Where You Can Find Additional Information</I>&rdquo;
on page 54 for more information. You should rely only on the information contained in or incorporated by reference in this prospectus
or a prospectus supplement. The Company has not authorized anyone to provide you with different information. This document may
be used only in jurisdictions where offers and sales of these securities are permitted. You should assume that information contained
in this prospectus, or in any document incorporated by reference, is accurate only as of any date on the front cover of the applicable
document. Our business, financial condition, results of operations and prospects may have changed since that date. Unless indicated
otherwise, all share numbers are expressed in this prospectus reflect the one-for-12 reverse stock split effected on April 20,
2018.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>NOTE
REGARDING FORWARD-LOOKING STATEMENTS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">This
prospectus and the documents incorporated by reference into it contain, in addition to historical information, certain information,
assumptions and discussions that may constitute forward-looking statements within the meaning of Section&nbsp;27A of the Securities
Act of 1933, as amended (the &ldquo;Securities Act&rdquo;) and Section&nbsp;21E of the Securities Exchange Act of 1934, as amended
(the &ldquo;Exchange Act&rdquo;). We have made these statements in reliance on the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. These statements are subject to certain risks and uncertainties, which could cause actual results
to differ materially from those projected or anticipated. Although we believe our assumptions underlying our forward-looking statements
are reasonable as of the date of this prospectus, we cannot assure you that the forward-looking statements set out in this prospectus
will prove to be accurate. We typically identify these forward-looking statements by the use of forward-looking words such as
&ldquo;expect,&rdquo; &ldquo;potential,&rdquo; &ldquo;continue,&rdquo; &ldquo;may,&rdquo; &ldquo;will,&rdquo; &ldquo;should,&rdquo;
&ldquo;could,&rdquo; &ldquo;would,&rdquo; &ldquo;seek,&rdquo; &ldquo;intend,&rdquo; &ldquo;plan,&rdquo; &ldquo;estimate,&rdquo;
&ldquo;anticipate&rdquo; or the negative version of those words or other comparable words. Forward-looking statements contained
in this prospectus include, but are not limited to, statements about:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 3%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="width: 94%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">whether
    we can obtain approval from the U.S. Food and Drug Administration, or FDA, and foreign regulatory bodies, to commence our
    clinical studies and to sell, market and distribute our therapeutics and devices under development;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our ability to successfully initiate and complete
    clinical trials of our pharmaceutical candidates under development, including endoxifen (Endoxifen; an active metabolite of
    Tamoxifen) and our intraductal microcatheters to administer therapeutics, including our study using fulvestrant;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the success, cost and timing of our product
    and drug development activities and clinical trials, including whether the ongoing clinical study using our intraductal microcatheters
    to administer fulvestrant will enroll a sufficient number of subjects, if any, or be completed in a timely fashion or at all;&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our ability to contract with third-party suppliers,
    manufacturers and service providers, including clinical research organizations, and their ability to perform adequately;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our ability to successfully develop and commercialize
    new therapeutics currently in development or that we might identify in the future and in the time frames currently expected;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our ability to successfully defend litigation
    and other similar complaints that may be brought in the future, in a timely manner and within the coverage, scope and limits
    of our insurance policies;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our ability to establish and maintain intellectual
    property rights covering our products;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our expectations regarding, and our ability
    to satisfy, federal, state and foreign regulatory requirements;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the accuracy of our estimates of the size and
    characteristics of the markets that our products and services may address;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our expectations as to future financial performance,
    expense levels and capital sources;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our ability to attract and retain key personnel;
    and</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our ability to raise capital.</FONT></TD></TR>
</TABLE>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">This
prospectus also contains estimates and other statistical data provided by independent parties and by us relating to market size
and growth and other industry data. These and other forward-looking statements made in this prospectus are presented as of the
date on which the statements are made. We have included important factors in the cautionary statements included in this prospectus,
particularly in the section entitled &ldquo;<I>Risk Factors</I>,&rdquo; that we believe could cause actual results or events to
differ materially from the forward-looking statements that we make. Our forward-looking statements do not reflect the potential
impact of any new information, future events or circumstances that may affect our business after the date of this prospectus.
Except as required by law, we do not intend to update any forward-looking statements after the date on which the statement is
made, whether as a result of new information, future events or circumstances or otherwise.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a001_v1"></A><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>PROSPECTUS
SUMMARY</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Our
Company</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
are a clinical-stage pharmaceutical company focused on developing novel, proprietary therapeutics and delivery methods for the
treatment of breast cancer and other breast conditions. We are developing Endoxifen with two routes of delivery: a topical formulation,
applied like a lotion, for the treatment of a condition called mammographic breast density (or, MBD) and a breast disorder in
men called gynecomastia; and an oral formulation for breast cancer survivors who do not benefit from taking oral tamoxifen, a
current FDA-approved standard of care. We are also developing our patented intraductal microcatheter technology to potentially
target the delivery of therapies, including fulvestrant, immunotherapies and Chimeric Antigen Receptor T-cell therapies (CAR-T
therapies), directly to the site of breast cancer.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
2017, we completed a Phase 1 clinical study of our proprietary oral and topical formulations of Endoxifen. All objectives were
met: there were no clinically significant safety signals and no clinically significant adverse events, and both the oral and topical
Endoxifen were well tolerated. In the topical arm of the study, low but measurable Endoxifen levels were detected in the blood
in a dose-dependent fashion. In the oral arm of the study, participants exhibited dose-dependent Endoxifen levels that met or
exceeded the published therapeutic level. The median time for patients in the study to reach the steady-state serum levels of
Endoxifen while taking daily doses of oral Endoxifen was 7 days. Published literature indicates that it takes approximately 50-200
days for patients to reach steady-state Endoxifen levels when taking daily doses of oral tamoxifen.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
are currently conducting a Phase 2 study at Montefiore Medical Center, Bronx, New York, using our intraductal microcatheter technology
to deliver fulvestrant. Our program to use our intraductal microcatheters to deliver CAR-T and other immunotherapies is in the
research and development phase.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
March 2018, we expanded our breast health program by launching a mens&rsquo; breast health initiative with enrollment opening
in a Phase 1 study of our topical Endoxifen in men. The objectives of the placebo-controlled, repeat dose study of 24 healthy
male volunteers are to assess the pharmacokinetics of proprietary topical Endoxifen dosage forms over 28 days, as well as to assess
safety and tolerability. Depending on the results of this study, we plan to develop our topical Endoxifen for gynecomastia.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
plan to open enrollment in two Phase 2 studies of our proprietary Endoxifen in the first half of 2018: a study in Stockholm, Sweden
using our topical Endoxifen to treat MBD and a study of our oral Endoxifen to treat patients who do not benefit from taking tamoxifen.
We expect to complete enrollment in these studies in the second half of 2018.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
key objectives are to advance our programs through Phase 2 trials and then evaluate further development independently or with
partners.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
common stock is currently quoted on the NASDAQ Capital Market under the symbol &ldquo;ATOS.&rdquo;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Our
Programs Under Development</B></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Endoxifen
- Background</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Oral
tamoxifen has been widely used for over 30 years to both treat and prevent breast cancer. Tamoxifen, however, has significant
drawbacks. First, it can cause side effects including headaches, nausea and early menopausal symptoms as well as rare but serious
side effects such as cataracts, strokes and cancer of the uterus. Second, tamoxifen is a &ldquo;pro-drug,&rdquo; meaning that
it must be processed by the liver in order to produce therapeutic metabolites. The metabolite in tamoxifen that accounts for most
of its therapeutic activity is called Endoxifen. Unfortunately, up to 50% of breast cancer survivors who are taking tamoxifen
do not produce therapeutic levels of Endoxifen (meaning they are &ldquo;refractory&rdquo;) for a number of reasons including that
they, due to their genotype, do not have the requisite liver enzymes. Additionally, it can take from 50-200 days for tamoxifen
to reach &ldquo;steady-state&rdquo; meaning that the drug may be providing little or no benefit for up to several months after
starting treatment. We are developing Endoxifen to address the shortcomings of tamoxifen.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Proprietary
Endoxifen - Completed Phase 1 Study</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
recently completed a comprehensive Phase 1 study in 49 healthy women in Australia using both the topical and oral forms of our
proprietary Endoxifen. The objectives of this double-blinded, placebo-controlled, Phase 1 study were to assess the pharmacokinetics
of our proprietary Endoxifen dosage forms as single (oral) and repeat (oral and topical) doses, as well as to assess safety and
tolerability. The study was conducted in two parts based on route of administration.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
September 2017, we reported preliminary results for the topical arm of the study and in October 2017 we reported preliminary results
for the oral arm of the study. We concluded that all objectives were successfully met in both arms of the study: there were no
clinically significant safety signals and no clinically significant adverse events and both the oral and topical Endoxifen were
well tolerated. In the topical arm of the study, there were low but measurable Endoxifen levels detected in the blood in a dose-dependent
fashion and in the oral arm of the study participants exhibited dose-dependent Endoxifen levels in published reports of the therapeutic
range. The median time for patients in the study to reach the steady-state serum levels of Endoxifen while taking daily doses
of oral Endoxifen was 7 days. Published literature indicates that it takes approximately 50-200 days for patients to reach steady-state
Endoxifen levels when taking daily doses of oral tamoxifen. Finally, the median time for patients in the study to reach the maximum
serum level of Endoxifen after taking Atossa&rsquo;s oral Endoxifen ranged from 4 to 8 hours (depending on dose). The 4 mg dose
of Endoxifen produced a maximum serum level of Endoxifen in 4 to 8 hours at levels above the generally accepted threshold for
a therapeutic effect on estrogen-dependent breast cancer.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Proprietary
Topical Endoxifen</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
are developing topical, or &ldquo;transdermal,&rdquo; Endoxifen for several potential indications. One potential indication is
women with MBD. Legislation that has been recently enacted in approximately 30 states requires that women be notified if they
have MBD and those notifications typically state that women with MBD have a higher risk of developing breast cancer, and that
mammography may not be as effective in detecting breast cancer because the MBD can &ldquo;mask&rdquo; the detection of cancers.
We estimate that approximately ten million women in the Unites States have MBD, for which there is no FDA-approved treatment.
Although oral tamoxifen is approved to prevent breast cancer in &ldquo;high-risk&rdquo; women, it is used by less than 5% of women
with an increased risk of developing breast cancer because of the actual or perceived side effects and risks of tamoxifen.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
believe our topical Endoxifen may provide an effective treatment for MBD because, unlike an oral medication, it is applied directly
to the breast and penetrates the skin, it does not require metabolism by the liver, and it may produce fewer side effects than
tamoxifen. Moreover, our topical Endoxifen may improve mammography accuracy and patient care by unmasking cancerous tumors that
are otherwise hidden by breast density. In two separate reports of film-screen mammography, mammographic sensitivity decreased
from a level of 85.7%&ndash;88.8% in patients with almost entirely fatty tissue to 62.2%&ndash;68.1% in patients with extremely
dense breast tissue.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
are also developing our proprietary topical Endoxifen for gynecomastia. Gynecomastia is male breast enlargement and accompanying
pain. It is the most common male breast disorder and is caused by a hormone imbalance where testosterone is low compared to estrogen.
Gynecomastia is caused by, among other things, any number of commonly prescribed medications, such as androgen deprivation therapy
to treat prostate enlargement and prostate cancer, anti-anxiety medications, cancer treatments (chemotherapy), and some heart
medications. Gynecomastia is not only painful and embarrassing, it can also cause men to stop taking these important medications.
In prostate cancer treatment, testosterone is suppressed resulting is higher estrogen levels that usually triggers gynecomastia.
Prophylactic breast bud irradiation is commonly used in prostate cancer patients, but must often be repeated. One recent study
indicates that up to 90% of men taking androgen deprivation therapy suffer from gynecomastia and breast pain (Handoo Rhee, et
al., October 18, 2014,&nbsp;<I>BJU International</I>).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">There
are no FDA-approved therapeutics for gynecomastia. Breast-bud irradiation, use of compression garments and plastic surgery are
the most common approaches used to treat gynecomastia.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Similar
to women, the treatment for male breast cancer is typically surgery (with or without radiation) and chemotherapy.&nbsp;Breast
cancer in men is deadlier than breast cancer in women: men with early-stage breast cancer have a lower five-year survival rate
than women and breast cancer in men tends to be detected at a later stage of development than women (Jon M. Greif, DO, FACS, et
al., May 2012,&nbsp;<I>American Society of Breast Surgeons</I>). Although tamoxifen is the standard of care for women to prevent
new and recurrent breast cancer, there is no FDA-approved treatment for male breast cancer.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Proprietary
Oral Endoxifen</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
are also developing an oral form of Endoxifen for breast cancer patients who are refractory to tamoxifen. Approximately one million
breast cancer patients take tamoxifen to prevent recurrent and new breast cancer; however, up to 50% of those patients are refractory
to tamoxifen. We believe our oral Endoxifen may provide an effective treatment supplement or option for these refractory patients
because Endoxifen, unlike tamoxifen, does not require liver metabolism.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Proprietary
Endoxifen &ndash; Current and Future Clinical Studies</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
September 2017, we contracted Stockholm South General Hospital in Sweden to conduct a Phase 2 study of our topical Endoxifen.
The study will be led by principal investigator Dr. Per Hall, MD, Ph.D., Head of the Department of Medical Epidemiology and Biostatistics
at Karolinska Institutet. We have applied for approval from the Institutional Review Board and Swedish regulatory authority (Medical
Products Agency) to begin enrollment. The primary endpoint is MBD reduction, as well as safety and tolerability. We are planning
to open this study in the first half of 2018 and to complete enrollment in the second half of 2018.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
plan to commence a Phase 2 clinical study using our oral Endoxifen for patients who are refractory to tamoxifen. We plan to open
the study in the first half of 2018 and to complete it in the second half of 2018.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
March 2018, we opened enrollment in a Phase 1 study of our topical Endoxifen in men. The objectives of the placebo-controlled,
repeat dose study of 24 healthy male volunteers are to assess the pharmacokinetics of proprietary topical Endoxifen dosage forms
over 28 days, as well as to assess safety and tolerability. The study is being conducted on behalf of Atossa by CPR Pharma Services
Pty Ltd., Thebarton, SA, Australia.&nbsp;CPR Pharma recently completed the successful Phase 1 study of our oral and topical Endoxifen
in women.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Proprietary
Intraductal Microcatheter Technology</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
believe our patented intraductal microcatheters may be useful in delivering CAR-T, immunotherapies and a number of drugs to the
ducts in the breast, the site of the majority of early breast cancers. Doing so is intended to provide a therapeutic directly
to the breast tissue while at the same time reducing delivery of the drug to healthy tissue. We must obtain FDA approval of any
therapy delivered via our intraductal microcatheters devices, which will require expensive and time-consuming studies in the current
regulatory framework. For example, we must complete clinical studies to demonstrate the safety and tolerability of fulvestrant
using our delivery method. We may not be successful in completing these studies or obtaining approval from the FDA or other applicable
foreign regulatory authority.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Breast
cancers and precancerous lesions are typically treated with systemically administered agents such as tamoxifen, Faslodex, Perjeta
and Herceptin. However, these therapies can cause serious side effects which may lead to poor patient compliance with the treatment
regimens. Providing therapies directly into the breast ducts targeting the site of the localized cancerous lesions could reduce
the need for systemic anti-cancer therapies, and potentially reduce or eliminate the systemic side effects of the therapies and
morbidity in such patients, and ultimately improve patient compliance and ultimately reduce mortality.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>TRAP
CAR-T</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Much
of the recent success in the field of chimeric antigen receptor therapy, or CAR-T, has relied on the systemic delivery (for example
a needle injection into the blood stream) of the CAR-T which is intended to treat various non-solid tumor cancers, such as blood
cancers. One concern with this systemic approach is that it does not target the location of the cancer and it can have adverse
affects, including deadly &ldquo;cytokine storms.&rdquo; Moreover, CAR-T treatments delivered systemically can be as high as $500,000
per patient.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
are developing a novel method to deliver CAR-T cells into the ducts of the breast for the potential targeted treatment of breast
cancer. This approach uses our proprietary intraductal microcatheter technology for the potential transpapillary, or &ldquo;TRAP,&rdquo;
delivery of either T-cells that have been genetically modified to attack breast cancer cells or various immune-therapies. We believe
this method has several potential advantages including the reduction of toxicity by limiting systemic exposure of the T-cells
or immunotherapy; improved efficacy by placing the T-cells or immunotherapy in direct contact with the target ductal epithelial
cells that are undergoing malignant transformation; and, lymphatic migration of the CAR-T cells or immunotherapy potentially extending
their cytotoxic actions into the regional lymph system, which could limit tumor cell dissemination. Moreover, our proprietary
approach may be more cost effective if lower doses of therapy can be delivered compared to systemic CAR-T. Our approach is in
the R&amp;D stage and is currently not FDA approved. In 2018 we intend to commence studies that will help demonstrate safety and
efficacy of this novel approach.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
TRAP delivery of therapeutics in breast cancer clinical trials have demonstrated &ldquo;that cytotoxic drugs can be safely administered
into breast ducts with minimal toxicity&rdquo; (Zhang B, et al. Chin J Cancer Res. 2014 Oct;26(5):579-87; www.ncbi.nlm.nih.gov/pubmed/25400424).
T cells are removed from a patient and modified so that they express receptors specific to the patient&rsquo;s particular breast
cancer. The T cells, which can then recognize and kill the cancer cells, are reintroduced into the patient using a microcatheter
into the natural ducts of the breast. Chimeric antigen receptors (or, &ldquo;CARs&rdquo; and also known as chimeric immunoreceptors,
chimeric T cell receptors, artificial T cell receptors or CAR-T) are engineered receptors, which graft an arbitrary specificity
onto an immune effector cell (&ldquo;T cell&rdquo;). Typically, these receptors are used to graft the specificity of a monoclonal
antibody onto a T cell, with transfer of their coding sequence facilitated by retroviral vectors. The receptors are called chimeric
because they are composed of parts from different sources.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have developed a foundational intellectual property position with respect to TRAP CAR-T, and we intend to continue research and
development through partnership with leading investigators, institutions, and organizations around the world, bringing our technology
and expertise in TRAP delivery together with experts in cancer immunology and T-cell biology.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Delivery
of Drugs via our Microcatheters</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
initial drug we are studying using our microcatheters for intraductal delivery is fulvestrant. Fulvestrant is FDA-approved for
metastatic breast cancer. It is administered as a monthly injection of two shots, typically into the buttocks. In 2012 a published
study documented that the single dose cost of intramuscular fulvestrant was approximately $12,000.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
own several pending patent applications directed to the treatment of breast conditions, including cancer, by the intraductal administration
of therapeutics including fulvestrant, and one issued patent directed to intraductal treatment of breast conditions following
a diagnosis of breast conditions using ductal fluid.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
do not yet have the FDA&rsquo;s input, but based on our preliminary analysis, subject to FDA feedback, we believe that the intraductal
fulvestrant program could qualify for designation under the 505(b)(2) status. This would allow us to file with only clinical data
and without having to perform additional, significant clinical or pre-clinical studies. So the path to market is potentially both
faster and less expensive than a standard new drug application, or NDA, program.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
are currently conducting a Phase 2 study using our microcatheter technology to deliver fulvestrant at Montefiore Medical Center.
This trial is a Phase 2 study in women with ductal carcinoma in situ (&ldquo;DCIS&rdquo;) or Stage 1 or 2 breast cancer (invasive
ductal carcinoma) scheduled for mastectomy or lumpectomy within 30 to 45 days. This study is assessing the safety, tolerability,
cellular activity and distribution of fulvestrant when delivered directly into breast milk ducts of these patients compared to
those who receive the same drug by injection. Of the 30 patients required for full enrollment, six will receive the standard intramuscular
injection of fulvestrant and 24 will receive fulvestrant with our microcatheter device.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
primary endpoint of the clinical trial is to compare the safety, tolerability and distribution of fulvestrant between the two
routes of administration (intramuscular injection or through our microcatheters). The secondary endpoint of the study is to determine
if there are changes in the expression of Ki67 (a measure of cellular proliferation that correlates with tumor growth) as well
as estrogen and progesterone receptors between a pre-fulvestrant biopsy and post-fulvestrant surgical specimens. Digital breast
imaging before and after drug administration in both groups will also be performed to determine the effect of fulvestrant on any
lesions as well as breast density of the participant.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Other
Studies of Intraductal Administration using our Microcatheters</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">An
October 2011 peer-reviewed paper published in Science Translational Medicine reported the results of a study conducted at the
Johns Hopkins Medical School demonstrating the prevention of breast cancer in rats with intraductal non-systemic chemotherapy,
and a proof-of-principle Phase 1 clinical trial involving 17 women with breast cancer who subsequently received surgery. An accompanying
editorial commented that &ldquo;intraductal treatment could be especially useful for women with premalignant lesions or those
at high risk of developing breast cancer, thus drastically improving upon their other, less attractive options of breast-removal
surgery or surveillance (termed &lsquo;watch and wait&rsquo;).&rdquo;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
a December 2012 peer-reviewed paper published in Cancer Prevention Research, Dr. Susan Love and her colleagues reported the results
of a Phase I clinical trial of intraductal chemotherapy drugs administered into multiple ducts within one breast in women awaiting
mastectomy for treatment of invasive cancer. Thirty subjects were enrolled in this dose escalation study conducted at a single
center in Beijing, China. Under local anesthetic, one of two chemotherapy drugs, carboplatin or pegylated liposomal doxorubicin
(PLD), was administered into five to eight ducts at three dose levels. Pharmacokinetic analysis has shown that carboplatin was
rapidly absorbed into the bloodstream, whereas PLD, though more erratic, was absorbed after a delay. Pathologic analysis showed
marked effects on breast duct epithelium in ducts treated with either drug compared with untreated ducts. The investigators concluded
the study showed the safety and feasibility of intraductal administration of chemotherapy drugs into multiple ducts for the purpose
of breast cancer prevention and that this was an important step towards implementing of this strategy as a &ldquo;chemical mastectomy,&rdquo;
potentially eliminating the need for surgery.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Markets</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Potential
Market Opportunities</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
believe that, based in part on a January 2017 study by Defined Health, a leading market research firm, the potential U.S. market
for intraductal administration of fulvestrant or similar drugs in DCIS patients is up to $800 million annually. This estimate
includes treatment of DCIS patients prior to surgery as well as patients who would use intraductal treatment as an alternative
to surgery. We believe that the potential U.S. market for endoxifen in the treatment and prevention settings is up to $1 billion
annually.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>The
Breast Cancer and Related Markets</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
American Cancer Society (&ldquo;ACS&rdquo;) estimated that in 2018, 268,000 women will be diagnosed with breast cancer in the
United States. Every two minutes an American woman is diagnosed with breast cancer and 41,000 die each year. Although about 100
times less common than in women, breast cancer also affects men. The ACS estimated that the lifetime risk of men getting breast
cancer is about 1 in 1,000; 2,550 new cases of invasive breast cancer will be diagnosed; and 480 men will die from breast cancer
in 2018.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Gynecomastia</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">According
to the Mayo Clinic, although it can affect men at almost any age, gynecomastia is most prevalent in men ages 50-69, affecting
at least 1 in 4 men in this age group.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
were incorporated in April of 2009 and our common stock is currently quoted on the NASDAQ Capital Market under the symbol &ldquo;ATOS.&rdquo;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a002_v1"></A><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>SUMMARY
OF THE RIGHTS OFFERING</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: top; width: 25%; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Securities
    to be Offered:</B></FONT></TD>
    <TD STYLE="width: 1%; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 74%; padding-right: 1.6pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
    are distributing to you, at no charge, one non-transferable subscription right to purchase one unit for each share of our
    common stock (or share of common stock issuable upon exercise of our December 22, 2017 warrants) that you owned as of the
    record date. Each unit consists of one share of Series B Convertible Preferred Stock and 284 warrants.</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 1.6pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Size
    of Offering:</B></FONT> </TD>
    <TD STYLE="padding-right: 0.8pt"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: justify"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">25,000
    units.</FONT> </TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Subscription
    Price:</B></FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 1.6pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$1,000
    per unit.</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Series
    B Convertible Preferred Stock:</B></FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Each
    share of Series B Convertible Preferred Stock will be convertible, at our option at any time on or after the first anniversary
    of the closing of the rights offering or at the option of the holder at any time, into the number of shares of our common
    stock determined by dividing the $1,000 stated value per share of the Series B Convertible Preferred Stock by a conversion
    price of $3.52 per share, subject to adjustment. The Series B Convertible Preferred Stock has certain conversion rights and
    dividend rights.</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Warrants:</B></FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Each
    warrant entitles the holder to purchase one share of common stock at an exercise price of $4.05 per share, subject to adjustment,
    through its expiration four&nbsp;years from the date of issuance. The warrants will be exercisable for cash, or, solely during
    any period when a registration statement for the exercise of the warrants is not in effect, on a cashless basis. We do not
    intend to apply to list the warrants on any securities exchange or recognized trading system. We may redeem the warrants for
    $0.18 per warrant if the volume-weighted average price (&ldquo;VWAP&rdquo;) of our common stock equals or exceeds $10.56 per
    share for ten consecutive trading days, provided that we may not do so prior to the first anniversary of closing of the rights
    offering.</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Record
    Date:</B></FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">5:00
    p.m., Eastern Time, on May 9, 2018.</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Basic
    Subscription Rights:</B></FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">Each
    subscription right entitles you to purchase one unit at the subscription price. You may not purchase a partial unit.</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Over-Subscription
    Privilege:</B></FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">If
    you exercise your basic subscription rights in full, you may also choose to purchase a portion of the units that are not purchased
    by our other holders of common stock and participating warrants through the exercise of their basic subscription rights, subject
    to proration and stock ownership limitations described elsewhere in this prospectus.</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Expiration
    Date:</B></FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">5:00
    p.m., Eastern Time, on May 24, 2018.</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>

<P STYLE="margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; width: 25%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Procedure
    for Exercising Subscription Rights:</B></FONT></TD>
    <TD STYLE="padding-right: 0.8pt; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 74%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
                                         exercise your subscription rights, you must take the following steps:</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
        as of the record date you are a record holder of our common stock or warrants issued December 22, 2017, you must deliver
        payment and a properly completed rights certificate to the subscription agent to be received before 5:00 p.m., Eastern
        Time, on May 24, 2018. You may deliver the documents and payments by first class mail or courier service. If you use first
        class mail for this purpose, we recommend using registered mail, properly insured, with return receipt requested.</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
        you are a beneficial owner of shares that are registered in the name of a broker, dealer, bank or other nominee, you should
        instruct your broker, dealer, bank or other nominee to exercise your subscription rights on your behalf. Please follow
        the instructions of your nominee, who may require that you meet a deadline earlier than 5:00 p.m., Eastern Time, on May
        24, 2018.</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0; text-align: justify"></P></TD></TR>
</TABLE>

<P STYLE="margin: 0">&nbsp;</P>

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; width: 25%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Delivery
    of Shares and Warrants:</B></FONT></TD>
    <TD STYLE="padding-right: 0.8pt; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: justify; width: 74%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
    soon as practicable after the expiration of the rights offering, and within five business days thereof, we expect to close
    on subscriptions and for the subscription agent to arrange for the issuance of the shares of Series B Convertible Preferred
    Stock and warrants purchased pursuant to the rights offering. All shares and warrants that are purchased in the rights offering
    will be issued in book-entry, or uncertificated, form meaning that you will receive a direct registration, or DRS, account
    statement from our transfer agent reflecting ownership of these securities if you are a holder of record of shares or warrants.
    If you hold your shares or participating warrants in the name of a bank, broker, dealer, or other nominee, DTC will credit
    your account with your nominee with the securities you purchased in the rights offering.</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Non-Transferability
    of Subscription Rights:</B></FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Subscription
    rights may not be sold, transferred, assigned or given away under any circumstances, and will not be listed for trading on
    any stock exchange or market.</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Transferability
    of Warrants:</B></FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
    warrants will be separately transferable following their issuance and through their expiration four years from the date of
    issuance.</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>No
    Board Recommendation:</B></FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
    board of directors is not making a recommendation regarding your exercise of the subscription rights. You are urged to make
    your decision to invest based on your own assessment of our business and financial condition, our prospects for the future,
    the terms of the rights offering, the information in this prospectus and other information relevant to your circumstances.
    Please see &ldquo;<I>Risk Factors</I>&rdquo; for a discussion of some of the risks involved in investing in our securities.</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>No Revocation:</B></FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">All
    exercises of subscription rights are irrevocable.</FONT></TD></TR>
<TR>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="padding-right: 0.8pt"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Use of Proceeds:</B></FONT> </TD>
    <TD STYLE="padding-right: 0.8pt"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: justify"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Assuming
    the exercise of subscription rights to purchase all 25,000 units offered in the rights offering, after deducting dealer-manager
    fees and other fees and expenses, but excluding any proceeds received upon exercise of any warrants, we estimate the net proceeds
    from the rights offering will be approximately $23 million. We intend to use the net proceeds for general corporate purposes,
    which include, but are not limited to, funding our ongoing and future development of our drugs and devices under development,
    and for general and administrative expenses. We may also use a portion of the net proceeds to pay off outstanding indebtedness,
    if any, and/or acquire or invest in complementary businesses, products and technologies. See &ldquo;<I>Use of Proceeds</I>.&rdquo;</FONT> </TD></TR>
<TR>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Material U.S.
    Federal Income Tax Consequences:</B></FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">For
    U.S. federal income tax purposes, we do not believe you should recognize income or loss upon receipt or exercise of a subscription
    right. You should consult your own tax advisor as to the tax consequences of the rights offering in light of your particular
    circumstances. See &ldquo;<I>Material U.S. Federal Income Tax Consequences</I>.&rdquo;</FONT></TD></TR>
<TR>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Extension
    and Termination:</B></FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
    may extend the rights offering for additional time in our sole discretion, although we do not presently intend to do so. Our
    board of directors may also terminate the rights offering for any reason prior to its completion.</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Subscription
    Agent Questions:</B></FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
                                    you have any questions about the rights offering, please contact the subscription agent.</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Subscription
    Agent</B></FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Broadridge
    Corporate Issuer Solutions, Inc.</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Market
    for Common Stock:</B></FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
    common stock is listed on the NASDAQ Capital Market under the symbol &ldquo;ATOS.&rdquo;</FONT></TD></TR>
</TABLE>

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; width: 25%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Market
    for Preferred Stock:</B></FONT></TD>
    <TD STYLE="padding-right: 0.8pt; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: justify; width: 74%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">There
    is no established public trading market for the Series B Convertible Preferred Stock, and we do not expect a market to develop.
    In addition, we do not currently intend to apply for listing of the Series B Convertible Preferred Stock on any securities
    exchange or recognized trading system.</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Market
    for Warrants</B></FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">There
    is no established trading market for the warrants, and the warrants may not be widely distributed. We do not intend to list
    the warrants for trading on any securities exchange or recognized trading system.</FONT></TD></TR>
<TR>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Dealer-Manager:</B></FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Maxim
    Group LLC</FONT></TD></TR>
</TABLE>



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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a003_v1"></A><B>QUESTIONS AND
ANSWERS ABOUT THE RIGHTS OFFERING </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>The following are examples of what we anticipate will be
common questions about the rights offering. The answers are based on selected information included elsewhere in this prospectus.
The following questions and answers do not contain all of the information that may be important to you and may not address all
of the questions that you may have about the rights offering. This prospectus and the documents incorporated by reference herein
contain more detailed descriptions of the terms and conditions of the rights offering and provide additional information about
us and about our business, including potential risks related to the rights offering, the units offered hereby, and our business.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Exercising the subscription rights and investing in our
securities involve a high degree of risk. We urge you to carefully read the section entitled &ldquo;Risk Factors&rdquo; beginning
on page 18 of this prospectus and all other information included in, or incorporated by reference into, this prospectus in its
entirety before you decide whether to exercise your subscription rights.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>What is the rights offering?</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We are distributing to holders of shares of our common stock
and holders of our December 22, 2017 warrants as of 5:00 p.m., Eastern Time, on May 9, 2018, which is the record date for the
rights offering, at no charge, non-transferable subscription rights to purchase units, each consisting of one share of Series
B Convertible Preferred Stock and 284 warrants. Each warrant will be exercisable for one share of our common stock. You will receive
one subscription right for each share of common stock (including each share of common stock issuable upon exercise of warrants
issued December 22, 2017) you owned as of 5:00 p.m., Eastern Time, on the record date. Each subscription right entitles the holder
to a basic subscription right and an over-subscription privilege, which are described below. Upon closing of the rights offering,
the Series B Convertible Preferred Stock and warrants will immediately separate. We do not intend to apply to list the warrants
on any securities exchange or recognized trading system The common stock to be issued upon conversion of the Series B Convertible
Preferred Stock or exercise of the warrants, like our existing shares of common stock, will be traded on the NASDAQ Capital Market
under the symbol &ldquo;ATOS.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Why are we conducting the rights offering?</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We are conducting the rights offering to provide for our general
corporate purposes, which include, but are not limited to, funding our ongoing and future development of our drugs and devices
under development and for general and administrative expenses. For a detailed discussion, see &ldquo;<I>Use of Proceeds</I>.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our Board of Directors (the &ldquo;Board&rdquo;) has approved
the rights offering and, based on information available to the Board and its subsequent analyses, believes that the rights offering
is in the best interests of the Company and its stockholders. However, our Board is not making any recommendation regarding your
exercise of the subscription rights.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>What is the basic subscription right?</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Each basic subscription right gives our stockholders and holders
of our December 22, 2017 warrants the opportunity to purchase units consisting of one share of Series B Convertible Preferred
Stock and 284 warrants at a subscription price of $1,000 per unit, subject to the limits described below. We have granted to you,
as a stockholder or warrant holder of record as of 5:00 p.m., Eastern Time, on the record date, one subscription right for each
share of our common stock you owned at that time. For example, if you owned 1,000 shares of our common stock as of 5:00 p.m.,
Eastern Time, on the record date, you would have received 1,000 subscription rights and would have the right to purchase 1,000
units for $1,000 per unit subject to certain limitations. You may exercise all or a portion of your basic subscription rights
or you may choose not to exercise any subscription rights at all. However, if you exercise fewer than all of your basic subscription
rights, you will not be entitled to purchase any additional shares pursuant to the over-subscription privilege.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If you hold ATOS stock certificates or participating warrants,
the number of basic subscription rights you may exercise is indicated on the enclosed rights certificate. If you hold your shares
or participating warrants in the name of a custodian bank, broker, dealer or other nominee, you will not receive a rights certificate.
Instead, the Depository Trust Company (&ldquo;DTC&rdquo;) will issue one subscription right to the nominee record holder for each
share of our common stock (including shares issuable upon exercise of participating warrants) that you own at the record date.
If you are not contacted by your custodian bank, broker, dealer or other nominee, you should contact your nominee as soon as possible.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>What is the over-subscription privilege?</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We do not expect all of our stockholders and December 22, 2017
warrant holders to exercise all of such holder&rsquo;s basic subscription rights. The over-subscription privilege provides each
rights holder that exercises all of such rights holder&rsquo;s basic subscription rights the opportunity to purchase the units
that are not purchased by other holders of common stock and participating warrants. If you fully exercise your basic subscription
right, the over-subscription privilege of each right entitles you to subscribe for additional units unclaimed by other holders
of rights in the rights offering at the same subscription price per unit. If an insufficient number of units are available to
fully satisfy all over-subscription privilege requests, the available units will be distributed proportionately among holders
of common stock and participating warrants who exercise their over-subscription privileges based on the number of units each rights
holder subscribed for under the basic subscription right.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In order to properly exercise your over-subscription privilege,
you must deliver the subscription payment for exercise of your over-subscription privilege before the expiration of the rights
offering. Because we will not know the total number of unsubscribed units before the expiration of the rights offering, if you
wish to maximize the number of units you purchase pursuant to your over-subscription privilege, you will need to deliver payment
in an amount equal to the aggregate subscription price for the maximum number of units available, assuming that no stockholder
other than you has purchased any units pursuant to such stockholder&rsquo;s basic subscription right and over-subscription privilege.
The subscription agent will return any excess payments by mail without interest or deduction promptly after the expiration of
the subscription period. See &ldquo;<I>The Rights Offering&mdash;The Subscription Rights&mdash; Over-Subscription Privilege</I>.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>May the subscription rights that I exercise be reduced for
any reason?</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> Yes. While we are distributing to holders of our
common stock one subscription right for each share of common stock owned on the record date, we are only seeking to raise $25
million dollars in gross proceeds in this rights offering. As a result, based on 2,651,952 shares of common stock outstanding
as of May 2, 2018 and 883,333 shares of common stock issuable upon exercise of warrants issued December 22, 2017, we would
grant subscription rights to acquire 3,535,285 units but will only accept subscriptions for 25,000 units. Accordingly,
sufficient units may not be available to honor your subscription in full. If exercises of basic subscription rights exceed
the number of units available in the rights offering, we will allocate the available units pro-rata among the record holders
exercising the basic subscription rights in proportion to the number of shares of our common stock each of those record
holders owned on the record date (including shares of common stock issuable upon exercise of the December 22, 2017 warrants),
relative to the number of shares owned on the record date by all record holders exercising the basic subscription right. If
this pro-rata allocation results in any record holders receiving a greater number of units than the record holder subscribed
for pursuant to the exercise of the basic subscription rights, then such record holder will be allocated only that number of
units for which the record holder subscribed, and the remaining units will be allocated among all other record holders
exercising their basic subscription rights on the same pro rata basis described above. The proration process will be repeated
until all units have been allocated. Please also see the discussion under &ldquo;<I>The Rights Offering&mdash;The
Subscription Rights&mdash;Over-Subscription Privilege&rdquo; and &ldquo;The Rights Offering&mdash;Limitation on the Purchase
of Units</I>&rdquo; for a description of potential proration as to the over-subscription privilege and certain stock
ownership limitations. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If for any reason the amount of units allocated to you is less
than you have subscribed for, then the excess funds held by the subscription agent on your behalf will be returned to you, without
interest, as soon as practicable after the rights offering has expired and all prorating calculations and reductions contemplated
by the terms of the rights offering have been effected, and we will have no further obligations to you.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Will fractional shares be issued upon exercise of subscription
rights?</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">No. We will distribute subscription rights to acquire whole
units, rounding down the underlying number of common shares giving rise to such subscription rights to the nearest share. Any
excess subscription payments received by the subscription agent will be returned within 10 business days after expiration of the
rights offering, without interest or deduction. No fractional shares will be issued upon the conversion of the Series B Convertible
Preferred Stock or upon exercise of warrants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>What are the terms of the Series B Convertible Preferred
Stock?</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Each share of Series B Convertible Preferred Stock will be
convertible, at our option at any time on or after the first anniversary of the closing of the rights offering or at the option
of the holder at any time, into the number of shares of our common stock determined by dividing the $1,000 stated value per share
of the Series B Convertible Preferred Stock by a conversion price of $3.52 per share, subject to adjustment. The Series B Convertible
Preferred Stock has certain conversion rights and dividend rights as described in more detail herein. We do not currently intend
to list the Series B Convertible Preferred Stock on any securities exchange or recognized trading system.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>What are the terms of the warrants?</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Each warrant entitles the holder to purchase one share of common
stock at an exercise price of $4.05 per share from the date of issuance through its expiration four years from the date of issuance.
The warrants will be exercisable for cash, or, solely during any period when a registration statement for the exercise of the
warrants is not in effect, on a cashless basis. We may redeem the warrants for $0.18 per warrant if the VWAP of our common stock
equals or exceeds $10.56 per share for ten consecutive trading days, provided that we may not do so prior to the first anniversary
of closing of the rights offering<I>. </I>The warrants will be issued in registered form under a warrant agent agreement with
VStock Transfer, LLC as warrant agent.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Are the warrants listed?</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We do not intend to list the warrants on any securities exchange
or recognized trading system.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Will fractional shares be issued upon the conversion of
shares of Series B Convertible Preferred Stock or the exercise of warrants?</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">No fractional shares of common stock will be issued as a result
of the conversion of shares of Series B Convertible Preferred Stock or the exercise of warrants. Instead, for any such fractional
share that would otherwise have been issuable upon conversion of shares of Series B Convertible Preferred Stock, the Company may,
at its election, pay a cash payment equal to such fraction multiplied by the conversion price or round up to the next whole share,
and for any such fractional share that would have otherwise been issued upon exercise of warrants, the Company will round up such
fraction to the next whole share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>How was the subscription price determined?</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Board determined the subscription price based on a variety
of factors, including historical and current trading prices for our common stock, general business conditions, our need for capital,
alternatives available to us for raising capital, potential market conditions, and our desire to provide an opportunity to our
stockholders and warrant holders as of December 22, 2017, to participate in the rights offering on a pro rata basis. In conjunction
with its review of these factors, the Board also reviewed our history and prospects, including our past and present earnings,
our prospects for future earnings, and the outlook for our industry, and our current financial condition.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The subscription price is not necessarily related to our book
value, tangible book value, multiple of earnings or any other established criteria of value and may or may not be considered the
fair value of our common stock to be offered in the rights offering. You should not consider the subscription price as an indication
of value of the Company or our common stock. There is currently no market for our shares of Series B Convertible Preferred Stock
and, unless we or you choose to convert such shares into shares of common stock, you will not be able to resell such shares. We
cannot predict the price at which our shares of common stock will trade. You should obtain a current quote for our common stock
before exercising your subscription rights and make your own assessment of our business and financial condition, our prospects
for the future, and the terms of the rights offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>If I am a holder of only stock options or warrants (other
than warrants issued on December 22, 2017), may I participate in the rights offering?</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Only holders of common stock issued and holders of warrants
issued on December 22, 2017, as of the record date, may participate in the rights offering. Following the consummation of the
rights offering, the Company may make an equitable adjustment to unexercised stock options to reflect the issuance of shares in
the rights offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Am I required to exercise all of the subscription rights
I receive in the rights offering?</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">No. You may exercise any number of your subscription rights,
or you may choose not to exercise any subscription rights. If you do not exercise any subscription rights, the number of shares
of our common stock you own will not change; however, upon conversion of the Series B Convertible Preferred Stock and exercise
of the warrants offered hereby, you will own a smaller proportional interest in the Company than if you had timely exercised all
or a portion of your subscription rights. If you choose not to exercise your subscription rights or you exercise fewer than all
of your subscription rights and other holders of common stock and participating warrants fully exercise their subscription rights
or exercise a greater proportion of their subscription rights than you exercise, the percentage of our common stock owned by these
other holders of common stock and participating warrants will increase relative to your ownership percentage, and your voting
and other rights in the Company will likewise be diluted. In addition, if you do not exercise your basic subscription right in
full, you will not be entitled to participate in the over-subscription privilege.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>How soon must I act to exercise my subscription rights?</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If you received a rights certificate and elect to exercise
any or all of your subscription rights, the subscription agent must receive your completed and signed rights certificate and payment
(and your payment must clear) prior to the expiration of the rights offering, which is May 24, 2018, at 5:00 p.m., Eastern Time.
If you hold your shares or participating warrants in the name of a custodian bank, broker, dealer or other nominee, your nominee
may establish a deadline prior to 5:00 p.m., Eastern Time, on May 24, 2018 by which you must provide it with your instructions
to exercise your subscription rights and payment for your units. Our Board may, in its discretion, extend the rights offering
one or more times. Our Board may cancel or amend the rights offering at any time before its expiration. In the event that the
rights offering is cancelled, al subscription payments received will be returned promptly, without interest or penalty.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Although we will make reasonable attempts to provide this prospectus
to holders of subscription rights, the rights offering and all subscription rights will expire at 5:00 p.m., Eastern Time, on
May 24, 2018 (unless extended), whether or not we have been able to locate each person entitled to subscription rights.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">All exercises of subscription rights are irrevocable, even
if the rights offering is extended by our board of directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>May I transfer my subscription rights?</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">No. You may not sell, transfer or assign your subscription
rights to anyone. Subscription rights will not be listed for trading on the NASDAQ Capital Market or any other stock exchange
or market. Rights certificates may only be completed by the stockholder or holder of December 22, 2017 warrants who receives them.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Are we requiring a minimum subscription to complete the
rights offering?</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">There is no aggregate minimum we must receive to complete the
rights offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Has our Board made a recommendation to our holders of common
stock and participating warrants regarding the rights offering?</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> No. Our Board is not making a recommendation regarding your
exercise of the subscription rights. Holders of common stock and participating warrants who exercise subscription rights risk
investment loss on new money invested. There is currently no market for our shares of Series B Convertible Preferred Stock and,
unless we or you choose to convert your shares of Series B Convertible Preferred Stock into shares of common stock, you will not
be able to resell such shares. We cannot predict the price at which our shares of common stock will trade. On May 2, 2018, the
last reported sale price of our common stock on Nasdaq was $3.83 per share. You are urged to make your decision based on your
own assessment of our business and the rights offering. Please see &ldquo;<I>Risk Factors</I>&rdquo; in this prospectus and all
other information included in, or incorporated by reference into, this prospectus for a discussion of some of the risks involved
in investing in our common stock. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>How do I exercise my subscription rights if I own shares
in certificate form or if I own warrants issued in the December 22, 2017 financing?</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If you hold an ATOS stock certificate or a December 22, 2017
warrant and you wish to participate in the rights offering, you must take the following steps:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD>deliver a complete and executed rights certificate
                                         and related subscription documents to the subscription agent on or before 5:00 p.m. Eastern
                                         Time, on May 24, 2018; and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD>deliver payment to the subscription agent on or before
                                         5:00 p.m. Eastern Time, on May 24, 2018. Payment instructions will accompany your rights
                                         certificate.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In certain cases, you may be required to provide additional
documentation or signature guarantees.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Please follow the delivery instructions on the rights certificate.
Do not deliver documents to the Company. You are solely responsible for completing delivery to the subscription agent of your
subscription documents, rights certificate and payment. We urge you to allow sufficient time for delivery of your subscription
materials to the subscription agent so that the subscription agent receives the materials before 5:00 p.m., Eastern Time, on May
24, 2018.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If you send a payment that is insufficient to purchase the
number of units you requested, or if the number of units you requested is not specified in the forms, the payment received will
be applied to exercise your subscription rights to the fullest extent possible based on the amount of the payment received, subject
to the availability of units in the rights offering and the elimination of fractional shares. Any excess subscription payments
received by the subscription agent will be returned promptly, without interest, following the expiration of the rights offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>What should I do if I want to participate in the rights
offering, but my shares or participating warrants are held in the name of a custodian bank, broker, dealer or other nominee?</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If you hold your shares of common stock or participating warrants
through a custodian bank, broker, dealer or other nominee, then your nominee is the record holder of the shares (or shares issuable
upon exercise of participating warrants) you own. If you are not contacted by your nominee, you should contact your nominee as
soon as possible. Your nominee must exercise the subscription rights on your behalf for the units you wish to purchase. You will
not receive a rights certificate. Please follow the instructions of your nominee. Your nominee may establish a deadline that may
be before 5:00 p.m., Eastern Time, on May 24, 2018, the expiration date for the rights offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>What form of payment is required to purchase units?</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As described in the instructions accompanying the rights certificate,
payments submitted to the subscription agent must be made in full United States currency by personal or certified check payable
to Broadridge Corporate Issuer Solutions, Inc., the subscription agent, drawn upon a United States bank; U.S. Postal money order;
or wire transfer.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If payment is issued by check, payment will be deemed to have
been received by the subscription agent only upon the subscription agent&rsquo;s receipt of the check, receipt and clearance of
such check.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Please note that funds paid by uncertified personal check may
take at least seven business days to clear. Accordingly, if you wish to pay by means of an uncertified personal check, we urge
you to make payment sufficiently in advance of the expiration date to ensure that the subscription agent receives cleared funds
before that time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>When will I receive my new shares of Series B Convertible
Preferred Stock and Warrants?</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">All shares that you purchase in the rights offering to which
you are entitled will be issued in book-entry, or uncertificated, form. When issued, the shares will be registered in the name
of the subscription rights holder of record. As soon as practicable after the expiration of the rights offering period, the subscription
agent will arrange for the issuance of the shares of Series B Convertible Preferred Stock purchased in the rights offering. Subject
to state securities laws and regulations, we have the discretion to delay distribution of any shares you may have elected to purchase
by exercise of your rights in order to comply with state securities laws.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>After I send in my payment and rights certificate, may I
cancel my exercise of subscription rights?</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">No. All exercises of subscription rights are irrevocable unless
the rights offering is terminated, even if you later learn information about us or the rights offering that you consider to be
unfavorable to the exercise of your subscription rights. You should not exercise your subscription rights unless you are certain
that you wish to purchase units in the rights offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Will our directors and officers participate in the rights
offering?</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">All holders of our common stock and holders of our December
22, 2017 warrants as of the record date for the rights offering will receive, at no charge, the non-transferable subscription
rights to purchase shares of Series B Convertible Preferred Stock and warrants as described in this prospectus. To the extent
that our directors and officers held shares of our common stock (including shares of restricted common stock) as of the record
date, they will receive the subscription rights and, while they are under no obligation to do so, will be entitled to participate
in the rights offering. Our directors and officers have not indicated to us whether they will participate in the offering pursuant
to their basic subscription rights.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Will the equity awards of our employees, officers and directors
automatically convert into common stock in connection with the rights offering?</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Holders of our equity awards to employees, officers and directors,
including outstanding stock options, will not receive rights in the rights offering in connection with such equity awards, but
will receive subscription rights in connection with any shares of our common stock held as of the record date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>How will the rights offering affect our outstanding common
stock?</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> As of May 2, 2018, following a one-for-twelve reverse stock
split approved by our stockholders on April 19, 2018, we had 2,651,952 shares of our common stock outstanding and 883,333 shares
of common stock issuable upon exercise of December 22, 2017 warrants. Assuming no additional shares of common stock are issued
by the Company prior to consummation of the rights offering and assuming all units are sold in the rights offering, we will have
in addition to our previously issued and outstanding securities, 25,000 shares of Series B Convertible Preferred Stock outstanding,
and warrants to purchase an additional 7,100,000 shares of our common stock outstanding. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The issuance of Series B Convertible Preferred Stock and warrants
exercisable for shares of our common stock in the rights offering will dilute, and thereby reduce, your proportionate ownership
in the Company unless you fully exercise your basic subscription rights.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>How much will the Company receive in net proceeds from the
rights offering?</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> We expect the aggregate proceeds, net of
dealer-manager fees and other fees and expenses, from the rights offering will be approximately $23 million, assuming all
rights are exercised. We intend to use the net proceeds to provide for our general corporate purposes. Please see
&ldquo;<I>Use of Proceeds</I>.&rdquo; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Are there risks in exercising my subscription rights?</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Yes. The exercise of your subscription rights involves risks.
Exercising your subscription rights involves the purchase of our securities and should be considered as carefully as you would
consider any other equity investment. Among other things, you should carefully consider the risks described under the heading
&ldquo;<I>Risk Factors</I>&rdquo; in this prospectus and all other information included in, or incorporated by reference into,
this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Can the Board terminate or extend the rights offering?</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Yes. Our Board may decide to terminate the rights offering
at any time and for any reason before the expiration of the rights offering. We also have the right to extend the rights offering
for additional periods in our sole discretion. We do not presently intend to extend the rights offering. We will notify holders
of common stock and participating warrants and the public if the rights offering is terminated or extended by issuing a press
release announcing the extension no later than 9:00 a.m., Eastern Time, on the next business day after the most recently announced
expiration date of the rights offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>If the rights offering is not completed, will my subscription
payment be refunded to me?</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Yes. The subscription agent will hold all funds it receives
in a designated bank account until the rights offering is completed. If the rights offering is not completed, all subscription
payments received by the subscription agent will be returned promptly, without interest or penalty. If your shares or participating
warrants are held in the name of a custodian bank, broker, dealer or other nominee, it may take longer for you to receive the
refund of your subscription payment than if you were a record holder of your shares because the subscription agent will return
payments through the record holder of your shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Will I receive interest on any funds I deposit with the
subscription agent?</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">No. You will not be entitled to any interest on any funds that
are deposited with the subscription agent pending completion or cancellation of the rights offering. If the rights offering is
cancelled for any reason, the subscription agent will return this money to subscribers, without interest or penalty, as soon as
practicable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>How do I exercise my rights if I live outside of the United
States?</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The subscription agent will hold rights certificates for holders
of common stock and participating warrants having addresses outside of the United States. In order to exercise subscription rights,
foreign holders of common stock and participating warrants must notify the subscription agent and timely follow the procedures
described in &ldquo;<I>The Rights Offering&mdash;Foreign Stockholders</I>.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>What are the U.S. federal income tax consequences of exercising
my subscription rights?</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We believe that the receipt and exercise of subscription rights
by holders of shares of our common stock and holders of participating warrants should generally not be taxable for U.S. federal
income tax purposes. You should seek specific tax advice from your tax advisor in light of your particular circumstances and as
to the applicability and effect of any other tax laws. See &ldquo;<I>Material U.S. Federal Income Tax Consequences</I>.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>What fees or charges apply if I purchase units in the rights
offering?</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We are not charging any fee or sales commission to issue subscription
rights to you or to issue units to you if you exercise your subscription rights (other than the subscription price). If you exercise
your subscription rights through a custodian bank, broker, dealer or other nominee, you are responsible for paying any fees your
nominee may charge you.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Whom should I contact if I have other questions?</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If you have other questions regarding the rights offering,
please contact the subscription agent, Broadridge Corporate Issuer Solutions, Inc., toll free at (855) 793-5068, or by mail at
Broadridge Corporate Issuer Solutions, Inc., Attn: BCIS Re-Organization Dept., P.O. Box 1317, Brentwood, New York, 11717-0693.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>To whom should I send my forms and payment?</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If your shares or participating warrants are held in the name
of a broker, dealer, custodian bank or other nominee, then you should send your subscription documents and subscription payment
to that record holder. If you are the record holder, then you should send your subscription documents, rights certificate, or
subscription payment to the address provided below. If sent by mail, we recommend that you send documents and payments by registered
mail, properly insured, with return receipt requested, and that a sufficient number of days be allowed to ensure delivery to the
subscription agent. Do not send or deliver these materials to the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; background-color: white; border-collapse: collapse">
<TR>
    <TD STYLE="width: 52%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 47%">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt"><I>By Mail</I></FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><I>By Hand
    or Overnight Courier</I></FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 10pt">Broadridge Corporate Issuer Solutions, Inc.</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 10pt">Broadridge Corporate Issuer Solutions, Inc.</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 10pt">Attn: BCIS Re-Organization Dept.</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 10pt">Attn: BCIS IWS</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 10pt">P.O. Box 1317</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 10pt">51 Mercedes Way</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 10pt">Brentwood, New York 11717-0693</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 10pt">Edgewood, New York 11717</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 10pt">(855) 793-5068 (toll free)</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 10pt">(855) 793-5068 (toll free)</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">You, or, if applicable, your nominee, are solely responsible
for ensuring the subscription agent receives your subscription documents, rights certificate, and subscription payment. You should
allow sufficient time for delivery of your subscription materials to the subscription agent and clearance of payment before the
expiration of the rights offering period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Who is the dealer-manager?</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Maxim Group LLC will act as dealer-manager for the rights offering.
Under the terms and subject to the conditions contained in the dealer-manager agreement, the dealer-manager will use its best
efforts to solicit the exercise of subscription rights. We have agreed to pay the dealer-manager certain fees for acting as dealer-manager
and to reimburse the dealer-manager for certain out-of-pocket expenses incurred in connection with this offering. The dealer-manager
is not underwriting or placing any of the subscription rights or the shares of Series B Convertible Preferred stock or warrants
being issued in the rights offering and is not making any recommendation with respect to such subscription rights (including with
respect to the exercise or expiration of such subscription rights), shares of Series B Convertible Preferred Stock or warrants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a004_v1"></A><B>RISK FACTORS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0; background-color: white">Investing in our securities
involves a high degree of risk. Before making an investment decision with respect to our securities, we urge you to carefully
consider the risks described in the &ldquo;Risk Factors&rdquo; section of our Annual Report on Form 10-K for the year ended December
31, 2017, which is incorporated by reference into this prospectus. These risk factors relate to our business, intellectual property,
regulatory matters, and ownership of our common stock. In addition, the following risk factors present material risks and uncertainties
associated with the rights offering. The risks and uncertainties incorporated by reference into this prospectus or described below
are not the only ones we face. Additional risks and uncertainties not presently known or which we consider immaterial as of the
date hereof may also have an adverse effect on our business. If any of the matters discussed in the following risk factors were
to occur, our business, financial condition, results of operations, cash flows or prospects could be materially adversely affected,
the market price of our securities could decline and you could lose all or part of your investment in our securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 30pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Risks Related to the Rights Offering</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Future sales of our common stock may depress our share
price.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> As of May 2, 2018, following a one-for-12 reverse stock
split that was approved by our stockholders on April 19, 2018, we had 2,651,952 shares of our common stock outstanding. Sales
of a number of shares of common stock in the public market, or the issuance of additional shares upon exercise of outstanding
warrants, could cause the market price of our common stock to decline. We may also sell additional common stock or securities
convertible into or exercisable or exchangeable for common stock in subsequent public or private offerings or other transactions,
which may adversely affect the market price of our common stock. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We presently do not intend to pay cash dividends on our
common stock.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We have never paid cash dividends in the past, and we currently
anticipate that no cash dividends will be paid on the common stock in the foreseeable future.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Our stockholders may experience substantial dilution
in the value of their investment if we issue additional shares of our capital stock.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our charter allows us to issue up to 175,000,000 shares of
our common stock, par value $0.18 per share, and to issue and designate the rights of, without stockholder approval, up to 10,000,000
shares of preferred stock, par value $0.001 per share. On April 19, 2018, our stockholders approved an increase in the authorized
number of shares of our common stock from 75,000,000 to 175,000,000, as well as a one-for-twelve reverse stock split. To raise
additional capital, we may in the future sell additional shares of our common stock or other securities convertible into or exchangeable
for our common stock at prices that are lower than the prices paid by existing stockholders, and investors purchasing shares or
other securities in the future could have rights superior to existing stockholders, which could result in substantial dilution
to the interests of existing stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We may issue debt and equity securities or securities
convertible into equity securities, any of which may be senior to our common stock as to distributions and in liquidation, which
could negatively affect the value of our common stock.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In the future, we may attempt to increase our capital resources
by entering into debt or debt-like financing that is unsecured or secured by up to all of our assets, or by issuing additional
debt or equity securities, which could include issuances of secured or unsecured commercial paper, medium-term notes, senior notes,
subordinated notes, guarantees, preferred stock, hybrid securities, or securities convertible into or exchangeable for equity
securities. In the event of our liquidation, our lenders and holders of our debt and preferred securities would receive distributions
of our available assets before distributions to the holders of our common stock. Because our decision to incur debt and issue
securities in future offerings may be influenced by market conditions and other factors beyond our control, we cannot predict
or estimate the amount, timing or nature of our future offerings or debt financings. Further, market conditions could require
us to accept less favorable terms for the issuance of our securities in the future.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Our management will have broad discretion over the use
of the net proceeds from this offering, you may not agree with how we use the proceeds and the proceeds may not be invested successfully.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our management will have broad discretion as to the use of
the net proceeds from this offering and could use them for purposes other than those contemplated at the time of commencement
of this offering. Accordingly, you will be relying on the judgment of our management with regard to the use of these net proceeds,
and you will not have the opportunity, as part of your investment decision, to assess whether the proceeds are being used appropriately.
It is possible that, pending their use, we may invest the net proceeds in a way that does not yield a favorable, or any, return
for us. The failure of our management to use such funds effectively could have a material adverse effect on our business, financial
condition, operating results and cash flows.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Your interest in our company may be diluted as a result
of this rights offering.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Holders of common stock and participating warrants who do not
fully exercise their subscription rights should expect that they will, at the completion of this offering, own a smaller proportional
interest in our company than would otherwise be the case had they fully exercised their subscription rights. Further, the shares
issuable upon the exercise of the warrants to be issued pursuant to the rights offering will dilute the ownership interest of
stockholders not participating in this offering or holders of warrants who have not exercised them.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Further, if you purchase units in this offering at the subscription
price, you may suffer immediate and substantial dilution in the net tangible book value of our common stock. See &ldquo;<I>Dilution</I>&rdquo;
in this prospectus for a more detailed discussion of the dilution which may incur in connection with this offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>We
may be or become the target of securities litigation, which is costly and time-consuming to defend.</I></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
the past, following periods of market volatility in the price of a company&rsquo;s securities or the reporting of unfavorable
news, security holders have often instituted class action litigation. If the market value of our securities experience adverse
fluctuations and we become involved in this type of litigation, regardless of the outcome, we could incur substantial legal costs
and our management&rsquo;s attention could be diverted from the operation of our business, causing our business to suffer.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>There
may be future sales or other dilution of our equity, which may adversely affect the market price of our common stock.</I></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
are generally not restricted from issuing additional common stock, including any securities that are convertible into or exchangeable
for, or that represent the right to receive, common stock. The market price of our common stock could decline as a result of sales
of common stock or securities that are convertible into or exchangeable for, or that represent the right to receive, common stock
after this rights offering or the perception that such sales could occur. For example, we have a currently effective registration
statement that permits us to sell shares of our common stock from time to time at prevailing market prices, which could result
in dilution to investors in the rights offering.</FONT>&nbsp;</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Completion of the rights offering is not subject to us
raising a minimum offering amount.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Completion of the rights offering is not subject to us raising
a minimum offering amount and, therefore, proceeds may be insufficient to meet our objectives, thereby increasing the risk to
investors in this offering, including investing in a company that continues to require capital. See &ldquo;<I>Use of Proceeds</I>.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>This rights offering may cause the trading price of our
common stock to decrease.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The subscription price, together with the number of shares
of common stock issuable upon conversion of the Series B Convertible Preferred Stock and warrants issuable in this rights offering,
may result in an immediate decrease in the market price of our common stock. This decrease may continue after the completion of
this rights offering. If that occurs, you may have committed to buy shares of our Series B Convertible Preferred Stock which are
convertible into shares of our common stock at a price greater than the prevailing market price. We cannot predict the effect,
if any, that the availability of shares for future sale represented by the warrants issued in connection with the rights offering
will have on the market price of our common stock from time to time. Further, if a substantial number of subscription rights are
exercised and the holders of the shares received upon exercise of those subscription rights or the related warrants choose to
sell some or all of the shares underlying the subscription rights or the related warrants, the resulting sales could depress the
market price of our common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Holders of our warrants will have no rights as a common
stockholder until such holders exercise their warrants and acquire our common stock. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Until holders of warrants acquire shares of our common stock
upon exercise of the warrants, holders of warrants will have no rights with respect to the shares of our common stock underlying
such warrants. Upon exercise of the warrants, the holders thereof will be entitled to exercise the rights of a common stockholder
only as to matters for which the record date occurs after the exercise date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>If we terminate this offering for any reason, we will
have no obligation other than to return subscription monies within 10 business days.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We may decide, in our sole discretion and for any reason, to
cancel or terminate the rights offering at any time prior to the expiration date. If this offering is cancelled or terminated,
we will have no obligation with respect to subscription rights that have been exercised except to return within 10 business days,
without interest or deduction, all subscription payments deposited with the subscription agent. If we terminate this offering
and you have not exercised any subscription rights, such subscription rights will expire and be worthless.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The subscription price determined for this offering is
not an indication of the fair value of our common stock.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In determining the subscription price, our board of directors
considered a number of factors, including, but not limited to, our need to raise capital in the near term to continue our operations,
the current and historical trading prices of our common stock, a price that would increase the likelihood of participation in
the rights offering, the cost of capital from other sources, the value of the Series B Convertible Preferred Stock and warrants
being issued as components of the unit, comparable precedent transactions, an analysis of stock price trading multiples for companies
similar to us that, among other things, did not need to raise capital in the near-term, and our most recently forecasted revenue
relative to our peer group. The subscription price does not necessarily bear any relationship to any established criteria for
value. No valuation consultant or investment banker has opined upon the fairness or adequacy of the subscription price. You should
not consider the subscription price as an indication of the value of our company or our common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>If you do not act on a timely basis and follow subscription
instructions, your exercise of subscription rights may be rejected.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Holders of subscription rights who desire to purchase shares
of our Series B Convertible Preferred Stock and warrants in this offering must act on a timely basis to ensure that all required
forms and payments are actually received by the subscription agent prior to 5:00 p.m., Eastern Time, on the expiration date, unless
extended. If you are a beneficial owner of shares of common stock and you wish to exercise your subscription rights, you must
act promptly to ensure that your broker, dealer, bank, trustee or other nominee acts for you and that all required forms and payments
are actually received by your broker, dealer, bank, trustee or other nominee in sufficient time to deliver such forms and payments
to the subscription agent to exercise the subscription rights granted in this offering that you beneficially own prior to 5:00
p.m., Eastern Time on the expiration date, as may be extended. We will not be responsible if your broker, dealer, bank, trustee
or other nominee fails to ensure that all required forms and payments are actually received by the subscription agent prior to
5:00 p.m., Eastern Time, on the expiration date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If you fail to complete and sign the required subscription
forms, send an incorrect payment amount, or otherwise fail to follow the subscription procedures that apply to your exercise in
this rights offering, the subscription agent may, depending on the circumstances, reject your subscription or accept it only to
the extent of the payment received. Neither we nor the subscription agent undertakes to contact you concerning an incomplete or
incorrect subscription form or payment, nor are we under any obligation to correct such forms or payment. We have the sole discretion
to determine whether a subscription exercise properly follows the subscription procedures.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>You may not receive all of the units for which you subscribe.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> While we are distributing to holders of our common stock
and holders of our December 22, 2017 warrants one subscription right for each share of common stock owned on the Record Date (including
shares of common stock issuable upon exercise of the December 22, 2017 warrants), we are only seeking to raise $25 million dollars
in gross proceeds in this rights offering. As a result, based on 2,651,952 shares of common stock outstanding and 883,333 shares
of common stock issuable upon exercise of warrants issued December 22, 2017 as of May 2, 2018, we would grant subscription rights
to acquire 3,535,285 units but will only accept subscriptions for 25,000 units. Accordingly, sufficient units may not be available
to honor your subscription in full. If excess units are available after the exercise of basic subscription rights, holders who
fully exercise their basic subscription rights will be entitled to subscribe for an additional number of units. Over-subscription
privileges will be allocated pro rata among holders of common stock and participating warrants who over-subscribed, based on the
number of over-subscription units to which they have subscribed. We cannot guarantee that you will receive any or the entire amount
of units for which you subscribed. If for any reason the amount of units allocated to you is less than you have subscribed for,
then the excess funds held by the subscription agent on your behalf will be returned to you, without interest, as soon as practicable
after the rights offering has expired and all prorating calculations and reductions contemplated by the terms of the rights offering
have been effected, and we will have no further obligations to you. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Unless we otherwise agree in writing, a person or entity, together
with related persons or entities, may not exercise subscription rights (including over-subscription privileges) to purchase units
that, when aggregated with their existing ownership, would result in such person or entity, together with any related persons
or entities, owning in excess of 19.99% of our issued and outstanding shares of common stock following the closing of the transactions
contemplated by this rights offering. If the amount of units allocated to you is less than your subscription request, then the
excess funds held by the subscription agent on your behalf will be returned to you, without interest, as soon as practicable after
the rights offering has expired and all prorating calculations and reductions contemplated by the terms of the rights offering
have been effected, and we will have no further obligations to you.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>If you make payment of the subscription price by personal
check, your check may not clear in sufficient time to enable you to purchase units in this rights offering.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Any personal check used to pay for shares and warrants to be
issued in this rights offering must clear prior to the expiration date of this rights offering, and the clearing process may require
five or more business days. If you choose to exercise your subscription rights, in whole or in part, and to pay for shares and
warrants by personal check and your check has not cleared prior to the expiration date of this rights offering, you will not have
satisfied the conditions to exercise your subscription rights and will not receive the shares and warrants you wish to purchase.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The receipt of subscription rights may be treated as
a taxable distribution to you.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We believe the distribution of the subscription rights in this
rights offering should be a non-taxable distribution to holders of shares of our common stock and holders of participating warrants
under Section 305(a) of the Internal Revenue Code of 1986, as amended, or the Code. Please see the discussion on the &ldquo;<I>Material
U.S. Federal Income Tax Consequences</I>&rdquo; below. This position is not binding on the IRS, or the courts, however. If this
rights offering is deemed to be part of a &ldquo;disproportionate distribution&rdquo; under Section 305 of the Code, your receipt
of subscription rights in this offering may be treated as the receipt of a taxable distribution to you equal to the fair market
value of the subscription rights. Any such distribution would be treated as dividend income to the extent of our current and accumulated
earnings and profits, if any, with any excess being treated as a return of capital to the extent thereof and then as capital gain.
Each holder of shares of common stock and each holder of participating warrants is urged to consult his, her or its own tax advisor
with respect to the particular tax consequences of this rights offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Exercising the subscription rights limits your ability
to engage in certain hedging transactions that could provide you with financial benefits.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">By exercising the subscription rights, you are representing
to us that you have not entered into any short sale or similar transaction with respect to our common stock since the record date
for the rights offering. In addition, the subscription rights provide that, upon exercise of the subscription right, you agree
not to enter into any short sale or similar transaction with respect to our common stock for so long as you continue to hold warrants
issued in connection with the exercise of the subscription right. These requirements prevent you from pursuing certain investment
strategies that could provide you greater financial benefits than you might have realized if the subscription rights did not contain
these requirements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The subscription rights are not transferable, and there
is no market for the subscription rights.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">You may not sell, transfer, assign or give away your subscription
rights. Because the subscription rights are non-transferable, there is no market or other means for you to directly realize any
value associated with the subscription rights. You must exercise the subscription rights to realize any potential value from your
subscription rights.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Absence of a public trading market for the warrants may
limit your ability to resell the warrants.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">There is no established trading market for the warrants to
be issued pursuant to this offering, and the warrants may not be widely distributed. We do not intend to list the warrants for
trading on any securities exchange or recognized trading system. Even if a market for the warrants does develop, the price of
the warrants may fluctuate and liquidity may be limited. Future trading prices of the warrants will depend on many factors, including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD>our operating performance and financial condition;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD>our ability to continue the effectiveness of the
                                         registration statement, of which this prospectus is a part, covering the warrants and
                                         the common stock issuable upon exercise of the warrants;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD>the interest of securities dealers in making a
                                         market; and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD>the market for similar securities.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>There is no public market for the Series B Convertible
Preferred Stock in this offering. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">There is no established public trading market for the Series
B Convertible Preferred Stock, and we do not expect a market to develop. In addition, we do not currently intend to apply for
listing of the Series B Convertible Preferred Stock on any securities exchange or recognized trading system.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The market price of our common stock may never exceed
the exercise price of the warrants issued in connection with this offering.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The warrants being issued in connection with this offering
become exercisable upon issuance and will expire four years from the date of issuance. The market price of our common stock may
never exceed the exercise price of the warrants prior to their date of expiration. Any warrants not exercised by their date of
expiration will expire worthless and we will be under no further obligation to the warrant holder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The warrants contain features that may reduce your economic
benefit from owning them.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The warrants contain features that allow us to redeem the warrants
and that prohibit you from engaging in certain investment strategies. We may redeem the warrants for $0.18 per warrant once the
VWAP of our common stock equals or exceeds $10.56 per share for ten consecutive trading days, provided that we may not do so prior
to the first anniversary of closing of the rights offering, and only upon not less than 30 days&rsquo; prior written notice of
redemption. If we give notice of redemption, you will be forced to sell or exercise your warrants or accept the redemption price.
The notice of redemption could come at a time when it is not advisable or possible for you to exercise the warrants. As a result,
you may be unable to benefit from owning the warrants being redeemed. In addition, for so long as you continue to hold warrants,
you will not be permitted to enter into any short sale or similar transaction with respect to our common stock. This could prevent
you from pursuing investment strategies that could provide you greater financial benefits from owning the warrant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The dealer-manager is not underwriting, nor acting as
placement agent of, the subscription rights or the securities underlying the subscription rights.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Maxim Group LLC will act as dealer-manager for this rights
offering. As provided in the dealer-manager agreement, the dealer-manager will provide marketing assistance in connection with
this offering. The dealer-manager is not underwriting or placing any of the subscription rights or the shares of our Series B
Convertible Preferred Stock or warrants being issued in this offering and is not making any recommendation with respect to such
subscription rights (including with respect to the exercise or expiration of such subscription rights), shares or warrants. The
dealer-manager will not be subject to any liability to us in rendering the services contemplated by the dealer-manager agreement
except for any act of bad faith or gross negligence by the dealer-manager. The rights offering may not be successful despite the
services of the dealer-manager to us in this offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Since the warrants are executory contracts, they may
have no value in a bankruptcy or reorganization proceeding.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In the event a bankruptcy or reorganization proceeding is commenced
by or against us, a bankruptcy court may hold that any unexercised warrants are executory contracts that are subject to rejection
by us with the approval of the bankruptcy court. As a result, holders of the warrants may, even if we have sufficient funds, not
be entitled to receive any consideration for their warrants or may receive an amount less than they would be entitled to if they
had exercised their warrants prior to the commencement of any such bankruptcy or reorganization proceeding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Risks Related to Our Business</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Investors should carefully consider the risks and uncertainties
and all other information contained or incorporated by reference in this prospectus, including the risks and uncertainties discussed
under &ldquo;<I>Risk Factors</I>&rdquo; in our most recent Annual Report on Form 10-K, as may be amended from time to time, and
in subsequent filings that are incorporated herein by reference. All of these risk factors are incorporated by reference herein
in their entirety. These risks and uncertainties are not the only ones facing us. Our business, financial condition or results
of operations could be materially adversely affected by any of these risks. The trading price of our common stock could decline
due to any of these risks, and you may lose all or part of your investment. This prospectus and the incorporated documents also
contain forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those
anticipated in these forward-looking statements as a result of certain factors, including the risks mentioned in this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a005_v1"></A><B>USE OF PROCEEDS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We will retain broad discretion over the use of the net proceeds
from the sale of our securities offered hereby. Except as described in any prospectus supplement, we currently anticipate using
the net proceeds from the sale of our securities offered hereby primarily for general corporate purposes, which include, but are
not limited to, funding our ongoing and future development of our drugs and devices under development, and for general and administrative
expenses. We may also use a portion of the net proceeds to pay off outstanding indebtedness, if any, and/or acquire or invest
in complementary businesses, products and technologies. Further, from time to time we may evaluate acquisition opportunities and
engage in related discussions with other companies. Pending the use of the net proceeds, we intend to invest the net proceeds
in short-term, interest-bearing, investment-grade securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>MARKET PRICE OF OUR COMMON STOCK AND
RELATED STOCKHOLDER MATTERS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our common stock is traded on the NASDAQ Capital Market under
the symbol &ldquo;ATOS.&rdquo; Our common stock has, from time to time, traded on a limited, sporadic or volatile basis. The following
tables show the high and low sales prices for our common stock for the periods indicated, as reported on the NASDAQ Capital Market.
These prices do not reflect retail markups, markdowns or commissions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD> &nbsp; </TD><TD> &nbsp; </TD>
    <TD COLSPAN="6" STYLE="text-align: center"> Price Ranges </TD><TD> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: right"> &nbsp; </TD><TD STYLE="padding-bottom: 1pt"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="text-align: right; border-bottom: Black 1pt solid"> High </TD><TD STYLE="padding-bottom: 1pt"> &nbsp; </TD><TD STYLE="padding-bottom: 1pt"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="text-align: right; border-bottom: Black 1pt solid"> Low </TD><TD STYLE="padding-bottom: 1pt"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; font-style: italic"> Fiscal Year ended December 31, 2018 </TD><TD> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="text-align: right"> &nbsp; </TD><TD> &nbsp; </TD><TD> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="text-align: right"> &nbsp; </TD><TD> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 74%; text-align: left"> First Quarter </TD><TD STYLE="width: 1%"> &nbsp; </TD>
    <TD STYLE="width: 1%; text-align: left"> $ </TD><TD STYLE="width: 10%; text-align: right"> 10.68 </TD><TD STYLE="width: 1%; text-align: left"> &nbsp; </TD><TD STYLE="width: 1%"> &nbsp; </TD>
    <TD STYLE="width: 1%; text-align: left"> $ </TD><TD STYLE="width: 10%; text-align: right"> 3.00 </TD><TD STYLE="width: 1%; text-align: left"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD> Second Quarter (April 1, 2018 &ndash; May 2, 2018) </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> $ </TD><TD STYLE="text-align: right"> 5.64 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> $ </TD><TD STYLE="text-align: right"> 2.85 </TD><TD STYLE="text-align: left"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &nbsp; </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &nbsp; </TD><TD STYLE="text-align: left"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; font-style: italic"> Fiscal Year ended December 31, 2017 </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &nbsp; </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &nbsp; </TD><TD STYLE="text-align: left"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"> First Quarter </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> $ </TD><TD STYLE="text-align: right"> 22.20 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> $ </TD><TD STYLE="text-align: right"> 9.12 </TD><TD STYLE="text-align: left"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"> Second Quarter </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> $ </TD><TD STYLE="text-align: right"> 9.72 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> $ </TD><TD STYLE="text-align: right"> 4.80 </TD><TD STYLE="text-align: left"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"> Third Quarter </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> $ </TD><TD STYLE="text-align: right"> 11.16 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> $ </TD><TD STYLE="text-align: right"> 3.84 </TD><TD STYLE="text-align: left"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"> Fourth Quarter </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> $ </TD><TD STYLE="text-align: right"> 19.08 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> $ </TD><TD STYLE="text-align: right"> 2.64 </TD><TD STYLE="text-align: left"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &nbsp; </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &nbsp; </TD><TD STYLE="text-align: left"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; font-style: italic"> Fiscal Year ended December 31, 2016 </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &nbsp; </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &nbsp; </TD><TD STYLE="text-align: left"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"> First Quarter </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> $ </TD><TD STYLE="text-align: right"> 127.80 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> $ </TD><TD STYLE="text-align: right"> 25.20 </TD><TD STYLE="text-align: left"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"> Second Quarter </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> $ </TD><TD STYLE="text-align: right"> 73.80 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> $ </TD><TD STYLE="text-align: right"> 45.00 </TD><TD STYLE="text-align: left"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"> Third Quarter </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> $ </TD><TD STYLE="text-align: right"> 59.40 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> $ </TD><TD STYLE="text-align: right"> 24.00 </TD><TD STYLE="text-align: left"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"> Fourth Quarter </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> $ </TD><TD STYLE="text-align: right"> 31.20 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> $ </TD><TD STYLE="text-align: right"> 15.60 </TD><TD STYLE="text-align: left"> &nbsp; </TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> The closing price of our common stock on May 2, 2018 was
$3.83 per share. As of March 12, 2018, we had approximately 20,000 record holders of our common stock. Because so many of our
shares are held by brokers and other institutions on behalf of stockholders, we are unable to estimate the total number of individual
stockholders represented by these record holders. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a006_v1"></A><B>DIVIDEND POLICY</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We have never, and do not anticipate that we will, declare
or pay a cash dividend. We expect to retain future earnings, if any, for our business and do not anticipate paying dividends on
common stock or our Series B Convertible Preferred Stock at any time in the foreseeable future. Because we do not anticipate paying
dividends in the future, the only opportunity for our stockholders to realize the creation of value in our common stock or our
Series B Convertible Preferred Stock will likely be through a sale of those shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a007_v1"></A><B>DILUTION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"> Purchasers of our common stock,
which is issuable upon conversion of the Series B Convertible Preferred Stock and upon exercise of the warrants contained in the
units, will experience an immediate dilution of the net tangible book value per share of our common stock. Our net tangible book
value as of December 31, 2017 was approximately $6,863,001, or $2.59 per share of our common stock (based upon 2,651,952 shares
of our common stock then outstanding). Net tangible book value per share is equal to our total tangible assets less our total
liabilities, divided by the number of shares of our outstanding common stock. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 30pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Dilution per share of common stock
equals the difference between the subscription price per unit paid by purchasers in the rights offering (ascribing no value to
the warrants contained in the units) and the net tangible book value per share of our common stock immediately after the rights
offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 30pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"> Based on the sale by us in this
rights offering of a maximum of 25,000 units (consisting of 25,000 shares of Series B Convertible Preferred Stock and warrants
to purchase an aggregate of 7,100,000 shares of common stock upon exercise), at the subscription price of $1,000 per unit, and
after deducting estimated offering expenses and dealer-manager fees and expenses payable by us and assuming no exercise of the
warrants, our pro forma net tangible book value as of December 31, 2017 would have been approximately $29,876,361, or $3.06 per
share. This represents an immediate increase in pro forma net tangible book value to existing stockholders of $0.47 per share
and an immediate dilution to purchasers in the rights offering of $0.46 per share. The following table illustrates this per-share
dilution: </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="CENTER" STYLE="font: 10pt Times New Roman, Times, Serif; width: 70%">
<TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top"> <FONT STYLE="font-size: 10pt">Subscription price</FONT> </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD NOWRAP STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom"> <FONT STYLE="font-size: 10pt">$</FONT> </TD>
    <TD STYLE="vertical-align: bottom; text-align: right"> <FONT STYLE="font-size: 10pt">1,000.00</FONT> </TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="vertical-align: top; width: 57%"> <FONT STYLE="font-size: 10pt">Net tangible book value per share as of December
    31, 2017</FONT> </TD>
    <TD STYLE="vertical-align: bottom; width: 1%"> &nbsp; </TD>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 1%"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom; width: 1%"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom; width: 1%"> <FONT STYLE="font-size: 10pt">$</FONT> </TD>
    <TD STYLE="vertical-align: bottom; width: 9%; text-align: right"> <FONT STYLE="font-size: 10pt">2.59</FONT> </TD></TR>
<TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top"> <FONT STYLE="font-size: 10pt">Increase in net tangible book value per share attributable
    to rights offering</FONT> </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD NOWRAP STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom"> <FONT STYLE="font-size: 10pt">$&nbsp;</FONT> </TD>
    <TD STYLE="vertical-align: bottom; text-align: right"> <FONT STYLE="font-size: 10pt">0.48</FONT> </TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="vertical-align: top; padding-bottom: 1.5pt; text-align: left"> <FONT STYLE="font-size: 10pt">Pro forma net tangible
    book value per share as of December 31, 2017, after giving effect to rights offering</FONT> </TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 1.5pt"> &nbsp; </TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 1.5pt"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 1.5pt"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom"> <FONT STYLE="font-size: 10pt">$</FONT> </TD>
    <TD STYLE="vertical-align: bottom; text-align: right"> <FONT STYLE="font-size: 10pt">3.06</FONT> </TD></TR>
<TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top"><P STYLE="margin-top: 0; margin-bottom: 0"></P>
                                    <P STYLE="margin-top: 0; margin-bottom: 0"> &nbsp;<FONT STYLE="font-size: 10pt">Dilution
                                    in net tangible book value per share to purchasers in the rights offering</FONT> </P></TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD NOWRAP STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom"> <FONT STYLE="font-size: 10pt">$</FONT> </TD>
    <TD STYLE="vertical-align: bottom; text-align: right"> <FONT STYLE="font-size: 10pt">0.46</FONT> </TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a008_v1"></A><B>THE RIGHTS OFFERING</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">All holders of our common stock and holders of December 22,
2017 warrants as of the record date are eligible to participate in the rights offering. Please read through the material terms
of the rights offering described in this section. If you hold your shares or participating warrants in a brokerage account or
through a broker, dealer, custodian bank or other nominee, please also refer to &ldquo;<I>&mdash;Method of Exercising Subscription
Rights&mdash;Subscription by Beneficial Owners</I>.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>The Subscription Rights</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> We will distribute to holders of shares of our common stock
and warrants issued December 22, 2017 as of 5:00 p.m., Eastern Time on May 9, 2018, the record date for the rights offering, at
no charge, non-transferable subscription rights to purchase units, with each unit consisting of one share of Series B Convertible
Preferred Stock and 284 warrants at $1,000 per unit. Each holder of record of our common stock or of December 22, 2017 warrants
as of the record date will receive one subscription right for each share of common stock (including shares issuable upon exercise
of the December 22, 2017 warrants). Each subscription right will entitle its holder to a basic subscription right and an over-subscription
privilege. In the aggregate, the subscription rights entitle our holders of common stock and participating warrants to purchase
a total of 25,000 units for a total price of approximately $25 million. Shares of common stock issued upon conversion of the Series
B Convertible Preferred Stock and warrants offered in the rights offering, like existing shares of our common stock, will be traded
on the NASDAQ Capital Market under our stock symbol, &ldquo;ATOS.&rdquo; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Basic Subscription Right.</I></B>
As described in the foregoing paragraph, the basic subscription right entitles its holder to purchase units, with each unit consisting
of one share of Series B Convertible Preferred Stock and 284 warrants at a subscription price of $1,000 per unit. In order to
exercise the basic subscription right, you must deliver the required documents and payment of the subscription price to the subscription
agent prior to the expiration of the rights offering. If you choose to exercise your basic subscription rights, you may do so
in part or in full. However, you may exercise your over-subscription privilege unless you exercise all of your basic subscription
rights.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Over-Subscription Privilege.</I></B>
If you exercise your basic subscription rights in full, you may also choose to exercise your over-subscription privilege. Subject
to proration and the limitations described in this prospectus, we will seek to honor the over-subscription requests in full. If
over-subscription requests exceed the number of units available, however, we will allocate the available units pro rata among
the stockholders as of the record date exercising the over-subscription privilege in proportion to the number of shares of our
common stock each of those holders of common stock and participating warrants owned on the record date (including shares of common
stock issuable upon conversion of the December 22, 2017 warrants), relative to the number of shares owned on the record date by
all holders of common stock and participating warrants as of the record date exercising the over-subscription privilege. If this
pro rata allocation results in any rights holder receiving a greater number of units than the record holder subscribed for pursuant
to the exercise of the over-subscription privilege, then such record holder will be allocated only that number of units for which
the record holder oversubscribed, and the remaining units will be allocated among all other holders of common stock and participating
warrants exercising the over-Subscription Privilege on the same pro rata basis described above. The proration process will be
repeated until all units have been allocated.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Broadridge Corporate Issuer Solutions, Inc., the subscription
agent for the rights offering, will determine the over-subscription allocation based on the formula described above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">To the extent the aggregate subscription payment of the actual
number of unsubscribed units available to you pursuant to the over-subscription privilege is less than the amount you actually
paid in connection with the exercise of the over-subscription privilege, you will be allocated only the number of unsubscribed
Units available to you, and any excess subscription payments will be returned to you, without interest or deduction, with 10 business
days after expiration of the rights offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We can provide no assurances that you will actually be entitled
to purchase the number of units issuable upon the exercise of your over-subscription privilege in full at the expiration of the
rights offering. We will not be able to satisfy any requests for units pursuant to the over-subscription privilege if all of our
holders of common stock and participating warrants exercise their basic subscription rights in full, and we will only honor an
over-subscription privilege to the extent sufficient units are available following the exercise of basic subscription rights.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Reasons for the Rights Offering</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We are conducting the rights offering in order to raise capital
for our general capital purposes. Our Board has considered the rights offering to be the best option for raising capital as compared
to other alternatives, in part because it will give current holders of common stock and participating warrants the opportunity
to limit ownership dilution by buying additional shares of common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our Board has approved the rights offering and, based on information
available to the Board and its subsequent analyses, believes that the rights offering is in the best interests of the Company
and its stockholders. However, our Board is not making any recommendation regarding your exercise of the subscription rights.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Determination of Subscription Price</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Board determined the subscription price, after reasonable
consultation with the holders of common stock and participating warrants that have agreed to exercise their rights as described
below, based on a variety of factors, including historical and current trading prices for our common stock, general business conditions,
our need for capital, alternatives available to us for raising capital, potential market conditions, and our desire to provide
an opportunity to our holders of common stock and participating warrants to participate in the rights offering on a pro rata basis.
In conjunction with its review of these factors, the Board also reviewed our history and prospects, including our past and present
earnings, our prospects for future earnings, and the outlook for our industry, and our current financial condition.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The subscription price is not necessarily related to our book
value, tangible book value, multiple of earnings or any other established criteria of value and may or may not be considered the
fair value of our common stock to be offered in the rights offering. You should not consider the subscription price as an indication
of value of the Company or our common stock. There is currently no market for our shares of Series B Convertible Preferred Stock
and, unless we or you choose to convert such shares into shares of common stock, you will not be able to resell such shares. We
cannot predict the price at which our shares of common stock will trade. You should obtain a current quote for our common stock
before exercising your subscription rights and make your own assessment of our business and financial condition, our prospects
for the future, and the terms of the rights offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>No Short-Sales</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">By exercising the subscription rights, you are representing
to us that you have not entered into any short sale or similar transaction with respect to our common stock since the record date
for the rights offering. In addition, the subscription rights provide that, upon exercise of the subscription right, you represent
that you have not since the record date and, for so long as you continue to hold warrants issued in connection with the exercise
of the subscription right, agree to not to enter into any short sale or similar transaction with respect to our common stock.
These requirements prevent you from pursuing certain investment strategies that could provide you greater financial benefits than
you might have realized if the subscription rights did not contain these requirements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>No Recombination</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Series B Convertible Preferred Stock and warrants comprising
the units will separate upon the exercise of the subscription rights, and the units will not trade as a separate security. Holders
may not recombine shares of Series B Convertible Preferred Stock and warrants to receive a unit.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Non-Transferability of Subscription Rights</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The subscription rights are non-transferable (other than by
operation of law), and as a result, you may not sell, transfer, assign or give away your subscription rights to anyone. The subscription
rights will not be listed for trading on any stock exchange or market.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Expiration Date</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The subscription period, during which you may exercise your
subscription rights, expires at 5:00 p.m., Eastern Time, on May 24, 2018, which is the expiration of the rights offering. If you
do not exercise your subscription rights before that time, your subscription rights will expire and will no longer be exercisable.
We will not be required to issue shares to you if the subscription agent receives your rights certificate or your subscription
payment after that time. We have the option to extend the rights offering in our sole discretion, although we do not presently
intend to do so. We may extend the rights offering by giving oral or written notice to the Subscription Agent before the rights
offering expires. If we elect to extend the rights offering, we will issue a press release announcing the extension no later than
9:00 a.m., Eastern Time, on the next business day after the most recently announced expiration date of the rights offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If you hold your shares of common stock or participating warrants
in the name of a broker, dealer, bank or other nominee, the nominee will exercise the subscription rights on your behalf in accordance
with your instructions. Please note that the nominee may establish a deadline that may be before 5:00 p.m., Eastern Time, on May
24, 2018, which is the expiration date that we have established for the rights offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Termination</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We may terminate the rights offering for any reason at any
time prior to the completion of the rights offering. If we terminate the rights offering, we will issue a press release notifying
holders of common stock and participating warrants and the public of the termination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Method of Exercising Subscription Rights</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">You will receive <FONT STYLE="background-color: white">one
non-transferable subscription right for each share of our common stock (including shares issuable upon exercise of December 22,
2017 warrants) that you owned as of 5:00 p.m., Eastern Time, on May 9, 2018, the record date for the rights offering. The exercise
of subscription rights is irrevocable and may not be cancelled or modified. You may exercise your subscription rights as follows:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white"><B><I>Subscription
by Registered Holders</I></B>. If you are a registered holder of shares of our common stock or December 22, 2017 warrants, the
number of subscription rights you may exercise is indicated on your rights certificate. You may exercise your subscription rights
by properly completing and executing the rights certificate and forwarding it, together with your full payment, to the subscription
agent at the address set forth below under &ldquo;<I>&mdash;Subscription Agent</I>,&rdquo; to be received prior to 5:00 p.m.,
Eastern Time, on May 24, 2018, the expiration date for the rights offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white"><B><I>Subscription
by Beneficial Owners</I></B>. If you are a beneficial owner of shares of our common stock that are registered in the name of a
custodian bank, broker, dealer or other nominee, you will not receive a rights certificate. Instead, one subscription right will
be issued to the nominee record holder for each share of our common stock (including shares issuable upon exercise of warrants)
that you own at the record date. If you are not contacted by your nominee, you should promptly contact your nominee in order to
subscribe for shares of our common stock in the rights offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">If you hold your shares of common
stock or participating warrants in the name of a custodian bank, broker, dealer or other nominee, your nominee will exercise the
subscription rights on your behalf in accordance with your instructions. Your nominee may establish a deadline that may be before
5:00 p.m., Eastern Time, on May 24, 2018, the expiration date for the rights offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Payment Method</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As described in the instructions accompanying the rights certificate,
payments submitted to the subscription agent must be made in full United States currency by personal or certified check payable
to Broadridge Corporate Issuer Solutions, Inc., the subscription agent, drawn upon a United States bank, U.S. Postal money order,
or wire transfer.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">If payment is issued by check, payment
will be deemed to have been received by the subscription agent only upon the subscription agent&rsquo;s receipt of the check,
receipt and clearance of such check.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Please note that funds paid by uncertified
personal check may take at least seven business days to clear. Accordingly, if you wish to pay by means of an uncertified personal
check, we urge you to make payment sufficiently in advance of the expiration date to ensure that the subscription agent receives
cleared funds before that time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>Your subscription rights will not
be successfully exercised unless the subscription agent actually receives from you, your custodian bank, broker, dealer or other
nominee, as the case may be, all of the required documents and your full subscription price payment (and your payment has cleared)
prior to 5:00 p.m., Eastern Time, on May 24, 2018, the scheduled expiration date of the rights offering.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">You should read and follow the instructions
accompanying the rights certificate carefully. As described in the instructions accompanying the rights certificate, in certain
cases additional documentation or signature guarantees may be required.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">The method of delivery of payments
of the subscription amount to the subscription agent will be at the risk of the holders of subscription rights. If sent by mail,
we recommend that you send those documents and payments by registered mail, properly insured, with return receipt requested, and
that a sufficient number of days be allowed to ensure timely delivery to the subscription agent. Do not send or deliver these
materials to the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">There is no sales fee or commission
payable by you in connection with the issuance of subscription rights or the issuance of shares of common stock if you exercise
your subscription rights (other than the subscription price). We will pay all fees charged by the subscription agent. However,
if you exercise your subscription rights through a custodian bank, broker, dealer or other nominee, you are responsible for paying
any other commissions, fees, taxes or other expenses your nominee may charge you in connection with the exercise of the subscription
rights.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Missing or Incomplete Subscription Information</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If you fail to specify the number of units requested as an
exercise of your basic subscription right or over-subscription privilege, or if you fail to include sufficient payment to purchase
the number of units you requested, your payment will first be applied, to the fullest extent possible, to exercise your basic
subscription rights. Any remaining payment amount will then be applied, to the fullest extent possible, to exercise your over-subscription
privilege, to the extent over-subscription units are available for purchase.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">After expiration of the rights offering, the subscription agent
will promptly return, without interest or penalty, any excess subscription payments received.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In order for us to honor the exercise of your subscription
rights, your rights certificate, any other required documents and payment must be received as set forth in this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Issuance of Series B Convertible Preferred Stock and Warrants</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The shares of Series B Convertible Preferred Stock and warrants
that are purchased in the rights offering as part of the units will be issued in book-entry, or uncertificated, form meaning that
you will receive a DRS account statement from our transfer agent reflecting ownership of these securities if you are a holder
of record of shares or warrants. If you hold your shares of common stock or participating warrants in the name of a bank, broker,
dealer, or other nominee, DTC will credit your account with your nominee with the securities you purchased in the rights offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Subscription Agent</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The subscription agent for the rights offering is Broadridge
Corporate Issuer Solutions, Inc. The address to which rights certificates and payments should be mailed or delivered by overnight
courier is provided below. If sent by mail, we recommend that you send documents and payments by registered mail, properly insured,
with return receipt requested, and that you allow a sufficient number of days to ensure delivery to the subscription agent and
clearance or payment before the rights offering expires. Do not send or deliver these materials to us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; background-color: white; border-collapse: collapse">
<TR>
    <TD STYLE="width: 52%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 47%">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><I>By Mail</I></FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><I>By Hand
    or Overnight Courier</I></FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 10pt">Broadridge Corporate Issuer Solutions, Inc.</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 10pt">Broadridge Corporate Issuer Solutions, Inc.</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 10pt">Attn: BCIS Re-Organization Dept.</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 10pt">Attn: BCIS IWS</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 10pt">P.O. Box 1317</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 10pt">51 Mercedes Way</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 10pt">Brentwood, New York 11717-0693</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 10pt">Edgewood, New York 11717</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 10pt">(855) 793-5068 (toll free)</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 10pt">(855) 793-5068 (toll free)</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If you deliver the rights certificates in a manner different
than as described herein, we may not honor your exercise of your subscription rights.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Please direct any questions or requests for assistance with
exercise of your subscription rights to the subscription agent as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Broadridge Corporate Issuer Solutions,
Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(855) 793-5068 (toll free)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Warrant Agent</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The warrant agent for the warrants is VStock Transfer, LLC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>No Fractional Shares</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We will not issue fractional shares of Series B Convertible
Preferred Stock in the rights offering. Subscription holders of common stock and participating warrants will only be entitled
to purchase a number of units representing a whole number of shares and warrants, rounded down to the nearest whole number that
a holder would otherwise be entitled to purchase. Similarly, no fractional shares of common stock will be issued as a result of
the conversion of shares of Series B Convertible Preferred Stock or the exercise of warrants. Instead, for any such fractional
share that would otherwise have been issuable upon conversion of shares of Series B Convertible Preferred Stock, the Company may,
at its election, pay a cash payment equal to such fraction multiplied by the conversion price or round up to the next whole share,
and for any such fractional share that would have otherwise been issued upon exercise of warrants, the Company will round up such
fraction to the next whole share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Notice to Brokers and Nominees</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If you are a broker, dealer, bank or other nominee holder that
holds shares of our common stock for the account of others on the record date, you should notify the beneficial owners of the
shares for whom you are the nominee of the rights offering as soon as possible to learn their intentions with respect to exercising
their subscription rights. If a beneficial owner of our common stock so instructs, you should complete the rights certificate
and submit it to the subscription agent with the proper subscription payment by the expiration date. You may exercise the number
of subscription rights to which all beneficial owners in the aggregate otherwise would have been entitled had they been direct
holders of our common stock on the record date, provided that you, as a nominee record holder, make a proper showing to the subscription
agent by submitting the form entitled &ldquo;Nominee Holder Certification,&rdquo; which is provided with your rights offering
materials. If you did not receive this form, you should contact our subscription agent to request a copy.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Validity of Subscriptions</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We will resolve all questions regarding the validity and form
of the exercise of your subscription rights, including time of receipt and eligibility to participate in the rights offering.
Our determination will be final and binding. Once made, subscriptions are irrevocable; we will not accept any alternative, conditional,
or contingent subscriptions. We reserve the absolute right to reject any subscriptions not properly submitted or the acceptance
of which would be unlawful. You must resolve any irregularities in connection with your subscriptions before the expiration date
of the rights offering, unless we waive them in our sole discretion. Neither we nor the subscription agent is under any duty to
notify you or your representative of defects in your subscriptions. A subscription will be considered accepted, subject to our
right to withdraw or terminate the rights offering, only when the subscription agent receives a properly completed and duly executed
rights certificate and any other required documents and the full subscription payment including final clearance of any personal
check. Our interpretations of the terms and conditions of the rights offering will be final and binding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Stockholder Rights</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">You will have no rights as a holder of the shares of our common
stock issuable upon conversion of the Series B Convertible Preferred Stock issued in the rights offering until such Series B Convertible
Preferred Stock is converted to common stock and such shares of common stock are issued in book-entry form or your account at
your broker, dealer, bank or other nominee is credited with the shares of our common stock. Holders of warrants issued in connection
with the rights offering will not have rights as holders of our common stock until such warrants are exercised and the shares
of common stock underlying the warrants are issued to the holder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Foreign Holders of Common Stock and Participating Warrants</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We will not mail this prospectus or rights certificates to
holders of common stock and participating warrants with addresses that are outside the United States or that have an army post
office or foreign post office address. The subscription agent will hold these rights certificates for their account. To exercise
subscription rights, our foreign holders of common stock and participating warrants must notify the subscription agent prior to
5:00 p.m., Eastern Time, on May 21, 2018, the third business day prior to the expiration date, of your exercise of subscription
rights and provide evidence satisfactory to us, such as a legal opinion from local counsel, that the exercise of such subscription
rights does not violate the laws of the jurisdiction in which such holder resides and payment by a U.S. bank in U.S. dollars before
the expiration of the offer. If no notice is received by such time or the evidence presented is not satisfactory to us, the subscription
rights represented thereby will expire.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>No Revocation or Change</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Once you submit the rights certificate
or have instructed your nominee of your subscription request, you are not allowed to revoke or change the exercise or request
a refund of monies paid. All exercises of subscription rights are irrevocable, even if you learn information about us that you
consider to be unfavorable. You should not exercise your subscription rights unless you are certain that you wish to purchase
shares at the subscription price.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>U.S. Federal Income Tax Treatment of Rights Offering</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">For U.S. federal income tax purposes, we do not believe holders
of shares of our common stock or participating warrants should recognize income or loss upon receipt or exercise of a subscription
right. See &ldquo;<I>Material U.S. Federal Income Tax Consequences</I>.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>No Recommendation to Rights Holders</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our board of directors is not making a recommendation regarding
your exercise of the subscription rights. You are urged to make your decision to invest based on your own assessment of our business
and financial condition, our prospects for the future, the terms of the rights offering, the information in this prospectus and
other information relevant to your circumstances.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Fees and Expenses</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We will pay all fees charged by the subscription agent, and
by the dealer-manager. You are responsible for paying any other commissions, fees, taxes or other expenses incurred in connection
with the exercise of your subscription rights.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Listing</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The subscription rights may not be sold, transferred, assigned
or given away to anyone, and will not be listed for trading on any stock exchange or market. There is no established public trading
market for the Series B Convertible Preferred Stock and we do not currently intend to apply for listing of Series B Convertible
Preferred Stock or the warrants on any securities exchange or recognized trading system. The shares of our common stock issuable
upon conversion of the Series B Convertible Preferred Stock and underlying the warrants to be issued in the rights offering are
traded on Nasdaq under the symbol &ldquo;ATOS.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Distribution Arrangements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Maxim Group LLC is the dealer-manager for the rights offering.
The dealer-manager will provide marketing assistance and advice to us in connection with the rights offering and will use its
best efforts to solicit the exercise of subscription rights and participation in the over-subscription privilege. The dealer-manager
is not underwriting or placing any of the subscription rights or the shares of our Series B Convertible Preferred Stock or warrants
to be issued in the rights offering and does not make any recommendation with respect to such subscription rights (including with
respect to the exercise or expiration of such subscription rights), shares or warrants. We have agreed to pay the dealer-manager
certain fees and to reimburse the dealer-manager for certain out-of-pocket expenses incurred in connection with this offering.
See &ldquo;<I>Plan of Distribution</I>.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Other Matters</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We are not making the rights offering in any state or other
jurisdiction in which it is unlawful to do so, nor are we distributing or accepting any offers to purchase any units from subscription
rights holders who are residents of those states or other jurisdictions or who are otherwise prohibited by federal or state laws
or regulations from accepting or exercising the subscription rights. We may delay the commencement of the rights offering in those
states or other jurisdictions, or change the terms of the rights offering, in whole or in part, in order to comply with the securities
laws or other legal requirements of those states or other jurisdictions. Subject to state securities laws and regulations, we
also have the discretion to delay allocation and distribution of any shares you may elect to purchase by exercise of your subscription
privileges in order to comply with state securities laws. We may decline to make modifications to the terms of the rights offering
requested by those states or other jurisdictions, in which case, if you are a resident in those states or jurisdictions or if
you are otherwise prohibited by federal or state laws or regulations from accepting or exercising the subscription rights, you
will not be eligible to participate in the rights offering. However, we are not currently aware of any states or jurisdictions
that would preclude participation in the rights offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a009_v1"></A><B>MATERIAL U.S.
FEDERAL INCOME TAX CONSEQUENCES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> The following discussion describes the material U.S. federal
income tax consequences of the receipt and exercise (or expiration) of the subscription rights acquired through the rights offering,
the ownership and disposition of shares of our Series B Convertible Preferred Stock and warrants received upon exercise of the
subscription rights and the ownership and disposition of the shares of common stock received upon the conversion of our Series
B Convertible Preferred Stock or the exercise of the warrants, and, insofar as it describes matters of federal income tax law
or legal conclusions with respect thereto, constitutes the opinion of our tax counsel, Gibson, Dunn &amp; Crutcher LLP. This discussion
does not purport to be a complete analysis of all potential tax effects. The effects of other U.S. federal tax laws, such as estate
and gift tax laws, and any applicable state, local or non-U.S. tax laws are not discussed. This discussion is based on the U.S.
Internal Revenue Code of 1986, as amended, or Code, Treasury Regulations promulgated thereunder, judicial decisions, and published
rulings and administrative pronouncements of the U.S. Internal Revenue Service, or IRS, in each case in effect as of the date
hereof. These authorities may change or be subject to differing interpretations. Any such change or differing interpretation may
be applied retroactively in a manner that could adversely affect a holder of the subscription rights, shares of our Series B Convertible
Preferred Stock, warrants or shares of our common stock. We have not sought and will not seek any rulings from the IRS regarding
the matters discussed below. There can be no assurance the IRS or a court will not take a contrary position to that discussed
below regarding the tax consequences of the receipt of subscription rights through the rights offering by persons holding shares
of our common stock and warrants entitled to receive subscription rights pursuant to this rights offering (which we refer to as
participating warrants), the exercise (or expiration) of the subscription rights, the acquisition, ownership and disposition of
shares of our Series B Convertible Preferred Stock, the acquisition, ownership and disposition (or expiration) of warrants acquired
upon exercise of the subscription rights, and the acquisition, ownership and disposition of shares of our common stock acquired
upon conversion of our Series B Convertible Preferred Stock or exercise of the warrants. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">This discussion is limited to the subscription rights acquired
through the rights offering, shares of our Series B Convertible Preferred Stock and warrants acquired upon exercise of subscription
rights and shares of our common stock acquired upon conversion of our Series B Convertible Preferred Stock or exercise of the
warrants, in each case, that are held as a &ldquo;capital asset&rdquo; within the meaning of Section 1221 of the Code (generally,
property held for investment). This discussion does not address all U.S. federal income tax consequences relevant to a holder&rsquo;s
particular circumstances, including the impact of the alternative minimum tax or the unearned income Medicare contribution tax.
In addition, it does not address consequences relevant to holders subject to particular rules, including, without limitation:&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2" STYLE="padding-top: 10pt">&nbsp;</TD>
    <TD STYLE="padding-top: 10pt"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD COLSPAN="2" STYLE="padding-top: 10pt"><FONT STYLE="font-size: 10pt">U.S. expatriates and former citizens or long-term
    residents of the United States;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2" STYLE="padding-top: 10pt">&nbsp;</TD>
    <TD STYLE="padding-top: 10pt"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD COLSPAN="2" STYLE="padding-top: 10pt"><FONT STYLE="font-size: 10pt">persons holding our common stock, participating warrants,
    the subscription rights, shares of our Series B Convertible Preferred Stock, warrants or shares of our common stock as part
    of a hedge, straddle or other risk reduction strategy or as part of a conversion transaction or other integrated investment;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2" STYLE="padding-top: 10pt">&nbsp;</TD>
    <TD STYLE="padding-top: 10pt"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD COLSPAN="2" STYLE="padding-top: 10pt"><FONT STYLE="font-size: 10pt">banks, insurance companies, and other financial institutions;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2" STYLE="padding-top: 10pt">&nbsp;</TD>
    <TD STYLE="padding-top: 10pt"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD COLSPAN="2" STYLE="padding-top: 10pt"><FONT STYLE="font-size: 10pt">brokers, dealers or traders in securities or currencies
    or traders that elect to mark-to-market their securities; </FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2" STYLE="padding-top: 10pt">&nbsp;</TD>
    <TD STYLE="padding-top: 10pt"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD COLSPAN="2" STYLE="padding-top: 10pt"><FONT STYLE="font-size: 10pt">&ldquo;controlled foreign corporations,&rdquo; &ldquo;passive
    foreign investment companies,&rdquo; and corporations that accumulate earnings to avoid U.S. federal income tax; </FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2" STYLE="padding-top: 10pt">&nbsp;</TD>
    <TD STYLE="padding-top: 10pt"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD COLSPAN="2" STYLE="padding-top: 10pt"><FONT STYLE="font-size: 10pt">partnerships or other entities or arrangements treated
    as partnerships or other pass-through entities for U.S. federal income tax purposes (and investors therein); </FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2" STYLE="padding-top: 10pt">&nbsp;</TD>
    <TD STYLE="padding-top: 10pt"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD COLSPAN="2" STYLE="padding-top: 10pt"><FONT STYLE="font-size: 10pt">real estate investment trusts, regulated investment
    companies, grantor trusts, tax-exempt organizations or governmental organizations;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2" STYLE="padding-top: 10pt">&nbsp;</TD>
    <TD STYLE="padding-top: 10pt"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD COLSPAN="2" STYLE="padding-top: 10pt"><FONT STYLE="font-size: 10pt">persons deemed to sell the subscription rights, shares
    of Series B Convertible Preferred Stock, or warrants or shares of our common stock under the constructive sale provisions
    of the Code;</FONT></TD></TR>
<TR>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 94%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2">&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 10pt">persons for whom our stock constitutes &ldquo;qualified small business stock&rdquo;
    within the meaning of Section 1202 of the Code;</FONT></TD></TR>
</TABLE>

<P STYLE="margin: 0"></P>

<P STYLE="margin: 0"></P>

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<P STYLE="margin: 0"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR>
    <TD COLSPAN="2" STYLE="vertical-align: top; padding-top: 10pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 10pt"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-top: 10pt"><FONT STYLE="font-size: 10pt">persons who received, hold or will receive
    shares of our common stock, participating warrants, the subscription rights, shares of our Series B Convertible Preferred
    Stock or warrants pursuant to the exercise of any employee stock option or otherwise as compensation and persons who hold
    restricted common stock; </FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR>
    <TD COLSPAN="2" STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">tax-qualified retirement plans; and</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR>
    <TD COLSPAN="2" STYLE="vertical-align: top; padding-top: 10pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 10pt"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-top: 10pt"><FONT STYLE="font-size: 10pt">U.S. holders (as defined below) that have
    a functional currency other than the U.S. dollar.</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 94%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If an entity treated as a partnership for U.S. federal income
tax purposes holds shares of our common stock, participating warrants, the subscription rights, shares of our Series B Convertible
Preferred Stock and warrants acquired upon exercise of subscription rights or shares of our common stock acquired upon conversion
of our Series B Convertible Preferred Stock or exercise of the warrants, as the case may be, the tax treatment of a partner in
the partnership will depend on the status of the partner, the activities of the partnership and certain determinations made at
the partner level. Accordingly, partnerships and the partners in such partnerships should consult their tax advisors regarding
the U.S. federal income tax consequences to them.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><U>Tax Considerations Applicable to U.S. Holders</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Definition of a U.S. Holder </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">For purposes of this discussion, a &ldquo;U.S. holder&rdquo;
is any beneficial owner of shares of our common stock, participating warrants, our subscription rights, shares of our Series B
Convertible Preferred Stock and warrants acquired upon exercise of subscription rights or shares of our common stock acquired
upon conversion of our Series B Convertible Preferred Stock or exercise of warrants, as the case may be, that, for U.S. federal
income tax purposes, is:&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 2%; padding-top: 10pt">&nbsp;</TD>
    <TD STYLE="width: 2%; padding-top: 10pt"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="width: 96%; padding-top: 10pt"><FONT STYLE="font-size: 10pt">an individual who is a citizen or resident of the
    United States; </FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 10pt">&nbsp;</TD>
    <TD STYLE="padding-top: 10pt"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="padding-top: 10pt"><FONT STYLE="font-size: 10pt">a corporation (or other entity treated as a corporation for U.S.
    federal income tax purposes) created or organized under the laws of the United States, any state thereof, or the District
    of Columbia;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 10pt">&nbsp;</TD>
    <TD STYLE="padding-top: 10pt"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="padding-top: 10pt"><FONT STYLE="font-size: 10pt">an estate, the income of which is subject to U.S. federal income
    tax regardless of its source; or </FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 10pt">&nbsp;</TD>
    <TD STYLE="padding-top: 10pt"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="padding-top: 10pt"><FONT STYLE="font-size: 10pt">a trust that (1) is subject to the primary supervision of a U.S.
    court and the control of one or more United States persons (within the meaning of Section 7701(a)(30) of the Code), or (2)
    has made a valid election under applicable Treasury Regulations to continue to be treated as a United States person.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Receipt of Subscription Rights</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> Although the authorities governing transactions such as
this rights offering are complex and do not speak directly to the consequences of certain aspects of this rights offering, including
the inclusion of the right to purchase warrants in the subscription rights (rather than the right to purchase only shares of our
Series B Convertible Preferred Stock), the distribution of subscription rights to holders of participating warrants and the effects
of the over-subscription privilege, a U.S. holder&rsquo;s receipt of subscription rights pursuant to the rights offering should
not be treated as a taxable distribution with respect to its existing shares of common stock or participating warrants, as applicable,
for U.S. federal income tax purposes. Section 305(a) of the Code generally provides that the receipt by a stockholder, or a holder
of rights to acquire stock, of a right to acquire stock or warrants is not included in the taxable income of the stockholder;
however, the general non-recognition rule in Section 305(a) of the Code is subject to exceptions described in Section 305(b) of
the Code, which include &ldquo;disproportionate distributions.&rdquo; A disproportionate distribution is generally a distribution
or a series of distributions, including deemed distributions, that has the effect of the receipt of cash or other property by
some stockholders (including holders of rights to acquire stock and holders of debt instruments convertible into stock) and an
increase in the proportionate interest of other stockholders (including holders of rights to acquire stock and holders of debt
instruments convertible into stock) in a corporation&rsquo;s assets or earnings and profits. During the last 36 months, the Company
has not made any distributions of cash or property (other than stock or rights to acquire stock) with respect to: (i) its common
stock or (ii) options or warrants to acquire its common stock. Currently the Company does not intend to make any future distributions
of cash or property (other than stock or rights to acquire stock) with respect to: (i) its common stock or (ii) options or warrants
to acquire its common stock; however, there is no guarantee that the Company will not make such distributions in the future. In
addition, the Company does not currently have any convertible debt outstanding nor does the Company currently intend to issue
any convertible debt. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> The position regarding the tax-free treatment of the subscription
right distribution is not binding on the IRS, or the courts. If this position is finally determined by the IRS or a court to be
incorrect, whether because, contrary to our expectations, distributions of cash or property (other than stock or rights to acquire
stock) are made with respect to our common stock, options or warrants, because the issuance of the subscription rights is a &ldquo;disproportionate
distribution&rdquo; or otherwise, the fair market value of the subscription rights would be taxable to U.S. holders of common
stock as a dividend to the extent of the U.S. holder&rsquo;s pro rata share of the company&rsquo;s current and accumulated earnings
and profits, if any, with any excess being treated as a return of capital to the extent thereof and then as capital gain. Although
no assurance can be given, the Company anticipates that it will not have current and accumulated earnings and profits through
the end of 2018. Further, if the position regarding the tax-free treatment of the subscription rights distribution is incorrect,
the treatment of holders of participating warrants is not clear, and it may differ from, and may be more adverse than, the treatment
of the subscription rights distribution to the holders of common stock. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following discussion is based upon the treatment of the
subscription right issuance as a non-taxable distribution with respect to a U.S. holders&rsquo; existing shares of common stock
or participating warrants for U.S. federal income tax purposes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Tax Basis in the Subscription Rights</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If the fair market value of the subscription rights a U.S.
holder receives is less than 15% of the fair market value of the U.S. holder&rsquo;s existing shares of common stock or participating
warrants (in each case, with respect to which the subscription rights are distributed) on the date the U.S. holder receives the
subscription rights, the subscription rights will be allocated a zero tax basis for U.S. federal income tax purposes, unless the
U.S. holder elects to allocate the tax basis in the holder&rsquo;s existing shares of common stock or participating warrants between
the existing shares of common stock or participating warrants and the subscription rights in proportion to the relative fair market
values of the existing shares of common stock or participating warrants and the subscription rights determined on the date of
receipt of the subscription rights. If a U.S. holder chooses to allocate tax basis between the holder&rsquo;s existing common
shares or participating warrants and the subscription rights, the U.S. holder must make this election on a statement included
with the holder&rsquo;s timely filed tax return (including extensions) for the taxable year in which the U.S. holder receives
the subscription rights. Such an election is irrevocable. However, if the fair market value of the subscription rights a U.S.
holder receives is 15% or more of the fair market value of the holder&rsquo;s existing shares of common stock or participating
warrants on the date the U.S. holder receives the subscription rights, then the U.S. holder must allocate tax basis in the existing
shares of common stock or participating warrants between those shares or warrants and the subscription rights the U.S. holder
receives in proportion to their fair market values determined on the date the U.S. holder receives the subscription rights. Please
refer to the discussion below regarding the U.S. tax treatment of a U.S. holder that, at the time of the receipt of the subscription
right, no longer holds the common stock or participating warrants with respect to which the subscription right was distributed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The fair market value of the subscription rights on the date
that the subscription rights are distributed is uncertain, and we have not obtained, and do not intend to obtain, an appraisal
of the fair market value of the subscription rights on that date. In determining the fair market value of the subscription rights,
U.S. holders should consider all relevant facts and circumstances, including without limitation any difference between the subscription
price of the subscription rights and the trading price of our shares of common stock on the date that the subscription rights
are distributed, the fair market value and the conversion terms of the Series B Convertible Preferred Stock, the exercise price
of the warrants, the length of the period during which the subscription rights may be exercised and the fact that the subscription
rights are non-transferable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Exercise of Subscription Rights</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> A U.S. holder will not recognize gain or loss upon the exercise
of a subscription right in the rights offering. A U.S. holder&rsquo;s adjusted tax basis, if any, in the subscription right plus
the subscription price should be allocated between the share of Series B Convertible Preferred Stock and the warrant acquired
upon exercise of the subscription right. The basis in the stock or participating warrants upon which the subscription rights were
issued which is allocated to the subscription rights under the prior section entitled &ldquo;Tax Basis in the Subscription Rights&rdquo;
should be further allocated between the shares of Series B Convertible Preferred Stock and the warrant acquired upon exercise
of the subscription right in proportion to their relative fair market values on the date the subscription rights were distributed.
The subscription price should be allocated between the shares of Series B Convertible Preferred Stock and the warrant acquired
upon exercise of the subscription right in proportion to their relative fair market values on the exercise date. These allocations
will establish the U.S. holder&rsquo;s initial tax basis for U.S. federal income tax purposes in the shares of Series B Convertible
Preferred Stock and warrants received upon exercise. The holding period of a share of Series B Convertible Preferred Stock or
a warrant acquired upon exercise of a subscription right in the rights offering will begin on the date of exercise. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If, at the time of the receipt or exercise of the subscription
right, the U.S. holder no longer holds the common stock or participating warrant with respect to which the subscription right
was distributed, then certain aspects of the tax treatment of the receipt and exercise of the subscription right are unclear,
including (1) the allocation of the tax basis between the shares of our common stock or participating warrants previously sold
and the subscription right, (2) the impact of such allocation on the amount and timing of gain or loss recognized with respect
to the shares of our common stock or participating warrants previously sold, and (3) the impact of such allocation on the tax
basis of the shares of our Series B Convertible Preferred Stock and warrants acquired upon exercise of the subscription right.
If a U.S. holder exercises a subscription right received in the rights offering after disposing of shares of our common stock
or participating warrants with respect to which the subscription right is received, the U.S. holder should consult its tax advisor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Expiration of Subscription Rights</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If a U.S. holder allows subscription rights received in the
rights offering to expire, the U.S. holder should not recognize any gain or loss for U.S. federal income tax purposes, and the
U.S. holder should re-allocate any portion of the tax basis in its existing common shares or participating warrants previously
allocated to the subscription rights that have expired to the existing common shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Sale or Other Disposition, Exercise or Expiration of Warrants</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Upon the sale or other taxable disposition of a warrant (other
than by exercise) received upon exercise of a subscription right, a U.S. holder will generally recognize capital gain or loss
equal to the difference between the amount realized on the sale or other taxable disposition and the U.S. holder&rsquo;s tax basis
in the warrant. This capital gain or loss will be long-term capital gain or loss if the U.S. holder&rsquo;s holding period in
such warrant is more than one year at the time of the sale or other taxable disposition. The deductibility of capital losses is
subject to certain limitations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> A U.S. holder will not be required to recognize income,
gain or loss upon exercise of a warrant received upon a cash exercise of a subscription right (except to the extent the U.S. holder
receives a cash payment for any fractional share that would otherwise have been issuable upon exercise of the warrant). A U.S.
holder&rsquo;s tax basis in a share of our common stock received upon exercise of the warrants for cash will be equal to the sum
of (1) the U.S. holder&rsquo;s tax basis in the warrants exchanged therefor and (2) the exercise price of such warrants, decreased
by the adjusted tax basis allocable to any fractional share that would otherwise have been issuance upon exercise of the warrant.
A U.S. holder&rsquo;s holding period in the shares of our common stock received upon exercise will commence on the day after such
U.S. holder exercises the warrants. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In certain circumstances, the warrants will be exercisable
on a cashless basis. The U.S. federal income tax treatment of an exercise of a warrant on a cashless basis is not clear, and could
differ from the consequences described above. It is possible that a cashless exercise could be a taxable event. U.S. holders are
urged to consult their tax advisors as to the consequences of an exercise of a warrant on a cashless basis, including with respect
to whether the exercise is a taxable event, and their holding period and tax basis in the common stock received.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If a warrant expires without being exercised, a U.S. holder
will recognize a capital loss in an amount equal to such holder&rsquo;s adjusted tax basis in the warrant. Such loss will be long-term
capital loss if, at the time of the expiration, the U.S. holder&rsquo;s holding period in such warrant is more than one year.
The deductibility of capital losses is subject to certain limitations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Constructive Dividends on Warrants</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As described in the section entitled &ldquo;<I>Dividend Policy</I>,&rdquo;
we do not anticipate declaring or paying dividends to holders of our common stock or our Series B Convertible Preferred Stock
in the foreseeable future. However, if at any time during the period in which a U.S. holder holds warrants received upon exercise
of a subscription right, we were to pay a taxable dividend to our stockholders and, in accordance with the anti-dilution provisions
of the warrants, the exercise price of the warrants were decreased, that decrease would be deemed to be the payment of a taxable
dividend to a U.S. holder of the warrants to the extent of our earnings and profits, notwithstanding the fact that such holder
will not receive a cash payment. If the exercise price is adjusted in certain other circumstances (or in certain circumstances,
there is a failure to make adjustments), or there is an adjustment to the number of common shares that will be issued on exercise
of the warrants, such adjustments may also result in the deemed payment of a taxable dividend to a U.S. holder. U.S. holders should
consult their tax advisors regarding the proper treatment of any adjustments to the exercise price of the warrants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Distributions on Series B Convertible Preferred Stock and
Common Stock</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As described in the section entitled &ldquo;<I>Dividend Policy</I>,&rdquo;
we do not anticipate declaring or paying dividends to holders of our Series B Convertible Preferred Stock or common stock in the
foreseeable future. However, if we do make distributions of cash or property on our Series B Convertible Preferred Stock or common
stock, such distributions will constitute dividends to the extent paid out of our current or accumulated earnings and profits,
as determined for U.S. federal income tax purposes. Dividends received by a corporate U.S. holder may be eligible for a dividends
received deduction, subject to applicable limitations. Dividends received by certain non-corporate U.S. holders, including individuals,
are generally taxed at the lower applicable capital gains rate provided certain holding period and other requirements are satisfied.
Distributions in excess of our current and accumulated earnings and profits will constitute a return of capital and first be applied
against and reduce a U.S. holder&rsquo;s adjusted tax basis in its Series B Convertible Preferred Stock or common stock, as the
case may be, but not below zero. Any excess will be treated as capital gain and will be treated as described below in the section
relating to the sale or disposition of our common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Sale, Exchange or Other Disposition of Series B Convertible
Preferred Stock and Common Stock</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Upon a sale, exchange, or other taxable disposition of our
Series B Convertible Preferred Stock (other than by conversion) or our common stock, a U.S. holder generally will recognize capital
gain or loss equal to the difference between the amount realized (not including any amount attributable to declared and unpaid
dividends, which will be taxable as described above to U.S. holders of record who have not previously included such dividends
in income) and the U.S. holder&rsquo;s adjusted tax basis in our Series B Convertible Preferred Stock or our common stock. The
U.S. holder&rsquo;s adjusted tax basis in our Series B Convertible Preferred Stock generally will equal its initial tax basis
(discussed above under &ldquo;<I>&mdash;Exercise of Subscription Rights</I>&rdquo;), reduced by the amount of any cash distributions
treated as a return of capital as described above. A U.S. holder&rsquo;s adjusted tax basis in our common stock generally will
equal its initial tax basis in our common stock (discussed below under &ldquo;&mdash;<I>Conversion of the Series B Convertible
Preferred Stock into Our Common Stock</I>&rdquo;), reduced by the amount of any cash distributions treated as a return of capital
as described above. Such capital gain or loss generally will be long-term capital gain or loss if the U.S. holder&rsquo;s holding
period for our Series B Convertible Preferred Stock or our common stock exceeded one year at the time of disposition (see the
discussion below under &ldquo;&mdash;<I>Conversion of Our Series B Convertible Preferred Stock into Our Common Stock</I>&rdquo;
regarding a U.S. holder&rsquo;s holding period for our common stock). Long-term capital gains recognized by certain non-corporate
U.S. Holders, including individuals, generally are subject to reduced rates of taxation. The deductibility of capital losses is
subject to limitations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Conversion of Our Series B Convertible Preferred Stock into
Our Common Stock </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> A U.S. holder will not recognize any gain or loss in respect
of the receipt of our common stock upon the conversion of our Series B Convertible Preferred Stock (except to the extent the U.S.
holder receives a cash payment for any fractional share that would otherwise have been issuable upon conversion of the Series
B Convertible Preferred Stock). The adjusted tax basis of our common stock that a U.S. holder receives on conversion will equal
the adjusted tax basis of the Series B Convertible Preferred Stock converted (decreased by the adjusted tax basis allocable to
any fractional share that would otherwise have been issuance upon conversion of the Series B Convertible Preferred Stock), and
the holding period of such common stock received on conversion will include the period during which the U.S. holder held the Series
B Convertible Preferred Stock prior to conversion. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In the event a U.S. holder&rsquo;s Series B Convertible Preferred
Stock is converted pursuant to an election by such U.S. holder in the case of certain acquisitions or fundamental changes or pursuant
to certain other transactions (including our consolidation or merger into another person), the tax treatment of such a conversion
will depend upon the facts underlying the particular transaction triggering such a conversion. In this regard, it is possible
that any related adjustments of the conversion rate would be treated as a constructive distribution to the U.S. holder as described
below under &ldquo;<I>&mdash;Tax Consequences Applicable to U.S. Holders&mdash;Constructive Dividends on Series B Convertible
Preferred Stock.</I>&rdquo; U.S. holders should consult their own tax advisors to determine the specific tax treatment of a conversion
under such circumstances.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Constructive Dividends on Series B Convertible Preferred
Stock</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The conversion rate of our Series B Convertible Preferred Stock
is subject to adjustment under certain circumstances, as described above under &ldquo;<I>Description of Securities</I>&mdash;<I>Preferred
Stock&mdash;Series B Convertible Preferred Stock.</I>&rdquo; Section 305(c) of the Code and Treasury regulations thereunder may
treat a U.S. holder of our Series B Convertible Preferred Stock as having received a constructive distribution includable in such
U.S. holder&rsquo;s income in the manner as described above under &ldquo;<I>&mdash;Tax Consequences Applicable to U.S. Holders&mdash;Distributions
on Series B Convertible Preferred Stock and Common Stock</I>,&rdquo; if and to the extent that certain adjustments in the conversion
rate (or failures to make such an adjustment) increase the proportionate interest of such U.S. holder in our earnings and profits.
In certain other circumstances, an adjustment to the conversion rate of our Series B Convertible Preferred Stock or a failure
to make such an adjustment could potentially give rise to constructive distributions to U.S. holders of our common stock. Thus,
under certain circumstances, U.S. holders may recognize income in the event of a constructive distribution even though they may
not receive any cash or property.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Information Reporting and Backup Withholding</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">A U.S. holder will be subject to information reporting and
may be subject to backup withholding when such holder receives dividend payments (including constructive dividends) or receives
proceeds from the sale or other taxable disposition of the warrants, shares of our Series B Convertible Preferred Stock acquired
through the exercise of subscription rights or shares of our common stock acquired through conversion of our Series B Convertible
Preferred Stock or exercise of the warrants. Certain U.S. holders are exempt from backup withholding, including certain corporations
and certain tax-exempt organizations. A U.S. holder will be subject to backup withholding if such holder is not otherwise exempt
(or fails to properly establish an exemption) and such holder:&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-top: 10pt"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD COLSPAN="2" STYLE="padding-top: 10pt"><FONT STYLE="font-size: 10pt">fails to furnish the holder&rsquo;s taxpayer identification
    number, which for an individual is ordinarily his or her social security number;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-top: 10pt"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD COLSPAN="2" STYLE="padding-top: 10pt"><FONT STYLE="font-size: 10pt">furnishes an incorrect taxpayer identification number;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-top: 10pt"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD COLSPAN="2" STYLE="padding-top: 10pt"><FONT STYLE="font-size: 10pt">is notified by the IRS that the holder previously
    failed to properly report payments of interest or dividends; or</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-top: 10pt"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD COLSPAN="2" STYLE="padding-top: 10pt"><FONT STYLE="font-size: 10pt">fails to certify under penalties of perjury that the
    holder has furnished a correct taxpayer identification number and that the IRS has not notified the holder that the holder
    is subject to backup withholding.</FONT></TD></TR>
<TR>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 94%">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Backup withholding is not an additional tax. Any amounts withheld
under the backup withholding rules may be allowed as a refund or a credit against a U.S. holder&rsquo;s U.S. federal income tax
liability, provided the required information is timely furnished to the IRS. U.S. holders should consult their tax advisors regarding
their qualification for an exemption from backup withholding and the procedures for obtaining such an exemption.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><U>Tax Considerations Applicable to Non-U.S. Holders</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> For purposes of this discussion, a &ldquo;non-U.S. holder&rdquo;
is a beneficial owner of shares of our common stock, participating warrants, our subscription rights, shares of our Series B Convertible
Preferred Stock and warrants acquired upon exercise of subscription rights or shares of our common stock acquired upon conversion
of our Series B Convertible Preferred Stock or exercise of warrants, as the case may be, that is neither a U.S. holder nor an
entity treated as a partnership for U.S. federal income tax purposes. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> &nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Receipt, Exercise and Expiration of the Subscription
Rights</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The discussion assumes that the receipt of subscription rights
will be treated as a nontaxable distribution. See<BR>
&ldquo;<I>&mdash;Tax Consequences Applicable to U.S. Holders&mdash;Receipt of Subscription Rights</I>&rdquo; above. In such case,
non-U.S. holders will not be subject to U.S. federal income tax (or any withholding thereof) on the receipt, exercise or expiration
of the subscription rights.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Exercise of Warrants</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> A non-U.S. holder will not be subject to U.S. federal income
tax on the cash exercise of warrants into shares of our common stock (except to the extent the U.S. holder receives a cash payment
for any fractional share that would otherwise have been issuable upon exercise of the warrant, which will be treated as a sale
subject the rules described under &ldquo;<I>Tax Considerations Applicable to Non-U.S. Holders&mdash;Sale or Other Disposition
of Series B Convertible Preferred Stock, Common Stock or Warrants</I>&rdquo;). As discussed above in &ldquo;<I>&mdash;Tax Considerations
Applicable to U.S. Holders&mdash;Sale or Other Disposition, Exercise or Expiration of Warrants</I>,&rdquo; the U.S. federal income
tax treatment of an exercise of a warrant on a cashless basis is not clear. Non-U.S. holders are urged to consult their tax advisors
as to the consequences of an exercise of a warrant on a cashless basis, including with respect to whether the exercise is a taxable
event, and their holding period and tax basis in the common stock received. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Constructive Dividends on Warrants</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As described in the section entitled &ldquo;<I>Dividend Policy</I>,&rdquo;
we do not anticipate declaring or paying dividends to holders of our Series B Convertible Preferred Stock or common stock in the
foreseeable future. However, if at any time during the period in which a non-U.S. holder holds warrants received on the exercise
of subscription rights, we were to pay a taxable dividend to our stockholders and, in accordance with the anti-dilution provisions
of the warrants, the exercise price of the warrants were decreased, that decrease would be deemed to be the payment of a taxable
dividend to a non-U.S. holder to the extent of our earnings and profits, notwithstanding the fact that such holder will not receive
a cash payment. If the exercise price is adjusted in certain other circumstances (or in certain circumstances, there is a failure
to make adjustments), or there is an adjustment to the number of common shares that will be issued on exercise of the warrants,
such adjustments may also result in the deemed payment of a taxable dividend to a non-U.S. holder. Any resulting withholding tax
attributable to deemed dividends may be collected from other amounts payable or distributable to the non-U.S. holder. Non-U.S.
holders should consult their tax advisors regarding the proper treatment of any adjustments to the warrants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Distributions on Series B Convertible Preferred Stock and
Common Stock</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As described in the section entitled &ldquo;<I>Dividend Policy</I>,&rdquo;
we do not anticipate declaring or paying dividends to holders of our Series B Convertible Preferred Stock or common stock in the
foreseeable future. However, if we do make distributions of cash or property on our Series B Convertible Preferred Stock or common
stock, such distributions will constitute dividends for U.S. federal income tax purposes to the extent paid from our current or
accumulated earnings and profits, as determined under U.S. federal income tax principles. Amounts not treated as dividends for
U.S. federal income tax purposes will constitute a return of capital and first be applied against and reduce a non-U.S. holder&rsquo;s
adjusted tax basis in its Series B Convertible Preferred Stock or common stock, as the case may be, but not below zero. Any excess
will be treated as capital gain and will be treated as described below in the section relating to the sale or disposition of our
Series B Convertible Preferred Stock, our common stock or warrants. Because we may not know the extent to which a distribution
is a dividend for U.S. federal income tax purposes at the time it is made, for purposes of the withholding rules discussed below
we or the applicable withholding agent may treat the entire distribution as a dividend.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Subject to the discussion below on backup withholding and foreign
accounts, dividends paid to a non- U.S. holder of our Series B Convertible Preferred Stock or common stock that are not effectively
connected with the non-U.S. holder&rsquo;s conduct of a trade or business within the United States will be subject to U.S. federal
withholding tax at a rate of 30% of the gross amount of the dividends (or such lower rate specified by an applicable income tax
treaty).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Non-U.S. holders will be entitled to a reduction in or an exemption
from withholding on dividends as a result of either (a) an applicable income tax treaty or (b) the non-U.S. holder holding our
Series B Convertible Preferred Stock or common stock in connection with the conduct of a trade or business within the United States
and dividends being effectively connected with that trade or business. To claim such a reduction in or exemption from withholding,
the non-U.S. holder must provide the applicable withholding agent with a properly executed (a) IRS Form W-8BEN or W-8BEN-E (or
other applicable documentation) claiming an exemption from or reduction of the withholding tax under the benefit of an income
tax treaty between the United States and the country in which the non-U.S. holder resides or is established, or (b) IRS Form W-8ECI
stating that the dividends are not subject to withholding tax because they are effectively connected with the conduct by the non-U.S.
holder of a trade or business within the United States, as may be applicable. These certifications must be provided to the applicable
withholding agent prior to the payment of dividends and must be updated periodically. Non-U.S. holders that do not timely provide
the applicable withholding agent with the required certification, but that qualify for a reduced rate under an applicable income
tax treaty, may obtain a refund of any excess amounts withheld by timely filing an appropriate claim for refund with the IRS.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If dividends paid to a non-U.S. holder are effectively connected
with the non-U.S. holder&rsquo;s conduct of a trade or business within the United States (and, if required by an applicable income
tax treaty, the non-U.S. holder maintains a permanent establishment in the United States to which such dividends are attributable),
then, although exempt from U.S. federal withholding tax (provided the non-U.S. holder provides appropriate certification, as described
above, and subject to the discussion below on backup withholding and foreign accounts), the non-U.S. holder will be subject to
U.S. federal income tax on such dividends on a net income basis at the regular graduated U.S. federal income tax rates. In addition,
a non-U.S. holder that is a corporation may be subject to a branch profits tax at a rate of 30% (or such lower rate specified
by an applicable income tax treaty) on its effectively connected earnings and profits for the taxable year that are attributable
to such dividends, as adjusted for certain items. Non-U.S. holders should consult their tax advisors regarding their entitlement
to benefits under any applicable income tax treaty.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Sale or Other Disposition of Series B Convertible Preferred
Stock, Common Stock or Warrants</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Subject to the discussions below on backup withholding and
foreign accounts, a non-U.S. holder will not be subject to U.S. federal income tax on any gain realized upon the sale or other
taxable disposition of our Series B Convertible Preferred Stock, warrants or our common stock unless:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 2%"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="width: 96%"><FONT STYLE="font-size: 10pt">the gain is effectively connected with the non-U.S. holder&rsquo;s conduct
    of a trade or business within the United States (and, if required by an applicable income tax treaty, the non-U.S. holder
    maintains a permanent establishment in the United States to which such gain is attributable);</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 2%"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="width: 96%"><FONT STYLE="font-size: 10pt">the non-U.S. holder is a nonresident alien individual present in the
    United States for 183 days or more during the taxable year of the disposition and certain other requirements are met; or</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 2%"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="width: 96%"><FONT STYLE="font-size: 10pt">our Series B Convertible Preferred Stock, warrants or our common stock
    constitutes a U.S. real property interest, or USRPI, by reason of our status as a U.S. real property holding corporation,
    or USRPHC, for U.S. federal income tax purposes.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Gain described in the first bullet point above generally will
be subject to U.S. federal income tax on a net income basis at the regular graduated rates. A Non-U.S. holder that is a corporation
also may be subject to a branch profits tax at a rate of 30% (or such lower rate specified by an applicable income tax treaty)
on such effectively connected gain, as adjusted for certain items.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Gain described in the second bullet point above will be subject
to U.S. federal income tax at a rate of 30% (or such lower rate specified by an applicable income tax treaty) on any gain derived
from the disposition, which may be offset by U.S. source capital losses of the non-U.S. holder (even though the individual is
not considered a resident of the United States), provided the non-U.S. holder has timely filed U.S. federal income tax returns
with respect to such losses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">With respect to the third bullet point above, we believe we
are not currently and do not anticipate becoming a USRPHC. Because the determination of whether we are a USRPHC depends on the
fair market value of our USRPIs relative to the fair market value of our other business assets and our non- U.S. real property
interests, however, there can be no assurance we are not a USRPHC or will not become one in the future.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Non-U.S. holders should consult their tax advisors regarding
potentially applicable income tax treaties that may provide for different rules.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Conversion of Our Series B Convertible Preferred Stock into
Our Common Stock</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> A non-U.S. holder will not recognize any gain or loss in
respect of the receipt of our common stock upon the conversion of our Series B Convertible Preferred Stock (except to the extent
the non-U.S. holder receives a cash payment for any fractional share that would otherwise have been issuable upon conversion of
the Series B Convertible Preferred Stock). </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Constructive Dividends on Series B Convertible Preferred
Stock</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As described above under &ldquo;<I>&mdash;Tax Consequences
Applicable to U.S. Holders&mdash;Constructive Dividends on Series B Convertible Preferred Stock</I>,&rdquo; in certain circumstances,
a non-U.S. holder will be deemed to receive a constructive distribution from us. Adjustments in the conversion rate (or failures
to adjust the conversion rate) that increase the proportionate interest of a non-U.S. holder in our earnings and profits could
result in deemed distributions to the non-U.S. holder that are treated as dividends for U.S. federal income tax purposes. Any
constructive dividend deemed paid to a non-U.S. holder will be subject to U.S. federal income tax or withholding tax in the manner
described above under &ldquo;<I>&mdash;Tax Consequences Applicable to Non-U.S. Holders&mdash;Distributions on Series B Convertible
Preferred Stock and Common Stock</I>.&rdquo; It is possible that U.S. federal tax on the constructive dividend would be withheld,
if applicable, from subsequent payments on the Series B Convertible Preferred Stock or our common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Information Reporting and Backup Withholding </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">A non-U.S. holder will not be subject to backup withholding
with respect to distributions on our Series B Convertible Preferred Stock, warrants or common stock we make to the non-U.S. holder,
provided the applicable withholding agent does not have actual knowledge or reason to know such holder is a United States person
and the holder timely certifies its non-U.S. status, such as by providing a valid IRS Form W-8BEN, W-8BEN-E or W-8ECI, or other
applicable certification. However, information returns generally will be filed with the IRS in connection with any distributions
(including deemed distributions) made on our Series B Convertible Preferred Stock, warrants and our common stock to the non-U.S.
holder, regardless of whether any tax was actually withheld. Copies of these information returns may also be made available under
the provisions of a specific treaty or agreement to the tax authorities of the country in which the non-U.S. holder resides or
is established.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Information reporting and backup withholding may apply to the
proceeds of a sale or other taxable disposition of our Series B Convertible Preferred Stock, warrants or our common stock within
the United States, and information reporting may (although backup withholding generally will not) apply to the proceeds of a sale
or other taxable disposition of our Series B Convertible Preferred Stock, warrants or our common stock outside the United States
conducted through certain U.S.-related financial intermediaries, in each case, unless the beneficial owner timely certifies under
penalty of perjury that it is a non-U.S. holder on IRS Form W-8BEN or W-8BEN-E, or other applicable form (and the payor does not
have actual knowledge or reason to know that the beneficial owner is a U.S. person) or such owner otherwise timely establishes
an exemption. Proceeds of a disposition of our Series B Convertible Preferred Stock, warrants or our common stock conducted through
a non-U.S. office of a non-U.S. broker generally will not be subject to backup withholding or information reporting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Backup withholding is not an additional tax. Any amounts withheld
under the backup withholding rules may be allowed as a refund or a credit against a non-U.S. holder&rsquo;s U.S. federal income
tax liability, provided the required information is timely furnished to the IRS.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Additional Withholding Tax on Payments Made to Foreign Accounts
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Withholding taxes may be imposed under the Foreign Account
Tax Compliance Act, or FATCA, on certain types of payments made to non-U.S. financial institutions and certain other non-U.S.
entities. Specifically, a 30% withholding tax may be imposed on dividends (including deemed dividends) paid on our Series B Convertible
Preferred Stock, common stock or warrants, or gross proceeds from the sale or other disposition of our Series B Convertible Preferred
Stock, warrants or our common stock paid to a &ldquo;foreign financial institution&rdquo; or a &ldquo;non-financial foreign entity&rdquo;
(each as defined in the Code), unless (1) the foreign financial institution undertakes certain diligence and reporting obligations,
(2) the non-financial foreign entity either certifies it does not have any &ldquo;substantial United States owners&rdquo; (as
defined in the Code) or furnishes identifying information regarding each substantial United States owner, or (3) the foreign financial
institution or non-financial foreign entity otherwise qualifies for an exemption from these rules. If the payee is a foreign financial
institution and is subject to the diligence and reporting requirements in (1) above, it must enter into an agreement with the
U.S. Department of the Treasury requiring, among other things, that it undertake to identify accounts held by certain &ldquo;specified
United States persons&rdquo; or &ldquo;United States-owned foreign entities&rdquo; (each as defined in the Code), annually report
certain information about such accounts, and withhold 30% on certain payments to non-compliant foreign financial institutions
and certain other account holders. Foreign financial institutions located in jurisdictions that have an intergovernmental agreement
with the United States governing FATCA may be subject to different rules.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Under the applicable Treasury Regulations and administrative
guidance, withholding under FATCA generally applies to payments of dividends (including deemed dividends), and will apply to payments
of gross proceeds from the sale or other disposition of our Series B Convertible Preferred Stock, warrants or our common stock
on or after January 1, 2019. Because we may not know the extent to which a distribution is a dividend for U.S. federal income
tax purposes at the time it is made, for purposes of these withholding rules we or the applicable withholding agent may treat
the entire distribution as a dividend. Prospective investors should consult their tax advisors regarding the potential application
of these withholding provisions.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a010_v1"></A><B>DESCRIPTION OF
SECURITIES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Preferred Stock</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We may issue shares of our preferred stock from time to time,
in one or more series. Under our certificate of incorporation, our board of directors has the authority, without further action
by stockholders, to designate up to 10,000,000 shares of preferred stock in one or more series and to fix the rights, preferences,
privileges, qualifications and restrictions granted to or imposed upon the preferred stock, including dividend rights, conversion
rights, voting rights, rights and terms of redemption, liquidation preference and sinking fund terms, any or all of which may
be greater than the rights of the common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If we issue preferred stock, we will fix the rights, preferences,
privileges, qualifications and restrictions of the preferred stock of each series that we sell under this prospectus and applicable
prospectus supplements in the certificate of designations relating to that series. If we issue preferred stock, we will incorporate
by reference into the registration statement of which this prospectus is a part the form of any certificate of designations that
describes the terms of the series of preferred stock we are offering before the issuance of the related series of preferred stock.
We urge you to read the prospectus supplement related to any series of preferred stock we may offer, as well as the complete certificate
of designations that contains the terms of the applicable series of preferred stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Series A Junior Participating Preferred
Stock</I></B>. In connection with our May 19, 2014 Shareholder Rights Plan, discussed below, the Company has designated 750,000
shares of Series-A Junior Participating Preferred Stock, par value $0.001 per share through the filing of a certificate of designation
with the Delaware Secretary of State. The shareholder rights agreement provides that all stockholders of record on May 26, 2014
received a non-taxable distribution of one preferred stock purchase right for each share of our common stock held by such stockholder.
Each right is attached to and trades with the associated share of common stock. The rights will become exercisable only if one
of the following occurs: (1) a person becomes an &ldquo;Acquiring Person&rdquo; by acquiring beneficial ownership of 15% or more
of our common stock (or, in the case of a person who beneficially owned 15% or more of our common stock on the date the stockholder
rights agreement was executed, by acquiring beneficial ownership of additional shares representing 2.0% of our common stock then
outstanding (excluding compensatory arrangements)); or (2) a person commences a tender offer that, if consummated, would result
in such person becoming an Acquiring Person. If a person becomes an Acquiring Person, each right will entitle the holder, other
than the Acquiring Person and certain related parties, to purchase a number of shares of our common stock with a market value
that equals twice the exercise price of the right. The initial exercise price of each right is $15.00, so each holder (other than
the Acquiring Person and certain related parties) exercising a right would be entitled to receive $30.00 worth of our common stock.
If the Company is acquired in a merger or similar business combination transaction at any time after a person has become an Acquiring
Person, each holder of a right (other than the Acquiring Person and certain related parties) will be entitled to purchase a similar
amount of stock of the acquiring entity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Series A Convertible Preferred Stock</I></B>.
In connection with our April 2017 financing, we designated 4,000 shares of the 10,000,000 authorized shares of preferred stock
as Series A Convertible Preferred Stock. As of the date of this prospectus, no shares of Series A Convertible Preferred Stock
are outstanding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Series B Convertible Preferred Stock</I></B>.
We will authorize the Series B Convertible Preferred Stock by filing a certificate of designation with the Secretary of State
of Delaware. The certificate of designation may be authorized by our Board without approval by our stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Conversion.</I> Each share of Series
B Convertible Preferred Stock will be convertible at our option at any time on or after the first anniversary of the closing of
the rights offering or at the option of the holder at any time, into the number of shares of our common stock determined by dividing
the $1,000 stated value per share of the Series B Convertible Preferred Stock by a conversion price of $3.52 per share. In addition,
the conversion price per share is subject to adjustment for stock dividends, distributions, subdivisions, combinations or reclassifications.
Subject to limited exceptions, a holder of the Series B Convertible Preferred Stock will not have the right to convert any portion
of the Series B Convertible Preferred Stock to the extent that, after giving effect to the conversion, the holder, together with
its affiliates, would beneficially own in excess of 9.99% of the number of shares of our common stock outstanding immediately
after giving effect to its conversion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Fundamental Transactions.</I> In the
event we effect certain mergers, consolidations, sales of substantially all of our assets, tender or exchange offers, reclassifications
or share exchanges in which our common stock is effectively converted into or exchanged for other securities, cash or property,
we consummate a business combination in which another person acquires 50% of the outstanding shares of our common stock, or any
person or group becomes the beneficial owner of 50% of the aggregate ordinary voting power represented by our issued and outstanding
common stock, then, upon any subsequent conversion of the Series B Convertible Preferred Stock, the holders of the Series B Convertible
Preferred Stock will have the right to receive any shares of the acquiring corporation or other consideration it would have been
entitled to receive if it had been a holder of the number of shares of common stock then issuable upon conversion in full of the
Series B Convertible Preferred Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Dividends.</I> Holders of Series B Convertible
Preferred Stock shall be entitled to receive dividends (on an as-if-converted-to-common-stock basis) in the same form as dividends
actually paid on shares of the common stock when, as and if such dividends are paid on shares of common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Voting Rights.</I> Except as otherwise
provided in the certificate of designation or as otherwise required by law, the Series B Convertible Preferred Stock has no voting
rights.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Liquidation Preference<B>. </B></I>Upon
our liquidation, dissolution or winding-up, whether voluntary or involuntary, holders of Series B Convertible Preferred Stock
will be entitled to receive out of our assets, whether capital or surplus, the same amount that a holder of Common Stock would
receive if the Series B Convertible Preferred Stock were fully converted (disregarding for such purpose any conversion limitations
under the certificate of designation) to Common Stock, which amounts shall be paid pari passu with all holders of Common Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 28.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Redemption Rights. </I>We are not obligated
to redeem or repurchase any shares of Series B Convertible Preferred Stock. Shares of Series B Convertible Preferred Stock are
not otherwise entitled to any redemption rights, or mandatory sinking fund or analogous provisions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Warrants </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Warrants Included in Units Issuable in the Rights Offering</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The warrants to be issued as a part of this rights offering
will be separately transferable following their issuance and through their expiration four years from the date of issuance. Each
warrant will entitle the holder to purchase one share of common stock at an exercise price of $4.05 per share from the date of
issuance through its expiration. We do not intend to have the warrants listed for trading on any securities exchange or recognized
trading system. The common stock underlying the warrants, upon issuance, will also be traded on Nasdaq under the symbol &ldquo;ATOS.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Unless a physical certificate is requested, all warrants that
are purchased in the rights offering as part of the units will be issued in book-entry, or uncertificated, form meaning that you
will receive a DRS account statement from our transfer agent reflecting ownership of warrants if you are a holder of record of
shares or warrants. The subscription agent will arrange for the issuance of the warrants as soon as practicable after the closing,
which will occur as soon as practicable after the rights offering has expired but which may occur up to five business days thereafter.
At closing, all prorating calculations and reductions contemplated by the terms of the rights offering will have been effected
and payment to us for the subscribed-for units will have cleared. If you hold your shares of common stock or participating warrants
in the name of a bank, broker, dealer, or other nominee, DTC will credit your account with your nominee with the warrants you
purchased in the rights offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Exercisability</I>. Each warrant will
be exercisable at any time and will expire four years from the date of issuance. The warrants will be exercisable, at the option
of each holder, in whole or in part by delivering to us a duly executed exercise notice and payment in full for the number of
shares of our common stock purchased upon such exercise, except in the case of a cashless exercise as discussed below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> The number of shares of common stock issuable upon exercise
of the warrants is subject to adjustment in certain circumstances, including a stock split of, stock dividend on, or a subdivision,
combination or recapitalization of the common stock. Upon the merger, consolidation, sale of substantially all of our assets,
or other similar transaction, the holders of warrants shall, at the option of the company, be required to exercise the warrants
immediately prior to the closing of the transaction, or such warrants shall automatically expire. Upon such exercise, the holders
of warrants shall participate on the same basis as the holders of common stock in connection with the transaction. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Cashless Exercise</I>. If at any time
there is no effective registration statement registering, or the prospectus contained therein is not available for issuance of,
the shares issuable upon exercise of the warrant, the holder may exercise the warrant on a cashless basis. When exercised on a
cashless basis, a portion of the warrant is cancelled in payment of the purchase price payable in respect of the number of shares
of our common stock purchasable upon such exercise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Exercise Price</I>. Each warrant represents
the right to purchase one share of common stock at an exercise price of $4.05 per share. In addition, the exercise price per share
is subject to adjustment for stock dividends, distributions, subdivisions, combinations, or reclassifications, and for certain
dilutive issuances. Subject to limited exceptions, a holder of warrants will not have the right to exercise any portion of the
warrant to the extent that, after giving effect to the exercise, the holder, together with its affiliates, and any other person
acting as a group together with the holder or any of its affiliates, would beneficially own in excess of 4.99% of the number of
shares of our common stock outstanding immediately after giving effect to its exercise. The holder, upon notice to the Company,
may increase or decrease the beneficial ownership limitation provisions of the warrant, provided that in no event shall the limitation
exceed 9.99% of the number of shares of our common stock outstanding immediately after giving effect to the exercise of the warrant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Transferability</I>. Subject to applicable
laws and restrictions, a holder may transfer a warrant upon surrender of the warrant to us with a completed and signed assignment
in the form attached to the warrant. The transferring holder will be responsible for any tax that liability that may arise as
a result of the transfer.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Exchange Listing</I>. We do not intend
to apply to list the warrants on any securities exchange or recognized trading system.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Rights as Stockholder</I>. Except as
set forth in the warrant, the holder of a warrant, solely in such holder&rsquo;s capacity as a holder of a warrant, will not be
entitled to vote, to receive dividends, or to any of the other rights of our stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Redemption Rights</I>. We may redeem
the warrants for $0.18 per warrant if the VWAP of our common stock equals or exceeds $10.56 per share for ten consecutive trading
days, provided that we may not do so prior to the first anniversary of closing of the rights offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Amendments and Waivers</I>. The provisions
of each warrant may be modified or amended or the provisions thereof waived with the written consent of us and the holder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The warrants will be issued pursuant to a warrant agent agreement
by and between us and VStock Transfer, LLC, the warrant agent.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Common Stock</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Holders of common stock are entitled to receive ratably dividends
out of funds legally available, if and when declared from time to time by our Board. We have never paid any cash dividends on
our common stock and our Board does not anticipate that we will pay cash dividends in the foreseeable future. The future payment
of dividends, if any, on our common stock is within the discretion of the Board and will depend upon earnings, capital requirements,
financial condition and other relevant factors. Holders of common stock are entitled to one vote for each share held on each matter
to be voted on by stockholders. There is no cumulative voting in the election of directors. In the event of liquidation, dissolution
or winding up of the affairs of us, holders of common stock are to share in all assets remaining after the payment of liabilities
and any preferential distributions payable to preferred stockholders, if any. The holders of common stock have no preemptive or
conversion rights and are not subject to further calls or assessments. There are no redemption or sinking fund provisions applicable
to the common stock. The rights of the holders of the common stock are subject to any rights that may be fixed for holders of
preferred stock, if any. All of the outstanding shares of common stock are fully paid and non-assessable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Certificate of Incorporation</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Under our Certificate of Incorporation, as amended, our Board,
without further action by our stockholders, currently has the authority to issue up to 10,000,000 shares of preferred stock and
to fix the rights (including voting rights), preferences and privileges of these &ldquo;blank check&rdquo; preferred shares. Such
preferred stock may have rights, including economic rights, senior to our common stock. As a result, the issuance of the preferred
stock could have a material adverse effect on the price of our common stock and could make it more difficult for a third party
to acquire a majority of our outstanding common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Anti-Takeover Devices</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our certificate of incorporation and bylaws include a number
of provisions that may have the effect of delaying, deferring or preventing another party from acquiring control of us and encouraging
persons considering unsolicited tender offers or other unilateral takeover proposals to negotiate with our Board rather than pursue
non-negotiated takeover attempts. These provisions include the items described below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Board Composition and Filling Vacancies.
</I>&nbsp;&nbsp;In accordance with our certificate of incorporation, our Board is divided into three classes serving staggered
three-year terms, with one class being elected each year. Our certificate of incorporation also provides that directors may only
be removed from office for cause and only by the affirmative vote of holders of 75% or more of the outstanding shares of capital
stock then entitled to vote at an election of directors. Furthermore, any vacancy on our Board, however occurring, including any
vacancy resulting from an increase in the size of the board, may only be filled by the affirmative vote of a majority of our directors
then in office even if less than a quorum. The classification of directors, together with the limitations on removal of directors
and treatment of vacancies, has the effect of making it more difficult for stockholders to change the composition of our Board.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Undesignated Preferred Stock.</I> &nbsp;&nbsp;Our
certificate of incorporation authorizes &ldquo;blank-check&rdquo; preferred stock, which means that our Board has the authority
to designate one or more series of preferred stock without stockholder approval. These series of preferred stock may have superior
rights, preferences and privileges over our common stock, including dividend rights, voting rights and liquidation preferences.
The ability of our Board to issue shares of our preferred stock without stockholder approval could deter takeover offers and make
it more difficult or costly for a third party to acquire us without the consent of our Board.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Section 203 of the Delaware General
Corporation Law.</I> &nbsp;&nbsp;In addition, our certificate of incorporation does not opt out of Section 203 of the Delaware
General Corporation Law, which protects a corporation against an unapproved takeover by prohibiting a company from engaging in
any business combination with any interested stockholder (defined as a stockholder owning more than 15% of the outstanding shares)
for a period of three years from the time such stockholder became a 15% holder unless approved by our Board.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Transfer Agent and Registrar</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The transfer agent and registrar for our common stock is VStock
Transfer, LLC, 18 Lafayette Place, Woodmere, New York 11598 (Telephone: (212) 828-8436; Facsimile (646) 536-3179).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Quotation</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our common stock is currently quoted on the NASDAQ Capital
Market under the symbol &ldquo;ATOS&rdquo;. We do not intend to apply to list the warrants for trading on any securities exchange
or recognized trading system.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a011_v1"></A><B>PLAN OF DISTRIBUTION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">We will distribute rights certificates
and copies of this prospectus to those persons who were holders of our common stock or our December 22, 2017 warrants on May 9,
2018, the record date for the rights offering, promptly following the effective date of the registration statement of which this
prospectus forms a part. We are offering the rights and the units underlying the rights directly to you. Those directors and officers
of the Company who may assist in the rights offering will not register with the SEC as brokers in reliance on certain safe harbor
provisions contained in Rule 3a4-1 under the Exchange Act. Broadridge Corporate Issuer Solutions, Inc. is acting as our subscription
agent to effect the exercise of the rights and the issuance of the underlying units. Therefore, while certain of our directors,
officers or employees may solicit responses from you, they will not receive any commissions or compensation for those services.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>Delivery of Series B Convertible
Preferred Stock and Warrants</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">If your shares or participating warrants
are held in the name of a broker, dealer, custodian bank or other nominee, then you should send your subscription documents and
subscription payment to that record holder. If you are the record holder, then you should send your subscription documents, rights
certificate, and subscription payment to the address provided below. If sent by mail, we recommend that you send documents and
payments by registered mail, properly insured, with return receipt requested, and that a sufficient number of days be allowed
to ensure delivery to the subscription agent. Do not send or deliver these materials to the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; background-color: white; border-collapse: collapse">
<TR>
    <TD STYLE="width: 52%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 47%">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><I>By Mail</I></FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><I>By Hand
    or Overnight Courier</I></FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 10pt">Broadridge Corporate Issuer Solutions, Inc.</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 10pt">Broadridge Corporate Issuer Solutions, Inc.</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 10pt">Attn: BCIS Re-Organization Dept.</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 10pt">Attn: BCIS IWS</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 10pt">P.O. Box 1317</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 10pt">51 Mercedes Way</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 10pt">Brentwood, New York 11717-0693</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 10pt">Edgewood, New York 11717</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 10pt">(855) 793-5068 (toll free)</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 10pt">(855) 793-5068 (toll free)</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"> See &ldquo;<I>The Rights Offering&mdash;Method
of Exercising Subscription Rights</I>.&rdquo; If you have any questions regarding the Company or the rights offering, or you have
any questions regarding completing a rights certificate or submitting payment in the rights offering, please contact the subscription
agent, Broadridge Corporate Issuer Solutions, Inc., toll free at (855)&nbsp;793-5068, or by mail at Broadridge Corporate Issuer
Solutions, Inc., Attn: BCIS Re-Organization Dept., P.O. Box 1317, Brentwood, New York, 11717-0693. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Other than as described in this prospectus,
we do not know of any existing agreements between any stockholder, broker, dealer, underwriter or agent relating to the sale or
distribution of the underlying securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Maxim Group LLC is the dealer-manager
of this rights offering. In such capacity, such dealer-manager will provide marketing assistance and financial advice (including
determining the subscription price and the structure of the rights offering) to us in connection with this offering and will solicit
the exercise of basic subscription rights and participation in the over-subscription privilege. The dealer-manager will provide
us with updated investor feedback and recommendations on pricing and structure through to the end of the subscription period.
The dealer-manager is not underwriting or placing any of the basic subscription rights and does not make any recommendation with
respect to such basic subscription rights (including with respect to the exercise or expiration of such basic subscription rights.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">In connection with this rights offering,
we have agreed to pay fees to Maxim Group LLC as dealer-manager a cash fee equal to 7.0% of the gross proceeds received by us
directly from exercises of the subscription rights. We advanced $15,000 to Maxim Group LLC against reimbursement of accountable
expenses upon their engagement as a dealer-manager, or the Advance, and agreed to reimburse the reasonable fees and expenses (including
up to $75,000 of legal fees) of the dealer-manager up to $85,000. Any portion of the advance will be returned to us to the extent
it is not actually incurred.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">We have also agreed to indemnify the
dealer-manager and its respective affiliates against certain liabilities arising under the Securities Act. The dealer-manager&rsquo;s
participation in this offering is subject to customary conditions contained in the dealer-manager agreement, including the receipt
by the dealer-manager of an opinion of our counsel. The dealer-manager and its affiliates may provide to us from time to time
in the future in the ordinary course of their business certain financial advisory, investment banking and other services for which
they will be entitled to receive fees.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">Maxim Group LLC is a broker-dealer and member
of the Financial Industry Regulatory Authority, Inc. The principal business address of Maxim Group LLC is 405 Lexington Avenue,
New York, New York 10174.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><B>Notice to Prospective Investors in Canada</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">This prospectus constitutes an &ldquo;exempt
offering document&rdquo; as defined in and for the purposes of applicable Canadian securities laws. No prospectus has been filed
with any securities commission or similar regulatory authority in Canada in connection with the offer and sale of the shares.
No securities commission or similar regulatory authority in Canada has reviewed or in any way passed upon this prospectus or on
the merits of the shares and any representation to the contrary is an offence.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><B>Canadian investors are advised that this
prospectus has been prepared in reliance on section 3A.3 of National Instrument 33-105&nbsp;<I>Underwriting Conflicts</I>&nbsp;(&ldquo;NI
33-105&rdquo;). Pursuant to section 3A.3 of NI 33-105, this prospectus is exempt from the requirement that the Company and the
underwriter(s) provide Canadian investors with certain conflicts of interest disclosure pertaining to &ldquo;connected issuer&rdquo;
and/or &ldquo;related issuer&rdquo; relationships that may exist between the Company and the underwriter(s) as would otherwise
be required pursuant to subsection 2.1(1) of NI 33-105.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><B>Resale Restrictions</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">The offer and sale of the shares in Canada
is being made on a private placement basis only and is exempt from the requirement that the Company prepares and files a prospectus
under applicable Canadian securities laws. Any resale of shares acquired by a Canadian investor in this offering must be made
in accordance with applicable Canadian securities laws, which may vary depending on the relevant jurisdiction, and which may require
resales to be made in accordance with Canadian prospectus requirements, pursuant to a statutory exemption from the prospectus
requirements, in a transaction exempt from the prospectus requirements or otherwise under a discretionary exemption from the prospectus
requirements granted by the applicable local Canadian securities regulatory authority. These resale restrictions may under certain
circumstances apply to resales of the shares outside of Canada.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><B>Representations of Purchasers</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">Each Canadian investor who purchases units
will be deemed to have represented to the Company, the underwriters and to each dealer from whom a purchase confirmation is received,
as applicable, that the investor is (i) purchasing as principal, or is deemed to be purchasing as principal in accordance with
applicable Canadian securities laws, for investment only and not with a view to resale or redistribution; (ii) an &ldquo;accredited
investor&rdquo; as such term is defined in section 1.1 of National Instrument 45-106&nbsp;<I>Prospectus Exemptions&nbsp;</I>or,
in Ontario, as such term is defined in section 73.3(1) of the&nbsp;<I>Securities Act&nbsp;</I>(Ontario); and (iii) is a &ldquo;permitted
client&rdquo; as such term is defined in section 1.1 of National Instrument 31-103&nbsp;<I>Registration Requirements, Exemptions
and Ongoing Registrant Obligations</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><B>Taxation and Eligibility for Investment</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">Any discussion of taxation and related matters
contained in this prospectus does not purport to be a comprehensive description of all of the tax considerations that may be relevant
to a Canadian investor when deciding to purchase the units and, in particular, does not address any Canadian tax considerations.
No representation or warranty is hereby made as to the tax consequences to a resident, or deemed resident, of Canada of an investment
in the units or with respect to the eligibility of the units for investment by such investor under relevant Canadian federal and
provincial legislation and regulations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><B>Rights of Action for Damages or Rescission</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">Securities legislation in certain of the
Canadian jurisdictions provides certain purchasers of securities pursuant to an offering memorandum (such as this prospectus),
including where the distribution involves an &ldquo;eligible foreign security&rdquo; as such term is defined in Ontario Securities
Commission Rule 45-501&nbsp;<I>Ontario Prospectus and Registration Exemptions</I>&nbsp;and in Multilateral Instrument 45-107&nbsp;<I>Listing
Representation and Statutory Rights of Action Disclosure Exemptions</I>, as applicable, with a remedy for damages or rescission,
or both, in addition to any other rights they may have at law, where the offering memorandum, or other offering document that
constitutes an offering memorandum, and any amendment thereto, contains a &ldquo;misrepresentation&rdquo; as defined under applicable
Canadian securities laws. These remedies, or notice with respect to these remedies, must be exercised or delivered, as the case
may be, by the purchaser within the time limits prescribed under, and are subject to limitations and defences under, applicable
Canadian securities legislation. In addition, these remedies are in addition to and without derogation from any other right or
remedy available at law to the investor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><B>Language of Documents</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">Upon receipt of this document, each Canadian
investor hereby confirms that it has expressly requested that all documents evidencing or relating in any way to the sale of the
securities described herein (including for greater certainty any purchase confirmation or any notice) be drawn up in the English
language only.&nbsp;<I>Par la r&eacute;ception de ce document, chaque investisseur canadien confirme par les pr&eacute;sentes
qu&rsquo;il a express&eacute;ment exig&eacute; que tous les documents faisant foi ou se rapportant de quelque mani&egrave;re que
ce soit &agrave; la vente des valeurs mobili&egrave;res d&eacute;crites aux pr&eacute;sentes (incluant, pour plus de certitude,
toute confirmation d&rsquo;achat ou tout avis) soient r&eacute;dig&eacute;s en anglais seulement.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a012_v1"></A><B>DISCLOSURE OF
COMMISSION POSITION ON INDEMNIFICATION FOR SECURITIES ACT LIABILITIES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Insofar as indemnification for liabilities arising under the
Securities Act may be permitted to directors, officers, and controlling persons of the registrant pursuant to the foregoing provisions,
or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification
is against public policy as expressed in the Securities Act and is, therefore, unenforceable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a013_v1"></A><B>EXPERTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The consolidated financial statements as of December 31, 2017
and 2016 and for each of the two years in the period ended December 31, 2017 incorporated by reference in this prospectus have
been so incorporated in reliance on the report of BDO USA, LLP, an independent registered public accounting firm (the report on
the consolidated financial statements contains an explanatory paragraph regarding the Company&rsquo;s ability to continue as a
going concern) incorporated herein by reference in the prospectus, given on the authority of said firm as experts in auditing
and accounting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a014_v1"></A><B>LEGAL MATTERS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Certain legal matters relating to the validity of the securities
offered by this prospectus will be passed upon for us by Gibson, Dunn &amp; Crutcher LLP, San Francisco, California.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a015_v1"></A><B>WHERE YOU CAN
FIND ADDITIONAL INFORMATION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company files annual, quarterly and special reports, proxy
statements and other information with the SEC. You may read and copy any document filed by the Company at the SEC&rsquo;s Public
Reference Room at 100 F Street, N.E., Washington, D.C. 20549. Please call the SEC at 1-800-SEC-0330 for further information on
the public reference room. The Company&rsquo;s filings with the SEC are also available to the public at the SEC&rsquo;s Internet
web site at <I>http://www.sec.gov</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Statements contained in this prospectus as to the contents
of any contract or other document are not necessarily complete, and in each instance we refer you to the copy of the contract
or document filed as an exhibit to the registration statement, each such statement being qualified in all respects by such reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a016_v1"></A><B>INFORMATION INCORPORATED
BY REFERENCE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The SEC allows the Company to &ldquo;incorporate by reference&rdquo;
the information that is filed by the Company with the SEC, which means that the Company can disclose important information to
you by referring you to those documents. The documents incorporated by reference are:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company&rsquo;s Annual Report on Form 10-K for the fiscal year ended December 31, 2017, filed with the SEC on March 8, 2018;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">2. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company&rsquo;s Definitive Proxy Statement on Schedule 14A, filed with the SEC on March 20, 2018;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">3. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company&rsquo;s Current Reports on Form 8-K, filed with the SEC on February 1, 2018, February 21, 2018, April 17, 2018 and April
23, 2018;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">4. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
description of the Company&rsquo;s common stock contained in the registration statement on Form 8-A filed with the Commission
on July 24, 2012 pursuant to Section 12 of the Exchange Act of 1934, as amended (the &ldquo;Exchange Act&rdquo;), including any
amendment or report filed for the purpose of updating that description; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">5. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
documents filed by the Company pursuant to Sections 13(a), 13(c), 14 and 15(d) of the Exchange Act, after the date of the original
Registration Statement and prior to effectiveness of the registration statement of which this prospectus is a part, provided that
all documents &ldquo;furnished&rdquo; by the Company to the SEC and not &ldquo;filed&rdquo; are not deemed incorporated by reference
herein.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Any statement contained in a document incorporated or deemed
to be incorporated by reference herein shall be deemed to be modified or superseded for purposes of this registration statement
to the extent that a statement contained herein or in any other subsequently filed document which also is or is deemed to be incorporated
by reference herein modifies or supersedes such statement. Any such statement so modified or superseded shall not be deemed, except
as so modified or superseded, to constitute a part of this registration statement. Under no circumstances will any information
filed under items 2.02 or 7.01 of Form 8-K be deemed to be incorporated by reference unless such Form 8-K expressly provides to
the contrary.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company will provide, without charge, to each person, including
any beneficial owner, to whom a copy of this prospectus is delivered, upon such person&rsquo;s written or oral request, a copy
of any and all of the information incorporated by reference in this prospectus, other than exhibits to such documents, unless
such exhibits are specifically incorporated by reference into the information that this prospectus incorporates. Requests should
be directed to the Secretary at Atossa Genetics Inc., 107 Spring Street, Seattle, Washington, 98104, phone (866) 893-4927. You
may also find these documents in the &ldquo;Investor Relations&rdquo; section of our website, www.atossagenetics.com. The information
on our website is not incorporated into this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
























<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white">PROSPECTUS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white">&nbsp;</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"> Subscription
Rights to Purchase Up to 25,000 Units&nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"> Consisting
of an Aggregate of Up to 25,000 Shares of Series B Convertible Preferred Stock&nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"> and Warrants
to Purchase Up to 7,100,000 Shares of Common Stock&nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white">at a Subscription
Price of $1,000 Per Unit</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><I>Dealer-Manager</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><B>Maxim Group
LLC</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white; text-indent: 0.75in">,
2018</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white; text-indent: 0.75in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a017_v1"></A><B>PART II</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>INFORMATION NOT REQUIRED IN PROSPECTUS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>ITEM 13. Other Expenses of Issuance and Distribution</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following are the estimated expenses of the distribution
of the Shares registered hereunder on Form&nbsp;S-1 (the amounts set forth above are estimate, except the SEC Registration Fee:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 90%; font: 10pt Times New Roman, Times, Serif; margin-left: 0.25in">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 87%; text-align: left"> Registration Fee&mdash;Securities and Exchange Commission </TD><TD STYLE="width: 1%"> &nbsp; </TD>
    <TD STYLE="width: 1%; text-align: left"> $ </TD><TD STYLE="width: 10%; text-align: right"> 3,140 </TD><TD STYLE="width: 1%; text-align: left"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"> FINRA filing fee </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> $ </TD><TD STYLE="text-align: right"> 3,500 </TD><TD STYLE="text-align: left"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"> Accountants Fees and Expenses </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> $ </TD><TD STYLE="text-align: right"> 30,000 </TD><TD STYLE="text-align: left"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"> Legal Fees and Expenses </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> $ </TD><TD STYLE="text-align: right"> 185,000 </TD><TD STYLE="text-align: left"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1pt"> Miscellaneous </TD><TD STYLE="padding-bottom: 1pt"> &nbsp; </TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"> $ </TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"> 15,000 </TD><TD STYLE="padding-bottom: 1pt; text-align: left"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD> Total </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> $ </TD><TD STYLE="text-align: right"> 236,640 </TD><TD STYLE="text-align: left"> &nbsp; </TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>ITEM 14. Indemnification of Directors and Officers.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Section 145 of the Delaware General Corporation Law, or the
DGCL, authorizes a corporation to indemnify its directors and officers against liabilities arising out of actions, suits and proceedings
to which they are made or threatened to be made a party by reason of the fact that they have served or are currently serving as
a director or officer to a corporation. The indemnity may cover expenses (including attorneys&rsquo; fees) judgments, fines and
amounts paid in settlement actually and reasonably incurred by the director or officer in connection with any such action, suit
or proceeding. Section 145 permits corporations to pay expenses (including attorneys&rsquo; fees) incurred by directors and officers
in advance of the final disposition of such action, suit or proceeding. In addition, Section 145 provides that a corporation has
the power to purchase and maintain insurance on behalf of its directors and officers against any liability asserted against them
and incurred by them in their capacity as a director or officer, or arising out of their status as such, whether or not the corporation
would have the power to indemnify the director or officer against such liability under Section 145.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We have adopted provisions in our certificate of incorporation
and bylaws that limit or eliminate the personal liability of our directors to the fullest extent permitted by the DGCL, as it
now exists or may in the future be amended. Consequently, a director will not be personally liable to us or our stockholders for
monetary damages or breach of fiduciary duty as a director, except for liability for:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">any breach of the director&rsquo;s duty of loyalty to us or our stockholders;</FONT></TD></TR>
</TABLE>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">any act or omission not in good faith or that involves intentional misconduct or a knowing
    violation of law;</FONT></TD></TR>
</TABLE>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">any unlawful payments related to dividends or unlawful stock purchases, redemptions or other
    distributions; or</FONT></TD></TR>
</TABLE>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">any transaction from which the director derived an improper personal benefit.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">These limitations of liability do not alter director liability
under the federal securities laws and do not affect the availability of equitable remedies such as an injunction or rescission.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In addition, our bylaws provide that:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">we will indemnify our directors, officers and, in the discretion of our Board of Directors,
    certain employees to the fullest extent permitted by the DGCL, as it now exists or may in the future be amended; and</FONT></TD></TR>
</TABLE>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">we will advance reasonable expenses, including attorneys&rsquo; fees, to our directors and,
    in the discretion of our Board of Directors, to our officers and certain employees, in connection with legal proceedings relating
    to their service for or on behalf of us, subject to limited exceptions.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We have entered into indemnification agreements with each of
our directors and certain of our executive officers. These agreements provide that we will indemnify each of these directors and
executive officers to the fullest extent permitted by Delaware law. We will advance expenses, including attorneys&rsquo; fees,
judgments, fines and settlement amounts, to each indemnified director, executive officer or affiliate in connection with any proceeding
in which indemnification is available and we will indemnify our directors and officers for any action or proceeding arising out
of that person&rsquo;s services as an officer or director brought on behalf of the Company or in furtherance of our rights.&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We maintain general liability insurance that covers certain
liabilities of our directors and officers arising out of claims based on acts or omissions in their capacities as directors or
officers, including liabilities under the Securities Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>ITEM 16. Exhibit Index.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">See Exhibit Index set forth on page II-6 to this Registration
Statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>ITEM 17. Undertakings.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The undersigned registrant hereby undertakes:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0px">&nbsp;</TD>
    <TD STYLE="width: 48px"><FONT STYLE="font-size: 10pt">(1)</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">To file, during any period in which offers or sales are being made, a post-effective amendment
    to this registration statement:</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.45in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
include any prospectus required by Section 10(a)(3) of the Securities Act of 1933;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.45in">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent
post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set
forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if
the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high
end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule
424(b) if, in the aggregate, the changes in volume and price represent no more than 20 percent change in the maximum aggregate
offering price set forth in the &ldquo;Calculation of Registration Fee&rdquo; table in the effective registration statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.45in">(iii) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
include any material information with respect to the plan of distribution not previously disclosed in the registration statement
or any material change to such information in the registration statement;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">provided, however, that paragraphs (a)(1)(i),
(a)(1)(ii) and (a)(1)(iii) of this section do not apply if the information required to be included in a post-effective amendment
by those paragraphs is contained in reports filed with or furnished to the Commission by the registrant pursuant to Section 13
or Section 15(d) of the Securities Exchange Act of 1934 that are incorporated by reference in the registration statement, or is
contained in a form of prospectus filed pursuant to Rule 424(b) that is part of the registration statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(2) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;That, for
the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed
to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time
shall be deemed to be the initial bona fide offering thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(3) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To remove
from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination
of the offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(4) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;That, for
the purpose of determining liability under the Securities Act of 1933 to any purchaser:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.45in">(A) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
prospectus filed by the registrant pursuant to Rule 424(b)(3) shall be deemed to be part of the registration statement as of the
date the filed prospectus was deemed part of and included in this Registration Statement; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.45in">(B) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
prospectus required to be filed pursuant to Rule 424(b)(2), (b)(5), or (b)(7) as part of a registration statement in reliance
on Rule 430B relating to an offering made pursuant to Rule 415(a)(1)(i), (vii), or (x) for the purpose of providing the information
required by Section 10(a) of the Securities Act of 1933 shall be deemed to be part of and included in the registration statement
as of the earlier of the date such form of prospectus is first used after effectiveness or the date of the first contract of sale
of securities in the offering described in the prospectus. As provided in Rule 430B, for liability purposes of the issuer and
any person that is at that date an underwriter, such date shall be deemed to be a new effective date of the registration statement
relating to the securities in the registration statement to which that prospectus relates, and the offering of such securities
at that time shall be deemed to be the initial bona fide offering thereof. Provided, however, that no statement made in a registration
statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by
reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with
a time of contract of sale prior to such effective date, supersede or modify any statement that was made in the registration statement
or prospectus that was part of this Registration Statement or made in any such document immediately prior to such effective date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(5) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;That, for
the purpose of determining liability of the registrant under the Securities Act of 1933 to any purchaser in the initial distribution
of the securities: The undersigned registrant undertakes that in a primary offering of securities of the undersigned registrant
pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if
the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant
will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.45in">(i) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule
424;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.45in">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to
by the undersigned registrant;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.45in">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant
or its securities provided by or on behalf of the undersigned registrant; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.45in">(iv) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
other communication that is an offer in the offering made by the undersigned registrant to the purchaser.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The undersigned registrant hereby undertakes that, for purposes
of determining any liability under the Securities Act, each filing of the registrant&rsquo;s annual report pursuant to Section&nbsp;13(a)
or 15(d) of the Securities Exchange Act (and, where applicable, each filing of an employee benefit plan&rsquo;s annual report
pursuant to Section&nbsp;15(d) of the Securities Exchange Act) that is incorporated by reference in the registration statement
shall be deemed to be a new registration statement relating to the securities offered herein, and the offering of such securities
at that time shall be deemed to be the initial bona fide offering thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Insofar as indemnification for liabilities arising under the
Securities Act, as amended, may be permitted to directors, officers and controlling persons of the registrant pursuant to the
foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the SEC such indemnification is against
public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against
such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling
person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or
controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel
the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such
indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such
issue. The undersigned registrant hereby undertakes to file an application for the purpose of determining the eligibility of the
trustee to act under subsection (a)&nbsp;of Section&nbsp;310 of the Trust Indenture Act (&ldquo;Act&rdquo;) in accordance with
the rules and regulations prescribed by the Commission under Section&nbsp;305(b)(2) of the Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a018_v1"></A><B>SIGNATURES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> Pursuant to the requirements of the Securities Act of 1933,
as amended, the Company certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on
Form S-1 and has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized,
in Seattle, Washington, on May 3, 2018. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 10pt">Atossa Genetics Inc.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 3%; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">By:</FONT></TD>
    <TD STYLE="width: 47%; border-bottom: black 1pt solid"><FONT STYLE="font-size: 10pt">/s/ Steven C. Quay</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Steven C. Quay, M.D., Ph.D.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Chairman, Chief Executive Officer and President</FONT></TD></TR>
</TABLE>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Pursuant to the requirements of the Securities Act of 1933,
as amended, this registration statement on Form S-1 has been signed by the following persons in the capacities and on the dates
indicated.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 41%; border-bottom: black 1pt solid; text-align: center"> <FONT STYLE="font-size: 10pt"><B>Signature</B></FONT> </TD>
    <TD STYLE="width: 2%; text-align: center"> &nbsp; </TD>
    <TD STYLE="width: 34%; border-bottom: black 1pt solid; text-align: center"> <FONT STYLE="font-size: 10pt"><B>Office(s)</B></FONT> </TD>
    <TD STYLE="width: 2%; text-align: center"> &nbsp; </TD>
    <TD STYLE="width: 21%; border-bottom: black 1pt solid; text-align: center"> <FONT STYLE="font-size: 10pt"><B>Date</B></FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid; text-align: center"> <FONT STYLE="font-size: 10pt">/s/ Steven C. Quay</FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">Chairman, Chief Executive</FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">May 3, 2018</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt"><B>Steven C. Quay, M.D., Ph.D.</B></FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">Officer and President</FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">(Principal Executive Officer)</FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; border-bottom: Black 1pt solid; text-align: center"> <FONT STYLE="font-size: 10pt">/s/
    Kyle Guse</FONT> </TD>
    <TD STYLE="vertical-align: top; text-align: center"> &nbsp; </TD>
    <TD STYLE="vertical-align: top; text-align: center"> <FONT STYLE="font-size: 10pt">Chief Financial Officer, General Counsel
    and Secretary</FONT> </TD>
    <TD STYLE="vertical-align: top; text-align: center"> &nbsp; </TD>
    <TD STYLE="vertical-align: top; text-align: center"> <FONT STYLE="font-size: 10pt">May 3, 2018</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt"><B>Kyle Guse</B></FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">(Principal Financial and</FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">Accounting Officer)</FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid; text-align: center"> <FONT STYLE="font-size: 10pt">/s/ *</FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">Director</FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">May 3, 2018</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt"><B>Shu-Chih Chen, Ph.D.</B></FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid; text-align: center"> <FONT STYLE="font-size: 10pt">/s/ *</FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">Director</FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">May 3, 2018</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt"><B>Richard Steinhart</B></FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid; text-align: center"> <FONT STYLE="font-size: 10pt">/s/ *</FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">Director</FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">May 3, 2018</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt"><B>Stephen J. Galli, M.D.</B></FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid; text-align: center"> <FONT STYLE="font-size: 10pt">/s/ *</FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">Director</FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">May 3, 2018</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt"><B>H. Lawrence Remmel</B></FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid; text-align: center"> <FONT STYLE="font-size: 10pt">/s/ *</FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">Director</FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">May 3, 2018</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt"><B>Gregory L. Weaver</B></FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">* By: /s/ Kyle Guse&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Attorney-in-fact</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR>
    <TD STYLE="width: 100%; text-align: center">&nbsp;</TD></TR>
</TABLE>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a019_v1"></A><B>EXHIBIT INDEX</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 10%; text-align: center"> <FONT STYLE="font-size: 10pt"><B>Exhibit&nbsp;No.</B></FONT> </TD>
    <TD STYLE="width: 1%; padding-bottom: 1pt; text-align: center"> &nbsp; </TD>
    <TD STYLE="width: 47%; text-align: center"> <FONT STYLE="font-size: 10pt"><B>Description</B></FONT> </TD>
    <TD STYLE="width: 1%; padding-bottom: 1pt; text-align: center"> &nbsp; </TD>
    <TD STYLE="width: 24%; text-align: center"> <FONT STYLE="font-size: 10pt"><B>Form</B></FONT> </TD>
    <TD STYLE="width: 1%; padding-bottom: 1pt; padding-left: 0.1in; text-align: center; text-indent: -0.1in"> &nbsp; </TD>
    <TD STYLE="width: 16%; padding-left: 0.1in; text-align: center; text-indent: -0.1in"> <FONT STYLE="font-size: 10pt"><B>Date</B></FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000161577418002813/s109744_ex1-1.htm"><FONT STYLE="font-size: 10pt">1.1</FONT></A> </TD>
    <TD> &nbsp; </TD>
    <TD> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000161577418002813/s109744_ex1-1.htm"><FONT STYLE="font-size: 10pt">Form
    of Dealer-Manager Agreement</FONT></A> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">Amendment No. 1 to Registration Statement on Form S-1, as
    Exhibit 1.1</FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">&nbsp;April 23, 2018</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000114420412034079/v315460_ex3-2.htm"><FONT STYLE="font-size: 10pt">3.1</FONT></A> </TD>
    <TD> &nbsp; </TD>
    <TD> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000114420412034079/v315460_ex3-2.htm"><FONT STYLE="font-size: 10pt">Amended
    and Restated Certificate of Incorporation of Atossa Genetics Inc</FONT></A> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">Registration Statement on Form S-1, as Exhibit 3.2</FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">June 11, 2012</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000114420416121498/v447714_ex4-1.htm"><FONT STYLE="font-size: 10pt">3.2</FONT></A> </TD>
    <TD> &nbsp; </TD>
    <TD> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000114420416121498/v447714_ex4-1.htm"><FONT STYLE="font-size: 10pt">Certificate
    of Amendment to Amended and Restated Certificate of Incorporation of Atossa Genetics Inc.</FONT></A> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">Current Report on Form 8-K, as Exhibit 4.1</FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">August 26, 2016</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000161577418002808/s109743_ex4-1.htm"><FONT STYLE="font-size: 10pt">3.3</FONT></A> </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="padding-right: 0.8pt"> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000161577418002808/s109743_ex4-1.htm"><FONT STYLE="font-size: 10pt">Certificate
    of Amendment to Amended and Restated Certificate of Incorporation of Atossa Genetics Inc.</FONT></A> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="padding-right: 0.8pt; text-align: center"> <FONT STYLE="font-size: 10pt">Current Report on Form 8-K, as Exhibit
    4.1</FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">April 23, 2018</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="padding-right: 0.8pt"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="padding-right: 0.8pt; text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000114420412034079/v315460_ex3-4.htm"><FONT STYLE="font-size: 10pt">3.4</FONT></A> </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="padding-right: 0.8pt"> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000114420412034079/v315460_ex3-4.htm"><FONT STYLE="font-size: 10pt">Bylaws
    of Atossa Genetics Inc</FONT></A> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="padding-right: 0.8pt; text-align: center"> <FONT STYLE="font-size: 10pt">Registration Statement on Form S-1,
    as Exhibit 3.4</FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">June 11, 2012</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000114420412069016/v330725_ex3-1.htm"><FONT STYLE="font-size: 10pt">3.5</FONT></A> </TD>
    <TD> &nbsp; </TD>
    <TD> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000114420412069016/v330725_ex3-1.htm"><FONT STYLE="font-size: 10pt">Amendment
    to Bylaws of Atossa Genetics Inc.</FONT></A> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">Current Report on Form 8-K, as Exhibit 3.1</FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">December 20, 2012</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> <FONT STYLE="font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000161577418002813/s109744_ex4-1.htm">4.1</A></FONT> </TD>
    <TD> &nbsp; </TD>
    <TD> <FONT STYLE="font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000161577418002813/s109744_ex4-1.htm">Form of Certificate of Designation of Preference, Rights and Limitations of Series B Convertible Preferred Stock</A></FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">Amendment No. 1 to Registration Statement on Form S-1, as Exhibit 4.1</FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">April 23, 2018</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> <FONT STYLE="font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000161577418002813/s109744_ex4-2.htm">4.2</A></FONT> </TD>
    <TD> &nbsp; </TD>
    <TD> <FONT STYLE="font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000161577418002813/s109744_ex4-2.htm">Form of Warrant Agreement</A></FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> Amendment No. 1 to Registration Statement on Form S-1, as Exhibit 4.2 </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">April 23, 2018</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> <FONT STYLE="font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000161577418002813/s109744_ex4-3.htm">4.3</A></FONT> </TD>
    <TD> &nbsp; </TD>
    <TD> <FONT STYLE="font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000161577418002813/s109744_ex4-3.htm">Form of Warrant Certificate</A></FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> Amendment No. 1 to Registration Statement on Form S-1, as Exhibit 4.3 </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">April 23, 2018</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> <FONT STYLE="font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000161577418002813/s109744_ex4-4.htm">4.4</A></FONT> </TD>
    <TD> &nbsp; </TD>
    <TD> <FONT STYLE="font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000161577418002813/s109744_ex4-4.htm">Form of Non-Transferable Subscription Rights Certificate</A></FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> Amendment No. 1 to Registration Statement on Form S-1, as Exhibit 4.4 </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">&nbsp;April 23, 2018</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000114420416105300/v441040_ex4-1.htm"><FONT STYLE="font-size: 10pt">4.5</FONT></A> </TD>
    <TD> &nbsp; </TD>
    <TD> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000114420416105300/v441040_ex4-1.htm"><FONT STYLE="font-size: 10pt">Registration
    Rights Agreement, dated as of May&nbsp;25, 2016, by and between the Company and Aspire Capital Fund, LLC.</FONT></A> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">Current Report on Form 8-K, as Exhibit 4.1</FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">May 27, 2016</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000114420414003982/v366184_ex4-1.htm"><FONT STYLE="font-size: 10pt">4.6</FONT></A> </TD>
    <TD> &nbsp; </TD>
    <TD> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000114420414003982/v366184_ex4-1.htm"><FONT STYLE="font-size: 10pt">Form
    of Warrant Agreement from January 2014 Public Offering</FONT></A> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">Current Report on Form 8-K, as Exhibit 4.1</FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">January 24, 2014</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000114420414003982/v366184_ex4-2.htm"><FONT STYLE="font-size: 10pt">4.7</FONT></A> </TD>
    <TD> &nbsp; </TD>
    <TD> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000114420414003982/v366184_ex4-2.htm"><FONT STYLE="font-size: 10pt">Form
    of Warrant issued to Dawson James Securities Inc. in January 2014</FONT></A> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">Current Report on Form 8-K, as Exhibit 4.2</FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">January 24, 2014</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000114420414032964/v379431_ex4-1.htm"><FONT STYLE="font-size: 10pt">4.8</FONT></A> </TD>
    <TD> &nbsp; </TD>
    <TD> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000114420414032964/v379431_ex4-1.htm"><FONT STYLE="font-size: 10pt">Rights
    Agreement dated as of May 19, 2014, by and between the Company and VStock Transfer LLC, as rights agent, which includes as
    Exhibit B the Form of Rights Certificate</FONT></A> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">Current Report on Form 8-K, as Exhibit 4.1</FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">May 22, 2014</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000161577417007555/s108519_ex4-1.htm"><FONT STYLE="font-size: 10pt">4.9</FONT></A> </TD>
    <TD> &nbsp; </TD>
    <TD> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000161577417007555/s108519_ex4-1.htm"><FONT STYLE="font-size: 10pt">Form
    of Common Stock Purchase Warrant A</FONT></A> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">Current Report on Form 8-K, as Exhibit 4.1</FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">December 22, 2017</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000161577417007555/s108519_ex4-2.htm"><FONT STYLE="font-size: 10pt">4.10</FONT></A> </TD>
    <TD> &nbsp; </TD>
    <TD> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000161577417007555/s108519_ex4-2.htm"><FONT STYLE="font-size: 10pt">Form
    of Commons Stock Purchase Warrant B</FONT></A> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">Current Report on Form 8-K, as Exhibit 4.2</FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">December 22, 2017</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> <FONT STYLE="font-size: 10pt"><A HREF="s109823_ex5-1.htm">5.1</A></FONT> </TD>
    <TD> &nbsp; </TD>
    <TD> <FONT STYLE="font-size: 10pt"><A HREF="s109823_ex5-1.htm">Opinion of Gibson, Dunn &amp; Crutcher LLP</A></FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">Filed herewith</FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD> &nbsp; </TD></TR>
</TABLE>

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 10%"> &nbsp; </TD>
    <TD STYLE="width: 1%"> &nbsp; </TD>
    <TD STYLE="width: 47%"> &nbsp; </TD>
    <TD STYLE="text-align: center; width: 1%"> &nbsp; </TD>
    <TD STYLE="text-align: center; width: 24%"> &nbsp; </TD>
    <TD STYLE="text-align: center; width: 1%"> &nbsp; </TD>
    <TD STYLE="text-align: center; width: 16%"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in"><A HREF="s109823_ex8-1.htm"> <FONT STYLE="font-size: 10pt">8.1</FONT> </A></TD>
    <TD> &nbsp; </TD>
    <TD><A HREF="s109823_ex8-1.htm"> <FONT STYLE="font-size: 10pt">Tax Opinion of Gibson, Dunn &amp; Crutcher LLP</FONT> </A></TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">Filed herewith</FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in"> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000114420412007893/v301800_ex10-3.htm"><FONT STYLE="font-size: 10pt">10.1#</FONT></A> </TD>
    <TD> &nbsp; </TD>
    <TD> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000114420412007893/v301800_ex10-3.htm"><FONT STYLE="font-size: 10pt">Restated
    and Amended Employment Agreement with Steven Quay</FONT></A> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">Registration Statement on Form S-1, as Exhibit 10.3</FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">February 14, 2012</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in"> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000114420412030728/v310463_ex10-5.htm"><FONT STYLE="font-size: 10pt">10.2</FONT></A> </TD>
    <TD> &nbsp; </TD>
    <TD> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000114420412030728/v310463_ex10-5.htm"><FONT STYLE="font-size: 10pt">Form
    of Indemnification Agreement</FONT></A> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">Registration Statement on Form S-1, as Exhibit 10.5</FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">May 21, 2012</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in"> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000114420412034079/v315460_ex10-7.htm"><FONT STYLE="font-size: 10pt">10.3#</FONT></A> </TD>
    <TD> &nbsp; </TD>
    <TD> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000114420412034079/v315460_ex10-7.htm"><FONT STYLE="font-size: 10pt">Form
    of Incentive Stock Option Agreement</FONT></A> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">Registration Statement on Form S-1, as Exhibit 10.7</FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">June 11, 2012</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in"> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000114420412034079/v315460_ex10-8.htm"><FONT STYLE="font-size: 10pt">10.4#</FONT></A> </TD>
    <TD> &nbsp; </TD>
    <TD> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000114420412034079/v315460_ex10-8.htm"><FONT STYLE="font-size: 10pt">Form
    of Non-Qualified Stock Option Agreement for Employees</FONT></A> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">Registration Statement on Form S-1, as Exhibit 10.8</FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">June 11, 2012</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in"> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000114420412034079/v315460_ex10-9.htm"><FONT STYLE="font-size: 10pt">10.5#</FONT></A> </TD>
    <TD> &nbsp; </TD>
    <TD> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000114420412034079/v315460_ex10-9.htm"><FONT STYLE="font-size: 10pt">Form
    of Non-Qualified Stock Option Agreement for Non-Employee Directors</FONT></A> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">Registration Statement on Form S-1, as Exhibit 10.9</FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">June 11, 2012</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in"> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000114420412007893/v301800_ex10-10.htm"><FONT STYLE="font-size: 10pt">10.6</FONT></A> </TD>
    <TD> &nbsp; </TD>
    <TD> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000114420412007893/v301800_ex10-10.htm"><FONT STYLE="font-size: 10pt">Form
    of Subscription Agreement</FONT></A> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">Registration Statement on Form S-1, as Exhibit 10.10</FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">February 14, 2012</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in"> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000114420412020447/v306694_ex10-12.htm"><FONT STYLE="font-size: 10pt">10.7</FONT></A> </TD>
    <TD> &nbsp; </TD>
    <TD> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000114420412020447/v306694_ex10-12.htm"><FONT STYLE="font-size: 10pt">Patent
    Assignment Agreement by and between the Company and Ensisheim Partners, LLC</FONT></A> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">Registration Statement on Form S-1, as Exhibit 10.12</FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">April 6, 2012</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in"> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000114420412034079/v315460_ex10-13.htm"><FONT STYLE="font-size: 10pt">10.8#</FONT></A> </TD>
    <TD> &nbsp; </TD>
    <TD> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000114420412034079/v315460_ex10-13.htm"><FONT STYLE="font-size: 10pt">Form
    of Restricted Stock Award Agreement</FONT></A> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">Registration Statement on Form S-1, as Exhibit 10.13</FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">June 11, 2012</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in"> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000114420412020447/v306694_ex10-20.htm"><FONT STYLE="font-size: 10pt">10.9</FONT></A> </TD>
    <TD> &nbsp; </TD>
    <TD> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000114420412020447/v306694_ex10-20.htm"><FONT STYLE="font-size: 10pt">Office
    Lease with Sander Properties, LLC, dated March 4, 2011</FONT></A> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">Registration Statement on Form S-1, as Exhibit 1020</FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">April 6, 2012</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in"> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000114420412020447/v306694_ex10-21.htm"><FONT STYLE="font-size: 10pt">10.10</FONT></A> </TD>
    <TD> &nbsp; </TD>
    <TD> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000114420412020447/v306694_ex10-21.htm"><FONT STYLE="font-size: 10pt">Office
    Lease with Sander Properties, LLC, dated July 8, 2011</FONT></A> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">Registration Statement on Form S-1, as Exhibit 10.21</FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">April 6, 2012</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in"> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000114420412020447/v306694_ex10-22.htm"><FONT STYLE="font-size: 10pt">10.11</FONT></A> </TD>
    <TD> &nbsp; </TD>
    <TD> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000114420412020447/v306694_ex10-22.htm"><FONT STYLE="font-size: 10pt">Office
    Lease with Sander Properties, LLC, dated September 20, 2011</FONT></A> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">Registration Statement on Form S-1, as Exhibit 10.22</FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">April 6, 2012</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in"> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000114420412020447/v306694_ex10-23.htm"><FONT STYLE="font-size: 10pt">10.12</FONT></A> </TD>
    <TD> &nbsp; </TD>
    <TD> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000114420412020447/v306694_ex10-23.htm"><FONT STYLE="font-size: 10pt">Sublease
    with Fred Hutchinson Cancer Research Center, dated December 9, 2011</FONT></A> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">Registration Statement on Form S-1, as Exhibit 10.23</FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">April 6, 2012</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in"> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000114420416103985/v440599_ex99-1.htm"><FONT STYLE="font-size: 10pt">10.13#</FONT></A> </TD>
    <TD> &nbsp; </TD>
    <TD> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000114420416103985/v440599_ex99-1.htm"><FONT STYLE="font-size: 10pt">Amended
    and Restated Employment Agreement between the Company and Kyle Guse dated May&nbsp;18, 2016</FONT></A> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">Current Report on Form 8-K, as Exhibit 10.1</FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">May 20, 2016</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in"> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000114420414018247/v371048_ex10-33.htm"><FONT STYLE="font-size: 10pt">10.14</FONT></A> </TD>
    <TD> &nbsp; </TD>
    <TD> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000114420414018247/v371048_ex10-33.htm"><FONT STYLE="font-size: 10pt">Office
    space Lease dated July 18, 2013 between Alexandria (ARE) and the Company</FONT></A> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">Annual Report on Form 10-K, as Exhibit 10.33</FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">March 27, 2014</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in"> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000114420415064686/v422970_ex10-1.htm"><FONT STYLE="font-size: 10pt">10.15</FONT></A> </TD>
    <TD> &nbsp; </TD>
    <TD> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000114420415064686/v422970_ex10-1.htm"><FONT STYLE="font-size: 10pt">Common
    Stock Purchase Agreement, between the Company and Aspire Capital Fund, LLC, dated as of November 11, 2015</FONT></A> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">Quarterly Report on Form 10-Q, as Exhibit 10.1</FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">November 12, 2015</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in"> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000114420416105300/v441040_ex10-1.htm"><FONT STYLE="font-size: 10pt">10.16</FONT></A> </TD>
    <TD> &nbsp; </TD>
    <TD> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000114420416105300/v441040_ex10-1.htm"><FONT STYLE="font-size: 10pt">Common
    Stock Purchase Agreement, between the Company and Aspire Capital Fund, LLC, dated as of May 25, 2016</FONT></A> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">Current Report on Form 8-K, as Exhibit 10.1</FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">May 27, 2016</FONT> </TD></TR>
</TABLE>

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<P STYLE="margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in; width: 10%"> &nbsp; </TD>
    <TD STYLE="width: 1%"> &nbsp; </TD>
    <TD STYLE="width: 47%"> &nbsp; </TD>
    <TD STYLE="text-align: center; width: 1%"> &nbsp; </TD>
    <TD STYLE="text-align: center; width: 24%"> &nbsp; </TD>
    <TD STYLE="text-align: center; width: 1%"> &nbsp; </TD>
    <TD STYLE="text-align: center; width: 16%"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in"> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000114420414018247/v371048_ex10-35.htm"><FONT STYLE="font-size: 10pt">10.17</FONT></A> </TD>
    <TD> &nbsp; </TD>
    <TD> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000114420414018247/v371048_ex10-35.htm"><FONT STYLE="font-size: 10pt">Lab
    and Office space Lease Agreement dated March 24, 2014 between Alexandria (ARE) and the Company</FONT></A> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">Annual Report on Form 10-K, as Exhibit 10.33</FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">March 27, 2014</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in"> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000114420414048899/v385123_ex10-1.htm"><FONT STYLE="font-size: 10pt">10.18</FONT></A> </TD>
    <TD> &nbsp; </TD>
    <TD> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000114420414048899/v385123_ex10-1.htm"><FONT STYLE="font-size: 10pt">Office
    Space Assignment and Assumption of Lease and Consent to Assignment dated August 8, 2014 between Legacy Group, Inc. and the
    Company</FONT></A> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">Quarterly Report on Form 10-Q, as Exhibit 10.1</FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">August 12, 2014</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in"> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000114420415031846/v410987_ex10-1.htm"><FONT STYLE="font-size: 10pt">10.19</FONT></A> </TD>
    <TD> &nbsp; </TD>
    <TD> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000114420415031846/v410987_ex10-1.htm"><FONT STYLE="font-size: 10pt">Intellectual
    Property License Agreement between Atossa Genetics Inc. and Besins Healthcare Luxembourg SARL, dated May 14, 2015</FONT></A> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">Current Report on Form 8-K, as Exhibit 10.1</FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">May 18, 2015</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in"> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000114420416116738/v446144_ex10-1.htm"><FONT STYLE="font-size: 10pt">10.20</FONT></A> </TD>
    <TD> &nbsp; </TD>
    <TD> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000114420416116738/v446144_ex10-1.htm"><FONT STYLE="font-size: 10pt">Settlement
    and Termination of License Agreement between Besins Healthcare Luxembourg SARL and its Affiliates and Atossa Genetics, Inc.
    dated August 4, 2016</FONT></A> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">Current Report on Form 8-K, as Exhibit 10.1</FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">August 5, 2016</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in"> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000114420415071223/v426801_ex10-1.htm"><FONT STYLE="font-size: 10pt">10.21</FONT></A> </TD>
    <TD> &nbsp; </TD>
    <TD> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000114420415071223/v426801_ex10-1.htm"><FONT STYLE="font-size: 10pt">Stock
    Purchase Agreement by and among the Company, the National Reference Laboratory for Breast Health, Inc. and NRL Investment
    Group, LLC, dated December 16, 2015</FONT></A> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">Current Report on Form 8-K, as Exhibit 10.1</FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">December 16, 2015</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in"> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000114420416091380/v432918_ex10-35.htm"><FONT STYLE="font-size: 10pt">10.22</FONT></A> </TD>
    <TD> &nbsp; </TD>
    <TD> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000114420416091380/v432918_ex10-35.htm"><FONT STYLE="font-size: 10pt">Office
    space Lease Agreement dated October 1, 2015 between Hughes-Northwest and the Company.</FONT></A> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">Annual Report on Form 10-K, as Exhibit 10.35</FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">&nbsp;March 30, 2016</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in"> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000161577417002259/s105962_ex10-2.htm"><FONT STYLE="font-size: 10pt">10.23</FONT></A> </TD>
    <TD> &nbsp; </TD>
    <TD> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000161577417002259/s105962_ex10-2.htm"><FONT STYLE="font-size: 10pt">2010
    Stock Option and Incentive Plan, as amended</FONT></A> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">Quarterly Report on Form 10-Q, as Exhibit 10.2</FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">May 11, 2017</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in"> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000161577417007555/s108519_ex10-1.htm"><FONT STYLE="font-size: 10pt">10.24</FONT></A> </TD>
    <TD> &nbsp; </TD>
    <TD> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000161577417007555/s108519_ex10-1.htm"><FONT STYLE="font-size: 10pt">Placement
    agreement between Atossa Genetics Inc. and Maxim Corp. as representative of the Purchasers, dated December 20, 2017</FONT></A> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">Current Report on Form 8-K, as Exhibit 10.1</FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">December 22, 2017</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in"> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000161577417007555/s108519_ex10-2.htm"><FONT STYLE="font-size: 10pt">10.25</FONT></A> </TD>
    <TD> &nbsp; </TD>
    <TD> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000161577417007555/s108519_ex10-2.htm"><FONT STYLE="font-size: 10pt">Securities
    Purchase agreement between Atossa Genetics Inc. and each purchaser</FONT></A> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">Current Report on Form 8-K, as Exhibit 10.1</FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">December 22, 2017</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="s109823_ex23-1.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">23.1</FONT></a></TD>
    <TD> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT> </TD>
    <TD> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="s109823_ex23-1.htm">Consent of BDO USA LLP</a></FONT> </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Filed herewith</FONT> </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> <FONT STYLE="font-size: 10pt">23.2</FONT> </TD>
    <TD> &nbsp; </TD>
    <TD> <FONT STYLE="font-size: 10pt">Consent of Gibson, Dunn &amp; Crutcher LLP</FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">Filed as part of Exhibit 5.1 to this Registration Statement
    on Form S-1</FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000161577418002120/s109466_s1.htm"><FONT STYLE="font-size: 10pt">24.1</FONT></A> </TD>
    <TD> &nbsp; </TD>
    <TD> <A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000161577418002120/s109466_s1.htm"><FONT STYLE="font-size: 10pt">Powers
    of Attorney</FONT></A> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">Previously included on the signature page in Part II of this
    Registration Statement on Form S-1</FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">&nbsp;March 27, 2018</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="s109823_ex99-1.htm"> <FONT STYLE="font-size: 10pt">99.1</FONT> </A></TD>
    <TD> &nbsp; </TD>
    <TD><A HREF="s109823_ex99-1.htm"> <FONT STYLE="font-size: 10pt">Form of Instructions as to Use of Subscription Rights Certificates</FONT> </A></TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">Filed herewith</FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="s109823_ex99-2.htm"> <FONT STYLE="font-size: 10pt">99.2</FONT> </A></TD>
    <TD> &nbsp; </TD>
    <TD><A HREF="s109823_ex99-2.htm"> <FONT STYLE="font-size: 10pt">Form of Letter to Shareholders Who Are Record Holders</FONT> </A></TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">Filed herewith</FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
</TABLE>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 10%"> &nbsp; </TD>
    <TD STYLE="width: 1%"> &nbsp; </TD>
    <TD STYLE="width: 47%"> &nbsp; </TD>
    <TD STYLE="text-align: center; width: 1%"> &nbsp; </TD>
    <TD STYLE="text-align: center; width: 24%"> &nbsp; </TD>
    <TD STYLE="text-align: center; width: 1%"> &nbsp; </TD>
    <TD STYLE="text-align: center; width: 16%"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="s109823_ex99-3.htm"> <FONT STYLE="font-size: 10pt">99.3</FONT> </A></TD>
    <TD> &nbsp; </TD>
    <TD><A HREF="s109823_ex99-3.htm"> <FONT STYLE="font-size: 10pt">Form of Letter to Brokers, Dealers, Banks and Other Nominees</FONT> </A></TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">Filed herewith</FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="s109823_ex99-4.htm"> <FONT STYLE="font-size: 10pt">99.4</FONT> </A></TD>
    <TD> &nbsp; </TD>
    <TD><A HREF="s109823_ex99-4.htm"> <FONT STYLE="font-size: 10pt">Form of Broker Letter to Clients Who Are Beneficial Holders</FONT> </A></TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">Filed herewith</FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> <FONT STYLE="font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000161577418002813/s109744_ex99-5.htm">99.5</A></FONT> </TD>
    <TD> &nbsp; </TD>
    <TD> <FONT STYLE="font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000161577418002813/s109744_ex99-5.htm">Form of Beneficial Owner Election Form</A></FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">Amendment No. 1 to Registration Statement on Form S-1, as Exhibit 99.5</FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> April 23, 2018 </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> <FONT STYLE="font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000161577418002813/s109744_ex99-6.htm">99.6</A></FONT> </TD>
    <TD> &nbsp; </TD>
    <TD> <FONT STYLE="font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000161577418002813/s109744_ex99-6.htm">Form of Nominee Holder Certification</A></FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">Amendment No. 1 to Registration Statement on Form S-1, as Exhibit 99.6</FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> April 23, 2018 </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> <FONT STYLE="font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000161577418002813/s109744_ex99-7.htm">99.7</A></FONT> </TD>
    <TD> &nbsp; </TD>
    <TD> <FONT STYLE="font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1488039/000161577418002813/s109744_ex99-7.htm">Form of Notice of Important Tax Information</A></FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">Amendment No. 1 to Registration Statement on Form S-1, as Exhibit 99.7</FONT> </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD>
    <TD STYLE="text-align: center"> April 23, 2018 </TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"># &nbsp;&nbsp;&nbsp;&nbsp;Indicates management contract or
compensatory plan, contractor or agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<DOCUMENT>
<TYPE>EX-5
<SEQUENCE>2
<FILENAME>s109823_ex5-1.htm
<DESCRIPTION>EXHIBIT 5.1
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
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<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Exhibit
5.1</B></FONT></P>

<P STYLE="margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="margin: 0"></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; font: 8pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="width: 35%"><IMG SRC="img002_v1.jpg" ALT="">&nbsp;</TD>
    <TD STYLE="width: 50%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="width: 15%"><P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Gibson,
Dunn &amp; Crutcher LLP&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">555
Mission Street&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">San
Francisco, CA 94105-0921</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Tel
415.393.8200&nbsp;</FONT></P>

<P STYLE="margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">www.gibsondunn.com</FONT></P>


</TD></TR>
</TABLE>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left">&nbsp;&nbsp;</P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Client:
05637-00008</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">May
3, 2018</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Atossa
Genetics Inc.<BR>
107 Spring Street<BR>
Seattle, WA 98104</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.35in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Re:</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Atossa
                                         Genetics Inc.</I><BR>
                                         <I>Registration Statement on Form&nbsp;S-1 (File No. 333-223949)</I></FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Ladies
and Gentlemen:</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have examined the Registration Statement on Form S-1, File No. 333-223949, as amended (the &ldquo;<U>Registration Statement</U>&rdquo;)
of Atossa Genetics Inc., a Delaware corporation (the &ldquo;<U>Company</U>&rdquo;), to be filed with the Securities and Exchange
Commission (the &ldquo;<U>Commission</U>&rdquo;) pursuant to the Securities Act of 1933, as amended (the &ldquo;<U>Securities
Act</U>&rdquo;), in connection with the offering by the Company of: (i) 25,000 non-transferable subscription rights (the &ldquo;<U>Rights</U>&rdquo;)
to be distributed by the Company without consideration in connection with a rights offering (the &ldquo;<U>Rights Offering</U>&rdquo;)
to holders of record of Common Stock, par value $0.18 per share, of the Company (the &ldquo;<U>Common Stock</U>&rdquo;) and holders
of record of warrants issued December 22, 2017, (ii) up to 25,000 units (the &ldquo;<U>Units</U>&rdquo;) issuable upon exercise
of the Rights, each Unit consisting of one share of Series B Convertible Preferred Stock, par value $0.001 per share (the &ldquo;<U>Preferred
Stock</U>&rdquo;), and 284 warrants, with each warrant exercisable for one share of Common Stock (the &ldquo;<U>Warrants</U>&rdquo;),
(iii) the Preferred Stock, (iv) the Warrants, (v) up to 7,102,273 shares of Common Stock issuable upon conversion of the Preferred
Stock (the &ldquo;<U>Conversion Shares</U>&rdquo;); and (vi) up to 7,100,000 shares of Common Stock issuable upon exercise of
the Warrants (the &ldquo;<U>Warrant Shares</U>&rdquo;). The Warrants will be issued pursuant to a warrant agency agreement (the
&ldquo;<U>Warrant Agency Agreement</U>&rdquo;) with VStock Transfer, LLC, as warrant agent (the &ldquo;<U>Warrant Agent</U>&rdquo;).</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
arriving at the opinions expressed below, we have examined originals, or copies certified or otherwise identified to our satisfaction
as being true and complete copies of the originals, of specimen stock certificates, the Warrant Agency Agreement and such other
documents, corporate records, certificates of officers of the Company and of public officials and other instruments as we have
deemed necessary or advisable to enable us to render the opinions set forth below. In our examination, we have assumed without
independent investigation the genuineness of all signatures, the legal capacity and competency of all natural persons, the authenticity
of all documents submitted to us as originals and the conformity to original documents of all documents submitted to us as copies.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Beijing &bull; <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #262626">Brussels
&bull; Century City &bull; Dallas </FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull; <FONT STYLE="color: #262626">Denver
</FONT>&bull; <FONT STYLE="color: #262626">Dubai &bull; Hong Kong &bull; London &bull; Los Angeles &bull; Munich</FONT></FONT></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #262626">New
York &bull; Orange County &bull; Palo Alto </FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;
<FONT STYLE="color: #262626">Paris </FONT>&bull; <FONT STYLE="color: #262626">San </FONT>Francisco &bull; <FONT STYLE="color: #262626">Sao
Paulo &bull; Singapore </FONT>&bull; <FONT STYLE="color: #262626">Washington, D.C.</FONT>&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><IMG SRC="img002_v1.jpg" ALT=""></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">May
3, 2018&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Page
2</FONT>&nbsp;</P>



<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">Based
upon the foregoing, and subject to the assumptions, exceptions, qualifications and limitations set forth herein, we are of the
opinion that: (i) the shares of Preferred Stock included in the Units, when issued against payment therefor as set forth in the
Registration Statement, will be validly issued, fully paid and non-assessable; (ii) the Conversion Shares, when issued upon exercise
of the Preferred Stock, will be validly issued, fully paid and non-assessable; (iii) the Warrant Shares, when issued upon exercise
of the Warrants against payment therefor as set forth in the Registration Statement, will be validly issued, fully paid and non-assessable;
(iv) the Rights, the Preferred Stock and the Warrants, when issued as set forth in the Registration Statement, will be legal,
valid and binding obligations of the Company, enforceable against the Company in accordance with their terms; and (v) the Units,
when issued against payment therefor as set forth in the Registration Statement, will be validly issued, fully paid and non-assessable.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
opinions expressed above are subject to the following additional exceptions, qualifications, limitations and assumptions:</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">A.
We render no opinion herein as to matters involving the laws of any jurisdiction other than the State of New York and the United
States of America and, for purposes of clauses (i), (ii) and (iii), the Delaware General Corporation Law. We are not admitted
to practice in the State of Delaware; however, we are generally familiar with the Delaware General Corporation Law as currently
in effect and have made such inquiries as we consider necessary to render the opinions contained in clauses (i), (ii) and (iii)
above. This opinion is limited to the effect of the current state of the laws of the State of New York, the United States of America
and, to the limited extent set forth above, the laws of the State of Delaware and the facts as they currently exist. We assume
no obligation to revise or supplement this opinion in the event of future changes in such laws or the interpretations thereof
or such facts.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><IMG SRC="img002_v1.jpg" ALT=""></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">May
3, 2018&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Page
3</FONT>&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">B.
The opinion in clause (iv)&nbsp;above is subject to (i)&nbsp;the effect of any bankruptcy, insolvency, reorganization, moratorium,
arrangement or similar laws affecting the rights and remedies of creditors&rsquo; generally, including without limitation the
effect of statutory or other laws regarding fraudulent transfers or preferential transfers, and (ii)&nbsp;general principles of
equity, including without limitation concepts of materiality, reasonableness, good faith and fair dealing and the possible unavailability
of specific performance, injunctive relief or other equitable remedies regardless of whether enforceability is considered in a
proceeding in equity or at law.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
consent to the filing of this opinion as an exhibit to the Registration Statement, and we further consent to the use of our name
under the caption &ldquo;<U>Legal Matters</U>&rdquo; in the Registration Statement and the prospectus that forms a part thereof.
In giving these consents, we do not thereby admit that we are within the category of persons whose consent is required under Section
7 of the Securities Act or the Rules and Regulations of the Commission.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Very
truly yours,</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/
Gibson, Dunn &amp; Crutcher LLP</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

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<TYPE>EX-8.1
<SEQUENCE>3
<FILENAME>s109823_ex8-1.htm
<DESCRIPTION>EXHIBIT 8.1
<TEXT>
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<P STYLE="margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="margin: 0; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Exhibit 8.1</B></FONT></P>

<P STYLE="margin: 0; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="margin: 0; text-align: right"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-size: 10pt">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 75%; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif"><IMG SRC="img003_v1.jpg" ALT=""></FONT></TD>
    <TD STYLE="width: 25%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">Gibson,
        Dunn &amp; Crutcher LLP</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">555 Mission
        Street</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">San Franciso,
        CA 94105-0921</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">Tel 415.393.8200</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">www.gibsondunn.com</FONT></P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Client:
05637-00008</FONT></TD></TR>
</TABLE>


<P STYLE="margin: 0; text-align: right"></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"> May 3, 2018</FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Atossa
Genetics Inc.</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif"><BR>
<FONT STYLE="font-size: 10pt">107 Spring Street</FONT><BR>
<FONT STYLE="font-size: 10pt">Seattle, WA 98104</FONT><BR>
<BR>
<FONT STYLE="font-size: 10pt">Ladies and Gentlemen:</FONT></FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have acted as counsel to Atossa Genetics Inc., a Delaware corporation (the &ldquo;<U>Company</U>&rdquo;), in connection with the
filing of the Registration Statement on Form S-1, File No. 333-223949, as amended (the &ldquo;<U>Registration Statement</U>&rdquo;),
with the Securities and Exchange Commission (the &ldquo;<U>Commission</U>&rdquo;) pursuant to the Securities Act of 1933, as amended
(the &ldquo;<U>Securities Act</U>&rdquo;). The Registration Statement relates to registration of (i) 25,000 non-transferable subscription
rights (the &ldquo;<U>Rights</U>&rdquo;) to be distributed by the Company without consideration in connection with a rights offering
(the &ldquo;<U>Rights Offering</U>&rdquo;) to holders of record of Common Stock, par value $0.18 per share, of the Company (the
&ldquo;<U>Common Stock</U>&rdquo;) and holders of record of warrants issued December 22, 2017, (ii) up to 25,000 units (the &ldquo;<U>Units</U>&rdquo;)
issuable upon exercise of the Rights, each Unit consisting of one share of Series B Convertible Preferred Stock, par value $0.001
per share (the &ldquo;<U>Preferred Stock</U>&rdquo;), and 284 warrants, with each warrant exercisable for one share of Common
Stock (the &ldquo;<U>Warrants</U>&rdquo;), (iii) the Preferred Stock, (iv) the Warrants, (v) up to 7,102,273 shares of Common
Stock issuable upon conversion of the Preferred Stock (the &ldquo;<U>Conversion Shares</U>&rdquo;); and (vi) up to 7,100,000 shares
of Common Stock issuable upon exercise of the Warrants (the &ldquo;<U>Warrant Shares</U>&rdquo;).</FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">For
purposes of this opinion, we have reviewed originals, or copies certified or otherwise identified to our satisfaction, of the
Registration Statement and the exhibit thereto and such other documents and matters of law and fact as we have considered necessary
or appropriate. In addition, we have not made an independent investigation or audit of the facts set forth in the above referenced
documents or otherwise provided to us. We have assumed (i) the authenticity of all documents submitted to us as originals and
the conformity to original documents of all documents submitted to us as copies, (ii) that the Rights Offering will be consummated
as described in the Registration Statement; (iii) that the statements concerning the terms of the Rights Offering set forth in
the Registration Statement are true, complete and correct and will remain true, complete and correct at all relevant times; and
(iv) that any such statements made in the Registration Statement qualified by knowledge, intention, belief or any other similar
qualification are true, complete and correct, and will remain true, complete and correct at all relevant times, in each case as
if made without such qualification. If any of the above described assumptions are untrue for any reason or if the Rights Offering
is consummated in a manner that is different from the manner described in the Registration Statement, our opinion as expressed
below may be adversely affected.</FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Beijing&nbsp;&#9679;&nbsp;Brussels&nbsp;&#9679;&nbsp;Century
City&nbsp;&#9679;&nbsp;Dallas&nbsp;&#9679;&nbsp;Denver&nbsp;&#9679;&nbsp;Dubai&nbsp;&#9679;&nbsp;Frankfurt&nbsp;&#9679;&nbsp;Hong Kong&nbsp;&#9679;&nbsp;Houston&nbsp;&#9679;&nbsp;London&nbsp;&#9679;&nbsp;Los
Angeles&nbsp;&#9679;&nbsp;Munich</FONT></P>

<P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">New
York&nbsp;&#9679;&nbsp;Orange County&nbsp;&#9679;&nbsp;Palo Alto&nbsp;&#9679;&nbsp;Paris&nbsp;&#9679;&nbsp;San Francisco&nbsp;&#9679;&nbsp;S&atilde;o
Paulo&nbsp;&#9679;&nbsp;Singapore&nbsp;&#9679;&nbsp;Washington, D.C.&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif"><IMG SRC="img003_v1.jpg" ALT=""><FONT STYLE="font-size: 10pt">&nbsp;</FONT></FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">May 3, 2018</FONT></P>

<P STYLE="margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">Page <FONT STYLE="font-size: 10pt">2&nbsp;</FONT></FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Based
upon and subject to the foregoing, and our consideration of such other matters of fact and law as we have considered necessary
or appropriate, we hereby confirm to you that the statements set forth under the caption &ldquo;<FONT STYLE="text-transform: uppercase">Material
U.S. Federal Income Tax Consequences</FONT>&rdquo; in the Registration Statement, to the extent such statements summarize U.S.
federal income tax law, and subject to the limitations, qualifications, exceptions, and assumptions set forth herein and therein,
constitute our opinion as to the material United States federal income tax consequences of the Rights Offering to holders of Common
Stock and warrants to purchase Common Stock issued December 22, 2017.</FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
express no opinion on any issue relating to the tax consequences of the transactions contemplated by the Registration Statement
other than the opinion set forth above. Our opinion set forth above is based on the Internal Revenue Code of 1986, as amended,
Treasury Regulations promulgated thereunder, administrative pronouncements and judicial precedents, all as of the date hereof.
The foregoing authorities may be repealed, revoked or modified, and any such change may have retroactive effect. Any change in
applicable laws or facts and circumstances surrounding the Rights Offering, or any inaccuracy in the statements, facts, assumptions
and representations on which we have relied may affect the validity of the opinion set forth herein. We assume no responsibility
to inform the Company of any such change or inaccuracy that may occur or come to our attention.</FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
opinion is not binding on the Internal Revenue Service or a court. There can be no assurance that the Internal Revenue Service
will not take a contrary position or that a court would agree with our opinion if litigated.</FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
are furnishing this opinion in connection with the filing of the Registration Statement and this opinion is not to be relied upon
for any other purpose without our prior written consent. We hereby consent to the filing of this opinion as an exhibit to the
Registration Statement. In giving this consent, we do not hereby admit that we are within the category of persons whose consent
is required under Section 7 of the Securities Act of 1933, as amended, or the rules and regulations of the Securities and Exchange
Commission thereunder.</FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Very
truly yours,</FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/
Gibson, Dunn &amp; Crutcher LLP</FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0"></P>

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<DOCUMENT>
<TYPE>EX-23.1
<SEQUENCE>4
<FILENAME>s109823_ex23-1.htm
<DESCRIPTION>EXHIBIT 23.1
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<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"> <B>Exhibit 23.1</B> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif"> <B>&nbsp;</B> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"> Consent of Independent Registered Public Accounting
Firm </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif"> Atossa Genetics Inc.<br>Seattle, Washington </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"> We hereby consent to the incorporation by reference
in the Prospectus constituting a part of this Amendment No. 2 to Registration Statement on Form S-1 of our report dated March
8, 2018, relating to the consolidated financial statements of Atossa Genetics Inc., appearing in the Company&#8217;s Annual Report
on Form 10-K for the year ended December 31, 2017. Our report contains an explanatory paragraph regarding the Company&#8217;s
ability to continue as a going concern. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"> We also consent to the reference to us under the caption
&#8220;Experts&#8221; in the Prospectus. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif"> /s/ BDO USA, LLP </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif"> BDO USA, LLP<br>Seattle, Washington </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif"> May 3, 2018 </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

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<TYPE>EX-99.1
<SEQUENCE>5
<FILENAME>s109823_ex99-1.htm
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
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<P STYLE="margin: 0; text-align: right"><B>&nbsp;</B></P>

<P STYLE="margin: 0; text-align: right"><B>Exhibit 99.1</B></P>

<P STYLE="margin: 0; text-align: right">&nbsp;</P>

<P STYLE="margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>FORM OF&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>INSTRUCTIONS AS TO USE OF SUBSCRIPTION
RIGHTS CERTIFICATES</B>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ATOSSA GENETICS INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B></B>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Please consult Broadridge Corporate Issuer
Solutions, Inc., your bank or broker as to any questions.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following instructions relate to a
rights offering by Atossa Genetics Inc., a Delaware corporation (&ldquo;Atossa&rdquo;), to the holders of record of its common
stock, $0.18 par value (the &ldquo;Common Stock&rdquo;) or of December 22, 2017 warrants, as described in Atossa&rsquo;s prospectus
dated [&#9679;], 2018. Each holder of record of Common Stock or of December 22, 2017 warrants at the close of business on May 9,
2018, the record date, will receive, at no charge, a non-transferable subscription right for every share of Common Stock held or
deemed to be held at the record date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> Subscription rights exercisable into
an aggregate of 25,000 units of Atossa are being distributed in connection with the rights offering. Each unit is comprised of
one share of Series B Convertible Preferred Stock and 284 warrants.&nbsp;Each warrant will be exercisable for one share of Common
Stock. Each whole subscription right is exercisable, upon payment of the subscription price of $1,000 in cash to purchase one
unit, which we refer to as the basic subscription right. In addition, each subscription right also carries the right to subscribe
at the subscription price for additional units that are not purchased by other holders pursuant to their basic subscription right
(to the extent available, and subject to proration and ownership limitations), which we refer to as the over-subscription privilege.
A holder is entitled to exercise an over-subscription privilege only if the holder fully exercises the basic subscription right.
See &ldquo;The Rights Offering&rdquo; in the prospectus. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">No fractional subscription rights or cash
in lieu thereof will be issued or paid. Fractional subscription rights will be rounded down to the nearest whole number.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The subscription rights will expire at
5:00 p.m., Eastern Time, on May 24, 2018, the expiration date, unless extended. If you do not exercise your subscription rights
before that time, your subscription rights will expire and will no longer be exercisable. Atossa will not be required to issue
shares to you if the subscription agent receives your subscription rights certificate or your subscription payment after that time.
Atossa has the option to extend the rights offering in its sole discretion, although it does not presently intend to do so. Atossa
may extend the rights offering by giving oral or written notice to the subscription agent before the expiration date. If Atossa
elects to extend the rights offering, Atossa will issue a press release announcing the extension no later than 9:00 a.m., Eastern
Time, on the next business day after the most recently announced expiration date of the rights offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The number of subscription rights to which
you are entitled is printed on the face of your subscription rights certificate. You should indicate your wishes with regard to
the exercise of your subscription rights by completing the appropriate section on the back of your subscription rights certificate
and returning the subscription rights certificate with your payment to the subscription agent in the envelope provided.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Warrants that are issued as a component
of the unit pursuant to the exercise of the basic subscription rights and over-subscription privilege entitle the holder to purchase
one share of Common Stock at an exercise price (subject to adjustment) of $4.05 per share. The warrants are exercisable for cash,
or solely during any period when a registration statement for the exercise of the warrants is not in effect, on a cashless basis.
The warrants may be redeemed for $0.18 per warrant if the volume-weighted average price of Atossa&rsquo;s Common Stock closes at
or above $10.56 for 10 consecutive trading days, upon 30 days&rsquo; prior written notice of redemption. See &ldquo;The Rights
Offering&rdquo; in the prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B>YOUR SUBSCRIPTION
RIGHTS CERTIFICATE MUST BE RECEIVED BY THE SUBSCRIPTION AGENT ON OR BEFORE THE EXPIRATION DATE. PAYMENT OF THE SUBSCRIPTION PRICE
OF ALL SUBSCRIPTION RIGHTS EXERCISED, INCLUDING SUBSCRIPTION RIGHTS PURSUANT TO THE OVER-SUBSCRIPTION PRIVILEGE, INCLUDING FINAL
CLEARANCE OF ANY CHECKS, MUST BE RECEIVED BY THE SUBSCRIPTION AGENT ON OR BEFORE THE EXPIRATION DATE.</B></FONT>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>ONCE YOU EXERCISE YOUR SUBSCRIPTION
RIGHTS, YOU CANNOT REVOKE THE EXERCISE OF SUCH SUBSCRIPTION RIGHTS. SUBSCRIPTION RIGHTS NOT VALIDLY EXERCISED PRIOR TO THE EXPIRATION
DATE OF THE RIGHTS OFFERING WILL EXPIRE. IN CASE YOU HOLD SUBSCRIPTION RIGHTS THROUGH A BROKER OR OTHER NOMINEE, YOU SHOULD VERIFY
WITH YOUR BROKER OR NOMINEE BY WHEN YOU MUST DELIVER YOUR INSTRUCTION.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">1.&nbsp;<B>Subscription Rights</B>. To
exercise subscription rights, complete your subscription rights certificate and send your properly completed and executed subscription
rights certificate, together with payment in full of the subscription price for each unit subscribed for pursuant to the basic
subscription right and the over-subscription privilege, to the subscription agent.&nbsp;<B>PLEASE DO NOT SEND RIGHTS CERTIFICATES
OR PAYMENTS TO ATOSSA</B>. The method of delivery of the subscription rights certificate and the payment of the subscription price
to the subscription agent is at your election and risk. subscription rights certificates and payments must be received by the subscription
agent prior to the expiration date. If you send your subscription rights certificate and payment by mail, then they should be sent
by registered mail, properly insured, to arrive before the expiration date. If more units are subscribed for pursuant to the over-subscription
privilege than are available for sale, additional units will be allocated pro rata among holders and subject to ownership limitations,
as described in the prospectus. The subscription rights are non-transferable, and may not be sold, transferred, assigned or given
away to anyone.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">2.&nbsp;<B>Acceptance of Payments</B>.
Payments will be deemed to have been received by the subscription agent only upon the (i) clearance of an uncertified personal
check drawn against a Wells Fargo Bank payable to &ldquo;Broadridge Corporate Issuer Solutions, Inc., as subscription agent for
Atossa Genetics Inc.,&rdquo; (ii) receipt of a certified check drawn against a Wells Fargo Bank payable to &ldquo;Broadridge Corporate
Issuer Solutions, Inc., as subscription agent for Atossa Genetics Inc.,&rdquo; (iii) receipt of a U.S. Postal money order payable
to &ldquo;Broadridge Corporate Issuer Solutions, Inc., as subscription agent for Atossa Genetics Inc.&rdquo;; or (iv) receipt of
a wire transfer of immediately available funds directly to the account maintained by Broadridge Corporate Issuer Solutions, Inc.,
as subscription agent, for purposes of accepting subscriptions in this rights offering at Wells Fargo Bank, ABA, # 121000248, Account
# 4124218686 FBO Atossa Genetics Inc., with reference to the name of the subscription rights holder. Funds paid by uncertified
personal check may take several business days to clear. Accordingly, if you wish to pay the subscription price by uncertified personal
check, then you should make payment sufficiently in advance of the expiration date to ensure its receipt and clearance by that
time. To avoid disappointment caused by a failure of your subscription due to your payment not clearing prior to the expiration
date, Atossa urges you to consider payment by means of certified or cashier&rsquo;s check, money order or wire transfer. It is
highly recommend that if you intend to pay the subscription price by personal check, then your subscription payment should be received
by the subscription agent well before the expiration date. If your personal check does not clear before the expiration date, then
you will not receive any units, and Atossa&rsquo;s only obligation will be to return your subscription payment, without interest
or deduction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">3.&nbsp;<B>Contacting the Subscription
Agent</B>. The address and telephone number of the subscription agent are shown below. Delivery to an address other than shown
below does not constitute valid delivery.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 49%; border-bottom: black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>By mail:</I></FONT></TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 49%; border-bottom: black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>By hand or overnight courier:</I></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Broadridge Corporate Issuer Solutions, Inc.</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Broadridge Corporate Issuer Solutions, Inc.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Attn: BCIS Re-Organization Dept.</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Attn: BCIS IWS</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">P.O. Box 1317</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">51 Mercedes Way</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Brentwood, New York 11717-0693</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Edgewood, New York 11717</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(855) 793-5068 (toll free)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(855) 793-5068 (toll free)</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">4.&nbsp;<B>Partial Exercises; Effect of
Over- and Under-Payments</B>. If you exercise less than all of the subscription rights evidenced by your subscription rights certificate,
the subscription agent will issue to you a new subscription rights certificate evidencing the unexercised subscription rights.
However, if you choose to have a new subscription rights certificate sent to you, you may not receive any such new subscription
rights certificate in sufficient time to permit exercise of the subscription rights evidenced thereby. If you do not indicate the
number of units to be subscribed for on your subscription rights certificate, or if you indicate a number of units that does not
correspond with the aggregate subscription price payment you delivered, you will be deemed to have subscribed for the maximum number
of units that may be subscribed for, under both the basic subscription right and the over-subscription privilege, for the aggregate
subscription price you delivered. If the subscription agent does not apply your full subscription price payment to your purchase
of units, then the subscription agent will return the excess amount to you by mail, without interest or deduction, within 10 business
days after the expiration date. If you subscribe for fewer than all of the units represented by your subscription rights certificate,
then the unexercised subscription rights will become null and void on the expiration date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">5.&nbsp;<B>Deliveries to holders.</B>&nbsp;The
following deliveries and payments to you will be made to the address shown on the face of your subscription rights certificate:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">(a)&nbsp;<B>Basic Subscription Right</B>.
The shares of Series B Convertible Preferred Stock and warrants that are purchased pursuant to the valid exercise of basic subscription
rights to purchase units will be issued in book-entry, or uncertificated, form meaning that you will receive a direct registration
(DRS) account statement from our transfer agent reflecting ownership of these securities if you are a holder of record of Common
Stock or of December 22, 2017 warrants. The subscription agent will arrange for the issuance of the Series B Convertible Preferred
Stock and warrants as soon as practicable after the expiration of the rights offering, payment for the units subscribed for has
cleared, and all prorating calculations and reductions contemplated by the terms of the rights offering have been effected. If
you hold your shares of Common Stock or participating warrants in the name of a custodian bank, broker, dealer, or other nominee, The Depository Trust Company
(&ldquo;DTC&rdquo;) will credit your account with your nominee with the securities you purchased in the rights offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">(b)&nbsp;<B>Over-Subscription Privilege</B>.
The shares of Series B Convertible Preferred Stock and warrants that are purchased pursuant to the valid exercise of over-subscription
privileges to purchase additional units will also be issued in book-entry, or uncertificated, form meaning that you will receive
a DRS account statement from our transfer agent reflecting ownership of these securities if you are a holder of record of Common
Stock or of December 22, 2017 warrants. The subscription agent will arrange for the issuance of the Series B Convertible Preferred
Stock and warrants as soon as practicable after the expiration of the rights offering, payment for the units subscribed for has
cleared, and all prorating calculations and reductions contemplated by the terms of the rights offering have been effected. If
you hold your shares of Common Stock or participating warrants in the name of a custodian bank, broker, dealer, or other nominee, DTC will credit your account
with your nominee with the securities you purchased in the rights offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">(c)&nbsp;<B>Excess Payments</B>. If you
exercised your over-subscription privilege and are allocated less than all of the units for which you wished to oversubscribe,
then your excess subscription price payment for units that were not allocated to you will be returned by the subscription agent
to you by mail, without interest or deduction, within 10 business days after the expiration date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">6.&nbsp;<B>Execution.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">(a)&nbsp;<B>Execution by Registered Holder</B>.
The signature on the subscription rights certificate must correspond with the name of the registered holder exactly as it appears
on the face of the subscription rights certificate without any alteration or change whatsoever. Persons who sign the subscription
rights certificate in a representative or other fiduciary capacity must indicate their capacity when signing and, unless waived
by the subscription agent in its sole and absolute discretion, must present to the subscription agent satisfactory evidence of
their authority so to act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">(b)&nbsp;<B>Execution by Person Other Than
Registered Holder</B>. If the subscription rights certificate is executed by a person other than the holder named on the face of
the subscription rights certificate, proper evidence of authority of the person executing the subscription rights certificate must
accompany the same unless the subscription agent, in its discretion, dispenses with proof of authority.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">7.&nbsp;<B>Method of Delivery</B>. The
method of delivery of subscription rights certificates and payment of the subscription price to the subscription agent will be
at the election and risk of the subscription rights holder. If sent by mail, it is recommended that they be sent by registered
mail, properly insured, with return receipt requested, and that a sufficient number of days be allowed to ensure delivery to and
receipt by the subscription agent prior to the expiration date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">8.&nbsp;<B>No Revocation</B>. If you exercise
any of your basic subscription rights or over-subscription privilege, you will not be permitted to revoke or change the exercise
or request a refund of monies paid. You should not exercise your subscription rights unless you are sure that you wish to purchase
units at the subscription price. Once you exercise your subscription rights, you cannot revoke the exercise of such subscription
rights even if you later learn information that you consider to be unfavorable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">9.&nbsp;<B>Special Provisions Relating
to the Exercise of subscription rights through the Depository Trust Company</B>. In the case of subscription rights that are held
of record through DTC, exercises of the subscription rights may be effected by instructing DTC to transfer subscription rights
from the DTC account of such holder to the DTC account of the subscription agent, together with certification as to the aggregate
number of subscription rights exercised pursuant to the subscription right by each beneficial owner of subscription rights on whose
behalf such nominee is acting, and payment of the subscription price for each unit subscribed for. Banks, brokers and other nominee
holders of subscription rights who exercise the basic subscription right and the over-subscription privilege on behalf of beneficial
owners of subscription rights will be required to certify to the subscription agent and Atossa as to the aggregate number of subscription
rights that have been exercised, and the number of units that are being subscribed for pursuant to the over-subscription privilege,
by each beneficial owner of subscription rights (including such nominee itself) on whose behalf such nominee holder is acting.
In the event such certification is not delivered in respect of a subscription rights certificate, the subscription agent shall
for all purposes (including for purposes of any allocation in connection with the over-subscription privilege) be entitled to assume
that such certificate is exercised on behalf of a single beneficial owner.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">10.&nbsp;<B>Questions and Request for Additional
Materials</B>. For questions regarding the rights offering, assistance regarding the method of exercising subscription rights or
for additional copies of relevant documents, please contact the Information Agent as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Broadridge Corporate Issuer Solutions,
Inc.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(855) 793-5068 (toll free)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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<DOCUMENT>
<TYPE>EX-99.2
<SEQUENCE>6
<FILENAME>s109823_ex99-2.htm
<DESCRIPTION>EXHIBIT 99.2
<TEXT>
<HTML>
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<P STYLE="margin: 0"><B>&nbsp;</B></P>

<P STYLE="margin: 0; text-align: right"><B>Exhibit 99.2</B></P>

<P STYLE="margin: 0pt 0">&nbsp;</P>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>FORM OF</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>LETTER TO STOCKHOLDERS WHO ARE RECORD
HOLDERS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ATOSSA GENETICS INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Subscription Rights to Purchase Units<BR>
Offered
Pursuant to Subscription Rights Distributed to Stockholders and Holders of Participating Warrants of<BR>
Atossa Genetics Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">[&#9679;], 2018</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Dear Stockholder:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">This letter is being distributed by Atossa
Genetics Inc. (the &ldquo;Company&rdquo;) to all holders of record of shares of its common stock, $0.18 par value per share (the
&ldquo;Common Stock&rdquo;) or of December 22, 2017 warrants as of 5:00 p.m., Eastern Time, on May 9, 2018, the record date, in
connection with a distribution in a rights offering of non-transferable subscription rights to subscribe for and purchase units.
Each unit entitles the holder to one share of the Company&rsquo;s Series B Convertible Preferred Stock and 284 warrants.&nbsp;Each
warrant will be exercisable for one share of Common Stock. The subscription rights and units are described in the prospectus dated
[&#9679;], 2018 (a copy of which accompanies this notice).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> Pursuant to the rights offering, the
Company is issuing subscription rights to subscribe for up to 25,000 units on the terms and subject to the conditions described
in the prospectus, at a subscription price of $1,000 per unit. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The subscription rights may be exercised
at any time during the subscription period, which commences on May 10, 2018 and ends at 5:00 p.m., Eastern Time, on May 24, 2018,
the expiration date, unless extended in the sole discretion of the Company and Maxim Group LLC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As described in the prospectus, holders
will receive one subscription right for every share of Common Stock owned on the record date, evidenced by non-transferable subscription
rights certificates. Each subscription right entitles the holder to purchase one unit at the subscription price, which we refer
to as the basic subscription right.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> Based on 2,651,952 shares of common
stock outstanding as of May 2, 2018, and 883,333 shares of common stock issuable upon exercise of warrants issued December 22,
2017, we would grant subscription rights to acquire 3,535,285 units but will only accept subscriptions for 25,000 units.&nbsp;Accordingly,
sufficient units may not be available to honor your subscription in full.&nbsp;If exercises of basic subscription rights exceed
the number of units available in the rights offering, we will allocate the available units pro-rata among the record holders exercising
the basic subscription rights in proportion to the number of shares of our common stock each of those record holders owned on
the record date (including shares of common stock issuable upon exercise of warrants issued December 22, 2017), relative to the
number of shares owned on the record date by all record holders exercising the over-subscription privilege. If this pro-rata allocation
results in any record holders receiving a greater number of units than the record holder subscribed for pursuant to the exercise
of the basic subscription rights, then such record holder will be allocated only that number of units for which the record holder
subscribed, and the remaining units will be allocated among all other record holders exercising their basic subscription rights
on the same pro rata basis described above. The proration process will be repeated until all units have been allocated. If for
any reason the amount of units allocated to you is less than you have subscribed for, then the excess funds held by the subscription
agent on your behalf will be returned to you, without interest, as soon as practicable after the rights offering has expired and
all prorating calculations and reductions contemplated by the terms of the rights offering have been effected, and we will have
no further obligations to you. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company will not issue fractional shares
or warrants. Fractional shares or warrants resulting from the exercise of the basic subscription rights and the over-subscription
privileges will be eliminated by rounding down to the nearest whole unit. Any excess subscription payment received by the subscription
agent will be returned, without interest or penalty, within 10 business days following the expiration of the offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Enclosed are copies of the following documents:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 18%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 2%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1.</FONT></TD>
    <TD STYLE="vertical-align: top; width: 80%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Prospectus</FONT></TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2.</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Subscription Rights Certificate</FONT></TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Instructions As to Use of Subscription Rights Certificates</FONT></TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Notice of Important Tax Information</FONT></TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">5.</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">A return envelope, addressed to Broadridge Corporate Issuer Solutions, Inc.&nbsp;, the subscription agent</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Your prompt attention is requested. To
exercise your subscription rights, you should deliver the properly completed and signed subscription rights certificate, with payment
of the subscription price in full for each unit subscribed for pursuant to the basic subscription right and over-subscription privilege,
if applicable, to the subscription agent, as indicated in the prospectus. The subscription agent must receive the properly completed
and duly executed subscription certificate and full payment of the subscription price, including final clearance of any checks,
prior to the expiration date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">You cannot revoke the exercise of your
subscription right. Subscription rights not exercised at or prior to 5:00 p.m., Eastern Time, on the expiration date will expire.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>ANY QUESTIONS OR REQUESTS FOR ASSISTANCE
CONCERNING THE RIGHTS OFFERING SHOULD BE DIRECTED TO BROADRIDGE CORPORATE ISSUER SOLUTIONS, INC., THE INFORMATION AGENT, TOLL-FREE
AT (855) 793-5068.&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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<DOCUMENT>
<TYPE>EX-99.3
<SEQUENCE>7
<FILENAME>s109823_ex99-3.htm
<DESCRIPTION>EXHIBIT 99.3
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0; text-align: right"><B>Exhibit 99.3</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&nbsp;</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>FORM OF</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>LETTER TO BROKERS, DEALERS, BANKS AND
OTHER NOMINEES</B>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ATOSSA GENETICS INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Subscription Rights to Purchase Units&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Offered Pursuant to Subscription Rights
Distributed to Stockholders and Holders of Participating Warrants of</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Atossa Genetics Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">[&#9679;], 2018</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">To Brokers, Dealers, Banks and Other Nominees:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">This letter is being distributed by Atossa
Genetics Inc. (the &ldquo;Company&rdquo;) to brokers, dealers, banks and other nominees in connection with the rights offering
by Atossa Genetics Inc. (the &ldquo;Company&rdquo;) to subscribe for and purchase units, pursuant to non-transferable subscription
rights distributed to all holders of record of the Company&rsquo;s common stock, $0.18 par value per share (the &ldquo;Common Stock&rdquo;)
or of December 22, 2017 warrants, as of 5:00 p.m., Eastern Time, on May 9, 2018, the record date. Each unit entitles the holder
to one share of the Company&rsquo;s Series B Convertible Preferred Stock, $0.001 par value per share, and 284 warrants. Each warrant
will be exercisable for one share of Common Stock. The subscription rights and units are described in the prospectus dated [&#9679;],
2018 (a copy of which accompanies this notice).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> Pursuant to the rights offering, the
Company is issuing subscription rights to subscribe for up to 25,000 units on the terms and subject to the conditions described
in the prospectus, at a subscription price of $1,000 per unit. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The subscription rights may be exercised
at any time during the subscription period, which commences on May 10, 2018 and ends at 5:00 p.m., Eastern Time, on May 24, 2018,
the expiration date, unless extended in the sole discretion of the Company and Maxim Group LLC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As described in the prospectus, each beneficial
owner of shares of Common Stock or of December 22, 2017 warrants is entitled to one subscription right for every share of Common
Stock owned by such beneficial owner (including such shares issuable upon the exercise of December 22, 2017 warrants) on the record
date, evidenced by non-transferable subscription rights certificates registered in the record holder&rsquo;s name or its nominee. Each
subscription right entitles holder to purchase one unit at the subscription price, which we refer to as the basic subscription
right.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Holders who fully exercise their basic
subscription right will be entitled to subscribe for additional units that remain unsubscribed as a result of any unexercised basic
subscription right (the &ldquo;over-subscription privilege&rdquo;). Subject to stock ownership limitations described in the prospectus,
if sufficient units are available, all over-subscription privilege requests will be honored in full. If over-subscription privilege
requests for units exceed the remaining units available, the remaining units will be allocated pro-rata among holders who over-subscribe
based on the number of shares of Common Stock held by all holders exercising the over-subscription privilege. If this pro rata
allocation results in any holder receiving a greater number of units than the holder subscribed for, then such holder will be allocated
only the number of units for which the holder oversubscribed, and the remaining units will be allocated among all holders exercising
the over-subscription privilege on the same pro rata basis described above. The proration process will be repeated until all units
have been allocated.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company will not issue fractional shares.
Fractional shares resulting from the exercise of the basic subscription rights and the over-subscription privileges will be eliminated
by rounding down to the nearest whole unit. Any excess subscription payment received by the subscription agent will be returned,
without interest or penalty, within 10 business days following the expiration of the offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company is asking persons who hold
shares of the Company&rsquo;s Common Stock or December 22, 2017 warrants beneficially, and who have received the subscription rights
distributable with respect to those securities through a broker, dealer, bank, or other nominee, to contact the appropriate institution
or nominee and request it to effect the transactions for them.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If you exercise subscription rights on behalf of beneficial
owners, you will be required to certify to the subscription agent and the Company, in connection with such exercise, as to the
aggregate number of subscription rights that have been exercised pursuant to the basic subscription right, whether the basic subscription
rights of each beneficial owner of subscription rights on whose behalf you are acting has been exercised in full, and the number
of units being subscribed for pursuant to the over-subscription privilege by each beneficial owner of subscription rights on whose
behalf you are acting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company is asking you to contact your
clients for whom you hold shares of Common Stock or December 22, 2017 warrants registered in your name or the name of your nominee
to obtain instruction with respect to the subscription rights.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Enclosed are copies of the following documents:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 18%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 2%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1.</FONT></TD>
    <TD STYLE="vertical-align: top; width: 80%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Prospectus</FONT></TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2.</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Subscription Rights Certificate</FONT></TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Instructions as to Use of Subscription Rights Certificates</FONT></TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form of Letter to Shareholders Who are Beneficial Holders</FONT></TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">5.</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form of Beneficial Owner Election Form</FONT></TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">6.</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form of Nominee Holder Certification</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">All commissions, fees and other expenses
(including brokerage commissions and transfer taxes), other than fees and expenses of the subscription agent, incurred in connection
with the exercise of the subscription rights will be for the account of the holder, and none of such commissions, fees or expenses
will be paid by the Company or the subscription agent.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Your prompt action is requested. To exercise
the subscription rights, you should deliver the properly completed and signed subscription rights certificate, with payment of
the subscription price in full for each unit subscribed for pursuant to the basic subscription right and over-subscription privilege,
if applicable, to the subscription agent, as indicated in the prospectus. The subscription agent must receive the property completed
and duly executed subscription rights certificate and full payment of the subscription price, including final clearance of any
checks, prior to the expiration date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A holder cannot revoke the exercise of
a subscription right. Subscription rights not exercised at or prior to 5:00 p.m., Eastern Time, on the expiration date will expire.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>ANY QUESTIONS OR REQUESTS FOR ASSISTANCE
CONCERNING THE RIGHTS OFFERING SHOULD BE DIRECTED TO BROADRIDGE CORPORATE ISSUER SOLUTIONS, INC., THE INFORMATION AGENT, TOLL-FREE
AT (855) 793-5068.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

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<DOCUMENT>
<TYPE>EX-99.4
<SEQUENCE>8
<FILENAME>s109823_ex99-4.htm
<DESCRIPTION>EXHIBIT 99.4
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0; text-align: right"><B>Exhibit 99.4</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&nbsp;</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>FORM OF</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>BROKER LETTER TO CLIENTS WHO ARE BENEFICIAL
HOLDERS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ATOSSA GENETICS INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Subscription Rights to Purchase Units&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Offered Pursuant to Subscription Rights
Distributed to Stockholders and Holders of Participating Warrants of</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Atossa Genetics Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">[&#9679;], 2018</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">To our Clients:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">This letter is being distributed to our
clients who are holders of Atossa Genetics Inc. (the &ldquo;Company&rdquo;) common stock, $0.18 par value per share (the &ldquo;Common
Stock&rdquo;) or of December 22, 2017 warrants, as of 5:00 p.m., Eastern Time, on May 9, 2018, the record date, in connection with
a distribution in a rights offering of non-transferable subscription rights to subscribe for and purchase units. Each unit entitles
the holder to one share of the Company&rsquo;s Series B Convertible Preferred Stock, $0.001 par value per share, and 284 warrants.
Each warrant will be exercisable for one share of Common Stock. The subscription rights and units are described in the prospectus
dated [&#9679;], 2018 (a copy of which accompanies this notice).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> Pursuant to the rights offering, the
Company is issuing subscription rights to subscribe for up to 25,000 units on the terms and subject to the conditions described
in the prospectus, at a subscription price of $1,000 per unit. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The subscription rights may be exercised
at any time during the subscription period, which commences on May 10, 2018 and ends at 5:00 p.m., Eastern Time, on May 24, 2018,
the expiration date, unless extended by the Company in its sole discretion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As described in the prospectus, holders
will receive one subscription right for every share of Common Stock owned on the record date, evidenced by non-transferable subscription
rights certificates. Each subscription right entitles the holder to purchase one unit at the subscription price, which we refer
to as the basic subscription right.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> Based on 2,651,952 shares of Common
Stock outstanding as of May 2, 2018, and 883,333 shares of Common Stock issuable upon exercise of warrants issued December 22,
2017, we would grant subscription rights to acquire 3,535,285 units but will only accept subscriptions for 25,000 units. Accordingly,
sufficient units may not be available to honor your subscription in full.&nbsp;If exercises of basic subscription rights exceed
the number of units available in the rights offering, we will allocate the available units pro-rata among the record holders exercising
the basic subscription rights in proportion to the number of shares of our Common Stock each of those record holders owned on
the record date (including shares issuable upon exercise of warrants issued December 22, 2017), relative to the number of shares
owned on the record date by all record holders exercising the over-subscription privilege. If this pro-rata allocation results
in any record holders receiving a greater number of units than the record holder subscribed for pursuant to the exercise of the
basic subscription rights, then such record holder will be allocated only that number of units for which the record holder subscribed,
and the remaining units will be allocated among all other record holders exercising their basic subscription rights on the same
pro rata basis described above. The proration process will be repeated until all units have been allocated. If for any reason
the amount of units allocated to you is less than you have subscribed for, then the excess funds held by the Subscription Agent
on your behalf will be returned to you, without interest, as soon as practicable after the rights offering has expired and all
prorating calculations and reductions contemplated by the terms of the rights offering have been effected, and we will have no
further obligations to you. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company will not issue fractional shares.
Fractional shares resulting from the exercise of the basic subscription rights and the over-subscription privileges will be eliminated
by rounding down to the nearest whole unit. Any excess subscription payment received by the subscription agent will be returned,
without interest or penalty, within 10 business days following the expiration of the offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 0pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Enclosed are copies of the following documents:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 18%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 2%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1.</FONT></TD>
    <TD STYLE="vertical-align: top; width: 80%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Prospectus</FONT></TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2.</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form of Beneficial Owner Election Form</FONT></TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Instructions As to Use of subscription rights Certificates</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">THE MATERIALS ENCLOSED ARE BEING FORWARDED
TO YOU AS THE BENEFICIAL OWNER OF COMMON STOCK HELD BY US IN YOUR ACCOUNT BUT NOT REGISTERED IN YOUR NAME. EXERCISES OF SUBSCRIPTION
RIGHTS MAY BE MADE ONLY BY US AS THE RECORD OWNER AND PURSUANT TO YOUR INSTRUCTIONS.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Accordingly, we request instructions as
to whether you wish us to elect to subscribe for any units to which you are entitled pursuant to the terms and subject to the conditions
set forth in the enclosed prospectus and other materials. However, we urge you to read the prospectus and other enclosed materials
carefully before instructing us to exercise your subscription rights.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Your instructions to us should be forwarded
as promptly as possible in order to permit us to exercise subscription rights on your behalf in accordance with the provisions
of the rights offering. The rights offering will expire at 5:00 p.m., Eastern Time, on the expiration date. You are encouraged
to forward your instructions to us before the expiration date to allow us ample time to act upon your instructions. A holder cannot
revoke the exercise of a subscription right.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If you wish to have us, on your behalf,
exercise the subscription rights for any units to which you are entitled, please so instruct us by timely completing, executing,
and returning to us the Beneficial Owner Election Form enclosed with this notice.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>ANY QUESTIONS OR REQUESTS FOR ASSISTANCE
CONCERNING THE RIGHTS OFFERING SHOULD BE DIRECTED TO BROADRIDGE CORPORATE ISSUER SOLUTIONS, INC., THE INFORMATION AGENT, TOLL-FREE
AT (855) 793-5068.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>



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<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>10
<FILENAME>img003_v1.jpg
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end
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</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>11
<FILENAME>img002_v1.jpg
<DESCRIPTION>GRAPHIC
<TEXT>
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end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
