(7) STOCKHOLDERS’ EQUITY

Treasury Stock

Beginning on December 6, 2017, and continuing through December 5, 2018, we have the ability through our stock purchase program to re-purchase our common stock at prevailing market prices either in the open market or through privately negotiated transactions up to $2.0 million. The size and timing of such purchases, if any, was based on market and business conditions as well as other factors. We are not obligated to purchase any shares.

From the inception of the plan through December 31, 2017, we purchased 86,837 shares of our common stock for $0.2 million or an average price of $2.86 per share.

Warrants

In October 2017, 150,000 common stock warrants were issued in exchange for professional services.

In connection with the agreement entered into on March 28, 2016, with Triumph Bank, the Lender suspended this monthly payment requirement for February, March and April of 2016 up to an aggregate cap of $250,000, in exchange for the issuance of a common stock warrant to purchase 50,000 shares of the Company’s common stock.

A summary of stock warrant activity for the years ended December 31, 2017 and 2016 are presented below:

	Number of Warrants (in thousands)		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)		Aggregate Intrinsic Value (in thousands)
Outstanding at December 31, 2015		-	$	-			$	-
Granted		52	$	0.21
Exercised		-		-
Forfeited		-	$	-
Outstanding at December 31, 2016		52	$	0.21		4.37	$	5

Outstanding at December 31, 2016		52	$	0.21
Granted		150	$	2.42
Exercised		(2)	$	0.35
Forfeited/Canceled		-	$	-
Outstanding at December 31, 2017		200	$	1.86		5.80	$	264
Exercisable at December 31, 2017		200	$	1.86		5.80

The weighted-average grant-date fair value of common stock warrants granted during the years ended December 31, 2017 and 2016 were $1.40, and $.28 respectively

The Company uses the Black Scholes option pricing model to determine the fair value of common stock warrants, using the following assumptions during the years ended December 31, 2017 and 2016:

	2017			2016
Weighted average expected term		4.38 years			5.0 years
Weighted average volatility		136.62	%		122.44	%
Weighted average risk-free interest rate		1.51	%		1.48	%
Dividend yield		0	%		1.44	%