<SEC-DOCUMENT>0001144204-18-020566.txt : 20180416
<SEC-HEADER>0001144204-18-020566.hdr.sgml : 20180416
<ACCEPTANCE-DATETIME>20180413215150
ACCESSION NUMBER:		0001144204-18-020566
CONFORMED SUBMISSION TYPE:	S-1
PUBLIC DOCUMENT COUNT:		4
FILED AS OF DATE:		20180416
DATE AS OF CHANGE:		20180413

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Precipio, Inc.
		CENTRAL INDEX KEY:			0001043961
		STANDARD INDUSTRIAL CLASSIFICATION:	LABORATORY ANALYTICAL INSTRUMENTS [3826]
		IRS NUMBER:				911789357
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		S-1
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-224297
		FILM NUMBER:		18755390

	BUSINESS ADDRESS:	
		STREET 1:		12325 EMMET ST
		CITY:			OMAHA
		STATE:			NE
		ZIP:			68164
		BUSINESS PHONE:		4027385480

	MAIL ADDRESS:	
		STREET 1:		12325 EMMET STREET
		CITY:			OMAHA
		STATE:			NE
		ZIP:			68164

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	TRANSGENOMIC INC
		DATE OF NAME CHANGE:	20000119
</SEC-HEADER>
<DOCUMENT>
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<SEQUENCE>1
<FILENAME>tv491047_s1.htm
<DESCRIPTION>S-1
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<P STYLE="margin-top: 0; text-align: center; margin-bottom: 0">&nbsp;</P>

<P STYLE="margin-top: 0; text-align: center; margin-bottom: 0"><B>As filed with the Securities and Exchange Commission on
April 13, 2018 </B></P>

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

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

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 0; margin-bottom: 3pt"><DIV STYLE="font-size: 1pt; border-top: Black 2pt solid; border-bottom: Black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

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

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

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

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

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

<!-- Field: Rule-Page --><DIV ALIGN="CENTER"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<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>FORM S-1 </B></P>

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

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

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

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

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

<!-- Field: Rule-Page --><DIV ALIGN="CENTER"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 14pt"><B>PRECIPIO,
INC.</B></FONT><B> </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(Exact name of Registrant as specified
in its charter)</B></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>
    <TD STYLE="vertical-align: top; width: 32%; font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt"><B>Delaware</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 32%; font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt"><B>3826</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 32%; font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt"><B>91-1789357</B></FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(State or other jurisdiction of</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>incorporation or organization)</B></P></TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(Primary Standard Industrial</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Classification Code Number)</B></P></TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(I.R.S. Employer</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Identification No.)</B></P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>4 Science Park </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>New Haven, Connecticut 06511 </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(203) 787-7888 </B></P>

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

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

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

<!-- Field: Rule-Page --><DIV ALIGN="CENTER"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>4 Science Park </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>New Haven, Connecticut 06511 </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(203) 787-7888 </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(Name, address, including zip code and
telephone number, including area code, of agent for service) </B></P>

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

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

<!-- Field: Rule-Page --><DIV ALIGN="CENTER"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><I>Copies to: </I></B></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>
    <TD STYLE="vertical-align: top; width: 52%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Stephen M. Davis, Esq.</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Daniel A. Lang, Esq.</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Goodwin Procter LLP</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>620 Eighth Avenue</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>New York, New York 10018</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(212) 813-8800</B></P></TD>
    <TD STYLE="vertical-align: bottom; width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 47%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Ilan Danieli</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Chief Executive Officer</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Precipio, Inc.</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>4 Science Park</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>New Haven, Connecticut 06511</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(203) 787-7888</B></P></TD>
    </TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

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

<!-- Field: Rule-Page --><DIV ALIGN="CENTER"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Approximate date of commencement of proposed sale to the
public:</B> As soon as practicable after this Registration Statement becomes effective.</P>

<P STYLE="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 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 check the following box: <FONT STYLE="font-family: Wingdings">x</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">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: <FONT STYLE="font-family: Wingdings">&uml;</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">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: <FONT STYLE="font-family: Wingdings">&uml;</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">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: <FONT STYLE="font-family: Wingdings">&uml;</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">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; and &ldquo;smaller reporting company&rdquo; in Rule 12b-2 of the Exchange Act.</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: bottom">
    <TD STYLE="width: 21%"><FONT STYLE="font-size: 10pt">Large&nbsp;Accelerated&nbsp;Filer</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 53%"><FONT STYLE="font-family: Wingdings; font-size: 10pt">&uml;</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 21%"><FONT STYLE="font-size: 10pt">Accelerated&nbsp;Filer</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 2%"><FONT STYLE="font-family: Wingdings; font-size: 10pt">&uml;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-size: 10pt">Non-Accelerated Filer</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Wingdings; font-size: 10pt">&uml;</FONT> <FONT STYLE="font-size: 10pt">(Do not check if a smaller reporting company)</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Smaller&nbsp;Reporting&nbsp;Company</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Wingdings; font-size: 10pt">x</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-size: 10pt">Emerging Growth Company</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Wingdings; font-size: 10pt">&uml;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&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">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 pursuant to Section 7(a)(2)(B) of the Securities Act. <FONT STYLE="font-family: Wingdings">&uml;</FONT></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; text-align: center"><B>CALCULATION OF REGISTRATION FEE </B></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 NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Title of Each Class of<BR> Securities to be Registered</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Proposed<BR> Maximum<BR> Aggregate<BR> Offering&nbsp;Price(1)</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Amount of<BR> Registration&nbsp;Fee(2)</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 74%; text-indent: -12pt; padding-left: 12pt">Common Stock, $0.01 par value per share</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">7,250,000</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: 10%; text-align: right">902.63</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
</TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left">(1)</TD><TD STYLE="text-align: left">Estimated solely for the purpose of calculating the registration
fee pursuant to Rule 457(o) under the Securities Act of 1933, as amended.</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left">(2)</TD><TD STYLE="text-align: left">Calculated pursuant to Rule 457(o) based on an estimate
of the proposed maximum aggregate offering price.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75pt"><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 or until the Registration Statement shall become effective on such date as the Commission, acting
pursuant to said Section&nbsp;8(a), may determine.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75pt"><B></B></P>

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 3pt; margin-bottom: 12pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; border-bottom: Black 2pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75pt"></P>


<!-- Field: Page; Sequence: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #CC062A; text-align: left"><B>The information in this preliminary 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 preliminary 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></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: center; color: #CC062A"><B>Subject to Completion
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; color: #CC062A"><B>Preliminary Prospectus
dated [____], 2018 </B></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
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; text-align: center"><IMG SRC="tv491047_img1.jpg" ALT=""></P>

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

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

<!-- Field: Rule-Page --><DIV ALIGN="CENTER"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<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 listed on The NASDAQ Capital Market under
the symbol &ldquo;PRPO.&rdquo; The last reported sale price of our common stock on &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2018 was $ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per 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">We have entered into an Equity Purchase Agreement with Leviston
Resources LLC, or the Investor, relating to shares of our common stock offered by this prospectus. In accordance with the terms
of such agreement, we may offer and sell shares of our common stock having an aggregate offering price of up to $8,000,000 from
time to time to the Investor.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Sales of our common stock, if any, under this prospectus may
be made in sales deemed to be &ldquo;at-the-market&rdquo; equity offerings as defined in Rule 415 promulgated under the Securities
Act of 1933, as amended, or the Securities Act, at a purchase price equal to 97.25% of the volume weighted average sales price
of the common stock reported on the date that the Investor receives a capital call from us.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Investing in our common stock involves a high degree of risk.
See &ldquo;<FONT STYLE="font-family: Times New Roman, Times, Serif"><U>Risk Factors</U></FONT>&rdquo; in this prospectus to read
about the factors you should consider before buying shares of our common stock. </B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>We may amend or supplement this prospectus from time to time
by filing amendments or supplements as required. You should read the entire prospectus and any amendments or supplements carefully
before you make your investment decision.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Neither the Securities and Exchange Commission nor any other
regulatory body has approved or disapproved of these securities or passed upon the accuracy or adequacy of this prospectus. Any
representation to the contrary is a criminal offense. </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; text-align: center"><B>The date of this prospectus is &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2018 </B></P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>TABLE OF CONTENTS<FONT STYLE="font-family: Times New Roman, Times, Serif"><SUP></SUP></FONT></B></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: bottom">
    <TD>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center"><FONT STYLE="font-size: 10pt"><B>Page</B></FONT></TD>
    </TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; width: 90%; padding-left: 10pt; text-indent: -10pt"><A HREF="#pi_001"><FONT STYLE="font-size: 10pt">Prospectus Summary</FONT></A></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 10%; text-align: right"><A HREF="#pi_001">1</A></TD>
    </TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><A HREF="#pi_002"><FONT STYLE="font-size: 10pt">Risk Factors</FONT></A></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><A HREF="#pi_002">6</A></TD>
    </TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><A HREF="#pi_003"><FONT STYLE="font-size: 10pt">Cautionary Note Regarding Forward-Looking Statements</FONT></A></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><A HREF="#pi_003">18</A></TD>
    </TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><A HREF="#pi_004"><FONT STYLE="font-size: 10pt">Use of Proceeds</FONT></A></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><A HREF="#pi_004">19</A></TD>
    </TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><A HREF="#pi_005"><FONT STYLE="font-size: 10pt">Price Range of Common Stock</FONT></A></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><A HREF="#pi_005">20</A></TD>
    </TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><A HREF="#pi_006"><FONT STYLE="font-size: 10pt">Dividend Policy</FONT></A></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><A HREF="#pi_006">20</A></TD>
    </TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><A HREF="#pi_007"><FONT STYLE="font-size: 10pt">Capitalization</FONT></A></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><A HREF="#pi_007">21</A></TD>
    </TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><A HREF="#pi_008"><FONT STYLE="font-size: 10pt">Dilution</FONT></A></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><A HREF="#pi_008">23</A></TD>
    </TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><A HREF="#pi_009"><FONT STYLE="font-size: 10pt">Selected Financial Data</FONT></A></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><A HREF="#pi_009">25</A></TD>
    </TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><A HREF="#pi_010"><FONT STYLE="font-size: 10pt">Management&rsquo;s Discussion and Analysis of Financial Condition and Results of Operations</FONT></A></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><A HREF="#pi_010">26</A></TD>
    </TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><A HREF="#pi_011"><FONT STYLE="font-size: 10pt">Business</FONT></A></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><A HREF="#pi_011">40</A></TD>
    </TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><A HREF="#pi_012"><FONT STYLE="font-size: 10pt">Management</FONT></A></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><A HREF="#pi_012">49</A></TD>
    </TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><A HREF="#pi_013"><FONT STYLE="font-size: 10pt">Executive Compensation</FONT></A></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><A HREF="#pi_013">55</A></TD>
    </TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><A HREF="#pi_014"><FONT STYLE="font-size: 10pt">Certain Relationships and Related Party Transactions</FONT></A></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><A HREF="#pi_014">62</A></TD>
    </TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><A HREF="#pi_015"><FONT STYLE="font-size: 10pt">Principal Stockholders</FONT></A></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><A HREF="#pi_015">63</A></TD>
    </TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><A HREF="#pi_016"><FONT STYLE="font-size: 10pt">Description of Capital Stock</FONT></A></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><A HREF="#pi_016">65</A></TD>
    </TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><A HREF="#pi_017"><FONT STYLE="font-size: 10pt">Shares Eligible for Future Sale</FONT></A></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><A HREF="#pi_017">76</A></TD>
    </TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><A HREF="#pi_018"><FONT STYLE="font-size: 10pt">Material U.S. Federal Tax Considerations to Non-U.S. Holders</FONT></A></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><A HREF="#pi_018">77</A></TD>
    </TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><A HREF="#pi_019"><FONT STYLE="font-size: 10pt">Legal Matters</FONT></A></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><A HREF="#pi_019">81</A></TD>
    </TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><A HREF="#pi_020"><FONT STYLE="font-size: 10pt">Experts</FONT></A></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><A HREF="#pi_020">81</A></TD>
    </TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><A HREF="#pi_021"><FONT STYLE="font-size: 10pt">Where You Can Find More Information</FONT></A></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><A HREF="#pi_021">81</A></TD>
    </TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><A HREF="#pi_022"><FONT STYLE="font-size: 10pt">Market and Industry Data and Forecasts</FONT></A></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><A HREF="#pi_022">82</A></TD>
    </TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top"><A HREF="#pi_023"><FONT STYLE="font-size: 10pt">Incorporation of Certain Information by Reference</FONT></A></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><A HREF="#pi_023">82</A></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: 0.5in">You should rely only on the information
contained in this prospectus or in any free writing prospectus we file with the Securities and Exchange Commission. We have not
authorized anyone to provide you with information different from that contained in this prospectus or any free writing prospectus.
We take no responsibility for, and can provide no assurance, as to the reliability of any other information that others may give
you. We are offering to sell and seeking offers to buy, shares of our common stock only in jurisdictions where offers and sales
are permitted. The information contained in this prospectus is accurate only as of the date on the front cover of this prospectus,
or other earlier date stated in this prospectus, regardless of the time of delivery of this prospectus or of any sale of our common
stock. Our business, financial condition, results of operations and prospects may have changed since such 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; text-indent: 0.5in">For investors outside of the United States:
we have not done anything that would permit this offering outside the United States or to permit the possession or distribution
of this prospectus outside 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 the shares of common stock and the distribution
of this prospectus outside of the United States.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75pt">&nbsp;</P>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1pt; text-align: center"><A NAME="pi_001"></A><B>PROSPECTUS SUMMARY</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1pt"><I>This summary does not contain all of the information
you should consider before buying shares of our common stock. You should read the entire prospectus carefully, especially the &ldquo;Risk
Factors&rdquo; &ldquo;Management&rsquo;s Discussion and Analysis of Financial Condition and Results of Operations&rdquo; and our
financial statements and the related notes our Annual Report on Form&nbsp;10-K&nbsp;for the fiscal year ended December&nbsp;31,
2017, filed with the SEC on April&nbsp;13, 2018, before deciding to invest in shares of our common stock.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1pt"><B>Overview </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1pt; text-indent: 35pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1pt; text-indent: 35pt">We are a cancer diagnostics company
providing diagnostic products and services to the oncology market. We have built and continue to develop a platform designed to
eradicate the problem of misdiagnosis by harnessing the intellect, expertise and technology developed within academic institutions
and delivering quality diagnostic information to physicians and their patients worldwide. We operate a cancer diagnostic laboratory
located in New Haven, Connecticut and have partnered with the Yale School of Medicine to capture the expertise, experience and
technologies developed within academia so that we can provide a better standard of cancer diagnostics and solve the growing problem
of cancer misdiagnosis. We also operate a research and development facility in Omaha, Nebraska which will focus on further development
of ICE-COLD-PCR, or ICP, the patented technology described further below, which was exclusively licensed by us from Dana-Farber
Cancer Institute, Inc., or Dana-Farber, at Harvard University. The research and development center will focus on the development
of this technology, which we believe will enable us to commercialize other technologies developed by our current and future academic
partners. Our platform connects patients, physicians and diagnostic experts residing within academic institutions. Launched in
2017, the platform facilitates the following relationships:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 0.25in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Patients: patients may search for physicians in their
area and consult directly with academic experts that are on the platform. Patients may also have access to new academic discoveries
as they become commercially available.</P></TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Physicians: physicians can connect with academic experts
to seek consultations on behalf of their patients and may also provide consultations for patients in their area seeking medical
expertise in that physician&rsquo;s relevant specialty. Physicians will also have access to new diagnostic solutions to help improve
diagnostic accuracy.</P></TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD>&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">Academic Experts: academic experts on the platform can make themselves available for patients or physicians seeking access to their expertise.&nbsp;&nbsp;Additionally, these experts have a platform available to commercialize their research discoveries. </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">We intend to continue updating our platform
to allow for patient-to-patient communications and allow individuals to share stories and provide support for one another, to allow
physicians to consult with their peers to discuss and share challenges and solutions, and to allow academic experts to interact
with others in academia on the platform to discuss their research and cross-collaborate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1pt; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">ICP was developed at Harvard and is licensed exclusively
by us from Dana-Farber. The technology enables the detection of genetic mutations in liquid biopsies, such as blood samples. The
field of liquid biopsies is a rapidly growing market, aimed at solving the challenge of obtaining genetic information on disease
progression and changes from sources other than a tumor biopsy.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1pt; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">Gene sequencing is performed on tissue biopsies taken
surgically from the tumor site in order to identify potential therapies that will be more effective in treating the patient. There
are several limitations to this process. First, surgical procedures have several limitations, including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 0.25in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">Cost: surgical procedures are usually performed in
a costly hospital environment. For example, according to a recent study the mean cost of lung biopsies is greater than $14,000;
surgery also involves hospitalization and recovery time.</P></TD></TR>
<TR>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD></TR>
<TR>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: left"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: left">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">Surgical access: various tumor sites are not always
accessible (e.g. brain tumors), in which cases no biopsy is available for diagnosis.</P></TD></TR>
<TR>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD></TR>
<TR>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: left"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: left">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">Risk: patient health may not permit undergoing an invasive
surgery; therefore, a biopsy cannot be obtained at all.</P></TD></TR>
<TR>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD></TR>
<TR>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: left"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: left"><FONT STYLE="font-size: 10pt">Time: the process of scheduling and coordinating a surgical procedure often takes time, delaying the start of patient treatment. </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">Second, there are several tumor-related limitations
that provide a challenge to obtaining such genetic information from a tumor:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1pt; text-align: left">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 0.25in; text-align: left">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: left"><FONT STYLE="font-size: 10pt">Tumors are heterogeneous by nature: a tissue sample from one area of the tumor may not properly represent the tumor&rsquo;s entire genetic composition; thus, the diagnostic results from a tumor may be incomplete and non-representative. </FONT></TD></TR>
<TR>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD></TR>
<TR>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: left"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: left"><FONT STYLE="font-size: 10pt">Metastases: in order to accurately test a patient with metastatic disease, ideally an individual biopsy sample should be taken from each site (if those sites are even known). These biopsies are very difficult to obtain; therefore, physicians often rely on biopsies taken only from the primary tumor site. </FONT></TD></TR>
</TABLE>
<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; text-align: left; text-indent: 0.5in">The advent of technologies enabling liquid biopsies as an alternative
to tumor biopsy and analysis is based on the fact that tumors (both primary and metastatic) shed cells and fragments of DNA into
the blood stream. These blood samples are called &ldquo;liquid biopsies&rdquo; that contain circulating tumor DNA, or ctDNA, which
hold the same genetic information found in the tumor(s). That tumor DNA is the target of genetic analysis. However, since the quantity
of tumor DNA is very small in proportion to the &ldquo;normal&rdquo; (or &ldquo;healthy&rdquo;) DNA within the blood stream, there
is a need to identify and separate the tumor DNA from the normal DNA.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1pt; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">ICP is an enrichment technology that enables the laboratory
to focus its analysis on the tumor DNA by enriching, and thereby &ldquo;multiplying&rdquo; the presence of, tumor DNA, while maintaining
the normal DNA at its same level. Once the enrichment process has been completed, the laboratory genetic testing equipment is able
to identify genetic abnormalities presented in the ctDNA, and an analysis can be conducted at a higher level of sensitivity, to
enable the detection of such genetic abnormalities. The technology is encapsulated into a chemical that is provided in the form
of a kit and sold to other laboratories who wish to conduct these tests in-house. The chemical within the kit is added to the specimen
preparation process, enriching the sample for the tumor DNA so that the analysis will detect those genetic abnormalities.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1pt"><B>Risks Associated with Our Business </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1pt; text-indent: 35pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1pt; text-indent: 35pt">Our ability to implement our business
strategy is subject to numerous risks that you should be aware of before making an investment decision. These risks are described
more fully in the section entitled &ldquo;Risk Factors&rdquo; immediately following this prospectus summary. These risks include,
among others:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -0.25in">&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: 0.75in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD>We will require additional capital in order to continue our operations, and may have difficulty raising additional capital;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -0.25in">&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: 0.75in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD>We have a history of recurring losses, and we can provide no assurance as to our future operating results;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -0.25in">&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: 0.75in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD>We have a history of recurring losses and an accumulated deficit, which, among other factors, raise doubt about our ability
to continue as a going concern, which in turn may hinder our ability to obtain future financing;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -0.25in">&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: 0.75in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD>Our stock price has experienced price fluctuations and may continue to do so, thereby adversely affecting our business;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -0.25in">&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: 0.75in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD>Our common stock could be further diluted as the result of the issuance of additional shares of common stock, convertible securities,
warrants or options.</TD></TR></TABLE>

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

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

<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: left; text-indent: 0.5in">During the first quarter
of 2018, we continued to further demonstrate the power of our value proposition. In a study conducted with Yale, preliminary results
showed a 4-fold superiority in arriving at accurate diagnostic results, compared with the diagnoses conducted by outside pathology
laboratories. Additionally, we partnered with the molecular laboratory at the University of Pennsylvania to conduct a parallel
study to demonstrate the efficacy of IV-Cell, a proprietary reagent developed and patented by Precipio.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">As part of our ongoing
work to further develop our product line, we launched new products and product-improvements related to our proprietary liquid biopsy
technology, ICE-COLD PCR (ICP). Among them, we launched our first lung cancer treatment resistance panel, both as a kit, and in
our laboratory. Additionally, we integrated a unique technology called High-Resolution Melt (HRM) into our ICP kits, enabling a
quick and cost-effective screen for the presence of mutations. HRM-enabled ICP kits further improve ICP&rsquo;s value proposition
by both rapidly improving the potential turnaround time for testing results, as well as substantially reducing the costs of testing.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">These efforts drove
further expansion on the commercial side of the business. During the first quarter we established distribution partnerships with
key local players in the Japanese, Brazilian, and Indian markets. We believe these markets provide a tremendous opportunity for
Precipio to expand into the International markets where many patients pay out-of-pocket for their healthcare costs, thus rendering
an effective, low-cost technology for the monitoring of the tumor genetics. Additionally, we hired an experienced VP of Sales to
lead the domestic pathology sales team, and over the next several quarters we plan to double our sales force to expand into other
regions in the US.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&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; text-align: left; text-indent: 0.5in">From a corporate and
financial perspective, this quarter saw the Company settle its outstanding creditor claims that carried over from the Transgenomic
merger in mid-2017. The Company settled its claims with Crede Capital, which joins other creditors who will be receiving payments
over time, to enable the company to manage cash outlays while growing our business. Total settlements for outstanding creditors
and Crede Capital approximate $5.2 million with monthly payments ranging from $0.1 million to $0.3 million for the period beginning
March 2018 and ending June 2022.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">On February 20, 2018,
Crede Capital Group LLC (&ldquo;Crede&rdquo;) filed a lawsuit against the Company in the Supreme Court of the State of New York
for Summary Judgment in Lieu of Complaint requiring the Company to pay cash owed to Crede. Crede claims that Precipio has breached
a Securities Purchase Agreement and Warrant that Crede entered into in connection with an investment in Transgenomic, Inc., the
predecessor of the Company and that pursuant to those agreements, Precipio currently owes Crede the sum of $2,205,008. In addition
to the aforementioned sum, Crede also demanded that the Company shall pay an additional sum of $3,737.32 per day between the date
of the summons and the date that judgment is entered, plus interest. As previously disclosed by the Company, Crede had sent the
Company a letter claiming that the Company owed Crede $1.8 million. On March&nbsp;12, 2018, Precipio entered into a settlement
agreement (the &ldquo;Agreement&rdquo;) with Crede pursuant to which Precipio agreed to pay Crede a total sum of $1.925 million
over a period of 16 months payable in a combination of cash or at the Company&rsquo;s discretion in stock, in accordance with terms
contained in the settlement agreement. In accordance with the terms of the settlement agreement and in addition to the agreement
to pay, we have also executed and delivered to Crede an affidavit of confession of judgment. Liabilities totaling approximately
$1.9 million have been recorded with $1.1 million reflected in other current liabilities and $0.8 million reflected in common stock
warrant liability at December 31, 2017. On March 19, 2018 we made the first scheduled payment of $175,000 to Crede.</P>

<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: left; text-indent: 0.5in">On March 21, 2018,
Bio-Rad Laboratories filed a lawsuit against us in the Superior Court Judicial Branch of the State of Connecticut for Summary Judgment
in Lieu of Complaint requiring us to pay cash owed to Bio-Rad in the amount of $49,000. We are currently in discussions with Bio-Rad
to reach payment conditions. A liability of less than $0.1 million has been recorded in accounts payable at December 31, 2017.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left">On March 21, 2018, Precipio, Inc. (the &ldquo;<U>Company</U>&rdquo;)
entered into a Letter Agreement (the &ldquo;<U>Agreement</U>&rdquo;) with certain holders (the &ldquo;Investors&rdquo;) of shares
of the Company&rsquo;s Series B Convertible Preferred Stock, par value $0.01 per share (&ldquo;Series B Preferred Stock&rdquo;),
shares of the Company&rsquo;s Series C Convertible Preferred Stock, par value $0.01 per share (&ldquo;Series C Preferred Stock&rdquo;
and, together with the Series B Preferred Stock, &ldquo;Preferred Stock&rdquo;), and warrants (the &ldquo;Warrants&rdquo;) to purchase
shares of the Company&rsquo;s common stock, par value $0.01 per share (&ldquo;Common Stock&rdquo;), issued in the Company&rsquo;s
public offering in August 2017 and registered direct offering in November 2017. Pursuant to the Agreement, the Company and the
Investors agreed that, as a result of the issuance of shares of Common Stock pursuant to that certain Equity Purchase Agreement,
dated February 8, 2018, by and between the Company and the investor named therein, and effective as of the time of execution of
the Agreement, the exercise price of the Warrants was reduced to $0.75 per share (the &ldquo;Exercise Price Reduction&rdquo;) and
the conversion price of the Preferred Stock was reduced to $0.75 (the &ldquo;Conversion Price Reduction&rdquo;). As consideration
for the Company&rsquo;s agreement to the Exercise Price Reduction and the Conversion Price Reduction, (i) each Investor agreed
to convert the shares of Preferred Stock held by such Investor into shares of Common Stock in increments of up to 4.99% of the
shares of Common Stock outstanding as of the date of the Agreement and (ii) one Investor agreed to exercise 666,666 Warrants and
another Investor agreed to exercise 500,000 Warrants in increments of up to 4.99% of the shares of Common Stock outstanding as
of the date of the Agreement, in each case in accordance with the beneficial ownership limitations set forth in the Company&rsquo;s
Certificate of Designation of Preferences, Rights and Limitations of Series B Convertible Preferred Stock, the Company&rsquo;s
Certificate of Designation of Preferences, Rights and Limitations of Series C Convertible Preferred Stock and the Warrants. Warrant
exercises from this transaction resulted in net cash proceeds to the Company of $0.2 million as of April 13, 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; text-align: left">On March 26, 2018 the Company received a
letter from The NASDAQ Stock Market (&quot;NASDAQ&quot;), notifying the Company that for the past 30 consecutive business days,
the closing bid price per share of its common stock was below the $1.00 minimum bid price requirement for continued listing on
The NASDAQ Capital Market, as required by NASDAQ Listing Rule&nbsp;5550(a)(2) (the &ldquo;Bid Price Rule&rdquo;). As a result,
the Company was notified by NASDAQ that it is not in compliance with the Bid Price Rule. NASDAQ has provided the Company with 180
calendar days, or until September 24, 2018, to regain compliance with the Bid Price Rule. This notification has no immediate effect
on the Company&rsquo;s listing on the NASDAQ Capital Market or on the trading of the Company&rsquo;s common stock. The Company
is presently evaluating various courses of action to regain compliance with the Bid Price Rule. However, there can be no assurance
that the Company will be able to regain compliance.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">On June 29, 2017, the Company (then known as Transgenomic,
Inc., or Transgenomic), completed its merger, or the Merger, with Precipio Diagnostics, LLC (Precipio), a privately held Delaware
limited liability company, in accordance with the terms of the Agreement and Plan of Merger (Merger Agreement), dated October 12,
2016, as amended on February 2, 2017 and June 29, 2017. Pursuant to the Merger Agreement, a newly formed subsidiary of Transgenomic
merged with and into Precipio, with Precipio surviving the Merger as a wholly-owned subsidiary of the combined company. In connection
with the Merger, the Company changed its name from Transgenomic, Inc. to Precipio, Inc. and effected a 1-for-30 reverse stock split
of its common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1pt; text-align: left"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1pt; text-align: left"><B>Corporate Information</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1pt; text-indent: 35pt; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1pt; text-indent: 35pt; text-align: left">We were incorporated under the laws
of the State of Delaware in March 1997. Our principal executive office is located at 4 Science Park, New Haven, Connecticut, 06511,
and our telephone number is (203) 787-7888. Our website address is www.precipiodx.com. We do not incorporate the information on
or accessible through our website into this prospectus, and you should not consider any information on, or that can be accessed
through, our website as part of this prospectus. Our current and future annual reports on Form 10-K, quarterly reports on Form
10-Q, current reports on Form 8-K and other filings with the SEC are available, free of charge, through our website as soon as
reasonably practicable after we electronically file such materials with, or furnish them to, the SEC. Our SEC filings can be accessed
through the investors section of our website. The information contained on, or accessible through, our website is not intended
to be part of this prospectus or any report we file with, or furnish to, the SEC and incorporated by reference herein. Our common
stock trades on the NASDAQ Capital Market, or NASDAQ, under the symbol &ldquo;PRPO.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1pt">&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 0pt 1pt; text-align: center"><B>THE OFFERING </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1pt">&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: 38%"><FONT STYLE="font-size: 10pt">Common stock offered by us </FONT></TD>
    <TD STYLE="width: 62%"><FONT STYLE="font-size: 10pt">Shares of common stock, $0.01 par value per share, with an aggregate offering price of up to $7,250,000. </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1pt">&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: 38%"><FONT STYLE="font-size: 10pt">Manner of offering </FONT></TD>
    <TD STYLE="width: 62%"><FONT STYLE="font-size: 10pt">&ldquo;At-the-market&rdquo; offering that may be made from time to time. See &ldquo;Plan of Distribution&rdquo; in this prospectus. </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1pt">&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: 38%"><FONT STYLE="font-size: 10pt">Use of proceeds </FONT></TD>
    <TD STYLE="width: 62%"><FONT STYLE="font-size: 10pt">We expect the net proceeds from this offering will be approximately $6.6 million, after deducting the offering expenses payable by us. We intend to use the net proceeds from this offering for the growth of our sales force and business development team, progression of our product development and for working capital and other general corporate purposes. See &ldquo;Use of Proceeds&rdquo;. </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1pt">&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: 38%"><FONT STYLE="font-size: 10pt">NASDAQ Global Market symbol </FONT></TD>
    <TD STYLE="width: 62%"><FONT STYLE="font-size: 10pt">&ldquo;PRPO&rdquo; </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1pt">&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: 38%"><FONT STYLE="font-size: 10pt">Risk Factors </FONT></TD>
    <TD STYLE="width: 62%"><FONT STYLE="font-size: 10pt">You should carefully read &ldquo;Risk Factors&rdquo; and other information included in this prospectus for a discussion of factors that you should consider before deciding to invest in shares of our common stock. </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
preceding data is based on </FONT>19,668,572 <FONT STYLE="font-family: Times New Roman, Times, Serif">shares outstanding as of
March 31, 2018. This number excludes:</FONT></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="background-color: white">3,523,012 common shares issuable upon the exercise of stock
options outstanding as of March 31, 2018, at a weighted average exercise price of $1.14 per share;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">5,923,789 <FONT STYLE="background-color: white">shares of common stock issuable upon exercise of
warrants that were outstanding as of March 31, 2018 at a weighted-average exercise price of $3.08</FONT> per share;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="background-color: white">2,544,306 shares of common stock reserved for future issuance
under our </FONT>2017 Stock Option and Incentive Plan, <FONT STYLE="background-color: white">as well as any automatic increases
in the number of common shares reserved for issuance under the 2017 Stock Option and Incentive Plan after the date of this prospectus</FONT>;
and</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">62,667 shares of our common stock issuable upon conversion of 47 shares of our Series&nbsp;B Preferred
Stock.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in; background-color: white">&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; text-align: center"><A NAME="pi_002"></A><B>RISK FACTORS </B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Investing in our common stock involves a high degree of risk.
You should carefully consider the risks and uncertainties described below together with all of the other information contained
in this prospectus, including our financial statements and the related notes </I>our Annual Report on Form&nbsp;10-K&nbsp;for the
fiscal year ended December&nbsp;31, 2017, filed with the SEC on April&nbsp;13, 2018<I>, before deciding to invest in our common
stock. If any of the following risks actually occur, our business, prospects, operating results and financial condition could suffer
materially, the trading price of our common stock could decline and you could lose all or part of your investment. Additional risks
and uncertainties not presently known to us or that we currently believe to be immaterial may also adversely affect 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; text-align: center"><B>Risks Related to Our Business and Strategy</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>There is substantial doubt about our ability to continue
as a going concern. </I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our Independent Registered Public Accounting
Firm has issued an opinion on our Consolidated Financial Statements included in our Annual Report on Form&nbsp;10-K&nbsp;for the
fiscal year ended December&nbsp;31, 2017, filed with the SEC on April&nbsp;13, 2018, that states that the Consolidated Financial
Statements were prepared assuming we will continue as a going concern. Our consolidated financial statements have been prepared
using accounting principles generally accepted in the United States of America applicable for a going concern, which assume that
we will realize our assets and discharge our liabilities in the ordinary course of business. We have incurred substantial operating
losses and have used cash in our operating activities for the past few years. For the year ended December 31, 2017, we had a net
loss of $20.7 million, negative working capital of $8.3 million and net cash used in operating activities of $6.7 million. We are
not current in making payments to all lenders and vendors. Our consolidated financial statements do not include any adjustments
to the amounts and classification of assets and liabilities that may be necessary should we be unable to continue as a going concern.
We also cannot be certain that additional financing, if needed, will be available on acceptable terms, or at all, and our failure
to raise capital when needed could limit our ability to continue our operations.</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: left; text-indent: 0.5in">To date, we have experienced
negative cash flow from development of our diagnostic technology, as well as from the costs associated with establishing a laboratory
and building a sales force to market our products and services.&nbsp;We expect to incur substantial net losses for the foreseeable
future to further develop and commercialize our diagnostic technology.&nbsp;We also expect that our selling, general and administrative
expenses will continue to increase due to the additional costs associated with market development activities and expanding our
staff to sell and support our products. Our ability to achieve or, if achieved, sustain profitability is based on numerous factors,
many of which are beyond our control, including the market acceptance of our products, competitive product development and our
market penetration and margins. We may never be able to generate sufficient revenue to achieve or, if achieved, sustain profitability.</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; text-indent: 0.5in">Because of the numerous
risks and uncertainties associated with further development and commercialization of our diagnostic technology and any future tests,
we are unable to predict the extent of any future losses or when we will become profitable, if ever.&nbsp;We may never become profitable
and you may never receive a return on an investment in our securities.&nbsp;An investor in our securities must carefully consider
the substantial challenges, risks and uncertainties inherent in the development and commercialization of tests in the medical diagnostic
industry.&nbsp;We may never successfully commercialize our diagnostic technology or any future tests, and our business may fail.</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><I>We will need to raise substantial additional capital to
commercialize our diagnostic technology, and our failure to obtain funding when needed may force us to delay, reduce or eliminate
our product development programs or collaboration efforts or force us to restrict or cease operations.</I></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-indent: 0.5in; text-align: left">As of December 31, 2017, we had cash of
less than $0.5 million and our working capital was approximately negative $8.3 million. Due to our recurring losses from operations
and the expectation that we will continue to incur losses in the future, we will be required to raise additional capital to complete
the development and commercialization of our current product candidates and to pay off our obligations.&nbsp;To date, to fund our
operations and develop and commercialize our products, we have relied primarily on equity and debt financings. When we seek additional
capital, we may seek to sell additional equity and/or debt securities or to obtain a credit facility, which we may not be able
to do on favorable terms, or at all.&nbsp;Our ability to obtain additional financing will be subject to a number of factors, including
market conditions, our operating performance and investor sentiment.&nbsp;If we are unable to raise additional capital when required
or on acceptable terms, we may have to significantly delay, scale back or discontinue the development and/or commercialization
of one or more of our product candidates, restrict or cease our operations or obtain funds by entering into agreements on unattractive
terms. Due to the timing of the filing of our Quarterly Report on Form 10-Q for the quarter ended June 30, 2017, we will not be
eligible to file a new Form S-3 registration statement until September 1, 2018. Our existing Form S-3 registration statement expired
in February 2018. This may have an adverse impact on our ability to raise additional capital.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We have incurred losses since our inception and expect
to incur losses for the foreseeable future.</I></B></P>

<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: left; text-indent: 0.5in">We have historically
operated at a loss and have not consistently generated sufficient cash from operating activities to cover our operating and other
cash expenses. We have been able to historically finance our operating losses through borrowings or from the issuance of additional
equity. For the year ended December 31, 2017, we had a net loss of $20.7 million, negative working capital of $8.3 million and
net cash used in operating activities of $6.7 million. Our ability to continue as a going concern is dependent upon a combination
of completing our planned development of the ICP technology, generating additional revenue, improving cash collections, and, if
needed, raising additional necessary financing to meet our obligations and pay our liabilities arising from normal business operations
as they come due. The outcome of these matters cannot be predicted with any certainty at this time and raises substantial doubt
that we will be able to continue as a going concern.</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><I>We are continuing to integrate legacy
internal controls over financial reporting into our financial reporting framework. </I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">Such&nbsp;changes&nbsp;have
resulted, and may continue to result in changes in our internal control over financial reporting results that materially affect
our&nbsp;internal&nbsp;control&nbsp;over&nbsp;financial&nbsp;reporting. We continue to integrate the business processes and information
systems in effect prior to the reverse merger, including internal controls. If we cannot provide reliable financial reports or
detect and prevent fraud, our business and operating results could be harmed, investors could lose confidence in our reporting
financial information, and the trading price of our common stock could drop significantly.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><B><I>We have been, and may continue to be, subject to costly
litigation.</I></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-indent: 0.5in; text-align: left">We have been,
and may continue to be, subject to legal proceedings. Due to the nature of our business and our lack of sufficient capital
resources to pay our obligations on a timely basis, we may be subject to a variety of regulatory investigations,
claims, lawsuits and other proceedings in the ordinary course of our business. The results of these legal proceedings cannot
be predicted with certainty due to the uncertainty inherent in litigation, including the effects of discovery of new evidence
or advancement of new legal theories, the difficulty of predicting decisions of judges and juries and the possibility
that decisions may be reversed on appeal. Such litigation has been, and in the future, could be, costly, time-consuming
and distracting to management, result in a diversion of resources and could materially adversely affect our business,
financial condition and operating results.</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: left"><B><I>The commercial success of our product
candidates will depend upon the degree of market acceptance of these products among physicians, patients, health care payors and
the medical community and on our ability to successfully market our product candidates.</I></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-indent: 0.5in; text-align: left">Our products may never
gain significant acceptance in the marketplace and, therefore, may never generate substantial revenue or profits for us. Our ability
to achieve commercial market acceptance for our existing and future products will depend on several factors, including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.25in">&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: 0.5in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left">&bull;</TD><TD STYLE="text-align: left">our ability to convince the medical community of the clinical utility of our products and their
potential advantages over existing diagnostics technology;</TD></TR></TABLE>

<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: 0.5in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left">&bull;</TD><TD STYLE="text-align: left">the willingness of physicians and patients to utilize our products; and</TD></TR></TABLE>

<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: 0.5in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left">&bull;</TD><TD STYLE="text-align: left">the agreement by commercial third-party payors and government payors to reimburse our products,
the scope and amount of which will affect patients&rsquo; willingness or ability to pay for our products and will likely heavily
influence physicians&rsquo; decisions to recommend our products.</TD></TR></TABLE>

<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-indent: 0.5in; text-align: left">In addition, physicians
may rely on guidelines issued by industry groups, such as the National Comprehensive Cancer Network, medical societies, such as
the College of American Pathologists, or CAP, or other key oncology-related organizations before utilizing any diagnostic test.
Although we have a study underway to demonstrate the clinical utility of our existing products, none of our products are, and may
never be, listed in any such guidelines.</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-indent: 0.5in; text-align: left">We believe that publications
of scientific and medical results in peer-reviewed journals and presentations at leading conferences are critical to the broad
adoption of our products. Publication in leading medical journals is subject to a peer-review process, and peer reviewers may not
consider the results of studies involving our products sufficiently novel or worthy of publication. The failure to be listed in
physician guidelines or to be published in peer-reviewed journals could limit the adoption of our products. Failure to achieve
widespread market acceptance of our products would materially harm our business, financial condition, and results of operations.</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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><B><I>If we cannot compete successfully
with our competitors, including new entrants in the market, we may be unable to increase or sustain our revenue or achieve and
sustain profitability.</I></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; text-indent: 0.5in">The medical diagnostic
industry is intensely competitive and characterized by rapid technological progress.&nbsp;We face significant competition from
competitors ranging in size from diversified global companies with significant research and development resources to small, specialized
firms whose narrower product lines may allow them to be more effective in deploying related PCR technology in the genetic diagnostic
industry. Our closest competitors fall largely into two groups, consisting of companies that specialize in oncology and offer directly
competing services to our diagnostic services, offering their services to oncologists and pathology departments within hospitals,
as well as large commercial companies that offer a wide variety of laboratory tests that range from simple chemistry tests to complex
genetic testing.&nbsp;The technologies associated with the molecular diagnostics industry are evolving rapidly and there is intense
competition within such industry.&nbsp;Certain molecular diagnostics companies have established technologies that may be competitive
to our product candidates and any future tests that we develop.&nbsp;Some of these tests may use different approaches or means
to obtain diagnostic results, which could be more effective or less expensive than our tests for similar indications.&nbsp;Moreover,
these and other future competitors have or may have considerably greater resources than we do in terms of technology, sales, marketing,
commercialization and capital resources.&nbsp;These competitors may have substantial advantages over us in terms of research and
development expertise, experience in clinical studies, experience in regulatory issues, brand name exposure and expertise in sales
and marketing as well as in operating central laboratory services.&nbsp;Many of these organizations have financial, marketing and
human resources greater than ours; therefore, there can be no assurance that we can successfully compete with present or potential
competitors or that such competition will not have a materially adverse effect on our business, financial position or results of
operations.</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; text-indent: 0.5in">In July 2017, we commenced
a study to demonstrate the impact of academic pathology expertise on diagnostic accuracy. There is no assurance that this study,
or other studies or trials we may conduct, will demonstrate favorable results. If the results of this study, or other studies or
trials we may conduct, demonstrate unfavorable or inconclusive results, customers may choose our competitors&rsquo; products over
our products and our commercial opportunities may be reduced or eliminated.</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; text-indent: 0.5in">We believe that many
of our competitors spend significantly more on research and development-related activities than we do.&nbsp;Our competitors may
discover new diagnostic tools or develop existing technologies to compete with our diagnostic technology.&nbsp;Our commercial opportunities
will be reduced or eliminated if these competing products are more effective, are more convenient or are less expensive than our
product candidates.</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: left"><B><I>We may not be able to develop new
products or enhance the capabilities of our systems to keep pace with rapidly changing technology and customer requirements, which
could have a material adverse effect on our business and operating results.</I></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; text-indent: 0.5in">Our success depends
on our ability to develop new products and applications for our diagnostic technology in existing and new markets, while improving
the performance and cost-effectiveness of our systems. New technologies, techniques or products could emerge that might offer better
combinations of price and performance than our current or future products and systems. Existing or future markets for our products,
as well as potential markets for our diagnostic product candidates, are characterized by rapid technological change and innovation.
It is critical to our success that we anticipate changes in technology and customer requirements and successfully introduce new,
enhanced and competitive technologies to meet our customers&rsquo; and prospective customers&rsquo; needs on a timely and cost-effective
basis. At the same time, however, we must carefully manage the introduction of new products. If customers believe that such products
will offer enhanced features or be sold for a more attractive price, they may delay purchases until such products are available.
We may also have excess or obsolete inventory of older products as we transition to new products and our experience in managing
product transitions is very limited. If we do not successfully innovate and introduce new technology into our product lines or
effectively manage the transitions to new product offerings, our revenues and results of operations will be adversely impacted.</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; text-indent: 0.5in">Competitors may respond
more quickly and effectively than we do to new or changing opportunities, technologies, standards or customer requirements. We
anticipate that we will face increased competition in the future as existing companies and competitors develop new or improved
products and as new companies enter the market with new technologies.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><B><I>We currently depend on the services
of pathologists at a single academic partner and the loss of the services of these pathologists would adversely impact our ability
to develop, commercialize and deliver our products.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">We currently depend
on the services of pathologists at a single academic partner to review and render their diagnostic interpretation of our test results
and to prepare the final diagnostic results that we integrate into our final report for our customers. Although we are in the process
of adding new academic partners, it would be difficult to replace the services provided by the pathologists at our current partner
if their services became unavailable to us for any reason prior to adding other academic partners. If this academic partner does
not successfully carry out its contractual duties or obligations and meet expected deadlines; if this partner needs to be replaced,
or if the quality or accuracy of the services provided by the pathologists at this partner were compromised for any reason, we
would likely not be able to provide our services in a manner expected by our customers, and our financial results and the commercial
prospects for our products could be harmed. The loss of the services of these pathologists would severely harm our ability to develop,
commercialize and deliver our products, and our business, financial condition and operating results would be materially adversely
affected.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><B><I>We may experience temporary disruptions
and delays in processing biological samples at our facilities.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">We may experience delays
in processing biological samples caused by software and other errors. Any delay in processing samples could have an adverse effect
on our business, financial condition and results of operations.</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><I>We depend upon a limited number of
key personnel, and if we are not able to retain them or recruit additional qualified personnel, the commercialization of our product
candidates and any future tests that we develop could be delayed or negatively impacted.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left">Our success is largely dependent upon the
continued contributions of our officers and employees.&nbsp;Our success also depends in part on our ability to attract and retain
highly qualified scientific, commercial and administrative personnel.&nbsp;In order to pursue our test development and commercialization
strategies, we will need to attract and hire additional personnel with specialized experience in a number of disciplines, including
assay development, laboratory and clinical operations, sales and marketing, billing and reimbursement.&nbsp;There is intense competition
for personnel in the fields in which we operate.&nbsp;If we are unable to attract new employees and retain existing employees,
the development and commercialization of our product candidates and any future tests could be delayed or negatively impacted. If
any of them becomes unable or unwilling to continue in their respective positions, and we are unable to find suitable replacements,
our business and financial results could be materially negatively affected.</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><I>We will need to increase the size
of our organization, and we may experience difficulties in managing growth.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left">We are a small company
with 31 full-time employees as of December&nbsp;31, 2017.&nbsp;Future growth will impose significant added responsibilities on
members of management, including the need to identify, attract, retain, motivate and integrate highly skilled personnel.&nbsp;We
may increase the number of employees in the future depending on the progress of our development of diagnostic technology.&nbsp;Our
future financial performance and our ability to commercialize our product candidates and to compete effectively will depend, in
part, on our ability to manage any future growth effectively.&nbsp;To that end, we must be able to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&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: 0.5in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD STYLE="text-align: left">integrate additional management, administrative, manufacturing and regulatory personnel;</TD></TR></TABLE>

<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: 0.5in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left">&bull;</TD><TD STYLE="text-align: left">maintain sufficient administrative, accounting and management information systems and controls; and</TD></TR></TABLE>

<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: 0.5in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left">&bull;</TD><TD STYLE="text-align: left">hire and train additional qualified personnel.</TD></TR></TABLE>

<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-indent: 0.5in; text-align: left">&nbsp;We may not be able to accomplish
these tasks, and our failure to accomplish any of them could harm our financial results.</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><I>We currently have limited experience
in marketing products.&nbsp;If we are unable to establish marketing and sales capabilities and retain the proper talent to execute
on our sales and marketing strategy, we may not be able to generate product revenue.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">We have developed limited
experience in marketing our products and services.&nbsp;We intend to continue to develop our in-house marketing organization and
sales force, which will require significant capital expenditures, management resources and time. We will have to compete with other
diagnostic companies to recruit, hire, train and retain marketing and sales personnel.</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; text-indent: 0.5in">If we are unable to
further grow our internal sales, marketing and distribution capabilities, we may pursue collaborative arrangements regarding the
sales and marketing of our product candidates or future products, however, we may not be able to establish or maintain such collaborative
arrangements, or if we are able to do so, they may not have effective sales forces.&nbsp;Any revenue we receive will depend upon
the efforts of such third parties, which may not be successful.&nbsp;We may have little or no control over the marketing and sales
efforts of such third parties and our revenue from product sales may be lower than if we had commercialized our product candidates
ourselves.&nbsp;We also face competition in our search for third parties to assist us with the sales and marketing efforts of our
product candidates.</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><I>We may not realize the anticipated
benefits of our merger with Transgenomic, Inc.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">In June 2017, we completed
our merger with Transgenomic, Inc, or Transgenomic. Integrating the operations of the businesses of Precipio Diagnostics successfully
or otherwise realizing any of the anticipated benefits of the merger with Precipio, including anticipated cost savings and additional
revenue opportunities, involves a number of potential challenges. The failure to meet these integration challenges could seriously
harm our results of operations and the market price of our common stock may decline as a result.</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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left">Realizing the benefits of the merger will
depend in part on the integration of information technology, operations and personnel. These integration activities are complex
and time-consuming and we may encounter unexpected difficulties or incur unexpected costs, including:</P>

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

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<TD STYLE="width: 0.5in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left">&bull;</TD><TD STYLE="text-align: left">our inability to achieve the cost savings and operating synergies anticipated in the merger, including
synergies relating to increased purchasing efficiencies and a reduction in costs associated with the merger;</TD></TR></TABLE>

<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: 0.5in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left">&bull;</TD><TD STYLE="text-align: left">diversion of management attention from ongoing business concerns to integration matters;</TD></TR></TABLE>

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<TD STYLE="width: 0.5in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left">&bull;</TD><TD STYLE="text-align: left">difficulties in consolidating and rationalizing information technology platforms and administrative infrastructures;</TD></TR></TABLE>

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<TD STYLE="width: 0.5in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left">&bull;</TD><TD STYLE="text-align: left">complexities associated with managing the geographic separation of the combined businesses and
consolidating multiple physical locations where management may determine consolidation is desirable;</TD></TR></TABLE>

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<TD STYLE="width: 0.5in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left">&bull;</TD><TD STYLE="text-align: left">difficulties in integrating personnel from different corporate cultures while maintaining focus
on providing consistent, high quality customer service;</TD></TR></TABLE>

<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: 0.5in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left">&bull;</TD><TD STYLE="text-align: left">challenges in demonstrating to our customers that the merger will not result in adverse changes
in customer service standards or business focus; and</TD></TR></TABLE>

<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: 0.5in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left">&bull;</TD><TD STYLE="text-align: left">possible cash flow interruption or loss of revenue as a result of change of ownership transitional matters.</TD></TR></TABLE>

<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-indent: 0.5in; text-align: left">We may not successfully
integrate the operations of the businesses in a timely manner and may not realize the anticipated net reductions in costs and expenses
and other benefits and synergies of the merger with Transgenomic to the extent, or in the timeframe, anticipated. In addition to
the integration risks discussed above, our ability to realize these net reductions in costs and expenses and other benefits and
synergies could be adversely impacted by practical or legal constraints on our ability to combine operations.</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><I>Cybersecurity risks could compromise
our information and expose us to liability, which may harm our ability to operate effectively and may cause our business and reputation
to suffer.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.25in"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">Cybersecurity refers
to the combination of technologies, processes and procedures established to protect information technology systems and data from
unauthorized access, attack, or damage. We rely on our information systems to provide security for processing, transmission and
storage of confidential information about our patients, customers and personnel, such as names, addresses and other individually
identifiable information protected by HIPAA and other privacy laws. Cyber-attacks are increasingly more common, including in&nbsp;the
health care industry. The regulatory environment surrounding information security and privacy is increasingly demanding, with the
frequent imposition of new and changing requirements.&nbsp;Compliance with changes in privacy and information security laws and
with rapidly evolving industry standards&nbsp;may result in our incurring significant expense due to increased investment in technology
and the development of new operational processes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">We have not experienced
any known attacks on our information technology systems that compromised any confidential information. We maintain our information
technology systems with safeguard protection against cyber-attacks including passive intrusion protection, firewalls and virus
detection software. However, these safeguards do not ensure that a significant cyber-attack could not occur. Although we have taken
steps to protect the security of our information systems and the data maintained in those systems, it is possible that our safety
and security measures will not prevent the systems&rsquo; improper functioning or damage or the improper access or disclosure of
personally identifiable information such as in the event of cyber-attacks.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">Security breaches,
including physical or electronic break-ins, computer viruses, attacks by hackers and similar breaches can create system disruptions
or shutdowns or the unauthorized disclosure of confidential information. If personal information or protected health information
is improperly accessed, tampered with or disclosed as a result of a security breach, we may incur significant costs to notify and
mitigate potential harm to the affected individuals, and we may be subject to sanctions and civil or criminal penalties if we are
found to be in violation of the privacy or security rules under HIPAA or other similar federal or state laws protecting confidential
personal information. In addition, a security breach of our information systems could damage our reputation, subject us to liability
claims or regulatory penalties for compromised personal information and could have a material adverse effect on our business, financial
condition and results of operations.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><B><I>Our ability to use net operating
loss carryforwards to offset future taxable income for U.S. federal tax purposes is subject to limitation and risk that could further
limit our ability to utilize our net operating losses.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">Under U.S. federal
income tax law, a corporation&rsquo;s ability to utilize its net operating losses, or NOLs, to offset future taxable income may
be significantly limited if it experiences an &ldquo;ownership change&rdquo; as defined in Section&nbsp;382 of the Internal Revenue
Code, as amended. In general, an ownership change will occur if there is a cumulative change in a corporation&rsquo;s ownership
by &ldquo;5-percent shareholders&rdquo; that exceeds 50&nbsp;percentage points over a rolling three-year period. A corporation
that experiences an ownership change will generally be subject to an annual limitation on the use of its pre-ownership change NOLs
equal to the value of the corporation immediately before the ownership change, multiplied by the long-term tax-exempt rate (subject
to certain adjustments). The annual limitation for a taxable year generally is increased by the amount of any &ldquo;recognized
built-in gains&rdquo; for such year and the amount of any unused annual limitation in a prior year. On December 22, 2017, a law
commonly known as the Tax Cuts and Jobs Act, or the TCJ Act, was enacted in the United States. Certain provisions of the TCJ Act
impact the ability to utilize NOLs generated in 2018 and forward; any limitation to our annual use of NOLs could require us to
pay a greater amount of U.S. federal (and in some cases, state) income taxes, which could reduce our after-tax income from operations
for future taxable years and adversely impact our financial condition.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&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; text-align: center"><B>Reimbursement and Regulatory Risks Relating
to Our Business</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><B><I>Governmental payers and health care
plans have taken steps to control costs.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">Medicare, Medicaid
and private insurers have increased their efforts to control the costs of health care services, including clinical testing services.
They may reduce fee schedules or limit/exclude coverage for certain types of tests that we perform. Medicaid reimbursement varies
by state and is subject to administrative and billing requirements and budget pressures. We expect efforts to reduce reimbursements,
impose more stringent cost controls and reduce utilization of testing services will continue. These efforts, including changes
in laws or regulations, may have a material adverse impact on our business.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><B><I>Changes in payer mix could have a
material adverse impact on our net sales and profitability.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">Testing services are
billed to physicians, patients, government payers such as Medicare, and insurance companies. Tests may be billed to different payers
depending on a particular patient&rsquo;s medical insurance coverage. Government payers have increased their efforts to control
the cost, utilization and delivery of health care services as well as reimbursement for laboratory testing services. Further reductions
of reimbursement for Medicare and Medicaid services or changes in policy regarding coverage of tests or other requirements for
payment, such as prior authorization or a physician or qualified practitioner&rsquo;s signature on test requisitions, may be implemented
from time to time. Reimbursement for the laboratory services component of our business is also subject to statutory and regulatory
reduction. Reductions in the reimbursement rates and changes in payment policies of other third party payers may occur as well.
Such changes in the past have resulted in reduced payments as well as added costs and have decreased test utilization for the clinical
laboratory industry by adding more complex new regulatory and administrative requirements. As a result, increases in the percentage
of services billed to government payers could have an adverse impact on our net sales.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><B><I>Our laboratories require ongoing
CLIA certification.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">The Clinical Laboratory
Improvement Amendments of 1988, or CLIA, extended federal oversight to virtually all clinical laboratories by requiring that they
be certified by the federal government or by a federally-approved accreditation agency. The CLIA requires that all clinical laboratories
meet quality assurance, quality control and personnel standards. Laboratories must also undergo proficiency testing and are subject
to inspections.</P>

<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: left; text-indent: 0.5in">The sanctions for failure
to comply with the CLIA requirements include suspension, revocation or limitation of a laboratory&rsquo;s CLIA certificate, which
is necessary to conduct business, cancellation or suspension of the laboratory&rsquo;s approval to receive Medicare and/or Medicaid
reimbursement, as well as significant fines and/or criminal penalties. The loss or suspension of a CLIA certification, imposition
of a fine or other penalties, or future changes in the CLIA law or regulations (or interpretation of the law or regulations) could
have a material adverse effect on us.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">We believe that we
are in compliance with all applicable laboratory requirements, but no assurances can be given that our laboratories will pass all
future certification inspections.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><B><I>Failure to comply with HIPAA could
be costly.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">The Health Insurance
Portability and Accountability Act, or HIPAA, and associated regulations protect the privacy and security of certain patient health
information and establish standards for electronic health care transactions in the United States. These privacy regulations establish
federal standards regarding the uses and disclosures of protected health information. Our laboratories are subject to HIPAA and
its associated regulations. If we fail to comply with these laws and regulations we could suffer civil and criminal penalties,
fines, exclusion from participation in governmental health care programs and the loss of various licenses, certificates and authorizations
necessary to operate our patient testing business. We could also incur liabilities from third party claims.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><B><I>Our failure to comply with any applicable
government laws and regulations or otherwise respond to claims relating to improper handling, storage or disposal of hazardous
chemicals that we use may adversely affect our results of operations.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">Our research and development
[and manufacturing] activities involve the controlled use of hazardous materials and chemicals. We are subject to federal, state,
local and international laws and regulations governing the use, storage, handling and disposal of hazardous materials and waste
products. If we fail to comply with applicable laws or regulations, we could be required to pay penalties or be held liable for
any damages that result and this liability could exceed our financial resources. We cannot be certain that accidental contamination
or injury will not occur. Any such accident could damage our research and manufacturing facilities and operations, resulting in
delays and increased costs.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><B><I>We may become subject to the Anti-Kickback
Statute, Stark Law, False Claims Act, Civil Monetary Penalties Law and may be subject to analogous provisions of applicable state
laws and could face substantial penalties if we fail to comply with such laws.</I></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; text-indent: 0.5in">There are several federal
laws addressing fraud and abuse that apply to businesses that receive reimbursement from a federal health care program. There are
also a number of similar state laws covering fraud and abuse with respect to, for example, private payors, self-pay and insurance.
Currently, we receive a substantial percentage of our revenue from private payors and from Medicare. Accordingly, our business
is subject to federal fraud and abuse laws, such as the Anti-Kickback Statute, the Stark Law, the False Claims Act, the Civil Monetary
Penalties Law and other similar laws. Moreover, we are already subject to similar state laws. We believe we have operated, and
intend to continue to operate, our business in compliance with these laws. However, these laws are subject to modification and
changes in interpretation, and are enforced by authorities vested with broad discretion. Federal and state enforcement entities
have significantly increased their scrutiny of healthcare companies and providers which has led to investigations, prosecutions,
convictions and large settlements. We continually monitor developments in this area. If these laws are interpreted in a manner
contrary to our interpretation or are reinterpreted or amended, or if new legislation is enacted with respect to healthcare fraud
and abuse, illegal remuneration, or similar issues, we may be required to restructure our affected operations to maintain compliance
with applicable law. There can be no assurances that any such restructuring will be possible or, if possible, would not have a
material adverse effect on our results of operations, financial position, or cash flows.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">A federal law commonly
referred to as the &ldquo;Anti-Kickback Statute&rdquo; prohibits the knowing and willful offer, payment, solicitation or receipt
of remuneration, directly or indirectly, in return for the referral of patients or arranging for the referral of patients, or in
return for the recommendation, arrangement, purchase, lease or order of items or services that are covered, in whole or in part,
by a federal healthcare program such as Medicare or Medicaid. The term &ldquo;remuneration&rdquo; has been broadly interpreted
to include anything of value such as gifts, discounts, rebates, waiver of payments or providing anything at less than its fair
market value. The Patient Protection and Affordable Care Act, as amended by the Health Care and Education Reconciliation Act, or
the PPACA, amended the intent requirement of the Anti-Kickback Statute such that a person or entity can be found guilty of violating
the statute without actual knowledge of the statute or specific intent to violate the statute. Further, the PPACA now provides
that claims submitted in violation of the Anti-Kickback Statute constitute false or fraudulent claims for purposes of the federal
False Claims Act, or FCA, including the failure to timely return an overpayment. Many states have adopted similar prohibitions
against kickbacks and other practices that are intended to influence the purchase, lease or ordering of healthcare items and services
reimbursed by a governmental health program or state Medicaid program. Some of these state prohibitions apply to remuneration for
referrals of healthcare items or services reimbursed by any third-party payor, including commercial payors and self-pay patients.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><I>Stark Law</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; text-indent: 0.5in">Section&nbsp;1877 of
the Social Security Act, or the Stark Law, prohibits a physician from referring a patient to an entity for certain &ldquo;designated
health services&rdquo; reimbursable by Medicare if the physician (or close family members) has a financial relationship with that
entity, including an ownership or investment interest, a loan or debt relationship or a compensation relationship, unless an exception
to the Stark Law is fully satisfied. The designated health services covered by the law include, among others, laboratory and imaging
services. Some states have self-referral laws similar to the Stark Law for Medicaid claims and commercial claims.</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: left; text-indent: 0.5in">Violation of the Stark
Law may result in prohibition of payment for services rendered, a refund of any Medicare payments for services that resulted from
an unlawful referral, $15,000 civil monetary penalties for specified infractions, criminal penalties, and potential exclusion from
participation in government healthcare programs, and potential false claims liability. The repayment provisions in the Stark Law
are not dependent on the parties having an improper intent; rather, the Stark Law is a strict liability statute and any violation
is subject to repayment of all amounts arising out of tainted referrals. If physician self-referral laws are interpreted differently
or if other legislative restrictions are issued, we could incur significant sanctions and loss of revenues, or we could have to
change our arrangements and operations in a way that could have a material adverse effect on our business, prospects, damage to
our reputation, results of operations and financial condition.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>False Claims Act</I></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: left; text-indent: 0.5in">The FCA prohibits providers
from, among other things, (1)&nbsp;knowingly presenting or causing to be presented, claims for payments from the Medicare, Medicaid
or other federal healthcare programs that are false or fraudulent; (2)&nbsp;knowingly making, using or causing to be made or used,
a false record or statement to get a false or fraudulent claim paid or approved by the federal government; or (3)&nbsp;knowingly
making, using or causing to be made or used, a false record or statement to avoid, decrease or conceal an obligation to pay money
to the federal government. The &ldquo;qui tam&rdquo; or &ldquo;whistleblower&rdquo; provisions of the FCA allow private individuals
to bring actions under the FCA on behalf of the government. These private parties are entitled to share in any amounts recovered
by the government, and, as a result, the number of &ldquo;whistleblower&rdquo; lawsuits that have been filed against providers
has increased significantly in recent years. Defendants found to be liable under the FCA may be required to pay three times the
actual damages sustained by the government, plus civil penalties ranging between $5,500 and $11,000 for each separate false claim.</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; text-indent: 0.5in">There are many potential
bases for liability under the FCA. The government has used the FCA to prosecute Medicare and other government healthcare program
fraud such as coding errors, billing for services not provided, and providing care that is not medically necessary or that is substandard
in quality. The PPACA also provides that claims submitted in connection with patient referrals that result from violations of the
Anti-Kickback Statute constitute false claims for the purpose of the FCA, and some courts have held that a violation of the Stark
law can result in FCA liability, as well. In addition, a number of states have adopted their own false claims and whistleblower
provisions whereby a private party may file a civil lawsuit in state court. We are required to provide information to our employees
and certain contractors about state and federal false claims laws and whistleblower provisions and protections.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><I>Civil Monetary Penalties Law</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; text-indent: 0.5in">The Civil Monetary
Penalties Law prohibits, among other things, the offering or giving of remuneration to a Medicare or Medicaid beneficiary that
the person or entity knows or should know is likely to influence the beneficiary&rsquo;s selection of a particular provider or
supplier of items or services reimbursable by a federal or state healthcare program. This broad provision applies to many kinds
of inducements or benefits provided to patients, including complimentary items, services or transportation that are of more than
a nominal value. This law could affect how we have to structure our operations and activities.</P>

<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: center"><B>Intellectual Property Risks Related to
Our Business</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We cannot be certain that measures taken to protect our
intellectual property will be effective.</I></B></P>

<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: left; text-indent: 0.5in">We rely upon trade
secrets, copyright and trademark laws, non-disclosure agreements and other contractual confidentiality provisions to protect our
confidential and proprietary information that we are not seeking patent protection for various reasons. Such measures, however,
may not provide adequate protection for our trade secrets or other proprietary information. If such measures do not protect our
rights, third parties could use our technology and our ability to compete in the market would be reduced.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><B><I>We depend on certain technologies
that are licensed to us. We do not control these technologies and any loss of our rights to them could prevent us from selling
some of our products.</I></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; text-indent: 0.5in">We have entered into
license agreements with third parties for certain licensed technologies that are, or may become, relevant to the products we market,
or plan to market, including our license agreement with Dana-Farber Cancer Institute, Inc., pursuant to which we license our ICE-COLD-PCR
technology. In addition, we may in the future elect to license third party intellectual property to further our business objectives
and/or as needed for freedom to operate for our products. We do not and will not own the patents, patent applications or other
intellectual property rights that are the subject of these licenses. Our rights to use these technologies and employ the inventions
claimed in the licensed patents, patent applications and other intellectual property rights are or will be subject to the continuation
of and compliance with the terms of those licenses.</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; text-indent: 0.5in">We might not be able
to obtain licenses to technology or other intellectual property rights that we require. Even if such licenses are obtainable, they
may not be available at a reasonable cost or multiple licenses may be needed for the same product (e.g., stacked royalties). We
could therefore incur substantial costs related to royalty payments for licenses obtained from third parties, which could negatively
affect our gross margins. Further, we could encounter delays in product introductions, or interruptions in product sales, as we
develop alternative methods or products.</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: left; text-indent: 0.5in">In some cases, we do
not or may not control the prosecution, maintenance, or filing of the patents or patent applications to which we hold licenses,
or the enforcement of these patents against third parties. As a result, we cannot be certain that drafting or prosecution of the
licensed patents and patent applications by the licensors have been or will be conducted in compliance with applicable laws and
regulations or will result in valid and enforceable patents and other intellectual property rights.</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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Third parties may assert ownership
or commercial rights to inventions we develop.</I></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: left; text-indent: 0.5in">Third parties may in
the future make claims challenging the inventorship or ownership of our intellectual property. For example, third parties that
have been introduced to or have benefited from our inventions may attempt to replicate or reverse engineer our products and circumvent
ownership of our inventions. In addition, we may face claims that our agreements with employees, contractors, or consultants obligating
them to assign intellectual property to us are ineffective, or in conflict with prior or competing contractual obligations of assignment,
which could result in ownership disputes regarding intellectual property we have developed or will develop and interfere with our
ability to capture the commercial value of such inventions. Litigation may be necessary to resolve an ownership dispute, and if
we are not successful, we may be precluded from using certain intellectual property, or may lose our exclusive rights in that intellectual
property. Either outcome could have an adverse impact on our business.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><B><I>Third parties may assert that our
employees or consultants have wrongfully used or disclosed confidential information or misappropriated trade secrets.</I></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; text-indent: 0.5in">Although we try to
ensure that our employees and consultants do not use the proprietary information or know-how of others in their work for us, we
may be subject to claims that we or our employees, consultants or independent contractors have inadvertently or otherwise used
or disclosed intellectual property, including trade secrets or other proprietary information, of a former employer or other third
parties. Litigation may be necessary to defend against these claims. If we fail in defending any such claims, in addition to paying
monetary damages, we may lose valuable intellectual property rights or personnel. Even if we are successful in defending against
such claims, litigation could result in substantial costs and be a distraction to management and other employees.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><B><I>The testing, manufacturing and marketing
of medical diagnostic devices entails an inherent risk of product liability and personal injury claims.</I></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; text-indent: 0.5in">To date, we have experienced
no product liability or personal injury claims, but any such claims arising in the future could have a material adverse effect
on our business, financial condition and results of operations.&nbsp;Potential product liability or personal injury claims may
exceed the amount of our insurance coverage or may be excluded from coverage under the terms of our policy or limited by other
claims under our umbrella insurance policy.&nbsp;Additionally, our existing insurance may not be renewed by us at a cost and level
of coverage comparable to that presently in effect, if at all.&nbsp;In the event that we are held liable for a claim against which
we are not insured or for damages exceeding the limits of our insurance coverage, such claim could have a material adverse effect
on our cash flow and thus potentially a materially adverse effect on our business, financial condition and results of operations.</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: left"><B><I>All of our diagnostic technology
development and our clinical services are performed at two laboratories, and in the event either or both of these facilities were
to be affected by a termination of the lease or a man-made or natural disaster, our operations could be severely impaired.</I></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; text-indent: 0.5in">We are performing all
of our diagnostic services in our CLIA laboratory located in New Haven, Connecticut and our research and development operations
are based in our facility in Omaha, Nebraska.&nbsp;Despite precautions taken by us, any future natural or man-made disaster at
these laboratories, such as a fire, earthquake or terrorist activity, could cause substantial delays in our operations, damage
or destroy our equipment and testing samples or cause us to incur additional expenses.</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; text-indent: 0.5in">In addition, we are
leasing the facilities where our laboratories operate.&nbsp;We are currently in compliance with all and any lease obligations,
but should the leases terminate for any reason, or if at any time either of the laboratories is moved due to conditions outside
our control, it could cause substantial delay in our diagnostics operations, damage or destroy our equipment and biological samples
or cause us to incur additional expenses.&nbsp;In the event of an extended shutdown of either laboratory, we may be unable to perform
our services in a timely manner or at all and therefore would be unable to operate in a commercially competitive manner.&nbsp;This
could harm our operating results and financial condition.</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; text-indent: 0.5in">Further, if we have
to use a substitute laboratory while our facilities were shut down, we could only use another facility with established state licensure
and accreditation under CLIA.&nbsp;We may not be able to find another CLIA-certified facility and comply with applicable procedures,
or find any such laboratory that would be willing to perform the tests for us on commercially reasonable terms.&nbsp;Additionally,
any new laboratory opened by us would be subject to certification under CLIA and licensure by various states, which would take
a significant amount of time and result in delays in our ability to continue our operations.</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; text-align: center"><B>Risks Related to 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; text-align: left"><B><I>The price of our common stock may fluctuate significantly,
which could negatively affect us and holders of our common stock.</I></B>&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left">There has been, and continues to be, a limited
public market for our common stock, and an active trading market for our common stock has not and may never develop or, if developed,
be sustained. The trading price of our common stock may be highly volatile and could be subject to wide fluctuations in response
to various factors, some of which are beyond our control. These factors include:</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">These factors include:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in; text-align: left">&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: 0.5in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left">&bull;</TD><TD STYLE="text-align: left">actual or anticipated fluctuations in our financial condition and operating results:</TD></TR></TABLE>

<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: 0.5in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left">&bull;</TD><TD STYLE="text-align: left">actual or anticipated changes in our growth rate relative to our competitors;</TD></TR></TABLE>

<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: 0.5in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left">&bull;</TD><TD STYLE="text-align: left">competition from existing products or new products that may emerge;</TD></TR></TABLE>

<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: 0.5in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left">&bull;</TD><TD STYLE="text-align: left">announcements by us, our academic institution partners, or our competitors of significant acquisitions, strategic partnerships,
joint ventures, collaborations, or capital commitments;</TD></TR></TABLE>

<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: 0.5in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left">&bull;</TD><TD STYLE="text-align: left">failure to meet or exceed financial estimates and projections of the investment community or that we provide to the public
and the revision of any financial estimates and projections that we provide to the public;</TD></TR></TABLE>

<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: 0.5in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left">&bull;</TD><TD STYLE="text-align: left">issuance of new or updated research or reports by securities analysts;</TD></TR></TABLE>

<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: 0.5in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left">&bull;</TD><TD STYLE="text-align: left">fluctuations in the valuation of companies perceived by investors to be comparable to us;</TD></TR></TABLE>

<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: 0.5in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left">&bull;</TD><TD STYLE="text-align: left">share price and volume fluctuations attributable to inconsistent trading volume levels of our shares;</TD></TR></TABLE>

<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: 0.5in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left">&bull;</TD><TD STYLE="text-align: left">additions, transitions or departures of key management or scientific personnel;</TD></TR></TABLE>

<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: 0.5in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left">&bull;</TD><TD STYLE="text-align: left">disputes or other developments related to proprietary rights, including patents, litigation matters, and our ability to obtain
patent protection for our technologies;</TD></TR></TABLE>

<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: 0.5in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left">&bull;</TD><TD STYLE="text-align: left">changes to reimbursement levels by commercial third-party payors and government payors, including Medicare, and any announcements
relating to reimbursement levels;</TD></TR></TABLE>

<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: 0.5in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left">&bull;</TD><TD STYLE="text-align: left">announcement or expectation of additional debt or equity financing efforts;</TD></TR></TABLE>

<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: 0.5in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left">&bull;</TD><TD STYLE="text-align: left">sales of our common stock by us, our insiders, or our other stockholders; and</TD></TR></TABLE>

<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: 0.5in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left">&bull;</TD><TD STYLE="text-align: left">general economic and market conditions</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left">These and other market and industry factors
may cause the market price and demand for our common stock to fluctuate substantially, regardless of our actual operating performance,
which may limit or prevent investors from readily selling their shares of our common stock and may otherwise negatively affect
the liquidity of our common stock. In addition, the stock market in general has experienced price and volume fluctuations that
have often been unrelated or disproportionate to the operating performance of these companies. In the past, when the market price
of a stock has been volatile, holders of that stock have instituted securities class action litigation against the company that
issued the stock. If any of our stockholders brought a lawsuit against us, we could incur substantial costs defending the lawsuit.
Such a lawsuit could also divert the time and attention of our management.</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"><B><I>The price of our stock may be vulnerable to manipulation.</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; text-indent: 0.5in">We believe our common stock has been the
subject of significant short selling by certain market participants. Short sales are transactions in which a market participant
sells a security that it does not own. To complete the transaction, the market participant must borrow the security to make delivery
to the buyer. The market participant is then obligated to replace the security borrowed by purchasing the security at the market
price at the time of required replacement. If the price at the time of replacement is lower than the price at which the security
was originally sold by the market participant, then the market participant will realize a gain on the transaction. Thus, it is
in the market participant&rsquo;s interest for the market price of the underlying security to decline as much as possible during
the period prior to the time of replacement.</P>

<P STYLE="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; text-align: left">Because our unrestricted public float has
been small relative to other issuers, previous short selling efforts have impacted, and may in the future continue to impact, the
value of our stock in an extreme and volatile manner to our detriment and the detriment of our shareholders. Efforts by certain
market participants to manipulate the price of our common stock for their personal financial gain may cause our stockholders to
lose a portion of their investment, may make it more difficult for us to raise equity capital when needed without significantly
diluting existing stockholders, and may reduce demand from new investors to purchase shares of our stock.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><B><I>If we cannot continue to satisfy NASDAQ listing maintenance
requirements and other rules, our securities may be delisted, which could negatively impact the price of our securities.</I></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-indent: 0.5in; text-align: left">Although our common stock is listed on the
NASDAQ Capital Market, we may be unable to continue to satisfy the listing maintenance requirements and rules. If we are unable
to satisfy The NASDAQ Stock Market, or NASDAQ, criteria for maintaining our listing, our securities could be subject to delisting.</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-indent: 0.5in; text-align: left">On March 26, 2018, we received a letter
from NASDAQ notifying us that for the past 30 consecutive business days, the closing bid price per share of our common stock was
below the $1.00 minimum bid price requirement for continued listing on the NASDAQ Capital Market, as required by NASDAQ Listing
Rule 5550(a)(2), or the Bid Price Rule. As a result, we were notified by NASDAQ that we are not in compliance with the Bid Price
Rule. NASDAQ has provided u with 180 calendar days, or until September 24, 2018, to regain compliance with the Bid Price Rule.</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; text-indent: 0.5in">To regain compliance with the Bid Price
Rule, the closing bid price of our common stock must meet or exceed $1.00 per share for a minimum of ten consecutive business days
during the 180 day grace period. If our common stock does not regain compliance with the Bid Price Rule during this grace period,
we will be eligible for an additional grace period of 180 calendar days provided that we satisfy NASDAQ&rsquo;s continued listing
requirement for market value of publicly held shares and all other initial listing standards for listing on The NASDAQ Capital
Market, other than the minimum bid price requirement, and provide written notice to NASDAQ of our intention to cure the delinquency
during the second grace period. If we meet these requirements, NASDAQ will inform us that we have been granted an additional 180
calendar days. However, if it appears to NASDAQ that we will not be able to cure the deficiency, or if we are otherwise not eligible,
NASDAQ will provide notice that our securities will be subject to delisting.</P>

<P STYLE="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">We are presently evaluating various courses
of action to regain compliance with the Bid Price Rule. However, there can be no assurance that we will be able to regain compliance.</P>

<P STYLE="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">If NASDAQ delists our securities, we could face significant
consequences, 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: 0.5in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD>a limited availability for market quotations for our securities;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&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: 0.5in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD>reduced liquidity with respect to our securities;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&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: 0.5in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD>a determination that our common stock is a &ldquo;penny stock,&rdquo; which will require brokers trading in our common stock
to adhere to more stringent rules and possibly result in reduced trading;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&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: 0.5in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD>activity in the secondary trading market for our common stock;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&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: 0.5in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD>limited amount of news and analyst coverage; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&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: 0.5in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD>a decreased ability to issue additional securities or obtain additional financing in the future.</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-indent: 0.5in">In addition, we would no longer be subject to NASDAQ rules,
including rules requiring us to have a certain number of independent directors and to meet other corporate governance standards.</P>

<P STYLE="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>Increased costs associated with corporate governance compliance
may significantly impact our results of operations.</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; text-indent: 0.5in">As a public company, we incur significant
legal, accounting, and other expenses due to our compliance with regulations and disclosure obligations applicable to us, including
compliance with the Sarbanes-Oxley Act of 2002, or the Sarbanes-Oxley Act, as well as rules implemented by the SEC, and NASDAQ.
The SEC and other regulators have continued to adopt new rules and regulations and make additional changes to existing regulations
that require our compliance. In July 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act, or the Dodd-Frank Act,
was enacted. There are significant corporate governance and executive compensation related provisions in the Dodd-Frank Act that
have required the SEC to adopt additional rules and regulations in these areas. Stockholder activism, the current political environment,
and the current high level of government intervention and regulatory reform may lead to substantial new regulations and disclosure
obligations, which may lead to additional compliance costs and impact, in ways we cannot currently anticipate, the manner in which
we operate our business. Our management and other personnel devote a substantial amount of time to these compliance programs and
monitoring of public company reporting obligations, and as a result of the new corporate governance and executive compensation
related rules, regulations, and guidelines prompted by the Dodd-Frank Act, and further regulations and disclosure obligations expected
in the future, we will likely need to devote additional time and costs to comply with such compliance programs and rules. These
rules and regulations will cause us to incur significant legal and financial compliance costs and will make some activities more
time-consuming and costly.</P>

<P STYLE="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">The Sarbanes-Oxley Act requires that we
maintain effective disclosure controls and procedures and internal control over financial reporting. We are continuing to develop
and refine our disclosure controls and other procedures that are designed to ensure that information required to be disclosed by
us in the reports that we file with the SEC is recorded, processed, summarized, and reported within the time periods specified
in SEC rules and forms, and that information required to be disclosed in reports under the Exchange Act is accumulated and communicated
to our principal executive and financial officers. Our current controls and any new controls that we develop may become inadequate,
and weaknesses in our internal control over financial reporting may be discovered in the future. Any failure to develop or maintain
effective controls could adversely affect the results of periodic management evaluations and annual independent registered public
accounting firm attestation reports regarding the effectiveness of our internal control over financial reporting, which we may
be required to include in our periodic reports that we file with the SEC under Section&nbsp;404 of the Sarbanes-Oxley Act, and
could harm our operating results, cause us to fail to meet our reporting obligations, or result in a restatement of our prior period
financial statements. If we are not able to demonstrate compliance with the Sarbanes-Oxley Act, that our internal control over
financial reporting is perceived as inadequate, or that we are unable to produce timely or accurate financial statements, investors
may lose confidence in our operating results, and the price of our common stock could decline.</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; text-indent: 0.5in">We are required to comply with certain of
the SEC rules that implement Section&nbsp;404 of the Sarbanes-Oxley Act, which requires management to certify financial and other
information in our quarterly and annual reports and provide an annual management report on the effectiveness of our internal control
over financial reporting. This assessment needs to include the disclosure of any material weaknesses in our internal control over
financial reporting identified by our management or our independent registered public accounting firm. During the evaluation and
testing process, if we identify one or more material weaknesses in our internal control over financial reporting or if we are unable
to complete our evaluation, testing, and any required remediation in a timely fashion, we will be unable to assert that our internal
control over financial reporting is effective.</P>

<P STYLE="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">These developments could make it more difficult
for us to retain qualified members of our Board of Directors, or qualified executive officers. We are presently evaluating and
monitoring regulatory developments and cannot estimate the timing or magnitude of additional costs we may incur as a result. To
the extent these costs are significant, our general and administrative expenses are likely to increase.</P>

<P STYLE="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 have not paid dividends on our common stock in the
past and do not expect to pay dividends on our common stock for the foreseeable future.&nbsp; Any return on investment may be limited
to 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; text-indent: 0.5in">No cash dividends have been paid on our
common stock.&nbsp; We expect that any income received from operations will be devoted to our future operations and growth.&nbsp;
We do not expect to pay cash dividends on our common stock in the near future.&nbsp; Payment of dividends would depend upon our
profitability at the time, cash available for those dividends, and other factors as our board of directors may consider relevant.&nbsp;
If we do not pay dividends, our common stock may be less valuable because a return on an investor&rsquo;s investment will only
occur if our stock price appreciates.&nbsp; Investors in our common stock should not rely on an investment in our company if they
require dividend income.</P>

<P STYLE="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 securities or industry analysts do not publish research
or reports about our business, or if they change their recommendations regarding our stock adversely, our stock price and trading
volume could decline.</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; text-indent: 0.5in">The trading market for our common stock
relies in part on the research and reports that equity research analysts publish about us and our business. We do not control these
analysts. The price of our common stock could decline if one or more equity research analysts downgrade our common stock or if
they issue other unfavorable commentary or cease publishing reports about us or our business:</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"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="pi_003"></A><B>CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS </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; text-indent: 0.5in">This prospectus, including the sections
entitled &ldquo;Prospectus Summary,&rdquo; &ldquo;Risk Factors,&rdquo; &ldquo;Management&rsquo;s Discussion and Analysis of Financial
Condition and Results of Operations&rdquo; and &ldquo;Business,&rdquo; contains forward-looking statements that are based on our
management&rsquo;s belief and assumptions and on information currently available to our management. Although we believe that the
expectations reflected in these forward-looking statements are reasonable, these statements relate to our strategy, future operations,
future financial position, future revenue, projected costs, prospects, plans, objectives of management and expected market growth,
and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance
or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or
implied by these forward-looking statements. Forward-looking statements in this prospectus include, but are not limited to, statements
about:</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>
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 0.25in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">our use of the net proceeds from this offering; </FONT></TD></TR>
</TABLE>
<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>
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 0.25in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">the progress, timing and amount of expenses associated with our development and commercialization activities; </FONT></TD></TR>
</TABLE>
<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>
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 0.25in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">our plans and ability to develop and commercialize new products and services, and make improvements to our existing products and services; </FONT></TD></TR>
</TABLE>
<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>
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 0.25in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">our ability to protect our intellectual property and operate our business without infringing upon the intellectual property rights of others; </FONT></TD></TR>
</TABLE>
<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>
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 0.25in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">our ability or the amount of time it will take to achieve successful reimbursement of our existing and future products and services from third-party payors, such as commercial insurance companies and health maintenance organizations, and government insurance programs, such as Medicare and Medicaid; </FONT></TD></TR>
</TABLE>
<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>
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 0.25in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">the accuracy of our estimates of the size and characteristics of the markets that may be addressed by our products; </FONT></TD></TR>
</TABLE>
<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>
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 0.25in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">the success of our study to demonstrate the impact of academic pathology expertise on diagnostic accuracy, and any other studies or trials we may conduct; </FONT></TD></TR>
</TABLE>
<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>
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 0.25in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">our intention to seek, and our ability to establish, strategic collaborations or partnerships for the development or sale of our products and the effectiveness of such collaborations or partnerships; </FONT></TD></TR>
</TABLE>
<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>
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 0.25in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">our expectations as to future financial performance, expense levels and liquidity sources; </FONT></TD></TR>
</TABLE>
<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>
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 0.25in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">our anticipated cash needs and our estimates regarding our capital requirements and our needs for additional financing, as well as our ability to obtain such additional financing on reasonable terms; </FONT></TD></TR>
</TABLE>
<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>
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 0.25in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">our ability to compete with other companies that are or may be developing or selling products that are competitive with our products; </FONT></TD></TR>
</TABLE>
<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>
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 0.25in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">our ability to build a sales force to market our products and
        services, and anticipated increases in our sales and marketing costs due to an expansion in our sales force and marketing activities;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">federal and state regulatory requirements, including potential
        United States Food and Drug Administration regulation of our products or future products;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">anticipated trends and challenges in our potential markets;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">our ability to attract and retain key personnel; and</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD></TR>
<TR>
    <TD>&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">other factors discussed elsewhere in this prospectus. </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: 0.5in">In some cases, you can identify forward-looking
statements by terminology such as &ldquo;may,&rdquo; &ldquo;will,&rdquo; &ldquo;should,&rdquo; &ldquo;expects,&rdquo; &ldquo;intends,&rdquo;
&ldquo;plans,&rdquo; &ldquo;anticipates,&rdquo; &ldquo;believes,&rdquo; &ldquo;estimates,&rdquo; &ldquo;predicts,&rdquo; &ldquo;potential,&rdquo;
&ldquo;continue&rdquo; or the negative of these terms or other comparable terminology. These statements are only predictions. You
should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other
factors, which are, in some cases, beyond our control and which could materially affect results. Factors that may cause actual
results to differ materially from current expectations include, among other things, those listed under &ldquo;Risk Factors&rdquo;
and elsewhere in this prospectus. If one or more of these risks or uncertainties occur, or if our underlying assumptions prove
to be incorrect, actual events or results may vary significantly from those implied or projected by the forward-looking statements.
No forward-looking statement is a guarantee of future performance. You should read this prospectus and the documents that we reference
in this prospectus and have filed with the SEC as exhibits to the registration statement, of which this prospectus is a part, completely
and with the understanding that our actual future results may be materially different from any future results expressed or implied
by these forward-looking statements.</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">The forward-looking statements in this prospectus
represent our views as of the date of this prospectus. We anticipate that subsequent events and developments will cause our views
to change. However, while we may elect to update these forward-looking statements at some point in the future, we have no current
intention of doing so except to the extent required by applicable law. You should, therefore, not rely on these forward-looking
statements as representing our views as of any date subsequent to the date of this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></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="pi_004"></A><B>USE OF PROCEEDS </B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We may issue and sell shares of our common stock having aggregate sales proceeds of up to $8.0 million
from time to time. Because there is no minimum offering amount required as a condition to close this offering, the actual total
public offering amount, and net proceeds to us, if any, are not determinable at this time. There can be no assurance that we will
sell any shares under or fully utilize the Equity Purchase Agreement with Leviston Resources LLC as a source of financing. The
principal purposes of this offering are to increase our financial flexibility, improve our visibility in the marketplace, grow
our sales and business development resources and accelerate our product offerings. We currently intend to use the net proceeds
from this offering, if shares are sold, primarily for general corporate purposes, including working capital and operating expenses.
We may also use a portion of the net proceeds to acquire or invest in complementary technologies, solutions, products, services,
businesses, or other assets, although we have no present commitments or agreements to enter into any acquisitions or investments.</P>

<P STYLE="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">As
of the date of this prospectus, we cannot specify with certainty all of the particular uses of the net proceeds from this offering.
The amount and timing of our actual expenditures will depend on numerous factors, including the cash used in or generated by our
operations, sales and marketing efforts, competition, the pace of our expansion plans, our investments, and acquisitions. Accordingly,
we will have broad discretion in using these proceeds. Pending these uses, we intend to invest the net proceeds from this offering
in short-term and intermediate-term investment-grade interest-bearing securities and obligations, such as money market accounts,
certificates of deposit, commercial paper, and guaranteed obligations of the U.S. government. We cannot predict whether the invested
proceeds will yield a favorable return.</P>

<P STYLE="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-top: 0pt; text-align: center; margin-bottom: 0pt"><A NAME="pi_005"></A><B>PRICE RANGE OF COMMON STOCK </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; text-indent: 0.5in; text-align: left">Since June 30, 2017, the trading date following
the consummation of the Merger, our common stock has traded on the NASDAQ Capital Market under the symbol &ldquo;PRPO.&rdquo;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left">Prior to the Merger, our common stock was
traded on the NASDAQ Capital Market under the symbol &ldquo;TBIO.&rdquo; Our common stock was suspended from trading on the NASDAQ
Capital Market on February 17, 2017 and on February 22, 2017, our shares began trading on the OTCQB exchange under the ticker &ldquo;TBIO&rdquo;
and remained on the OTCQB exchange until the date of the Merger. In connection with the merger, our common stock commenced trading
on the NASDAQ Capital Market under the symbol &ldquo;PRPO.&rdquo;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left">The following table sets forth, for the
periods indicated, the closing prices of our common stock as reported on the market exchanges noted above. The over-the-counter
market quotations reflect inter-dealer prices, without retail mark-up, mark-down or commission and may not necessarily represent
actual transactions. The per share prices reflect a 1-for-30 reverse stock split effected on June 13, 2017:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left">&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 NOWRAP>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Fiscal Year 2018</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">High</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Low</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%; text-align: left">First Quarter</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">1.30</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">0.48</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Second Quarter (through April 12, 2018)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.53</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.42</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<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 NOWRAP>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Fiscal Year 2017</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">High</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Low</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%; text-align: left">First Quarter</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">33.60</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">7.80</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Second Quarter</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">16.86</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">4.90</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">Third Quarter</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">20.10</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1.80</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Fourth Quarter</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">2.23</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1.08</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<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 NOWRAP>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Fiscal Year 2016</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">High</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Low</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%; text-align: left">First Quarter</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">32.41</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">16.20</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Second Quarter</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">21.92</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">15.00</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">Third Quarter</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">17.36</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">8.37</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Fourth Quarter</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">11.04</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">4.75</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; text-indent: 0.5in">On April 12, 2018, the closing price of our common stock as
reported on The NASDAQ Capital Market was $0.49 per share. As of March 31, 2018, there were 19,668,572 shares of our common stock
outstanding and approximately 81 holders of record.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="pi_006"></A><B>DIVIDEND POLICY </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; text-indent: 0.5in; text-align: left">We have never declared or paid dividends
on our capital stock. We do not anticipate paying any dividends on our capital stock in the foreseeable future. We currently intend
to retain all available funds and any future earnings to fund the development and growth of our business. Any future determination
to declare dividends will be subject to the discretion of our board of directors and will depend on various factors, including
applicable laws, our results of operations, financial condition, future prospects and any other factors deemed relevant by our
board of directors. Investors should not purchase our common stock with the expectation of receiving cash dividends.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="pi_007"></A><B>CAPITALIZATION </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: 0.5in">The following
table sets forth our cash and cash equivalents and capitalization as of December&nbsp;31, 2017:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">on an actual basis</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">on a pro forma basis to give effect to:</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in; background-color: white; text-align: left">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">o</FONT></TD><TD STYLE="text-align: left">the issuance of 6,465,334 shares of our common stock, subsequent to December 31, 2017, as a result of the conversion of 2,340
shares of our Series B Preferred Stock and 2,548 shares of our Series C Preferred Stock; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; background-color: white; text-align: left">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">o</FONT></TD><TD STYLE="text-align: left">the issuance of 721,153 shares issued on February 12, 2018 pursuant to the initial sale under our Equity Purchase Agreement
which we entered into on February 8, 2018 and the issuance of 170,711 shares issued on February 12, 2018 pursuant to a commitment
fee due under the Equity Purchase Agreement; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; background-color: white; text-align: left">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">o</FONT></TD><TD STYLE="text-align: left">the issuance of 1,814,754 shares issued on February 12, 2018 pursuant to vendor settlement agreements entered into during the
fourth quarter of 2017 to cancel approximately $1.9 million of the Company&rsquo;s debt obligations; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; background-color: white; text-align: left">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">o</FONT></TD><TD STYLE="text-align: left">the issuance of 300,000 shares of our common stock, subsequent to December 31, 2017, as a result of the exercise of 300,000
warrants to purchase shares of the Company&rsquo;s common stock; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; background-color: white; text-align: left">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">o</FONT></TD><TD STYLE="text-align: left">the receipt of $400,000, in January 2018, pursuant to an agreement the Company entered into with the Connecticut Department
of Economic and Community Development, by which the Company received a grant of $100,000 and a loan of $300,000.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">on a pro forma as adjusted basis to give further effect to (i)&nbsp;our sale of&nbsp;15,425,532&nbsp;shares of common stock
in this offering and our receipt of the net proceeds therefrom at an assumed public offering price of $0.47&nbsp;per share ,after
deducting estimated discounts and commissions and estimated offering expenses payable by us.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.25in; background-color: white">The
following information is illustrative only of our cash and capitalization following the completion of this offering and will change
based on the actual public offering price and other terms of this offering determined at pricing. You should read this table in
conjunction with &quot;Management's Discussion and Analysis of Financial Condition and Results of Operations&quot; and our consolidated
financial statements and related notes in our Annual Report on Form&nbsp;10-K&nbsp;for the fiscal year ended December&nbsp;31,
2017, filed with the SEC on April&nbsp;13, 2018.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in; background-color: white">&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 NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">As of December&nbsp;31, 2017</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="text-align: center; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Actual</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Pro Forma</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Pro Forma<BR> As Adjusted</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD NOWRAP COLSPAN="6" STYLE="font-weight: bold; text-align: center">(in thousands)</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD>&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 61%; text-indent: -10pt; padding-left: 10pt">Cash</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">421</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">1,705</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">8,337</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Current maturities of long-term debt</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(587</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(611</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(611</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt"><FONT STYLE="font-size: 10pt">Obligation to issue common shares<FONT STYLE="font-family: Times New Roman, Times, Serif"><SUP>2</SUP></FONT></FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,897</TD><TD STYLE="text-align: left">)</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; text-indent: -10pt; padding-left: 10pt">Long-term debt</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,829</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3,105</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3,105</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Common stock warrant liability</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(841</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(841</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(841</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Capital leases (Current &amp; Long term)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(163</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(163</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(163</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Stockholders' (deficit) equity:</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><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; text-indent: -10pt; padding-left: 20pt">Preferred stock, $0.01 par value per share; 15,000,000 shares authorized, actual, pro forma and pro forma as adjusted, 2,387 shares of Series B Preferred Stock issued and outstanding as of December 31, 2017, actual; and 47 shares of Series B Preferred Stock issued and outstanding&nbsp;&nbsp;pro forma and pro forma as adjusted;&nbsp;2,548&nbsp;&nbsp;shares of Series C Preferred Stock issued and outstanding as of December 31, 2017, actual; and zero shares of Series C Preferred Stock issued and outstanding&nbsp;&nbsp;pro forma and pro forma as adjusted</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><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; text-indent: -10pt; padding-left: 20pt">Common stock, $0.001 par value per share; 150,000,000 shares authorized, actual, pro forma and pro forma as adjusted;&nbsp;10,196,620 shares issued and outstanding at December 31, 2017, actual; 19,668,572&nbsp;shares issued and outstanding, pro forma;&nbsp;35,094,104&nbsp;shares issued and outstanding, pro forma as adjusted;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">102</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">197</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">351</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 20pt">Additional paid-in capital</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">44,465</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">47,061</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">53,539</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; text-indent: -10pt; padding-left: 20pt">Accumulated deficit</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(31,542</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(31,542</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(31,542</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 30pt">Total stockholders' (deficit) equity</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13,025</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15,716</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">22,348</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; text-indent: -10pt; padding-left: 10pt">Total capitalization</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">6,708</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">10,996</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">17,628</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; text-indent: 0.25in"></P>

<!-- Field: Rule-Page --><DIV ALIGN="LEFT"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 25%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>2</SUP> Included in Other Current Liabilities on the Consolidation
Balance Sheet within our Annual Report on Form&nbsp;10-K&nbsp;for the fiscal year ended December&nbsp;31, 2017, filed with the
SEC on April&nbsp;13, 2018</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&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; text-indent: 0.5in">Each
$1.00 increase or decrease in the assumed public offering price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share, which is the midpoint of the estimated offering price range set forth on the cover page of this prospectus, would increase
or decrease pro forma as adjusted cash and cash equivalents, additional paid-in capital, total stockholders' equity and total capitalization
by $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million, assuming that the number of shares offered
by us, as set forth on the cover page of this prospectus, remains the same. An increase or decrease of 1.0&nbsp;million shares
in the number of shares offered by us would increase or decrease pro forma as adjusted cash and cash equivalents, additional paid-in
capital, total stockholders' equity and total capitalization by $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million,
assuming a public offering price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per share, which is
the midpoint of the estimated offering price range set forth on the cover page of this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; background-color: white">&nbsp;</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">The
preceding data is based on </FONT>19,668,572 <FONT STYLE="font-family: Times New Roman, Times, Serif">shares outstanding as of
March 31, 2018. This number excludes:</FONT></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="background-color: white">3,523,012 common shares issuable upon the exercise of stock
options outstanding as of March 31, 2018, at a weighted average exercise price of $1.14 per share;</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">5,923,789 <FONT STYLE="background-color: white">shares of common stock issuable upon exercise of
warrants that were outstanding as of March 31, 2018 at a weighted-average exercise price of $3.08</FONT> per share;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="background-color: white">2,544,306 shares of common stock reserved for future issuance
under our </FONT>2017 Stock Option and Incentive Plan, <FONT STYLE="background-color: white">as well as any automatic increases
in the number of common shares reserved for issuance under the 2017 Stock Option and Incentive Plan after the date of this prospectus</FONT>;
and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: left; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">62,667 shares of our common stock issuable upon conversion of 47 shares of our Series&nbsp;B Preferred
Stock.</TD></TR></TABLE>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="pi_008"></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; text-align: left; text-indent: 0.5in">If you invest in our
common stock, your interest will be diluted to the extent of the difference between the public offering price per share of our
common stock and the pro forma as adjusted net tangible book value per share of our common stock after this offering. As of December
31, 2017, our historical net tangible book value was $(12.1) million, or $(1.19) per share of common stock, based on 10,196,620
shares of our common stock outstanding at December 31, 2017. Our historical net tangible book value per share represents the amount
of our total tangible assets reduced by the amount of our total liabilities, divided by the total number of shares of our common
stock outstanding as of December 31, 2017.</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; text-indent: 0.5in">Our pro forma net tangible
book value as of December&nbsp;31, 2017 was $(9.2)&nbsp;million, or $(0.47)&nbsp;per share of common stock. Pro forma net tangible
book value per share represents total tangible assets less total liabilities, divided by the number of shares of common stock outstanding,
assuming (i)&nbsp;the issuance of 6,465,334 shares of our common stock, subsequent to December 31, 2017, as a result of the conversion
of 2,340 shares of our Series B Preferred Stock and 2,548 shares of our Series C Preferred Stock; (ii) the issuance of 721,153
shares issued on February 12, 2018 pursuant to the initial sale under our Equity Purchase Agreement which we entered into on February
8, 2018 and the issuance of 170,711 shares issued on February 12, 2018 pursuant to a commitment fee due under the Equity Purchase
Agreement; (iii) the issuance of 1,814,754 shares issued on February 12, 2018 pursuant to vendor settlement agreements entered
into during the fourth quarter of 2017 to cancel approximately $1.9 million of the Company&rsquo;s debt obligations; (iv) the issuance
of 300,000 shares of our common stock, subsequent to December 31, 2017, as a result of the exercise of 300,000 warrants to purchase
shares of the Company&rsquo;s common stock; and (v) the receipt of $400,000, in January 2018, pursuant to an agreement the Company
entered into with the Connecticut Department of Economic and Community Development, by which the Company received a grant of $100,000
and a loan of $300,000.</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; text-indent: 0.5in">After giving effect
to the sale by us of&nbsp;15,425,532&nbsp;shares of our common stock in this offering at the assumed public offering price of $0.47&nbsp;per
share, after deducting estimated discounts and estimated offering expenses payable by us, our pro forma as adjusted
net tangible book value as of December&nbsp;31, 2017 would have been $(2.6)&nbsp;million, or $(0.07)&nbsp;per share. This represents
an immediate increase in pro forma net tangible book value of $0.40&nbsp;per share to our existing stockholders and an immediate
dilution of $0.54&nbsp;per share to our new investors purchasing shares of common stock in this offering. The following table illustrates
this dilution on a per share basis:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&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; background-color: rgb(204,238,255)">
    <TD STYLE="width: 74%; text-align: justify">Assumed public offering price per share</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right"></TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">0.47</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">Historical net tangible book value per share as of December&nbsp;31, 2017</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(1.19</TD><TD STYLE="text-align: left">)</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="text-align: justify; padding-bottom: 1pt">Increase in net tangible book value per share attributable to the pro forma adjustments described above </TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">$</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">0.72</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: right; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">Pro forma net tangible book value per share as of December&nbsp;31, 2017</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(0.47</TD><TD STYLE="text-align: left">)</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="text-align: justify; padding-bottom: 1pt">Increase in pro forma net tangible book value per share attributable to this offering</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">$</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">0.40</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: right; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-bottom: 1pt">Pro forma as adjusted net tangible book value per share after this offering</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: right; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">(0.07</TD><TD STYLE="text-align: left; padding-bottom: 1pt">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; padding-bottom: 1pt">Dilution per share to new investors in this offering</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: right; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">$</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">0.54</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">This pro forma as
adjusted dilution information is illustrative only and will change based on the actual public offering price, number of shares
sold and other terms of this offering determined at pricing. Each $1.00 increase or decrease in the assumed public offering price
of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per share would increase or decrease our pro forma as adjusted net tangible
book value by $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million, or $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share, and the dilution per share to investors participating in this offering by $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share, assuming that the number of shares offered by us, as set forth on the cover page of this prospectus, remains the same.
Similarly, each increase or decrease of 1.0&nbsp;million shares in the number of shares we are offering would increase or decrease
the pro forma as adjusted net tangible book value by $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per share, respectively, and the dilution per share to
investors participating in this offering by $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share, respectively, assuming an public offering price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share, which is the midpoint of the estimated offering price range set forth on the cover page of this prospectus.</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; text-indent: 0.5in"></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-align: left; text-indent: 0.5in">The preceding data is
based on 19,668,572 shares outstanding as of March 31, 2018. This number excludes:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">3,523,012
                                         common shares issuable upon the exercise of stock options outstanding as of March 31,
                                         2018, at a weighted average exercise price of $1.14 per share;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">5,923,789
                                         shares of common stock issuable upon exercise of warrants that were outstanding as of
                                         March 31, 2018 at a weighted-average exercise price of $3.08 per share;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">2,544,306
                                         shares of common stock reserved for future issuance under our 2017 Stock Option and Incentive
                                         Plan, as well as any automatic increases in the number of common shares reserved for
                                         issuance under the 2017 Stock Option and Incentive Plan after the date of this prospectus;
                                         and</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">62,667
                                         shares of our common stock issuable upon conversion of 47 shares of our Series&nbsp;B
                                         Preferred Stock.</TD></TR></TABLE>

<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; text-indent: 0.5in">To the extent that s<FONT STYLE="background-color: white">tock
options are exercised or new stock options are issued under our equity incentive plans, there will be further dilution to investors
purchasing common stock in this offering.</FONT> In addition, we need to raise additional capital because of market conditions
and strategic considerations. If we raise additional capital through the sale of equity or convertible debt securities, the issuance
of these securities could result in further dilution to our stockholders.</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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="pi_009"></A><B>SELECTED FINANCIAL DATA</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; text-align: left; text-indent: 0.5in">We are a smaller reporting company, as defined by Rule 12b-2
of the Exchange Act, and are not required to provide the information required under this item</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></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 NAME="pi_010"></A><B>MANAGEMENT&rsquo;S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS </B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><I>You should read the following discussion and analysis of
our financial condition and results of operations together with the section entitled &ldquo;Selected Financial Data&rdquo; and
our financial statements and related our Annual Report on Form&nbsp;10-K&nbsp;for the fiscal year ended December&nbsp;31, 2017,
filed with the SEC on April&nbsp;13, 2018. Some of the information contained in this discussion and analysis or set forth elsewhere
in this prospectus, including information with respect to our plans and strategy for our business and related financing, includes
forward-looking statements that involve risks and uncertainties. As a result of many factors, including those factors set forth
in the &ldquo;Risk Factors&rdquo; section of this prospectus, our actual results could differ materially from the results described
in or implied by the forward-looking statements contained in the following discussion and analysis. </I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Forward-Looking Information</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; text-indent: 0.5in; text-align: left">This prospectus contains forward-looking
statements. These statements are based on management&rsquo;s current views, assumptions or beliefs of future events and financial
performance and are subject to uncertainty and changes in circumstances. Readers of this report should understand that these statements
are not guarantees of performance or results. Many factors could affect our actual financial results and cause them to vary materially
from the expectations contained in the forward-looking statements. These factors include, among other things: our expected revenue,
income (loss), receivables, operating expenses, supplier pricing, availability and prices of raw materials, insurance reimbursements,
product pricing, sources of funding operations and acquisitions, our ability to raise funds, sufficiency of available liquidity,
future interest costs, future economic circumstances, business strategy, industry conditions, our ability to execute our operating
plans, the success of our cost savings initiatives, competitive environment and related market conditions, expected financial and
other benefits from our organizational restructuring activities, actions of governments and regulatory factors affecting our business,
retaining key employees and other risks as described in our reports filed with the Securities and Exchange Commission. In some
cases, these statements are identifiable through the use of words such as &ldquo;anticipate,&rdquo; &ldquo;believe,&rdquo; &ldquo;estimate,&rdquo;
&ldquo;expect,&rdquo; &ldquo;intend,&rdquo; &ldquo;plan,&rdquo; &ldquo;project,&rdquo; &ldquo;target,&rdquo; &ldquo;can,&rdquo;
&ldquo;could,&rdquo; &ldquo;may,&rdquo; &ldquo;should,&rdquo; &ldquo;will,&rdquo; &ldquo;would&rdquo; or the negative versions
of these terms and other similar expressions.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left">You are cautioned not to place undue reliance
on these forward-looking statements. The forward-looking statements we make are not guarantees of future performance and are subject
to various assumptions, risks and other factors that could cause actual results to differ materially from those suggested by these
forward-looking statements. Actual results may differ materially from those suggested by the forward-looking statements that we
make for a number of reasons, including those described &ldquo;Risk Factors,&rdquo; within this prospectus.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left">We expressly disclaim any obligation to
update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as
required by law.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left">On June&nbsp;29, 2017, or the &ldquo;Closing
Date&rdquo;, the Company (then known as Transgenomic, Inc., or Transgenomic), completed a reverse merger, or the Merger, with Precipio
Diagnostics, LLC, a privately held Delaware limited liability company, or Precipio Diagnostics, in accordance with the terms of
the Agreement and Plan of Merger, or the Merger Agreement, dated October&nbsp;12, 2016, as amended on February&nbsp;2, 2017 and
June&nbsp;29, 2017, by and among Transgenomic, Precipio Diagnostics and New Haven Labs Inc., or Merger Sub, a wholly-owned subsidiary
of Transgenomic. Pursuant to the Merger Agreement, Merger Sub merged with and into Precipio Diagnostics, with Precipio Diagnostics
surviving the Merger as a wholly-owned subsidiary of the merged company. In connection with the Merger, the Company changed its
name from Transgenomic, Inc. to Precipio, Inc. and effected a 1-for-30 reverse stock split of its common stock. Upon the consummation
of the Merger, the historical financial statements of Precipio Diagnostics become the Company's historical financial statements.
Accordingly, the historical financial statements of Precipio Diagnostics are included in the comparative prior periods.</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"><B>Overview</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">Precipio, Inc., and Subsidiary, (&ldquo;we&rdquo;,
&ldquo;us&rdquo;, &ldquo;our&rdquo;, the &ldquo;Company&rdquo; or &ldquo;Precipio&rdquo;) is a cancer diagnostics company providing
diagnostic products and services to the oncology market. We have built and continue to develop a platform designed to eradicate
the problem of misdiagnosis by harnessing the intellect, expertise and technology developed within academic institutions and delivering
quality diagnostic information to physicians and their patients worldwide. We operate a cancer diagnostic laboratory located in
New Haven, Connecticut and have partnered with the Yale School of Medicine to capture the expertise, experience and technologies
developed within academia so that we can provide a better standard of cancer diagnostics and solve the growing problem of cancer
misdiagnosis. We also operate a research and development facility in Omaha, Nebraska which will focus on further development of
ICE-COLD-PCR, or ICP, the patented technology which was exclusively licensed by us from Dana-Farber Cancer Institute, Inc., or
Dana-Farber, at Harvard University. The research and development center will focus on the development of this technology, which
we believe will enable us to commercialize other technologies developed by our current and future academic partners. Our platform
connects patients, physicians and diagnostic experts residing within academic institutions. Launched in 2017, the platform facilitates
the following relationships:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>


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<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: 0.5in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD STYLE="text-align: left">Patients: patients may search for physicians in their area and consult directly with academic experts
that are on the platform. Patients may also have access to new academic discoveries as they become commercially available.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: left; text-indent: -0.25in">&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: 0.5in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left">&bull;</TD><TD STYLE="text-align: left">Physicians: physicians can connect with academic experts to seek consultations on behalf of their
patients and may also provide consultations for patients in their area seeking medical expertise in that physician&rsquo;s relevant
specialty. Physicians will also have access to new diagnostic solutions to help improve diagnostic accuracy.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: left; text-indent: -0.25in">&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: 0.5in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left">&bull;</TD><TD STYLE="text-align: left">Academic Experts: academic experts on the platform can make themselves available for patients or
physicians seeking access to their expertise. Additionally, these experts have a platform available to commercialize their research
discoveries.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">We intend to continue updating our platform
to allow for patient-to-patient communications and allow individuals to share stories and provide support for one another, to allow
physicians to consult with their peers to discuss and share challenges and solutions, and to allow academic experts to interact
with others in academia on the platform to discuss their research and cross-collaborate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">ICP was developed at Harvard and is licensed
exclusively by us from Dana-Farber. The technology enables the detection of genetic mutations in liquid biopsies, such as blood
samples. The field of liquid biopsies is a rapidly growing market, aimed at solving the challenge of obtaining genetic information
on disease progression and changes from sources other than a tumor biopsy.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">Gene sequencing is performed on tissue
biopsies taken surgically from the tumor site in order to identify potential therapies that will be more effective in treating
the patient. There are several limitations to this process. First, surgical procedures have several limitations, including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: left; text-indent: -0.25in">&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: 0.5in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left">&bull;</TD><TD STYLE="text-align: left">Cost: surgical procedures are usually performed in a costly hospital environment. For example,
according to a recent study the mean cost of lung biopsies is greater than $14,000; surgery also involves hospitalization and recovery
time.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: left; text-indent: -0.25in">&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: 0.5in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD STYLE="text-align: left">Surgical access: various tumor sites are not always accessible (e.g. brain tumors), in which cases
no biopsy is available for diagnosis.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: left; text-indent: -0.25in">&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: 0.5in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left">&bull;</TD><TD STYLE="text-align: left">Risk: patient health may not permit undergoing an invasive surgery; therefore, a biopsy cannot
be obtained at all.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: left; text-indent: -0.25in">&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: 0.5in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left">&bull;</TD><TD STYLE="text-align: left">Time: the process of scheduling and coordinating a surgical procedure often takes time, delaying
the start of patient treatment.</TD></TR></TABLE>

<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; text-indent: 0.5in">Second, there are several tumor-related limitations
that provide a challenge to obtaining such genetic information from a tumor:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&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: 0.5in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left">&bull;</TD><TD STYLE="text-align: left">Tumors are heterogeneous by nature: a tissue sample from one area of the tumor may not properly represent the tumor&rsquo;s
entire genetic composition; thus, the diagnostic results from a tumor may be incomplete and non-representative.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: left">&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: 0.5in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left">&bull;</TD><TD STYLE="text-align: left">Metastases: in order to accurately test a patient with metastatic disease, ideally an individual biopsy sample should be taken
from each site (if those sites are even known). These biopsies are very difficult to obtain; therefore, physicians often rely on
biopsies taken only from the primary tumor site.</TD></TR></TABLE>

<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; text-indent: 31.5pt">The advent of technologies
enabling liquid biopsies as an alternative to tumor biopsy and analysis is based on the fact that tumors (both primary and metastatic)
shed cells and fragments of DNA into the blood stream. These blood samples are called &ldquo;liquid biopsies&rdquo; that contain
circulating tumor DNA, or ctDNA, which hold the same genetic information found in the tumor(s). That tumor DNA is the target of
genetic analysis. However, since the quantity of tumor DNA is very small in proportion to the &ldquo;normal&rdquo; (or &ldquo;healthy&rdquo;)
DNA within the blood stream, there is a need to identify and separate the tumor DNA from the normal DNA.</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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 31.5pt">ICP is an enrichment
technology that enables the laboratory to focus its analysis on the tumor DNA by enriching, and thereby &ldquo;multiplying&rdquo;
the presence of, tumor DNA, while maintaining the normal DNA at its same level. Once the enrichment process has been completed,
the laboratory genetic testing equipment is able to identify genetic abnormalities presented in the ctDNA, and an analysis can
be conducted at a higher level of sensitivity, to enable the detection of such genetic abnormalities. The technology is encapsulated
into a chemical that is provided in the form of a kit and sold to other laboratories who wish to conduct these tests in-house.
The chemical within the kit is added to the specimen preparation process, enriching the sample for the tumor DNA so that the analysis
will detect those genetic abnormalities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 22.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">The following discussion
should be read together with our financial statements and related notes contained in in our Annual Report on Form&nbsp;10-K&nbsp;for
the fiscal year ended December&nbsp;31, 2017, filed with the SEC on April&nbsp;13, 2018 are not necessarily indicative of results
that may be attained in the future.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 22.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><B>Recent Developments</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; text-indent: 31.5pt">During the first quarter
of 2018, we continued to further demonstrate the power of our value proposition. In a study conducted with Yale, preliminary results
showed a 4-fold superiority in arriving at accurate diagnostic results, compared with the diagnoses conducted by outside pathology
laboratories. Additionally, we partnered with the molecular laboratory at the University of Pennsylvania to conduct a parallel
study to demonstrate the efficacy of IV-Cell, a proprietary reagent developed and patented by Precipio.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 31.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 31.5pt">As part of our ongoing
work to further develop our product line, we launched several new products and product-improvements related to our proprietary
liquid biopsy technology, ICE-COLD PCR (ICP). Among them, we launched our first lung cancer treatment resistance panel, both as
a kit, and in our laboratory. Additionally, we integrated a unique technology called High-Resolution Melt (HRM) into our ICP kits,
enabling a quick and cost-effective screen for the presence of mutations. HRM-enabled ICP kits further improve ICP&rsquo;s value
proposition by both rapidly improving the potential turnaround time for testing results, as well as substantially reducing the
costs of testing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 31.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 31.5pt">These efforts drove
further expansion on the commercial side of the business. During the first quarter we established distribution partnerships with
key local players in the Japanese, Brazilian, and Indian markets. We believe these markets provide a tremendous opportunity for
Precipio to expand into the International markets where many patients pay out-of-pocket for their healthcare costs, thus rendering
an effective, low-cost technology for the monitoring of the tumor genetics. Additionally, we hired an experienced VP of Sales to
lead the domestic pathology sales team, and over the next several quarters we plan to double our sales force to expand into other
regions in the US.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 31.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 31.5pt">From a corporate and
financial perspective, this quarter saw the company settle its final outstanding creditor claims that carried over from the Transgenomic
merger in mid-2017. The Company settled its claims with Crede Capital, which joins other creditors who will be receiving payments
over time, to enable the company to manage cash outlays while growing our business</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 31.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><I><U>Loan Agreement</U></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; text-indent: 0.5in">On January 8, 2018,
the Company received gross proceeds of $400,000 when it entered into an agreement with the Connecticut Department of Economic and
Community Development (the &ldquo;DECD&rdquo;) by which the Company received a grant of $100,000 and a loan of $300,000 secured
by substantially all of the Company&rsquo;s assets (the &ldquo;DECD 2018 Loan&rdquo;.) The DECD 2018 Loan has a maturity date of
January 27, 2028 and an annual interest rate of 3.25% with principal and interest payments due monthly.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 22.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><I><U>Amendment of the 2017 Stock Option
and Incentive Plan </U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 22.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">On January 31, 2018,
at a special meeting of the stockholders of the Company, the stockholders approved an amendment and restatement of the Company&rsquo;s
2017 Stock Option and Incentive Plan (the &ldquo;2017 Plan&rdquo;) to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 22.5pt">&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: 40.5pt; text-align: left"></TD><TD STYLE="width: 18pt; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">increase the aggregate number of shares authorized for issuance under the 2017 Plan by 5,389,500
shares to 6,056,166 shares and cumulatively increased on January 1, 2019 and on each January 1 thereafter by the lesser of the
annual increase for such year or 500,000 shares;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 58.5pt; text-align: left">&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: 40.5pt; text-align: left"></TD><TD STYLE="width: 18pt; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">increase the maximum number of shares that may be granted in the form of stock options or stock
appreciation rights to any one individual in any one calendar year and the maximum number of shares underlying any award intended
to qualify as performance-based compensation to any one individual in any performance cycle, in each case to 1,000,000 shares of
Common Stock; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 58.5pt; text-align: justify; text-indent: -0.25in">&nbsp;</P>


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<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: 40.5pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">add an &ldquo;evergreen&rdquo; provision, pursuant to which the aggregate number of shares authorized
for issuance under the 2017 Plan will be automatically increased each year beginning on January 1, 2019 by 5% of the number of
shares of Common Stock issued and outstanding on the immediately preceding December 31, or such lesser number of shares determined
by the Company&rsquo;s Board of Directors or Compensation Committee.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 22.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><I><U>Equity Purchase Agreement</U></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; text-indent: 0.5in">On February 8, 2018
the Company entered into an equity purchase agreement (the &ldquo;Purchase agreement&rdquo;) with Leviston Resources LLC (&ldquo;Leviston&rdquo;)
for the purchase of up to $8,000,000 (the &ldquo;Aggregate Amount&rdquo;) of shares (the &ldquo;Shares&rdquo;) of the Company&rsquo;s
common stock from time to time, at the Company&rsquo;s option. Shares offered and sold prior to February 13, 2018 were issued pursuant
to the Company&rsquo;s shelf registration statement on Form S-3 (and the related prospectus) that the Company filed with the Securities
and Exchange Commission (the &ldquo;SEC&rdquo;) and which was declared effective by the SEC on February 13, 2015 (the &ldquo;Shelf
Registration Statement&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 22.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left">Sales of the Company&rsquo;s common stock,
if any, may be made in sales deemed to be &ldquo;at-the-market&rdquo; equity offerings as defined in Rule 415 promulgated under
the Securities Act of 1933, as amended (the &ldquo;Securities Act&rdquo;), at a purchase price equal to 97.25% of the volume weighted
average sales price of the common stock reported on the date that Leviston receives a capital call from the Company.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left">Leviston purchased 721,153 shares (the &ldquo;Investor
Shares&rdquo;) of the Company&rsquo;s common stock following the close of business on February 9, 2018, subject to customary closing
conditions, at a price per share of $1.04. The shares were sold pursuant to the Shelf Registration Statement. The net proceeds
to the Company from this sale were approximately $744,000.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left">In consideration of Leviston&rsquo;s agreement
to enter into the Purchase Agreement, the Company agreed to pay to Leviston a commitment fee in shares of the Company&rsquo;s common
stock equal in value to 5.25% of the total Aggregate Amount (the &ldquo;Commitment Shares&rdquo;), payable as follows: 1.75% on
or before February 12, 2018. This amount, of $140,000, was paid to Leviston through the issuance of 170,711 shares of the Company&rsquo;s
common stock on February 12, 2018; 1.75% on the third calendar day after the date on which the registration statement on Form S-1
that the Company plans to file with the SEC is declared effective by the SEC; and 1.75% on the thirtieth calendar day after the
date on which such registration statement on Form S-1 is declared effective by the SEC.</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; text-align: left">The Company agreed to pay to Leviston, on
each day that Leviston receives a capital call from the Company, all expenses associated with depositing, clearing, selling and
mailing of the stock certificates, a fee of 0.75% of any amount purchased by Leviston. Also, the Company paid $35,000 to Leviston
for a documentation fee for preparing the Purchase Agreement. Leviston will refund the Company $15,000 if certain future conditions
are met.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left">Because the Company&rsquo;s existing registration
statement on Form S-3 expired on February 13, 2018 and, due to the timing of the filing of the Company&rsquo;s Quarterly Report
on Form 10-Q for the quarter ended June 30, 2017, the Company will not be eligible to file a new Form S-3 registration statement
until September 1, 2018, the Company agreed to prepare and file with the SEC a registration statement on Form S-1 the (&ldquo;S-1
Registration Statement&rdquo;), by April 15, 2018 and to use reasonable best efforts to cause the S-1 Registration Statement to
be declared effective by the SEC within ninety days thereafter. If the Company does not file the S-1 Registration Statement with
the SEC by April 15, 2018, the Company will be required to pay to Leviston liquidated damages in the amount of $100,000, and liquidated
damages on a sliding scale each day thereafter. The Company is also required to pay liquidated damages of $100,000 on each event
of default under the Purchase Agreement. The Company has provided Leviston with customary indemnification rights under the Purchase
Agreement.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left">As a result of the issuance of the Investor
Shares, the conversion price of the Company&rsquo;s Series C Preferred Stock was automatically adjusted from $1.40 per share to
$1.04 per share, the conversion price of the Company&rsquo;s Series B Convertible Preferred Stock was automatically adjusted from
$1.40 per share to $1.04 per share and the exercise price of certain warrants to purchase shares of the Company&rsquo;s common
stock that contain down round provisions was automatically adjusted to $1.04 per share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 22.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><I><U>Issuance of Common Stock</U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 22.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">On February 12, 2018
the Company issued 1,814,754 shares of its common stock, par value $0.01 per share to several of its trade creditors that are unaffiliated
with the Company in exchange for cancellation of an aggregate of $1.9 million of indebtedness to such trade creditors. (Refer to
Annual Report on Form&nbsp;10-K&nbsp;for the fiscal year ended December&nbsp;31, 2017, filed with the SEC on April&nbsp;13, 2018).
The shares were issued pursuant to the Company&rsquo;s Shelf Registration Statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 22.5pt">&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; text-align: justify"><I><U>Preferred Stock induced conversions
</U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 22.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">On March 21, 2018,
the Company entered into a Letter Agreement (the &ldquo;Agreement&rdquo;) with certain holders (the &ldquo;Investors&rdquo;) of
shares of the Company&rsquo;s Series B Preferred Stock and Series C Preferred Stock (together the &ldquo;Preferred Stock&rdquo;),
and warrants (the &ldquo;Warrants&rdquo;) to purchase shares of the Company&rsquo;s common stock, par value $0.01 per share (&ldquo;Common
Stock&rdquo;), issued in the Company&rsquo;s public offering in August 2017 and registered direct offering in November 2017. Pursuant
to the Agreement, the Company and the Investors agreed that, as a result of the issuance of shares of Common Stock pursuant to
that Purchase Agreement, dated February 8, 2018, by and between the Company and the investor named therein, and effective as of
the time of execution of the Agreement, the exercise price of the Warrants was reduced to $0.75 per share (the &ldquo;Exercise
Price Reduction&rdquo;) and the conversion price of the Preferred Stock was reduced to $0.75 (the &ldquo;Conversion Price Reduction&rdquo;).
As consideration for the Company&rsquo;s agreement to the Exercise Price Reduction and the Conversion Price Reduction, (i) each
Investor agreed to convert the shares of Preferred Stock held by such Investor into shares of Common Stock in increments of up
to 4.99% of the shares of Common Stock outstanding as of the date of the Agreement and (ii) one Investor agreed to exercise 666,666
Warrants and another Investor agreed to exercise 500,000 Warrants in increments of up to 4.99% of the shares of Common Stock outstanding
as of the date of the Agreement, in each case in accordance with the beneficial ownership limitations set forth in the Company&rsquo;s
Certificate of Designation of Preferences, Rights and Limitations of Series B Convertible Preferred Stock, the Company&rsquo;s
Certificate of Designation of Preferences, Rights and Limitations of Series C Convertible Preferred Stock and the Warrants. These
transactions resulted in net cash proceeds to the Company of $0.2 million as of April 13, 2018.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 22.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><I><U>NASDAQ Delisting Notice </U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 22.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">Precipio, Inc. received
written notice (the &ldquo;Notice&rdquo;) from The NASDAQ Stock Market LLC (&ldquo;NASDAQ&rdquo;) indicating that, based on the
closing bid price of the Company&rsquo;s common stock for the preceding 30 consecutive business days (February 9, 2018 to March
23, 2018) that the Company is not in compliance with the $1.00 minimum bid price requirement for continued listing on the NASDAQ
Capital Market (the &ldquo;Minimum Bid Price Requirement&rdquo;), as set forth in NASDAQ Listing Rule 5550(a)(2). The Notice has
no immediate effect on the listing of Precipio&rsquo;s common stock, and its common stock will continue to trade on the NASDAQ
Capital Market under the symbol &ldquo;PRPO&rdquo; at this time.</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: left; text-indent: 0.5in">In accordance with
NASDAQ Listing Rule 5810(c)(3)(A), Precipio has a period of 180 calendar days, or until September 24, 2018 to regain compliance
with the Minimum Bid Price Requirement. To regain compliance, the closing bid price of Precipio&rsquo;s common stock must meet
or exceed $1.00 per share for at least ten consecutive business days during this 180 calendar day period.</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; text-indent: 0.5in">If Precipio is not
in compliance with the Minimum Bid Price Requirement by September 24, 2018, NASDAQ may provide Precipio with a second 180 calendar
day period to regain compliance. To qualify for the second 180 calendar day period, the Company would be required to (i) meet the
continued listing requirement for the NASDAQ Capital Market for market value of publicly held shares and all other initial listing
standards for the NASDAQ Capital Market, except for the Minimum Bid Price Requirement, and (ii) notify NASDAQ of its intent to
cure its noncompliance with the Minimum Bid Price, including by effecting a reverse stock split, if necessary. If Precipio does
not indicate its intent to cure the deficiency or if it does not appear to NASDAQ that it would be possible for the Company to
cure the deficiency, Precipio would not be eligible for the second 180 calendar day period, and its common stock would then be
subject to delisting from the NASDAQ Capital Market.</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; text-indent: 0.5in">If Precipio does not
regain compliance within the allotted compliance period(s), including any extensions that may be granted by NASDAQ, NASDAQ will
provide notice that Precipio&rsquo;s common stock will be subject to delisting. &nbsp;Precipio would then be entitled to appeal
the NASDAQ Staff&rsquo;s determination to a NASDAQ Listing Qualifications Panel and request a hearing.</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; text-indent: 0.5in">The Company intends
to monitor the closing bid price of its common stock and consider its available options to resolve its noncompliance with the Minimum
Bid Price Requirement. No determination regarding Precipio&rsquo;s response to the Notice has been made at this time. There can
be no assurance that Precipio will be able to regain compliance with the Minimum Bid Price Requirement or will otherwise be in
compliance with the other listing standards for the NASDAQ Capital Market.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 22.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">The consolidated financial
statements have been prepared using accounting principles generally accepted in the United States of America (&ldquo;GAAP&rdquo;)
applicable for a going concern, which assume that the Company will realize its assets and discharge its liabilities in the ordinary
course of business. The Company has incurred substantial operating losses and has used cash in its operating activities for the
past several years. As of December 31, 2017, the Company had a net loss of $20.7 million, negative working capital of $8.3 million
and net cash used in operating activities of $6.7 million. The Company&rsquo;s ability to continue as a going concern is dependent
upon a combination of achieving its business plan, including generating additional revenue, and raising additional financing to
meet its debt obligations and paying liabilities arising from normal business operations when they come due.</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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">To meet its current
and future obligations the Company has taken the following steps to capitalize the business and achieve its business
plan:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 22pt">&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: 0.5in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">On January 8, 2018, the Company received gross proceeds of $400,000 when it entered into an agreement with the Connecticut
Department of Economic and Community Development by which the Company received a grant of $100,000 and a loan of $300,000 with
a payment term of ten years.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: left">&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: 0.5in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">On February 8, 2018 the Company entered into an equity purchase agreement for the purchase of up to $8,000,000 of shares of
the Company&rsquo;s common stock from time to time, at the Company&rsquo;s option. The initial sale of 721,153 shares of the Company&rsquo;s
common stock resulted in net proceeds to the Company of approximately $709,000.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: left">&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: 0.5in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">On February 20, 2018 Crede Capital Group LLC (&ldquo;Crede&rdquo;) filed a lawsuit against the Company claiming that the Company
owed Crede $2.2 million. On March 12, 2018, the Company settled with Crede for approximately $1.9 million and the settlement allows
the Company to pay the $1.9 million over a sixteen month payment plan concluding in May 2019.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: left">&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: 0.5in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">On March 21, 2018, the Company entered into an agreement with investors of Series B and Series C Preferred shares and warrants
to convert their respective holdings into shares of the Company&rsquo;s common stock.&nbsp; Pursuant to the agreement, to incent
such investors, the Company agreed to a conversion price for such preferred stock and an exercise price of $0.75 per share of common
stock for such warrants and each investor agreed to convert its outstanding shares and exercise certain amounts of warrants.&nbsp;&nbsp;As
a result of this initiative the Company has substantially restructured its equity structure, eliminating all but 47 shares of preferred
stock and has removed a significant impediment for the Company to grow its business, and as necessary, continue to raise capital
with more attractive terms.&nbsp;&nbsp;Warrant exercises from this transaction resulted in net cash proceeds to the Company of
$0.2 million as of April 13, 2018</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">Notwithstanding the
aforementioned circumstances, there remains substantial doubt about the Company&rsquo;s ability to continue as a going concern.
There can be no assurance that the Company will be able to successfully achieve its initiatives summarized above in order to continue
as a going concern. The accompanying financial statements have been prepared assuming the Company will continue as a going concern
and do not include any adjustments that might result should the Company be unable to continue as a going concern as a result of
the outcome of this uncertainty.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Components of Our Results of Operations</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Net Sales.</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; text-indent: 0.5in; text-align: left">Net Sales consist of service revenue (patient
diagnostic services and contract diagnostic services) and clinical research grants. Revenue from the Medicare and Medicaid programs
account for a portion of the Company&rsquo;s patient diagnostic service revenue. Laws and regulations governing those programs
are extremely complex and subject to interpretation. Revenue from clinical research grants are federal or state grants awarded
to the Company to fund salaries, fringe benefits, and the purchase of supplies and equipment for specific research and development
projects. We primarily recognize revenue for diagnostic services upon completion of the testing process.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><B><I>Cost of Sales.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">Cost of Sales consist
of material and supply costs for the patient tests performed and other direct costs (primarily personnel costs and rent) associated
with the operations of our laboratory and the costs of projects related to clinical research grants (personnel costs and operating
supplies).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><B><I>Operating Expenses </I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">Operating expenses
primarily consist of personnel costs, professional fees, travel costs, facility costs and depreciation and amortization.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><B><I>Other income (expens</I>e)</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">Other income (expense),
net consists principally of the change in the fair value of outstanding warrants and interest income and expense. The fair value
of our common stock warrant liability is re-measured at the end of each reporting period and any changes in fair value are recognized
in other income or expense. Interest expense consist of cost due to debt discounts and debt issuance costs that were amortized
to interest expense during 2017 related to our convertible bridge notes. Also included in other income (expense) in 2017, losses
on extinguishment of debt and induced conversion of convertible bridge notes, income on settlement and restructuring of liability&rsquo;
gains on settlements of certain vendor liabilities and a gain of from troubled debt restructurings, loss on settlement of equity
instruments, and advisory fees related to the Merger.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&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; text-align: justify"><B><I>Income Taxes</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">Income tax provision (benefit) consists
of U.S. federal and state income taxes and income taxes in certain foreign jurisdictions in which we conduct business. For further
information, see Note&nbsp;10 of our consolidated financial statements in our Annual Report on Form&nbsp;10-K&nbsp;for the fiscal
year ended December&nbsp;31, 2017, filed with the SEC on April&nbsp;13, 2018.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><B>Results of Operations for the Years
Ended December&nbsp;31, 2017 and 2016</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 24pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: left; text-indent: 0.25in"><I>Net Sales. </I>Net
sales were as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 24pt"><I>&nbsp;</I></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 92%; font: 10pt Times New Roman, Times, Serif; margin-left: 0.5in">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="14" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Dollars in Thousands</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD NOWRAP COLSPAN="6" STYLE="font-weight: bold; text-align: center">Twelve Months Ended</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD>&nbsp;</TD>
    <TD NOWRAP COLSPAN="6">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31,</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Change</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2017</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2016</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">$</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">%</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 48%; text-align: left; padding-left: 0in">Service revenue, net</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">1,392</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">1,723</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">(331</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">(19</TD><TD STYLE="width: 1%; text-align: left">)%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0in">Clinical research grants</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">278</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><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">278</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="padding-bottom: 1pt; padding-left: 0in">Other</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">53</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">53</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; padding-left: 0in">Net Sales</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">1,723</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">1,723</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">Net sales were flat
for the year ended December&nbsp;31, 2017 as compared to the same period in 2016. As a result of the Merger, clinical research
grants and other revenue increased by approximately $0.3 million in 2017 as compared to 2016. Clinical research grants are federal
or state grants awarded to us to fund salaries, fringe benefits, and the purchase of supplies and equipment for specific research
and development projects. This increase was off-set by a decrease in net service revenue. Net service revenue decreased as a result
of a decrease in patient diagnostic service revenue due to a decrease in cases processed during the year ended December 31, 2017
as compared to the same period in 2016. We processed 788 cases during the year ended December 31, 2017 as compared to 1,221 cases
during the same period in 2016, or a 35% decrease in cases. The decrease in volume is the result of turnover of key sales personnel.
The decrease in patient diagnostic service revenues was partially off-set by an increase in contract diagnostic service revenue
resulting from the Merger.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 24pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><I>Cost of Sales.</I>
Cost of sales includes material and supply costs for the patient tests performed and other direct costs (primarily personnel costs
and rent) associated with the operations of our laboratory and the costs of projects related to clinical research grants (personnel
costs and operating supplies). Cost of sales increased by $0.4 million for the year ended December 31, 2017 as compared to the
same period in 2016. The increase is due to increased expenses as a result of the Merger in 2017 and increased professional fees
involved with the processing of patient tests during the year ended December 31, 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 22.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><I>Gross Profit.</I>
Gross profit and gross margins were as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 22.5pt"><I>&nbsp;</I></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 92%; font: 10pt Times New Roman, Times, Serif; margin-left: 0.5in">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="14" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Dollars in Thousands</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD NOWRAP COLSPAN="6" STYLE="font-weight: bold; text-align: center">Twelve Months Ended</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD>&nbsp;</TD>
    <TD NOWRAP COLSPAN="6">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31,</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Margin %</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2017</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2016</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2017</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2016</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: 48%; text-align: left; padding-bottom: 2.5pt; padding-left: 0">Gross Profit</TD><TD STYLE="width: 1%; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="width: 10%; border-bottom: Black 2.5pt double; text-align: right">292</TD><TD STYLE="width: 1%; padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="width: 10%; border-bottom: Black 2.5pt double; text-align: right">753</TD><TD STYLE="width: 1%; padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; border-bottom: Black 2.5pt double; text-align: right">17</TD><TD STYLE="width: 1%; padding-bottom: 2.5pt; text-align: left">%</TD><TD STYLE="width: 1%; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; border-bottom: Black 2.5pt double; text-align: right">44</TD><TD STYLE="width: 1%; padding-bottom: 2.5pt; text-align: left">%</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: left; text-indent: 0.5in">Gross margin was 17%
of total net sales, for the year ended December 31, 2017, compared to 44% of total net sales for the same period in 2016. The gross
profit decreased by $0.5 million during the year ended December 31, 2017 as compared to the same period in 2016 and was due to
the increased cost of diagnostic services discussed above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt"><I>&nbsp;</I></P>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><I>Operating Expenses.</I>
Operating expenses primarily consist of personnel costs, professional fees, travel costs, facility costs and depreciation and amortization.
Our operating expenses increased by $13.3 million to $15.8 million for the year ended December&nbsp;31, 2017 as compared to the
same period in 2016. The increase in operating expenses reflects the increase in professional fees attributed to legal expenses
related to the Merger and increased compensation and other costs associated with the increased headcount and additional facility
resulting from the Merger. Additional increases in our general and administrative expenses resulted from increased amortization
related to acquired intangibles from the Merger and expenses related to operating as a public company which did not exist in 2016.
The increase during the year ended December 31, 2017 also included a $9.3 million impairment of goodwill charge resulting from
impairment testing of goodwill during 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 24pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><I>Other Income (Expense).</I>
Other expense for the year ended December&nbsp;31, 2017 and 2016 includes interest expense of approximately $2.3 million and $0.5
million, respectively. The increase in interest expense in the current year is due to $1.9 million of debt discounts and debt issuance
costs that were amortized to interest expense during 2017 related to our convertible bridge notes which were paid or converted
to common stock during the third quarter.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 24pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">Also included in other
income (expense) for the year ended December 31, 2017 are the following items, each of which had no related income or expense for
the year ended December 31, 2016:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 60pt; text-align: left; text-indent: -0.25in">&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: 42pt; text-align: left"></TD><TD STYLE="width: 18pt; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">Expense of $0.2 million associated with the change in fair value of the common stock warrant liability,</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 60pt; text-align: left; text-indent: -0.25in">&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: 42pt; text-align: left"></TD><TD STYLE="width: 18pt; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">Expense of $1.4 million in losses on extinguishment of debt and induced conversion of convertible
bridge notes primarily related to the conversion and payment of our convertible bridge notes during the third quarter 2017,</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 60pt; text-align: left; text-indent: -0.25in">&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: 42pt; text-align: left"></TD><TD STYLE="width: 18pt; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">Income of $2.1 million in net gain on settlement and restructuring of liability which includes
$0.9 million in gains on settlements of certain vendor liabilities and a gain of $1.2 million from troubled debt restructurings,</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 60pt; text-align: left; text-indent: -0.25in">&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: 42pt; text-align: left"></TD><TD STYLE="width: 18pt; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">Expense of $0.6 million which resulted from recording a loss on settlement of equity instruments,
and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 60pt; text-align: left; text-indent: -0.25in">&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: 42pt; text-align: left"></TD><TD STYLE="width: 18pt; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">Expense of $2.7 million for advisory fees related to the Merger.</TD></TR></TABLE>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 22pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">The consolidated financial
statements have been prepared using accounting principles generally accepted in the United States of America (&ldquo;GAAP&rdquo;)
applicable for a going concern, which assume that we will realize our assets and discharge our liabilities in the ordinary course
of business. We have incurred substantial operating losses and have used cash in our operating activities for the past several
years. For the year ended December 31, 2017, we had a net loss of $20.7 million and negative working capital of $8.3 million. Our
ability to continue as a going concern is dependent upon a combination of achieving our business plan, including generating additional
revenue, and raising additional financing to meet our debt obligations and paying liabilities arising from normal business operations
when they come due.</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; text-indent: 0.5in">To meet our current
and future obligations we have taken the following steps to capitalize the business and achieve our business plan:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 22pt">&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: 40pt; text-align: left"></TD><TD STYLE="width: 18pt; text-align: left">&bull;</TD><TD STYLE="text-align: left">On January 8, 2018, the Company received gross proceeds of $400,000 when it entered into an agreement
with the Connecticut Department of Economic and Community Development by which the Company received a grant of $100,000 and a loan
of $300,000 with a payment term of ten years.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 58pt; text-align: left">&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: 40pt"></TD><TD STYLE="width: 18pt">&bull;</TD><TD STYLE="text-align: left">On February 8, 2018 the Company entered into an equity purchase agreement for the purchase of up
to $8,000,000 of shares of the Company&rsquo;s common stock from time to time, at the Company&rsquo;s option. The initial sale
of 721,153 shares of the Company&rsquo;s common stock resulted in net proceeds to the Company of approximately $709,000.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 58pt; text-align: left">&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: 40pt; text-align: left"></TD><TD STYLE="width: 18pt; text-align: left">&bull;</TD><TD STYLE="text-align: left">On March 12, 2018, the Company settled an outstanding liability of approximately $1.9 million with
Crede Capital Group LLC (&ldquo;Crede&rdquo;). The settlement allows the Company to pay the $1.9 million over an agreed to sixteen
month payment plan concluding in May 2019.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 58pt; text-align: left">&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: 40pt; text-align: left"></TD><TD STYLE="width: 18pt; text-align: left">&bull;</TD><TD STYLE="text-align: left">On March 21, 2018, the Company entered into an agreement with investors of Series B and Series
C Preferred shares and warrants to convert their respective holdings into shares of the Company&rsquo;s common stock.&nbsp; Pursuant
to the agreement, to incent such investors, the Company agreed to a conversion price for such preferred stock and an exercise price
of $0.75 per share of common stock for such warrants and each investor agreed to convert its outstanding shares and exercise certain
amounts of warrants.&nbsp;&nbsp;As a result of this initiative the Company has substantially restructured its equity structure,
eliminating all but 47 shares of preferred stock and has removed a significant impediment for the Company to grow its business,
and as necessary, continue to raise capital with more attractive terms.&nbsp;&nbsp;As of April 13, 2018, these transactions have
resulted in net cash proceeds to the Company of $0.2 million.</TD></TR></TABLE>

<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; text-align: left; text-indent: 0.5in">Our working capital positions at December 31, 2017 and 2016
were as follows:</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 NOWRAP>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="10" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Dollars in Thousands</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2017</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2016</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Change</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: 61%; text-align: left; padding-left: 0in">Current assets (including cash of $421 and $51, respectively)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">1,742</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">552</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">1,190</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 0in">Current liabilities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">10,036</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">3,012</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">7,024</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; padding-left: 0in">Working capital</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(8,294</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(2,460</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(5,834</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">We completed the Merger
on June 29, 2017 and in connection with the Merger we raised approximately $1.2 million in gross proceeds. During the third quarter
we completed an underwritten public offering with net proceeds of approximately $5.0 million and during the fourth quarter we raised
additional funds from the sale of our Series C Preferred Stock and warrants to purchase our common stock. Net proceeds from this
offering were approximately $2.4 million. These proceeds were used to fund our operating expenses and for payments on our debt
and other liabilities. Also, during the fourth quarter of 2017, we entered into Settlement Agreements with certain Creditors pursuant
to which we reduced our liabilities by $1.2 million, we restructured the payment schedule of approximately $3.2 million in liabilities
so that they will be paid over a forty-eight month period with equal monthly installments beginning in July 2018, and we reached
agreements whereby $1.9 million of liabilities will be canceled in February 2018 in exchange for 1,814,754 shares of the Company&rsquo;s
common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 22pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">Notwithstanding the
aforementioned circumstances, there remains substantial doubt about our ability to continue as a going concern. There can be no
assurance that we will be able to successfully achieve our initiatives summarized above in order to continue as a going concern.
The accompanying financial statements have been prepared assuming we will continue as a going concern and do not include any adjustments
that might result should we be unable to continue as a going concern as a result of the outcome of this uncertainty.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Analysis of Cash Flows - Years Ended December 31, 2017 and
2016</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><I>Net Change in Cash.</I>
Cash increased by $0.4 million during the year ended December&nbsp;30, 2017, compared to a decrease of $0.2 million during the
year ended December&nbsp;31, 2016.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 24pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><I>Cash Flows Used in
Operating Activities.</I> The cash flows used in operating activities of $6.7 million during the year ended December&nbsp;31, 2017
included a net loss of $20.7 million, a decrease in accounts payable and accrued expenses and other liabilities of $0.5 million,
an increase in accounts receivable of $0.5 million and an increase in other assets of $0.1 million. These were partially offset
non-cash adjustments of $15.1 million. The cash flows used in operating activities in the year ended December 31, 2016 included
the net loss of $2.2 million and an increase in accounts receivable of $0.3 million. These were partially offset by an increase
in accounts payable, accrued expenses and other liabilities of $1.0 million and non-cash adjustments of $0.6 million.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 24pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><I>Cash Flows Used In
Investing Activities.</I> Cash flows used in investing activities were less than $0.1 million and zero for the years ended December&nbsp;31,
2017 and 2016, respectively. The cash used of less than $0.1 million for the year ended December 31, 2017 included purchases of
property and equipment of $0.1 million partially offset by cash acquired as part of the Merger.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><I>Cash Flows Provided
by Financing Activities.</I> Cash flows provided by financing activities totaled $7.1 million for the year ended December 31, 2017,
which included proceeds of $0.3 million from the issuance of senior notes, approximately $1.3 million from the issuance of convertible
notes, less than $0.1 million from the exercise of warrants and $7.8 million from the issuance of preferred stock. These proceeds
were partially offset by payments on our long-term debt of $0.8 million, payments on our convertible bridge notes of $1.5 million,
and payments of capital lease obligations and deferred financing costs of $0.1 million. Cash flows provided by financing activities
during the year ended December 31, 2016 included proceeds of $1.0 million from the issuance of convertible notes and other debt
partially offset by $0.2 million of payments on our debt, capital lease obligations and for deferred financing costs.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><B>Off-Balance Sheet Arrangements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 24pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">At each of December&nbsp;31,
2017 and December&nbsp;31, 2016, we did not have any off-balance sheet arrangements that have or are reasonably likely to have
a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations,
liquidity, capital expenditures or capital resources.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24pt">&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"><B>Contractual Obligations and Commitments</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; text-align: left; text-indent: 0.5in">At December&nbsp;31, 2017, our contractual obligations and other
commitments were 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"></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 NOWRAP>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2018</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2019</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2020</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2021</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2022</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Total</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: 22%; text-align: left; padding-left: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: #CCEEFF">Long term debt<SUP>(1)</SUP></FONT></TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">587</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">809</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">808</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">808</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">404</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">3,416</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Interest<SUP>(1)</SUP></FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1</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><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">21</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; padding-left: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: #CCEEFF">Capital lease obligations<SUP>(2)</SUP></FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">50</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">53</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">33</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">23</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">163</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Operating lease obligations<SUP>(3)</SUP></FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">195</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">198</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">203</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">208</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">817</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; padding-left: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: #CCEEFF">Purchase obligations<SUP>(4)</SUP></FONT></TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">209</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">208</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">138</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">99</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">10</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">664</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 2.5pt; padding-left: 3pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">1,051</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">1,275</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">1,185</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">1,139</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">431</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">5,081</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



<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: 0.5in"></TD><TD STYLE="width: 0.25in">(1)</TD><TD STYLE="text-align: left">See Note 6 - &quot;Long-Term Debt&quot; to our Annual Report on Form&nbsp;10-K&nbsp;for the fiscal year ended December&nbsp;31,
2017, filed with the SEC on April&nbsp;13, 2018.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in; text-align: left"></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: 0.5in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left">(2)</TD><TD STYLE="text-align: left">See Note 9 - &quot;Commitments and Contingencies&quot; in our Annual Report on Form&nbsp;10-K&nbsp;for the fiscal year ended
December&nbsp;31, 2017, filed with the SEC on April&nbsp;13, 2018.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in; text-align: left"></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: 0.5in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left">(3)</TD><TD STYLE="text-align: left">These amounts represent non-cancellable operating leases for operating facilities</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-indent: -0.25in; text-align: left"></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: 0.5in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left">(4)</TD><TD STYLE="text-align: left">These amounts represent purchase commitments, including all open purchase orders</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">We have entered into
certain operating leases and purchase commitments as part of our normal course of business. See the accompanying consolidated financial
statements and Note 9 - &ldquo;Commitments and Contingencies&rdquo; in our Annual Report on Form&nbsp;10-K&nbsp;for the fiscal
year ended December&nbsp;31, 2017, filed with the SEC on April&nbsp;13, 2018 for additional information regarding our contractual
obligations and commitments.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><B>Critical Accounting Policies and Estimates</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">The following discussion
and analysis of financial condition and results of operations are based upon the Company&rsquo;s consolidated financial statements,
which have been prepared in conformity with accounting principles generally accepted in the United States of America. The Company&rsquo;s
significant accounting policies are more fully described in Note 2 of the notes to Consolidated Financial Statements in our Annual
Report on Form&nbsp;10-K&nbsp;for the fiscal year ended December&nbsp;31, 2017, filed with the SEC on April&nbsp;13, 2018. Certain
accounting estimates are particularly important to the understanding of the Company&rsquo;s financial position and results of operations
and require the application of significant judgment by the Company&rsquo;s management and can be materially affected by changes
from period to period in economic factors or conditions that are outside the control of management. The Company&rsquo;s management
uses its judgment to determine the appropriate assumptions to be used in the determination of certain estimates. Those estimates
are based on historical operations, future business plans and projected financial results, the terms of existing contracts, the
observance of trends in the industry, information provided by customers and information available from other outside sources, as
appropriate. The following discusses the Company&rsquo;s critical accounting policies and estimates:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><B><I>Revenue Recognition</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">Revenues for the year ended December 31,
2017 are comprised of service revenues from diagnostic testing; clinical research grants from state and federal research programs;
and other revenues from the Company&rsquo;s ICP technology and bio-pharma projects encompassing genetic diagnostics.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 49.5pt; text-align: left; text-indent: -27pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">Service
revenue is realized and earned when all of the following criteria are met:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 49.5pt; text-align: left; text-indent: -27pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">&bull;</TD><TD STYLE="text-align: left">Persuasive evidence of an arrangement exists;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in; text-align: left"></TD><TD STYLE="width: 0.5in; text-align: left">&bull;</TD><TD STYLE="text-align: left">Delivery has occurred or services have been rendered;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in; text-align: left"></TD><TD STYLE="width: 0.5in; text-align: left">&bull;</TD><TD STYLE="text-align: left">The seller&rsquo;s price to the buyer is fixed or determinable;
and</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in; text-align: left"></TD><TD STYLE="width: 0.5in; text-align: left">&bull;</TD><TD STYLE="text-align: left">Collectability is reasonably assured.</TD>
</TR></TABLE>

<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; text-indent: 0.5in">Service revenues are
comprised of patient diagnostic services for cancer as well as contract diagnostic services for pharmacogenomics trials. Service
revenue is recognized upon completion of the testing process and when the diagnostic result is delivered to the ordering physician
and/or customer. Net patient service revenue is reported at the estimated net realizable amounts from patients, third-party payors
and others for services rendered, including retroactive adjustment under reimbursement agreements with third-party payors. Revenue
under third-party payor agreements is subject to audit and retroactive adjustment. Provisions for third-party payor settlements
are provided in the period in which the related services are rendered and adjusted in the future periods, as final settlements
are determined.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 22.5pt">&nbsp;</P>


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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="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: left; text-indent: 0.5in">Revenue from clinical
research grant is recognized over time as the service is being performed&nbsp;using a proportional performance method. The Company
uses an &quot;efforts based&quot; method of assessing performance.&nbsp;If the arrangement requires the performance of a specified
number of similar acts (i.e. test), then revenue is recognized in equal amounts as each act is completed.&nbsp;</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-indent: 0.5in; text-align: left">Other revenues are comprised of the Company&rsquo;s
ICP technology kits sales to bio-pharma customers and contracted project based technology evaluations.</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-indent: 0.5in; text-align: left">For the year ended December 31, 2017, Service
revenue represented 81% of our consolidated revenues, the revenue attributable to clinical grants represented 16% and other revenues
represented 3%. For the year ended December 31, 2016, Service revenue represented 100% of our consolidated revenues.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><B><I>Allowance for Contractual Discounts</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left">We are reimbursed by payors for services
we provide. Payments for services covered by payors average less than billed charges. We monitor revenue and receivables from payors
record an estimated contractual allowance for certain revenue and receivable balances as of the revenue recognition date to properly
account for anticipated differences between amounts estimated in our billing system and amounts ultimately reimbursed by payors.
Accordingly, the total revenue and receivables reported in our financial statements are recorded at the amounts expected to be
received from these payors. For service revenue, the contractual allowance is estimated based on several criteria, including unbilled
claims, historical trends based on actual claims paid, current contract and reimbursement terms and changes in customer base and
payor/product mix. The billing functions for the remaining portion of our revenue are contracted and fixed fees for specific services
and are recorded without an allowance for contractual discounts.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Allowance for Doubtful Accounts</I></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-indent: 0.5in">The allowance for doubtful accounts is based
on estimates of losses related to receivable balances. The risk of collection varies based upon the service, the payor (commercial
health insurance and government) and the patient&rsquo;s ability to pay the amounts not reimbursed by the payor. We estimate the
allowance for doubtful accounts based upon several factors including the age of the outstanding receivables, the historical experience
of collections, adjusting for current economic conditions and, in some cases, evaluating specific customer accounts for the ability
to pay. Collection agencies are employed and legal action is taken when we determine that taking collection actions is reasonable
relative to the probability of receiving payment on amounts owed. Management judgment is used to assess the collectability of accounts
and the ability of our customers to pay. Judgment is also used to assess trends in collections and the effects of systems and business
process changes on our expected collection rates. We review the estimation process quarterly and make changes to the estimates
as necessary. When it is determined that a customer account is uncollectible, that balance is written off against the existing
allowance.</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><I>Accounts Receivable</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Accounts Receivable results from diagnostic
services provided to self-pay and insured patients, project based testing services and clinical research.&nbsp; The services provide
by the Company are generally due within 30 days from the invoice date. &nbsp;Accounts receivable are reduced by an allowance for
doubtful accounts. In evaluating the collectability of accounts receivable, the Company analyzes and identifies trends for each
of its sources of revenue to estimate the appropriate allowance for doubtful accounts. For receivables associated with self-pay
patients, including patients with insurance and a deductible and copayment, the Company records an allowance for doubtful accounts
in the period of services on the basis of past experience of patients unable or unwilling to pay for service fee for which they
are financially responsible. For receivables associated with services provided to patients with third-party coverage, the Company
analyzes contractually due amounts and provides an allowance, if necessary. The difference between the standard rates and the amounts
actually collected after all reasonable collection efforts have been exhausted is charged against the allowance for doubtful accounts.
Service revenues account for all reported accounts receivable as of December 31, 2017 and 2016.</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-align: justify"><B><I>Stock-Based Compensation</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Stock-based compensation cost is measured
at the grant date, based on the estimated fair value of the award, and is recognized as expense over the grantee&rsquo;s requisite
vesting period on a straight-line basis. For the purpose of valuing stock options granted to our employees, directors and officers,
we use the Black-Scholes option pricing model. We granted options to purchase an aggregate of 232,332 and zero shares of common
stock during the years ended December 31, 2017 and 2016, respectively. To determine the risk-free interest rate, we utilized the
U.S. Treasury yield curve in effect at the time of the grant with a term consistent with the expected term of our awards. The expected
term of the options granted is in accordance with Staff Accounting Bulletins 107 and 110 and is based on the average between vesting
terms and contractual terms. The expected dividend yield reflects our current and expected future policy for dividends on our common
stock. The expected stock price volatility for our stock options was calculated by examining the trading history for our common
stock. We will continue to analyze the expected stock price volatility and expected term assumptions and will adjust our Black-Scholes
option pricing assumptions as appropriate</P>

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


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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Company accounts for the issuance of
common warrants to purchase common stock in accordance with the provisions of ASC Topic 815. The Company classifies as equity any
contracts that (i)&nbsp;require physical settlement or net-stock settlement or (ii)&nbsp;gives the Company a choice of net-cash
settlement or settlement in its own stocks (physical settlement or net-stock settlement). The Company classifies as assets or liabilities
any contracts that (i)&nbsp;require net-cash settlement (including a requirement to net-cash settle the contract if an event occurs
and if that event is outside of the Company&rsquo;s control), or (ii)&nbsp;gives the counterparty a choice of net-cash settlement
or settlement in stock (physical settlement or net-stock settlement).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">Certain of our issued
and outstanding warrants to purchase common stock do not qualify to be treated as equity and accordingly, are recorded as a liability
(&ldquo;Common Stock Warrant Liability&rdquo;). We are required to present these instruments at fair value at each reporting date
and any changes in fair values are recorded as an adjustment to earnings. The Common Stock Warrant Liability is considered a Level
3 financial instrument.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 27pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><B><I>Impairment of Long Lived Assets and Goodwill</I></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; text-indent: 0.5in">We assess the recoverability
of our long-lived assets, which include property and equipment and definite-lived intangible assets, whenever significant events
or changes in circumstances indicate impairment may have occurred. If indicators of impairment exist, projected future undiscounted
cash flows associated with the asset are compared to our carrying amount to determine whether the asset&rsquo;s value is recoverable.
Any resulting impairment is recorded as a reduction in the carrying value of the related asset in excess of fair value and a charge
to operating results. For the year ended December 31, 2016, there was no Long-Lived Assets recorded. We did not recognize any impairment
charges related to long-lived assets for the years ending December 31, 2017and 2016.</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; text-indent: 0.5in">Goodwill is not amortized,
but is assessed for impairment on an annual basis or more frequently if impairment indicators exist. We have the option to perform
a qualitative assessment of goodwill to determine whether it is more likely than not that the fair value of its reporting unit
is less than its carrying amount, including goodwill and other intangible assets. If we were to conclude that this is the case,
then we must perform a goodwill impairment test by comparing the fair value of the reporting unit to its carrying value. An impairment
charge is recorded to the extent the reporting unit&rsquo;s carrying value exceeds its fair value, with the impairment loss recognized
not to exceed the total amount of goodwill allocated to that reporting unit. For the year ended December 31, 2017 goodwill impairment
charges were $9.3 million.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><B>Recently Issued Accounting Pronouncements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 22.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">In May 2014, the Financial
Accounting Standards Board (&ldquo;FASB&rdquo;) issued Accounting Standards Update (&ldquo;ASU&rdquo;) 2014-09, Revenue from Contracts
with Customers and has subsequently issued supplemental and/or clarifying ASUs (collectively &ldquo;ASC 606&rdquo;). ASC 606 outlines
a five-step framework that intends to clarify the principles for recognizing revenue and eliminate industry-specific guidance.
In addition, ASC 606 revises current disclosure requirements in an effort to help financial statement users better understand the
nature, amount, timing, and uncertainty of revenue that is recognized. ASC 606 may be applied either retrospectively to each prior
reporting period presented or use the modified retrospective transition method with the cumulative effect of initial adoption recognized
at the date of initial application. Assessment of the new guidance is not anticipated to result in an opening balance sheet adjustment.
The Company will adopt the guidance in ASU 2017-09 as of January 1, 2018 and apply the modified retrospective approach. The Company
evaluated the impact of the adoption of this new revenue recognition standard utilizing the five-step framework of ASC 606 for
all services, that include laboratory testing services provided to patients and customer related laboratory service contracts encompassing
biomarker testing services and clinical projects. The Company concluded that control of the laboratory testing services is transferred
to the customer at a point in time. As such, the Company shall continue to recognize revenue for laboratory testing services at
a point in time based on the delivery method (web-portal access or fax) for patient&rsquo;s laboratory report, per the contract.&nbsp;The
Company also evaluated customer related biomarker testing and clinical project services. The Company analyzed it&rsquo;s &ldquo;effort
based&rdquo; method of assessing performance and concluded that it can reasonable measure progress towards satisfaction of the
performance obligation based upon the delivery of results. The Company concludes an adjustment will not be required and a change
to its current revenue recognition process and policy to adopt the new standard is not necessary.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 22.5pt">&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; text-align: left; text-indent: 0.5in">In February 2016,
the FASB issued ASU No. 2016-02, Leases. The new standard amends the recognition of lease assets and lease liabilities by lessees
for those leases currently classified as operating leases and amends disclosure requirements associated with leasing arrangements.
The new standard is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2018.
Early adoption is permitted. The new standard must be adopted using a modified retrospective transition, and provides for certain
practical expedients. Transition will require application of the new guidance at the beginning of the earliest comparative period
presented. We are currently assessing the impact that the adoption of this ASU will have on our consolidated financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 22.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">In January&nbsp;2017,
FASB issued ASU No. 2017-04, Intangibles &mdash; Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment,
which removes Step 2 from the goodwill impairment test.&nbsp;It is effective for annual and interim periods beginning after December&nbsp;15,
2019.&nbsp;Early adoption is permitted for interim or annual goodwill impairment test performed with a measurement date after January&nbsp;1,
2017. The Company has adopted this standard and, as discussed above, performed impairment testing of goodwill during the year ended
December 31, 2017 which resulted in the Company recording a goodwill impairment charge of $9.3 million.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 22.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">In July 2017, FASB issued
ASU No. 2017-11, Earning Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480) and Derivatives and Hedging
(Topic 815), which was issued in two parts, Part I, Accounting for Certain Financial Instruments with Down Round Features and Part
II, Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain
Mandatorily Redeemable Noncontrolling Interests with a Scope Exception. Part I of ASC No. 2017-11 addresses the classification
analysis of certain equity-linked financial instruments (or embedded features) with down round features. When determining whether
certain financial instruments should be classified as liabilities or equity instruments, a down round feature no longer precludes
equity classification when assessing whether the instrument is indexed to an entity&rsquo;s own stock. The amendments also clarify
existing disclosure requirements for equity-classified instruments. As a result, a freestanding equity-linked financial instrument
(or embedded conversion option) no longer would be accounted for as a derivative liability at fair value as a result of the existence
of a down round feature. For freestanding equity classified financial instruments, the amendments require entities that present
earnings per share (EPS) in accordance with Topic 260 to recognize the effect of the down round feature when it is triggered. That
effect is treated as a dividend and as a reduction of income available to common shareholders in basic EPS. The amendments in Part
II of ASU 2017-11 recharacterize the indefinite deferral of certain provisions of Topic 480 that now are presented as pending content
in the codification, to a scope exception. Part II amendments do not have an accounting effect. The ASU 2017-11 is effective for
annual and interim periods beginning after December 15, 2018, with early adoption permitted. The Company has early adopted this
standard as of January 1, 2017 with the only impact being that the warrants with down round provisions are classified within equity.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">We do not believe that
price inflation or deflation had a material adverse effect on our financial condition or results of operations during the periods
presented.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt">&nbsp;</P>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Item 7A. Quantitative and Qualitative
Disclosure about Market Risk</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; text-indent: 0.5in; text-align: left">We are a smaller reporting company, as defined
by Rule 12b-2 of the Securities Exchange Act of 1934, as amended, and are not required to provide the information required under
this item.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></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="pi_011"></A><B>BUSINESS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1pt; text-indent: 35pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1pt; text-indent: 0.5in; text-align: left">Precipio, Inc., and Subsidiary, (&ldquo;we&rdquo;,
&ldquo;us&rdquo;, &ldquo;our&rdquo;, the &ldquo;Company&rdquo; or &ldquo;Precipio&rdquo;) is a cancer diagnostics company providing
diagnostic products and services to the oncology market. We have developed a platform designed to eradicate misdiagnoses by harnessing
the intellect, expertise and technology developed within academic institutions and delivering quality diagnostic information to
physicians and their patients worldwide. We operate a cancer diagnostic laboratory located in New Haven, Connecticut and have partnered
with the Yale School of Medicine to capture the expertise, experience and technologies developed within academia so that we can
provide a better standard of cancer diagnostics and solve the problem of cancer misdiagnosis. We also operate a research and development
facility in Omaha, Nebraska which will focus on the further development of ICE-COLD-PCR, or ICP, the patented technology described
further below, which was exclusively licensed by us from Dana-Farber Cancer Institute, Inc. (&ldquo;Dana-Farber&rdquo;), at Harvard
University. The research and development center will focus on the development of this technology, which we believe will enable
us to commercialize other technologies developed by our current and future academic partners. Our platform connects patients, physicians
and diagnostic experts residing within academic institutions. Launched in 2017, the platform facilitates the following relationships:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1pt; text-align: left">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left">&bull;</TD><TD STYLE="text-align: left">Patients: able to search for physicians in their area and
consult directly with academic experts that are on the platform. Patients may also access new academic discoveries as they become
commercially available.</TD>
</TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left">&bull;</TD><TD STYLE="text-align: left">Physicians: able to connect with academic experts to seek
consultations on behalf of their patients and provide consultations for patients in their area seeking medical expertise in that
physician&rsquo;s relevant specialty. Physicians will also have access to new diagnostic solutions to help improve diagnostic
accuracy.</TD>
</TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left">&bull;</TD><TD STYLE="text-align: left">Academic Experts: able to make themselves available for
patients or physicians seeking access to their expertise. Additionally, these experts have a platform available to commercialize
their research discoveries.</TD>
</TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left">We intend to continue updating our platform
to allow for patient-to-patient communications and allow individuals to share stories and provide support for one another, to allow
physicians to consult with their peers to discuss and share challenges and solutions, and to allow academic experts to interact
with others in academia on the platform to discuss their research and cross-collaborate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1pt; text-indent: 35pt; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1pt; text-indent: 35pt; text-align: left">ICP was developed at Harvard University
and is licensed exclusively by us from Dana-Farber. This technology enables the detection of genetic mutations in liquid biopsies
such as blood samples. The field of liquid biopsies is a rapidly growing market aimed at overcoming the challenge of obtaining
genetic information related to disease progression and changes from sources other than a tumor biopsy.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1pt; text-indent: 35pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1pt; text-indent: 35pt; text-align: left">Gene sequencing is performed on tissue
biopsies taken surgically from the tumor site in order to identify potential therapies that will be more effective in treating
the patient. Surgical procedures involving tissue biopsies have several limitations including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1pt; text-align: left">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left">&bull;</TD><TD STYLE="text-align: left">Cost: surgical procedures are usually performed in a costly
hospital environment, which typically involves hospitalization and recovery time. For example, according to a recent study, the
mean cost of lung biopsies is greater than $14,000.</TD>
</TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left">&bull;</TD><TD STYLE="text-align: left">Surgical access: various tumor sites are not always accessible
(e.g. brain tumors), in which cases no biopsy is available for diagnosis.</TD>
</TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left">&bull;</TD><TD STYLE="text-align: left">Risk: patient health may not permit undergoing an invasive
surgery, therefore, a biopsy cannot be obtained.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1pt; text-align: left">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left">&bull;</TD><TD STYLE="text-align: left">Time: the process of scheduling and coordinating a surgical
procedure often takes time, delaying the start of patient treatment.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1pt; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">Additionally, there are several tumor-related limitations
that provide a challenge to obtaining such genetic information from a tumor, such as:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1pt; text-align: left">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left">&bull;</TD><TD STYLE="text-align: left">Heterogeneous nature: a tissue sample from one area of
the tumor may not properly represent the tumor&rsquo;s entire genetic composition; thus, the diagnostic results from a tumor may
be incomplete or non-representative.</TD>
</TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left">&bull;</TD><TD STYLE="text-align: left">Metastases: in order to accurately test a patient with
a metastatic disease, an individual biopsy sample should ideally be taken from each individual site (if known and accessible).
These biopsies are very difficult to obtain; therefore, physicians often rely on biopsies taken only from the primary tumor site.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&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; text-indent: 0.5in; text-align: left">The advent of technologies enabling liquid
biopsies as an alternative to tumor biopsy and analysis are based on the fact that tumors (both primary and metastatic) shed cells
and fragments of DNA into the blood stream. These blood samples are called &ldquo;liquid biopsies&rdquo; that contain circulating
tumor DNA, or ctDNA, which hold the same genetic information found in the tumor(s), which is the target of genetic analyses. However,
since the quantity of tumor DNA is very small in proportion to the &ldquo;normal&rdquo; (or &ldquo;healthy&rdquo;) DNA within the
blood stream, there is a need to identify and separate the tumor DNA from the normal DNA.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1pt; text-indent: 35pt; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1pt; text-indent: 35pt; text-align: left">ICP is an enrichment technology that
enables the laboratory to focus its analysis on the tumor DNA by enriching, and thereby &ldquo;multiplying&rdquo; the presence
of tumor DNA, while maintaining normal DNA levels. Once the enrichment process has been completed, laboratory genetic testing equipment
is able to identify genetic abnormalities presented in the ctDNA and an analysis can be conducted at a higher level of sensitivity
to enable the detection of genetic abnormalities. The ICP technology is encapsulated into a chemical that is provided in the form
of a kit and sold to other laboratories who wish to conduct these tests in-house. The chemical within the kit is added to the specimen
preparation process, enriching the sample for the tumor DNA so that the analysis will detect those genetic abnormalities.</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><U>Industry Problem</U></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left">There is currently a significant problem
with unpublicized rates of misdiagnosis across numerous disease states (particularly in cancer) due to an inefficient and commoditized
industry. We believe that the diagnostic industry focuses primarily on competitive pricing and test turnaround times at the expense
of quality and accuracy. Increasingly complex disease states are met with eroding specialization rather than increased expertise.
According to a study conducted by the National Coalition of Health, this results in an industry with cancer misdiagnosis rates
up to 28%, which is failing to meet the needs of physicians, patients and the healthcare system as a whole. New technologies offer
improved accuracy; however, many are either inaccessible or are not economically practical for clinical use. Despite much publicity
of the industry transitioning from fee-per-service to value-based payments, this transition has not yet occurred in diagnostics.
When a patient is misdiagnosed, physicians end up administrating incorrect treatments, often creating adverse effects rather than
improving outcomes. Insurance Providers, Medicare and Medicaid waste valuable dollars on the application of incorrect treatments
and can incur substantial downstream costs. Most importantly however, patients pay the ultimate price of misdiagnosis with increased
morbidity and mortality. According to a report by Pinnacle Health, the estimated cost of misdiagnosis within the healthcare system
is $5 billion annually. We believe that the academic path of specialization produces the critical expertise necessary to correctly
diagnose disease and that academic institutions have an unlocked potential to address this problem. Our solution is to create an
exclusive platform that harnesses academic expertise and proprietary technologies to deliver the highest standard of diagnostic
accuracy and patient care. Physicians, hospitals, payers and, most importantly, patients all benefit from more accurate diagnostics.</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><U>Market</U></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-indent: 0.5in; text-align: left">As a services and technology commercialization
company, we currently participate in two segments within the U.S. domestic oncology diagnostics market. The first is the clinical
pathology services market, which is estimated to be a $22 billion annual market and growing at an average 8% compound annual growth
rate. The second segment is the liquid biopsy reagents/kits market. According to the Piper Jaffray report from September 2015,
the domestic oncology liquid biopsy market estimate is over $28 billion per year and includes screening, therapy selection, treatment
monitoring and recurrence. The current market size for colon, lung and melanoma is 428,000 new cases per year and over 2.5 million
people living with cancer, creating a potential market opportunity of $8.2 billion. We believe additional opportunities exist in
clinical trials searching for low cost and high quality solutions for patient selection and treatment monitoring.</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><U>Our Solution</U></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><I>Our Platform</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-indent: 0.5in; text-align: left">Our platform is designed to provide physicians
and their patients access to necessary academic expertise and technology in order to better provide diagnoses. To our knowledge,
we are the only company focused on addressing the issue of diagnostic accuracy with an innovative, robust and scalable business
model by:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left">&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: 0.75in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">Providing physicians and their patients access to world-class academic experts and technologies.</TD></TR></TABLE>

<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: 0.75in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">Leveraging the largest network of academic experts by adding numerous leading academic institutions to our platform.</TD></TR></TABLE>

<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: 0.75in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">Allowing payers to benefit from quality-based outcomes to their patients and increase the likelihood of cost savings.</TD></TR></TABLE>

<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: 0.75in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">Enabling cross-collaboration between physicians and academic institutions to advance research and discovery.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -0.25in">&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; text-indent: 0.5in; text-align: left">Our exclusive agreement with the Department
of Pathology at Yale University (the &ldquo;Pathology Services Agreement&rdquo; or the &ldquo;Agreement&rdquo;), is part of a unique
platform not offered by other commercial laboratories. Our customers are oncologists who biopsy their patients in order to confirm
or rule out the presence of cancer. After our customers send the samples to us, we conduct all the technical tests at our New Haven
facility. We then transmit the test results to the pathologists at Yale who have access to our laboratory information system from
their respective offices, enabling them to review and render their diagnostic interpretation of the test results for reporting.
In partnership with Yale, we have developed a proprietary algorithm that is applied to each sample submitted to us for testing,
resulting in our ability to render a more precise and accurate diagnosis. The final results are prepared by Yale pathologists and
integrated into the final report by us, and are then delivered electronically through our portal to the referring clinician. The
patient&rsquo;s insurance is billed for the services; we are paid for the technical work done at our laboratory; and Yale pathologists
are paid by us for their diagnostic interpretation.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left">We recently renewed the Pathology Services
Agreement for an additional five-year term, effective as of June 2016. Under the Agreement, the Yale Department of Pathology may
not provide the hematopathology services to any other commercial entity that is our competitor. The Agreement allows for termination
by either party (i) for uncured breach by the other party, (ii) if either party has its respective license suspended or revoked,
(iii) if the insurance coverage of either party is canceled or modified, (iv) if we fail to maintain or meet the requirements of
Medicare conditions of participation, or (v) if we declare bankruptcy. The Pathology Services Agreement also provides that if the
performance by either party (i) jeopardizes the licensure or accreditation of Yale or any Yale physician, (ii) jeopardizes either
party&rsquo;s participation in Medicare, Medicaid or other federal, state or commercial reimbursement programs, (iii) violates
any statute, ordinance or otherwise is deemed illegal, (iv) is deemed unethical by any recognized body, agency or association in
the medical or laboratory fields, or (v) causes a substantial threat to Yale&rsquo;s tax-exempt status, then either party may initiate
negotiations to amend the Agreement and the Agreement will terminate if a mutually agreed amendment is not executed by the parties
within 30 days.</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"><I>ICE-COLD-PCR </I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left">ICP technology was developed at Dana-Farber
and is licensed by us. ICP is a unique, proprietary, patented specimen enrichment technology that increases the sensitivity of
molecular based tests from approximately 90-95% to 99.99%. Traditional molecular testing is done on tumor biopsies. These tests
are typically conducted at disease onset, when the patient undergoes a biopsy. In the typical course of treatment, a patient is
rarely re-biopsied, and therefore, genetic information is based solely on the initial biopsy. Tumors are known to shed cells into
the patient&rsquo;s blood stream where they circulate alongside normal cells; however, existing testing methodologies are not sufficiently
sensitive to differentiate between tumor and normal cells. The increased sensitivity provided by ICP allows for testing of genetic
mutations that occur within tumors to be conducted on peripheral blood samples, termed liquid biopsies. This technical capability
enables physicians to test for genetic mutations through a simple blood test rather than an invasive biopsy extracted from the
actual tumor. The results of such tests can be used for diagnosis, prognosis and therapeutic decisions. The technology is encapsulated
within a chemical (reagent) used during the specimen preparation process, which enriches (amplifies) the tumor DNA detected within
the blood sample while suppressing the normal DNA. In addition to offering this technology as a clinical service, we are developing
panels that will be sold as reagent kits to other laboratories to enable this testing in their facilities, thereby improving their
test sensitivity and more accurate diagnoses via liquid biopsies. The business model of selling reagents to other laboratories
expands the reach and impact of our technology while eliminating the reimbursement risks from running the tests in-house.</P>

<P STYLE="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">We license the ICP technology from Dana-Farber
through a license agreement, (the &ldquo;License Agreement&rdquo;). The License Agreement grants us an exclusive license to the
ICP technology, subject to a non-exclusive license granted to the U.S. government, in the areas of mutation detection using Sanger
(di-deoxy) sequencing and mitochondrial DNA analysis for all research, diagnostic, prognostic and therapeutic uses in humans, animals,
viruses, bacteria, fungi, plants or fossilized material. The License Agreement also grants us a non-exclusive license in the areas
of mutation detection using DHPLC, surveyor-endonuclease-based mutation detection and second generation sequencing techniques.
We paid Dana-Farber an initial license fee and are required to make milestone payments with respect to the first five licensed
products or services we develop using the licensed technology, as well as royalties ranging from high single to low double digits
on net sales of licensed products and services for sales made by us and sales made to any distributors. The License Agreement remains
in effect until we cease to sell licensed products or services under said agreement. Dana-Farber has the right to immediately terminate
the License Agreement if (i) we cease to carry on our business with respect to licensed products and services, (ii) we fail to
make any payments under the License Agreement (subject to a cure period), (iii) we fail to comply with due diligence obligations
under the License Agreement (subject to a cure period), (iv) we default in our obligations to procure and maintain insurance as
required by the License Agreement, (v) any of our officers is convicted of a felony relating to the manufacture, use, sale or importation
of licensed products under the License Agreement, (vi) we materially breach any provision of the License Agreement (subject to
a cure period), or (vii) we or Dana-Farber become insolvent. We may terminate the License Agreement for convenience upon 180 days&rsquo;
prior written notice.</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"><I>Reimbursement</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; text-indent: 0.5in">As cancer is more likely to be developed
later in life, the largest insurance provider is Medicare, which constitutes approximately 50% of our patients&rsquo; cases. Non-Medicare
patients are typically insured by private insurance companies who provide patient coverage and pay for patients&rsquo; health-related
costs. These private insurance companies will often adjust their rates according to the insurance rates annually published by the
Center for Medicare and Medicaid Services, or CMS. We, and other provides, typically bill according to the codes relevant to the
tests we conduct.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our initial product offering consists of
clinical diagnostic services harnessing the expertise of the Yale School of Medicine and the commercialization and application
of ICP. Our clinical diagnostic services focus on the diagnosis of different hematopoietic or blood-related cancers and the delivery
of an accurate diagnosis to oncologists, with demonstrated superior results through an exclusive partnership with Yale. We intend
to enter into additional partnerships with premiere academic institutions during 2017 and 2018 that will further broaden and strengthen
our academic expert network. Our cutting-edge liquid biopsy technology, ICP, enables detection of abnormalities in blood samples
(cfDNA) down to as low as 0.01%. Our customers are oncologists, hospitals, reference laboratories, and pharma and biotech companies.
This low-cost technology enables our customers to conduct tests in-house using existing mutation detection platforms. We believe
we are the only current and economically viable option for liquid biopsy applications and plan to cross-market technologies (such
as ICP) and other services on our platform.</P>

<P STYLE="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">We built and obtained CLIA certification
to operate our New Haven laboratory. The laboratory is approximately 3,000 square feet and has several sub-departments such as
flow cytometry, immune-histochemistry, cytogenetics, and molecular testing. The laboratory is currently operated by five lab technicians
and is supervised by a laboratory manager and a medical director. Our laboratory is inspected every two years by a Connecticut
state-appointed inspector, and once approved, we are issued a CLIA-certificate. Furthermore, the laboratory supervisor and medical
director must conduct a self-inspection every two years (rotating with the state inspection) and must submit those results to the
state department of health. Current active laboratory certifications can be found on http://www.precipiodx.com/accreditations.html</P>

<P STYLE="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">The laboratory operations are governed by
Standard Operating Procedure manuals, or SOPs, which detail each aspect of the laboratory environment including the work flow,
quality control, maintenance, and safety. These SOPs are reviewed and approved annually and signed off by the laboratory manager
and medical director.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><U>Our Strategy</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; text-indent: 0.5in; text-align: left">Our objective is to eradicate the problem
of misdiagnosis by harnessing the intellect, expertise and technology developed within academic institutions and to deliver quality
diagnostic information to physicians and their patients worldwide. To achieve this objective, our strategy is to focus our efforts
on the following areas:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&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: 0.75in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left"><B>Clinical pathology services</B> &ndash; we intend to continue building our platform by increasing the number of academic
experts available on our platform and partnering with other academic institutions, allowing us to expand our portfolio of services
to cover additional types of cancer.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&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: 0.75in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left"><B>Ice-Cold PCR</B> &ndash; we believe we can commercialize and develop new applications for our ICP technology, including:</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 1.25in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">o</FONT></TD><TD STYLE="text-align: left">Developing specific application panels for patient monitoring
for treatment resistance and disease recurrence;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 1.25in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">o</FONT></TD><TD STYLE="text-align: left">Building focused diagnostic and screening panels for initial
disease identification;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 1.25in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">o</FONT></TD><TD STYLE="text-align: left">Leveraging our platform customers to generate demand for
repeat, localized, in-house liquid biopsy testing; and</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 1.25in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">o</FONT></TD><TD STYLE="text-align: left">Applying ICP technology to other markets, such as pre-natal
and companion diagnostics.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&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: 0.75in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left"><B>New product pipeline through outsourced research and development</B> &ndash; we plan on utilizing our partnerships with
academic institutions to gain access to newly-developed technologies. We also believe there is an opportunity to partner with biotechnology
companies to introduce their products into the U.S. market through our platform.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: left">&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: 0.75in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left"><B>Academic partnerships</B> &ndash; we intend to leverage the intellectual expertise and technologies developed within academic
institutions. We believe we have validated this model through our partnership with the Yale School of Medicine and are currently
in the process of adding new academic partners.</TD></TR></TABLE>

<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"><B><U>Competition</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; text-indent: 0.5in">Our principal competition in clinical pathology
services comes largely from two groups. The first group consists of companies that specialize in oncology and offer directly competing
services to our diagnostic services. These companies provide a high level of service focused on oncology and offer their services
to oncologists and pathology departments within hospitals. Competitors in this group include Genoptix, GenPath Diagnostics and
Miraca Life Sciences. The second group consists of large commercial companies that offer a wide variety of laboratory tests ranging
from simple chemistry tests to complex genetic testing. Competitors in this group include LabCorp and Quest Diagnostics. We believe
that companies in this industry primarily compete on price and rapid delivery of results. We have chosen to focus on the increased
quality and accuracy of the results we provide. Within the liquid biopsy market, our competitors include Guardant Health and Trovagene,
Inc.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><U>Competitive Advantage</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; text-indent: 0.5in">We capitalize on the intellectual expertise
and technologies developed by experts within academic institutions. While several industry papers report a case misdiagnosis rate
as high as 28, we believe that leveraging academic expertise can significantly reduce this rate. In an initial data set of over
100 clinical cases received and processed by us and with a diagnosis rendered by Yale pathologists, we believe less than 1% have
resulted in misdiagnosis. The diagnostic report provided by us was then requested by a patient or the patient&rsquo;s physician
for a second opinion to be conducted by another laboratory. In these instances, less than 1% were in disagreement with our report&rsquo;s
original diagnosis. Though less than 5% of all cancer patients are treated in academic centers that benefit from this specialized
expertise, the majority of patients are diagnosed by commercial reference laboratories. These commercial laboratories and diagnostic
companies have broad access to and serve over 95% of all cancer patients; however, their lack of specialized expertise results
in significantly higher misdiagnosis rates. Academic institutions also invest heavily in the development of new technologies, most
of which is used internally and does not benefit outside or commercial lab patients. Our platform provides all patients with access
to these innovative technologies developed by Yale and any other academic institutions we engage with in the future.</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-align: justify"><B>Government Regulation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">The healthcare
industry is subject to extensive regulation by a number of governmental entities at the federal, state and local level. Laws
and regulations in the healthcare industry are extremely complex and, in many instances, the industry does not have the
benefit of significant regulatory or judicial interpretation. Our business is impacted not only by those laws and regulations
that are directly applicable to us but also by certain laws and regulations that are applicable to our payors, vendors and
referral sources. While our management believes we are in substantial compliance with all of the existing laws and
regulations applicable to us, such laws and regulations are subject to rapid change and often are uncertain in their
application and enforcement. Further, to the extent we engage in new business initiatives, we must continue to evaluate
whether new laws and regulations are applicable to us. There can be no assurance that we will not be subject to scrutiny or
challenge under one or more of these laws or that any enforcement actions would not be successful. Any such challenge,
whether or not successful, could have a material adverse effect upon our business and consolidated financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">Among the various
federal and state laws and regulations that may govern or impact our current and planned operations are the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><B><I>Medicare and Medicaid Reimbursement</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">Many of the services
that we provide are reimbursed by Medicare and state Medicaid programs and are therefore subject to extensive government regulation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">Medicare is a federally
funded program that provides health insurance coverage for qualified persons age&nbsp;65 or older, some disabled persons, and persons
with end-stage renal disease and persons with Lou Gehrig&rsquo;s disease. Medicaid programs are jointly funded by the federal and
state governments and are administered by states under approved plans.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">Medicaid provides
medical benefits to eligible people with limited income and resources and people with disabilities, among others. Although the
federal government establishes general guidelines for the Medicaid program, each state sets its own guidelines regarding eligibility
and covered services. Some individuals, known as dual eligibles, may be eligible for benefits under both Medicare and a state Medicaid
program. Reimbursement under the Medicare and Medicaid programs is contingent on the satisfaction of numerous rules and regulations,
including those requiring certification and/or licensure. Congress often enacts legislation that affects the reimbursement rates
under government healthcare programs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&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; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Approximately&nbsp;36%&nbsp;of
our revenue for the&nbsp;</FONT>year ended December&nbsp;31, 2017<FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;was
derived directly from Medicare, Medicaid or other government-sponsored healthcare programs. Also, we indirectly provide services
to beneficiaries of Medicare, Medicaid and other government-sponsored healthcare programs through managed care entities. Should
there be material changes to federal or state reimbursement methodologies, regulations or policies, our direct reimbursements from
government-sponsored healthcare programs, as well as service fees that relate indirectly to such reimbursements, could be adversely
affected.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><B><I>Healthcare Reform</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">In recent years, federal
and state governments have considered and enacted policy changes designed to reform the healthcare industry. The most prominent
of these healthcare reform efforts, the Affordable Care Act, has resulted in sweeping changes to the U.S.&nbsp;system for the delivery
and financing of health care. As currently structured, the Affordable Care Act increases the number of persons covered under government
programs and private insurance; furnishes economic incentives for measurable improvements in health care quality outcomes; promotes
a more integrated health care delivery system and the creation of new health care delivery</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Executive Officers of the Registrant &ndash; Section 16 </B></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 75%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 34%"><FONT STYLE="font-size: 10pt"><B>Name</B></FONT></TD>
    <TD STYLE="width: 25%"><FONT STYLE="font-size: 10pt"><B>Age</B></FONT></TD>
    <TD STYLE="width: 41%"><FONT STYLE="font-size: 10pt"><B>Position with the Company</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">Ilan Danieli</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">46</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Founder &amp; Chief Executive Officer </FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">Carl R. Iberger</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">65</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Chief Financial Officer</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-indent: 0.5in; text-align: left"><FONT STYLE="font-size: 10pt">Mr. Danieli
was</FONT> the <FONT STYLE="font-size: 10pt">founder of Precipio Diagnostics LLC</FONT> and <FONT STYLE="font-size: 10pt">was
the Chief Executive Officer of Precipio Diagnostics LLC since 2011. Mr. Danieli assumed the role of Chief Executive Officer of
Precipio, Inc at the time of the Merger. With over 20 years managing small and medium-size companies, some of his previous experiences
include COO of Osiris, a publicly-traded company based in New York City with operations in the US, Canada, Europe and Asia; VP
of Operations for Laurus Capital Management, a multi-billion dollar hedge fund; and in various other entrepreneurial ventures.
Ilan holds an MBA from the Darden School at the University of Virginia, and a BA in Economics from Bar-Ilan University in Israel.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left">Mr. Iberger was named Chief Financial Officer
in October 2016. For the years 1990 through 2015, Mr. Iberger held the positions of Chief Financial Officer and Executive Vice
President at Dianon Systems, DigiTrace Care Services and SleepMed, Inc. Mr. Iberger has significant diagnostic healthcare experience
in mergers and acquisitions, private equity transactions, public offerings and executive management in high growth environments.
Mr. Iberger holds a Master&rsquo;s Degree in Finance from Hofstra University and a Bachelor of Science Degree in Accounting from
the University of Connecticut.</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>Executive Management</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 75%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 34%"><FONT STYLE="font-size: 10pt"><B>Name</B></FONT></TD>
    <TD STYLE="width: 25%"><FONT STYLE="font-size: 10pt"><B>Age</B></FONT></TD>
    <TD STYLE="width: 41%"><FONT STYLE="font-size: 10pt"><B>Position with the Company</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">Stephen Miller</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">51</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Chief Commercial Officer</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">Ahmed Zaki Sabet</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">32</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Chief Operating Officer</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">Ayman A. Mohamed</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">33</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">SVP R&amp;D and Laboratory Operations</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-indent: 0.5in; text-align: left">Mr. Miller was named Chief Commercial Officer
in June 2017, after serving in the Vice President Commercial Genetics division of the predecessor company Transgenomics, Inc. Mr.
Miller has over 25 years of experience in the diagnostic business developments</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-indent: 0.5in; text-align: left">Mr. Sabet is a founder of Precipio Diagnostics,
Inc. and was named Chief Operating Officer in June 2017 after serving as Vice President Operations for Precipio since 2011.</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-indent: 0.5in; text-align: left">Mr. Mohamed is a founder of Precipio Diagnostics,
Inc. and was named Senior Vice President R&amp;D and Laboratory Operations in June 2017 after serving as Vice President since 2011.</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; text-indent: 0.5in; text-align: left">As of December 31, 2017, Precipio employed
34 people on a full-time and part-time basis. Of the total, 5 were in Executive Management, 10 were in laboratory operations, 5
were in Sales and Marketing, 4 were in Customer Service and Support, 5 were in Research &amp; Development, 5 were in Accounting,
Finance and Reimbursement and 1 was in Management Information Services.</P>

<P STYLE="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; text-align: left">Precipio Inc.&rsquo;s internet address is
www.precipiodx.com. We attempt to have a variety of information available for customers, development partners and investors. Our
goal is to maintain the Investor Relations website as a portal through which investors can easily navigate to find pertinent information
about us, including:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">Our annual report on Form
10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and any amendments to those reports, as soon as reasonably
practicable after we electronically file that material with or furnish it to the Securities and Exchange Commission (&ldquo;SEC&rdquo;);</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR>
    <TD STYLE="width: 0.5in; text-align: left">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: left"><FONT STYLE="font-size: 10pt">Information on our business strategies, financial results, and key performance indicators;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR>
    <TD STYLE="width: 0.5in; text-align: left">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: left"><FONT STYLE="font-size: 10pt">Press releases on quarterly earnings, product and service announcements, legal developments, and international news.</FONT></TD></TR>
</TABLE>
<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"><FONT><B>Merger Transaction</B></FONT></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; text-indent: 0.5in">On June&nbsp;29, 2017,
Precipio (then known as &ldquo;Transgenomic, Inc.&rdquo;, or &ldquo;Transgenomic&rdquo;), completed a reverse merger (the &ldquo;Merger&rdquo;)
with Precipio Diagnostics, LLC, a privately held Delaware limited liability company (&ldquo;Precipio Diagnostics&rdquo;) in accordance
with the terms of the Agreement and Plan of Merger (the &ldquo;Merger Agreement&rdquo;), dated October&nbsp;12, 2016, as amended
on February&nbsp;2, 2017 and June&nbsp;29, 2017, by and among Transgenomic, Precipio Diagnostics and New Haven Labs Inc. (&ldquo;Merger
Sub&rdquo;) a wholly-owned subsidiary of Transgenomic. Pursuant to the Merger Agreement, Merger Sub merged with and into Precipio
Diagnostics, with Precipio Diagnostics surviving the Merger as a wholly-owned subsidiary of the combined company (See Note 3 -
Reverse Merger in our Annual Report on Form&nbsp;10-K&nbsp;for the fiscal year ended December&nbsp;31, 2017, filed with the SEC
on April&nbsp;13, 2018). In connection with the Merger, we changed our name from Transgenomic, Inc. to Precipio, Inc., relisted
our common stock under Precipio, Inc. on the National Association of Securities Dealers Automated Quotations (&ldquo;NASDAQ&rdquo;),
and effected a 1-for-30 reverse stock split of our common stock. Upon the consummation of the Merger, the historical financial
statements of Precipio Diagnostics become the Precipio&rsquo;s historical financial statements. Accordingly, the historical financial
statements of Precipio Diagnostics are included in the comparative prior periods. As a result of the Merger, historical preferred
stock, common stock, restricted units, warrants and additional paid-in capital, including share and per share amounts, have been
retroactively adjusted to reflect the equity structure of the combined company, including the effect of the Merger exchange ratio.
Pursuant to the Merger Agreement, each outstanding unit of Precipio Diagnostics was exchanged for 10.2502 pre-reverse stock split
shares of Company 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-align: left"><FONT><B>Legal Proceedings</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 31.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">The healthcare industry
is subject to numerous laws and regulations of federal, state and local governments. These laws and regulations include, but are
not limited to, matters such as licensure, accreditation, government healthcare program participation requirement, reimbursement
for patient services and Medicare and Medicaid fraud and abuse. Government activity has increased with respect to investigations
and allegations concerning possible violations of fraud and abuse statutes and regulations by healthcare providers.</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; text-indent: 0.5in">Violations of these
laws and regulations could result in expulsion from government healthcare programs together with the imposition of significant
fines and penalties, as well as significant repayments for patient services previously billed. Management believes that the Company
is in compliance with fraud and abuse regulations, as well as other applicable government laws and regulations. While no material
regulatory inquiries have been made, compliance with such laws and regulations can be subject to future government review and interpretation,
as well as regulatory actions unknown or unasserted at this time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 22.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">The outcome of legal
proceedings and claims brought against us are subject to significant uncertainty. Therefore, although management considers the
likelihood of such an outcome to be remote, if one or more of these legal matters were resolved against us in the same reporting
period for amounts in excess of management&rsquo;s expectations, our financial statements for such reporting period could be materially
adversely affected. In general, the resolution of a legal matter could prevent us from offering our services or products to others,
could be material to our financial condition or cash flows, or both, or could otherwise adversely affect our operating results.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 22.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">The Company is delinquent
on the payment of outstanding accounts payable for certain vendors and suppliers who have taken or have threatened to take legal
action to collect such outstanding amounts.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 22.5pt">&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; text-align: left; text-indent: 0.5in">On February 25, 2016,
the Board of Regents of the University of Nebraska (&ldquo;UNMC&rdquo;) filed a lawsuit against Transgenomic in the District Court
of Douglas County, Nebraska, for breach of contract and seeking recovery of $0.7 million owed by us to UNMC. A $0.4 million liability
was recorded and is reflected in accrued expenses at December 31, 2016. We and UNMC entered into a settlement agreement dated February
6, 2017, which included, among other things, a mutual general release of claims, and our agreement to pay $0.4 million to UNMC
in installments over a period of time. On September 8, 2017, we and UNMC entered into a First Amendment to the Settlement Agreement
with quarterly payments in the amount of $25,000 due commencing on September 15, 2017 and ending on June 15, 2020 and a final payment
of $100,000 due on or before September 15, 2020. We made settlement payments totaling of $50,000 during 2017 and a $0.3 million
liability has been recorded and is reflected in accounts payable at December 31, 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 22.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">On April 13, 2016,
Fox Chase Cancer Center (&ldquo;Fox Chase&rdquo;) filed a lawsuit against us in the Court of Common Pleas of Philadelphia County,
First Judicial District of Pennsylvania Civil Trial Division (the &ldquo;Court of Common Pleas&rdquo;), alleging, among other things,
breach of contract, tortious interference with present and prospective contractual relations, unjust enrichment, fraudulent conversion
and conspiracy and seeking punitive damages in addition to damages and other relief. This lawsuit relates to a license agreement
Transgenomic entered into with Fox Chase in August 2000, as amended (the &ldquo;License Agreement&rdquo;), as well as the assignment
of certain of Transgenomic's rights under the License Agreement to Integrated DNA Technologies, Inc. (&ldquo;IDT&rdquo;) pursuant
to the Surveyor Kit Patent, Technology and Inventory Purchase Agreement Transgenomic entered into with IDT effective as of July
1, 2014 (the &ldquo;IDT Agreement&rdquo;). Pursuant to the terms of the IDT Agreement, Transgenomic agreed to indemnify IDT with
respect to certain of the claims asserted in the Fox Chase proceeding. On July 8, 2016, the Court of Common Pleas sustained Transgenomic&rsquo;s
preliminary objections to several of Fox Chase&rsquo;s claims and dismissed the claims for tortious interference, fraudulent conversion,
conspiracy, punitive damages and attorney&rsquo;s fees.&nbsp; Accordingly, the case was narrowed so that only certain contract
claims and an unjust enrichment claim remained pending against Transgenomic.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 22.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">During June 2017,
prior to the Merger, Transgenomic entered into a settlement agreement with Fox Chase (the &ldquo;Agreement&rdquo;)&nbsp;to pay
$175,000 in three installments.&nbsp; In August 2017 we made two payments, each in the amount of $60,000 and on October 3, 2017,
we made a third and final&nbsp;payment in the amount of $55,000.&nbsp;The three payments total&nbsp;$175,000 which resolved all
outstanding claims in the litigation brought in April 2016 by Fox Chase against Transgenomic in the Court of Common Pleas of Philadelphia
County (the &ldquo;Action&rdquo;). As of April 13, 2018, the case remains pending with the Court as Fox Chase has not&nbsp;caused
the Action to be formally dismissed with prejudice as it is obligated per the agreement. Also, on July 13, 2017 we entered into
an agreement with its co-Defendant, IDT, regarding our indemnity obligations to IDT for legal fees and expenses incurred in the
Action pursuant to the terms of the IDT Agreement in the amount of $139,000. During 2017, we made total payments to IDT in the
amount of $139,000 satisfying the agreement. As of December 31, 2017, there are no outstanding amounts owed by us and we have no
liabilities recorded within the accompanying consolidated balance sheets related to this matter.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 22.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">On June 23, 2016,
the Icahn School of Medicine at Mount Sinai (&ldquo;Mount Sinai&rdquo;) filed a lawsuit against Transgenomic in the Supreme Court
of the State of New York, County of New York, alleging, among other things, breach of contract and, alternatively, unjust enrichment
and quantum merit, and seeking recovery of $0.7 million owed by us to Mount Sinai for services rendered. We and Mount Sinai entered
into a settlement agreement dated October 27, 2016, which included, among other things, a mutual general release of claims, and
our agreement to pay approximately $0.7 million to Mount Sinai in installments over a period of time. Effective as of October 31,
2017, we and Mount Sinai agreed to enter into a new settlement agreement to restructure these liabilities into a secured, long-term
debt obligation of $0.5 million which includes accrued interest at 10% with monthly principal and interest payments of $9,472 beginning
in July 2018 and continuing over 48 months and to issue warrants in the amount of 24,900 shares, that are exercisable for shares
of our common stock, on a 1-for-1 basis, with an exercise price of $7.50 per share, exercisable on the date of issuance with a
term of 5 years. We do not plan to apply to list the warrants on the NASDAQ Capital Market, any other national securities exchange
or any other nationally recognized trading system. A $0.5 million liability has been recorded and is reflected in long-term debt
at December 31, 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 24pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">On December 19, 2016,
Todd Smith (&ldquo;Smith&rdquo;) filed a lawsuit against us in the District Court of Douglas County Nebraska, alleging breach of
contract and seeking recovery of $2.2 million owed by us to Smith for costs and damages arising from a breach of our obligations
pursuant to a lease agreement between the parties. On April 7, 2017, we entered into a settlement agreement with Smith related
to the early termination of our lease for a facility in Omaha, Nebraska. The agreement included, among other things, a mutual general
release of claims, and our agreement to pay approximately $0.6 million to Smith in installments through October 2018. During the
year ended December 31, 2017, we made payments totaling $0.4 million and a $0.2 million liability has been recorded and is reflected
in accounts payable at December 31, 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 24pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">On February 21, 2017,
XIFIN, Inc. (&ldquo;XIFIN&rdquo;) filed a lawsuit against us in the District Court for the Southern District of California alleging
breach of written contract and seeking recovery of approximately $0.27 million owed by us to XIFIN for damages arising from a breach
of our obligations pursuant to a Systems Services Agreement between us and XIFIN, dated as of February 22, 2013, as amended and
restated on September 1, 2014. On April 5, 2017, the court clerk entered default against the Company. On May 5, 2017, XIFIN filed
an application for entry of default judgment against us. During the year ended December 31, 2017, we made payments totaling $0.1
million and a $0.2 million liability has been recorded and is reflected in accounts payable at December 31, 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt">&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; text-align: left; text-indent: 0.5in">CPA Global provides
us with certain patent management services. On February 6, 2017, CPA Global claimed that we owe approximately $0.2 million for
certain patent maintenance services rendered. CPA Global has not filed claims against us in connection with this allegation. During
the year ended December 31, 2017, we made payments of less than $0.1 million and a liability of approximately less than $0.1 million
has been recorded and is reflected in accounts payable at December 31, 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 22pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">On March 9, 2016, counsel
for Edge BioSystems, Inc. (&ldquo;EdgeBio&rdquo;) sent a demand letter on behalf of EdgeBio to us in connection with the terms
of an Asset Purchase Agreement dated September 8, 2015 (the &ldquo;EdgeBio Agreement&rdquo;). EdgeBio alleges, among other things,
that certain customers of EdgeBio erroneously remitted payments to us, that such payments should have been paid to EdgeBio and
that we failed to remit these funds to EdgeBio in violation of the terms of the EdgeBio Agreement. On September 13, 2016, we received
a demand for payment letter from EdgeBio&rsquo;s counsel alleging that the balance due to EdgeBio is approximately $0.1 million.
On September 19, 2017 a summary of action from the Judicial District of New Haven, CT for a judgement of $113,000 was issued. We
and Edge-Bio reached an agreement on payment and we paid $63,000 on December 21, 2017 with another $63,000 due within 180 days
from the initial payment. A liability of approximately $0.1 million has been recorded and is reflected in accounts payable at December
31, 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 22pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">On February 17, 2017,
Jesse Campbell (&ldquo;Campbell&rdquo;) filed a lawsuit individually and on behalf of others similarly situated against us in the
District Court for the District of Nebraska alleging we had a materially incomplete and misleading proxy relating to a potential
merger and that the merger agreement&rsquo;s deal protection provisions deter superior offers.&nbsp; As a result, Campbell alleges
that we have violated Sections 14(a) and 20(a) of the Exchange Act and Rule 14a-9 promulgated thereafter.&nbsp; Although we intend
to defend the lawsuit, there can be no assurance regarding the ultimate outcome of this case. Given the uncertainty of litigation,
the legal standards that must be met for, among other things, class certification and success on the merits, we are unable to estimate
the amount of loss, or range of possible loss, at this time that may result from this action. In the event that a settlement is
reached related to these matters, the amount of such settlement may be material to our results of operations and financial condition
and may have a material adverse impact on our liquidity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 22pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">On February 20, 2018,
Crede Capital Group LLC (&ldquo;Crede&rdquo;) filed a lawsuit against us in the Supreme Court of the State of New York for Summary
Judgment in Lieu of Complaint requiring us to pay cash owed to Crede. Crede claims that we breached a Securities Purchase Agreement
and Warrant that Crede entered into in connection with an investment in Transgenomic and that pursuant to those agreements, we
owed Crede the sum of $2,205,008. In addition to the aforementioned sum, Crede also demanded that we pay an additional sum of $3,737.32
per day between the date of the summons and the date that judgment is entered, plus interest. As previously disclosed by us, Crede
had sent us a letter claiming that we owed Crede $1.8 million. On March&nbsp;12, 2018, we entered into a settlement agreement with
Crede pursuant to which we agreed to pay Crede a total sum of $1.925 million over a period of 16 months payable in cash, or at
the Company&rsquo;s discretion in stock, in accordance with terms contained in the settlement agreement. In accordance with the
terms of the settlement agreement and in addition to the agreement to pay, we have also executed and delivered to Crede an affidavit
of confession of judgment. Liabilities totaling approximately $1.9 million have been recorded with $1.1 million reflected in other
current liabilities and $0.8 million reflected in common stock warrant liability at December 31, 2017. On March 19, 2018 we made
the first scheduled payment of $175,000 to Crede.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 22pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">On March 21, 2018, Bio-Rad
Laboratories filed a lawsuit against us in the Superior Court Judicial Branch of the State of Connecticut for Summary Judgment
in Lieu of Complaint requiring us to pay cash owed to Bio-Rad in the amount of $49,000. We are currently in discussions with Bio-Rad
to reach payment conditions. A liability of less than $0.1 million has been recorded in accounts payable at December 31, 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT><B>&nbsp;</B></FONT></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-top: 0pt; text-align: center; margin-bottom: 0pt"><A NAME="pi_012"></A><FONT><B>MANAGEMENT</B></FONT></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; text-align: left; text-indent: 0.5in">Set forth below is biographical information
with respect to our executive officers and directors is provided below. There are no family relationships between any of our executive
officers or directors.</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"><FONT><B><U>Executive Officers
of the Registrant </U></B></FONT></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"><FONT><B><I>Ilan Daniel, Founder
&amp; Chief Executive Officer, age 46</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left">Mr. Danieli was the founder of Precipio
Diagnostics LLC and was the Chief Executive Officer of Precipio Diagnostics LLC since 2011. Mr. Danieli assumed the role of Chief
Executive Officer of Precipio, Inc at the time of the Merger. With over 20 years managing small and medium-size companies, some
of his previous experiences include COO of Osiris, a publicly-traded company based in New York City with operations in the US,
Canada, Europe and Asia; VP of Operations for Laurus Capital Management, a multi-billion dollar hedge fund; and in various other
entrepreneurial ventures. Ilan holds an MBA from the Darden School at the University of Virginia, and a BA in Economics from Bar-Ilan
University in Israel.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><FONT><B><I>Carl R. Iberger,
Chief Financial Officer, age 65</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left">Mr. Iberger was named Chief Financial Officer
in October 2016. For the years 1990 through 2015, Mr. Iberger held the positions of Chief Financial Officer and Executive Vice
President at Dianon Systems, DigiTrace Care Services and SleepMed, Inc. Mr. Iberger has significant diagnostic healthcare experience
in mergers and acquisitions, private equity transactions, public offerings and executive management in high growth environments.
Mr. Iberger holds a Master&rsquo;s Degree in Finance from Hofstra University and a Bachelor of Science Degree in Accounting from
the University of Connecticut.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><FONT><B><U>Executive Management</U></B></FONT></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"><FONT><B><I>Stephen Miller,
Chief Commercial Officer, age 51</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left">Mr. Miller currently serves as the Chief
Commercial Officer of Precipio, joining Precipio from Transgenomic Inc. where he served as SVP &amp; General Manager since 2013.
Mr. Miller has over 25 years&rsquo; experience in the diagnostic and biotechnology sectors, with in-depth experience in developing
and implementing business strategies. Mr. Miller also has broad experience successfully leading sales, marketing, reimbursement
and business development. Prior to joining Precipio, Mr. Miller held executive commercial positions at BG Medicine and Mira Dx.
He also held a variety of key positions within Athena Diagnostics with responsibilities for reimbursement, corporate accounts,
business development, marketing and sales. His last position with Athena was as the Vice President of Sales &amp; Marketing as
that company grew from $6 million to over $100 million in sales. Mr. Miller received a B.A. in Business Psychology from Miami University.</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-align: left"><FONT><B><I>Ahmed Zaki Sabet,
Chief Operating Officer, age 32</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left">Mr. Sabet is a founder of Precipio Diagnostics,
Inc. and was named Chief Operating Officer in June 2017 after serving as Vice President Operations for Precipio since 2011.</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"><FONT><B><I>Ayman A. Mohamed,
SVP R&amp;D and Laboratory Operations, age 33</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left">Mr. Mohamed is a founder of Precipio Diagnostics,
Inc. and was named Senior Vice President R&amp;D and Laboratory Operations in June 2017 after serving as Vice President since 2011.</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"><FONT><B><U>Board of Directors
</U></B></FONT></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"><FONT><B><I>Mr. Samuel Riccitelli,
Chairman age 59</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left">Mr. Riccitelli has been an independent consultant
since February 2017. Mr. Riccitelli served as President and Chief Executive Officer from October 2012 to February 2017 and on the
Board of Directors since June 2014 of Miragen Therapeutics, Inc. (formerly Signal Genetics, Inc.), a publicly traded molecular
diagnostic company. From July 2011 to October 2012, Mr. Riccitelli was an independent consultant. From October 2001 to June 2011,
he served as the Executive Vice President and Chief Operating Officer of Genoptix, Inc., a publicly traded diagnostic services
company focused on the needs of community hematologists and oncologists. From 1995 to 2001, he served in a number of research and
development and general management leadership positions for Becton, Dickinson and Company. From 1989 to 1994, he served in several
positions at Puritan-Bennett Corporation, including, most recently, as general manager. Mr. Riccitelli has served as a member of
the board of directors of Orthopediatrics, Inc. since December 2017. Mr. Riccitelli also served on the Board of Directors of Exagen
Diagnostics, Inc. from October 2011 to September 2014. He received a B.A. in Biology from Washington and Jefferson College and
a M.S. Eng. degree from The University of Texas in Mechanical &amp; Biomedical Engineering. Mr. Riccitelli was appointed as director
of the Company since the Merger on June 2017. We believe Mr. Riccitelli&rsquo;s deep experience in the diagnostics field, chiefly
as COO of Genoptix, one of the industry&rsquo;s leading diagnostic companies; as well as his experience as CEO of Signal Genetics,
a publicly-traded diagnostics company, provides substantial executive experience in both the industry, and knowledge of public
markets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&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"><FONT><B><I>Mark Rimer, age
36</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left">Mr. Rimer has been a partner at Kuzari Group,
a boutique private investment group with a broad mandate to invest in full or partial buy-outs, growth capital, and venture capital
across a broad range of industries since September 2009. Mr. Rimer serves on the Board of Directors of several companies, including
Precipio, and is actively involved in business development roles at numerous portfolio companies. Prior to joining Kuzari, Mr.
Rimer worked for a London-based private equity group, RP Capital Group, managing a number of investments across several emerging
markets. Mr. Rimer is a Chartered Accountant, earned an undergraduate degree in Politics and Economics from Bristol University
and an MBA from the NY Stern School of Business. Mr. Rimer was appointed as director of the Company in March 2012. Mr. Rimer has
been an investor in Precipio from its inception. He brings with him not only a strong financial, accounting and investment background,
but also a deep familiarity with the Company&rsquo;s business model and its evolution over the years.</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"><FONT><B><I>Jeffrey Cossman,
M.D., age 70</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left">Dr. Cossman was a founder of and served
as Chief Executive Officer and Chairman of the Board at United States Diagnostic Standards, Inc. from 2009 to 2014, and as a member
of the Board of The Personalized Medicine Coalition from 2008 to 2014. Prior to that, he served as Chief Scientific Officer and
as member of the Board of Directors of The Critical Path Institute, and as Medical Director of Gene Logic, Inc. He was Professor
and Chairman of the Department of Pathology at Georgetown University Medical Center where he held the Oscar Benwood Hunter Chair
of Pathology and he served as Senior Investigator in Hematopathology at the National Cancer Institute. He is currently a medical
advisor to Epigenomics AG. Dr. Cossman holds a B.S. from the University of Michigan and an M.D. from the University of Michigan
Medical School. He is board-certified in pathology and trained in pathology and hematopathology at the University of Michigan,
Stanford University and the National Institutes of Health. Dr. Cossman was appointed as director of the Company since September
2017. The Board believes that, as former chair of the department of pathology of Georgetown University, a premier academic institution,
Dr. Cossman provides significant insight and guidance as to how the company should execute on its model. Furthermore, his experience
in the molecular field is significant to the Company&rsquo;s strategy.</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"><FONT><B><I>Douglas Fisher,
M.D., MBA, age 41</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left">Dr. Fisher is currently an Executive in
Residence at InterWest Partners LLC, a venture capital firm, where he has worked since March 2009. Dr. Fisher also works and serves
as the Chief Business Officer at Sera Prognostics, Inc. since January 2015. Prior to joining InterWest, Dr. Fisher served as Vice
President of New Leaf Venture Partners LLC, a private equity and venture capital firm, from January 2006 to March 2009. Prior to
joining New Leaf, Dr. Fisher was a project leader with The Boston Consulting Group, Inc., a global management consulting firm,
from November 2003 to February 2006. He currently serves on the board of Obalon Therapeutics, Inc., Gynesonics, Inc. and Indi Molecular,
Inc., and previously served on the board of QuatRx Pharmaceuticals Company, Cardiac Dimensions, PMV Pharmaceuticals, Inc. and Sera
Prognostics, Inc. Dr. Fisher holds an A.B. and a B.S. from Stanford University, an M.D. from the University of Pennsylvania School
of Medicine and an MBA from The Wharton School of Business at the University of Pennsylvania. Mr. Fisher was appointed as director
of the Company since September 2017. Dr. Fisher&rsquo;s diverse background as both a physician, and an investor in biotech markets,
is extremely beneficial to the Board in planning the Company&rsquo;s strategic growth and how to approach and manage the financial
markets</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"><FONT><B><I>David Cohen, age
59</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left">Mr. Cohen is the Chief Operating Officer
and co-owner of Standard Oil of Connecticut, Inc., the largest independent petroleum retailing company in Connecticut. He founded
several highly successful ventures, including: Standard Security Systems, a provider of electronic security services; ResCom Energy,
a multi-state supplier of deregulated electricity; Moneo Technology Solutions, a provider of security and network infrastructure
solutions; and My Gene Counsel, a cancer bioinformatics company. Mr. Cohen is also a highly experienced investor in numerous start-up
and early stage businesses. He currently serves on the Boards of: eBrevia, Emme Controls, Foresite MSP, My Gene Counsel, The Platt
&amp; LaBonia Company, and Sirona Medical Technologies. Mr. Cohen holds a B.A. from Harvard College and an MBA from the Harvard
Business School. Mr. Cohen was appointed as director of the Company since November 2017. Mr. Cohen brings to the Board a wealth
of experience as a serial entrepreneur that has built several successful companies, as well as a strong investment track record.
Mr. Cohen has been an early-stage investor in Precipio and brings his deep familiarity of the business to help guide management
and the Board in its strategy.</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; text-align: left"><FONT><B><I>Michael Luther,
PhD, age 61</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left">Dr. Luther has served as President and Chief
Executive Officer of Bantam Pharmaceutical, LLC, a pharmaceutical company focused on the discovery and development of compounds
to treat cancer with a focus on RNA translation, since March 2016. From October 2013 to October 2015, Dr. Luther was Senior Vice
President and General Manager, Discovery and Development Services, at Albany Molecular Research, Inc. (NASDAQ: AMRI), a global
contract research and manufacturing organization offering drug discovery, development and manufacturing services, where he was
responsible for the strategic, operational and business development activities for Albany Molecular Research, Inc.&rsquo;s global
discovery and development divisions. From August 2012 to September 2013, Dr. Luther was Corporate Vice President of Global Discovery
Research Services at Charles River Laboratories (NYSE: CRL), a global provider of products and services to pharmaceutical and biotechnology
companies, government agencies and academic institutions, where he served as the general manager of the firm&rsquo;s discovery
business unit, including developing and implementing strategic and operating plans.</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; text-align: left">Prior to his role at Charles River, from
March 2009 to August 2012, he was President and a member of the Board of Directors of the David H. Murdock Research Institute,
a non-profit contract research organization located in Kannapolis, North Carolina, where he led and directed all activities of
the institute, including applied research and development activities. From November 2006 to March 2009, Dr. Luther held the position
of Vice President and Site Head at Merck Frosst, a pharmaceutical company in Montreal, Canada, focused on the delivery of Phase
I product candidates from target to clinic for novel therapeutics in respiratory and metabolic disorders. Prior to Merck Frosst,
from 1991 to 2006, he held positions of increasing responsibilities at GlaxoSmithKline, a global healthcare company that researches
and develops a broad range of innovative medicines and brands, culminating in his appointment as Vice President, High Throughput
Biology.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left">Dr. Luther holds a Bachelor of Science degree
in Biology and Chemistry from North Carolina State University, a Master in Business Administration from Duke University, Fuqua
School of Business, and a Ph.D. in Biophysical Chemistry from Saint Louis University School of Medicine. He served as a member
of the Board of Directors of Islet Sciences, Inc., a biopharmaceutical company (OTC: ISLT), from March 2014 to June 2015. The Board
selected Dr. Luther to serve as a director because it believes he possesses valuable experience in the healthcare and pharmaceutical
industries and extensive strategic, scientific and business experience in such industries, which brings a unique and valuable perspective
to the Board. Dr. Luther was appointed as director of the Company since April 2014.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><FONT><B><I>Ilan Danieli,
age 46</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left">Mr. Danieli was the founder of Precipio
Diagnostics LLC and has been its chief executive officer since 2011. Mr. Danieli assumed the role of Director of Precipio, Inc
at the time of the Merger. With over 20 years managing small and medium-size companies, some of his previous experiences include
COO of Osiris, a publicly-traded company based in New York City with operations in the US, Canada, Europe and Asia; VP of Operations
for Laurus Capital Management, a multi-billion dollar hedge fund; and various other entrepreneurial ventures. Mr. Danieli holds
an MBA from the Darden School at the University of Virginia, and a BA in Economics from Bar-Ilan University in Israel.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><FONT><B>Corporate
Governance</B></FONT></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-indent: 0.5in; text-align: left">Our Board has determined that having an
independent director serve as the Chairperson of the Board is in the best interests of our stockholders. Our Chairperson of the
Board is Samuel Riccitelli. Ilan Danieli, CEO, is the only member of our Board who is not an independent director. We believe that
this leadership structure enhances the accountability of our CEO to the Board and strengthens the Board&rsquo;s independence from
management. While both Mr. Riccitelli and Mr. Danieli are actively engaged in significant matters affecting our Company, such as
long-term strategy, we believe splitting these leadership positions enables Mr.&nbsp;Danieli to focus his efforts on running our
business and managing our Company while permitting Mr.&nbsp;Riccitelli to focus on the governance of our Company, including Board
oversight.</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">Director Attendance at Meetings</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-indent: 0.5in; text-align: left">Our Board conducts its business through
meetings of our Board, both in person and telephonic, and actions taken by written consent in lieu of meetings. During the year
ended December&nbsp;31, 2017, our Board held four meetings. All directors attended at least 75% of the meetings of our Board and
of the committees of our Board on which they served during 2017.</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; text-indent: 0.5in; text-align: left">Our Board encourages all directors to attend
our annual meetings of stockholders unless it is not reasonably practicable for a director to do so.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><FONT><I>Committees
of our Board of Directors</I></FONT></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; text-indent: 0.5in">Our Board has established and delegated
certain responsibilities to its standing Audit Committee, Compensation Committee and Nominating and Corporate Governance Committee.</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"><FONT><U>Audit Committee</U></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-align: left; text-indent: 0.5in">We have a separately
designated standing Audit Committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934,
as amended (the &ldquo;Exchange Act&rdquo;). The Audit Committee&rsquo;s primary duties and responsibilities include monitoring
the integrity of our financial statements, monitoring the independence and performance of our external auditors, and monitoring
our compliance with applicable legal and regulatory requirements. The functions of the Audit Committee also include reviewing periodically
with our independent registered public accounting firm the performance of the services for which they are engaged, including reviewing
the scope of the annual audit and its results, reviewing with management and the auditors the adequacy of our internal accounting
controls, reviewing with management and the auditors the financial results prior to the filing of quarterly and annual reports,
reviewing fees charged by our independent registered public accounting firm and reviewing any transactions between our Company
and related parties. Our independent registered public accounting firm reports directly and is accountable solely to the Audit
Committee. The Audit Committee has the sole authority to hire and fire the independent registered public accounting firm and is
responsible for the oversight of the performance of their duties, including ensuring the independence of the independent registered
public accounting firm. The Audit Committee also approves in advance the retention of, and all fees to be paid to, the independent
registered public accounting firm. The rendering of any auditing services and all non-auditing services by the independent registered
public accounting firm is subject to prior approval of the Audit Committee.</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; text-indent: 0.5in">The Audit Committee
operates under a written charter which is available in the Investor Relations section of our website at <FONT><U>www.precipiodx.com</U></FONT>.
The Audit Committee is required to be composed of directors who are independent under the rules of the SEC and the listing standards
of The NASDAQ Stock Market LLC (&ldquo;NASDAQ&rdquo;).</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; text-indent: 0.5in">The current members
of the Audit Committee are directors Mr. Riccitelli, the Chairperson of the Audit Committee, Dr. Fisher and Dr. Luther, all of
whom have been determined by the Board to be independent under the NASDAQ listing standards and rules adopted by the SEC applicable
to audit committee members. The Board has determined that Mr. Riccitelli, Dr. Fisher and Dr. Luther each qualifies as an &ldquo;audit
committee financial expert&rdquo; under the rules adopted by the SEC and the Sarbanes Oxley Act of 2002. The Audit Committee met
one time during 2017 and did not take any actions by written consent.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT><U>Compensation Committee</U></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-align: left; text-indent: 0.5in">The primary duties
and responsibilities of our standing Compensation Committee are to review, modify and approve the overall compensation policies
for the Company, including the compensation of the Company&rsquo;s Chief Executive Officer and other senior management; establish
and assess the adequacy of director compensation; and approve the adoption, amendment and termination of the Company&rsquo;s stock
option plans, pension and profit sharing plans, bonus plans and similar programs. The Compensation Committee may delegate to one
or more officers the authority to make grants of options and restricted stock to eligible individuals other than officers and directors,
subject to certain limitations. Additionally, the Compensation Committee has the authority to form subcommittees and to delegate
authority to any such subcommittee. The Compensation Committee also has the authority, in its sole discretion, to select, retain
and obtain, at the expense of the Company, advice and assistance from internal or external legal, accounting or other advisors
and consultants. Moreover, the Compensation Committee has sole authority to retain and terminate any compensation consultant to
assist in the evaluation of director, Chief Executive Officer or senior executive compensation, including sole authority to approve
such consultant&rsquo;s reasonable fees and other retention terms, all at the Company&rsquo;s expense.</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; text-indent: 0.5in">The Compensation Committee
operates under a written charter which is available on our website at www.precipiodx.com. All members of the Compensation Committee
must satisfy the independence requirements of NASDAQ applicable to compensation committee members.</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; text-indent: 0.5in">The Compensation Committee
currently consists of directors Dr. Luther, Mr. Rimer, Dr. Cossman and Dr. Fisher. Dr. Luther was Chairperson of the Compensation
Committee form the Merger date to February 8, 2018. On February 8, 2018, Dr. Fisher was appointed Chairperson of the Compensation
Committee. Each of the Compensation Committee members have been determined by the Board to be independent under NASDAQ listing
standards applicable to compensation committee members. The Compensation Committee met two times during 2017 and did not take any
actions by written consent.</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; text-align: justify"><FONT><U>Nominating
and Corporate Governance Committee </U></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">The Nominating and
Corporate Governance Committee identifies, reviews and evaluates candidates to serve on the Board; reviews and assesses the performance
of the Board and the committees of the Board; and assesses the independence of our directors. The Nominating and Corporate Governance
Committee is also responsible for reviewing the composition of the Board&rsquo;s committees and making recommendations to the entire
Board regarding the chairpersonship and membership of each committee. In addition, the Nominating and Corporate Governance Committee
is responsible for developing corporate governance principles and periodically reviewing and assessing such principles, as well
as periodically reviewing the Company&rsquo;s policy statements to determine their adherence to the Company&rsquo;s Code of Business
Conduct and Ethics.</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: left; text-indent: 0.5in">The Nominating and
Corporate Governance Committee has adopted a Director Nominees Consideration Policy, whereby Board candidates are identified primarily
through suggestions made by directors, management and stockholders of the Company. We have implemented no material changes to the
procedures by which stockholders may recommend nominees for the Board. The Nominating and Corporate Governance Committee will consider
director nominees recommended by stockholders that are submitted in writing to the Company&rsquo;s Corporate Secretary in a timely
manner and which provide necessary biographical and business experience information regarding the nominee. The Nominating and Corporate
Governance Committee does not intend to alter the manner in which it evaluates candidates, including the criteria considered by
the Nominating Committee, based on whether or not the candidate was recommended by a stockholder. The Board does not prescribe
any minimum qualifications for director candidates, and all candidates for director will be evaluated based on their qualifications,
diversity, age, skill and such other factors as deemed appropriate by the Nominating and Corporate Governance Committee given the
current needs of the Board, the committees of the Board and the Company. Although the Nominating and Corporate Governance Committee
does not have a specific policy on diversity, it considers the criteria noted above in selecting nominees for directors, including
members from diverse backgrounds who combine a broad spectrum of experience and expertise. Absent other factors which may be material
to its evaluation of a candidate, the Nominating and Corporate Governance Committee expects to recommend to the Board for selection
incumbent directors who express an interest in continuing to serve on the Board. Following its evaluation of a proposed director&rsquo;s
candidacy, the Nominating and Corporate Governance Committee will make a recommendation as to whether the Board should nominate
the proposed director candidate for election by the stockholders of the Company.</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; text-indent: 0.5in">The Nominating and
Corporate Governance Committee operates under a written charter which is available on our website at www.precipiodx.com. No member
of the Nominating and Corporate Governance Committee may be an employee of the Company and each member must satisfy the independence
requirements of NASDAQ and the SEC.</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; text-indent: 0.5in">The Nominating and
Corporate Governance Committee currently consists of directors Dr. Cossman, Mr. Riccitelli and Mr. Rimer, each of whom has been
determined by the Board to be independent under NASDAQ listing standards. The Nominating and Corporate Governance Committee did
not meet or take any actions by written consent during 2017.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><FONT><B>Oversight
of Risk Management</B></FONT></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; text-indent: 0.5in">Risk
is inherent with every business, and how well a business manages risk can ultimately determine its success. We face a number of
risks, including economic risks, financial risks, legal and regulatory risks and others, such as the impact of competition. Management
is responsible for the day-to-day management of the risks that we face, while our Board, as a whole and through its committees,
has responsibility for the oversight of risk management. In its risk oversight role, our Board is responsible for satisfying itself
that the risk management processes designed and implemented by management are adequate and functioning as designed. Our Board assesses
major risks facing our Company and options for their mitigation in order to promote our stockholders&rsquo; interests in the long-term
health of our Company and our overall success and financial strength. A fundamental part of risk management is not only understanding
the risks a company faces and what steps management is taking to manage those risks, but also understanding what level of risk
is appropriate for us. The involvement of our full Board in the risk oversight process allows our Board to assess management&rsquo;s
appetite for risk and also determine what constitutes an appropriate level of risk for our Company. Our Board regularly includes
agenda items at its meetings relating to its risk oversight role and meets with various members of management on a range of topics,
including corporate governance and regulatory obligations, operations and significant transactions, risk management, insurance,
pending and threatened litigation and significant commercial disputes.</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">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">While our Board is
ultimately responsible for risk oversight, various committees of our Board oversee risk management in their respective areas and
regularly report on their activities to our entire Board. In particular, the Audit Committee has the primary responsibility for
the oversight of financial risks facing our Company. The Audit Committee&rsquo;s charter provides that it will discuss our major
financial risk exposures and the steps we have taken to monitor and control such exposures. Our Board has also delegated primary
responsibility for the oversight of all executive compensation and our employee benefit programs to the Compensation Committee.
The Compensation Committee strives to create incentives that encourage a level of risk-taking behavior consistent with our business
strategy.</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; text-indent: 0.5in">We believe the division
of risk management responsibilities described above is an effective approach for addressing the risks facing our Company and that
our Board&rsquo;s leadership structure provides appropriate checks and balances against undue risk taking.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT><B>Code
of Business Conduct and Ethics </B></FONT></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: left; text-indent: 0.5in">Our Board
has adopted a code of ethical conduct that applies to our principal executive officer, principal financial officer and senior financial
management. This code of ethical conduct is embodied within our Code of Business Conduct and Ethics, which applies to all persons
associated with our Company, including our directors, officers and employees (including our principal executive officer, principal
financial officer, principal accounting officer and controller). The Code of Business Conduct and Ethics is available in the Investor
Relations section of our website at www.precipiodx.com. In order to satisfy our disclosure requirements under Item 5.05 of Form
8-K, we will disclose amendments to, or waivers of, certain provisions of our Code of Business Conduct and Ethics relating to our
chief executive officer, chief financial officer, chief accounting officer, controller or persons performing similar functions
on our website promptly following the adoption of any such amendment or waiver. The Code provides that any waivers of, or changes
to, the Code that apply to the Company&rsquo;s executive officers or directors may be made only by the Audit Committee. In addition,
the Code includes updated procedures for non-executive officer employees to seek waivers of the Code.</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"><FONT><B>Director Independence</B></FONT></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; text-indent: 0.5in">Our Company is governed
by our Board. Currently, each member of our Board, other than Ilan Danieli, Chief Executive Officer is an independent director
and all standing committees of our Board are composed entirely of independent directors, in each case under NASDAQ&rsquo;s independence
definition applicable to boards of directors. For a director to be considered independent, our Board must determine that the director
has no relationship which, in the opinion of our Board, would interfere with the exercise of independent judgment in carrying out
the responsibilities of a director. Members of the Audit Committee also must satisfy a separate SEC independence requirement, which
provides that they may not accept directly or indirectly any consulting, advisory or other compensatory fee from us or any of our
subsidiaries other than their directors&rsquo; compensation. In addition, under SEC rules, an Audit Committee member who is an
affiliate of the issuer (other than through service as a director) cannot be deemed to be independent. In determining the independence
of members of the Compensation Committee, NASDAQ listing standards require our Board to consider certain factors, including but
not limited to: (1) the source of compensation of the director, including any consulting, advisory or other compensatory fee paid
by us to the director, and (2) whether the director is affiliated with us, one of our subsidiaries or an affiliate of one of our
subsidiaries. Under our Compensation Committee Charter, members of the Compensation Committee also must qualify as &ldquo;outside
directors&rdquo; for purposes of Section 162(m) of the Internal Revenue Code of 1986, as amended (the &ldquo;Code&rdquo;), and
as &ldquo;non-employee directors&rdquo; for purposes of Rule 16b-3 under the Exchange Act. The independent members of the Board
are Michael A. Luther, Jeffery Cossman, M.D., Douglas Fisher, M.D., Mark Rimer, David Cohen and Samuel Riccitelli.</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">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><A NAME="pi_013"></A><FONT><B>EXECUTIVE
COMPENSATION</B></FONT></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: left; text-indent: 0.5in">The following table sets forth compensation
awarded to, paid to or earned by our &ldquo;named executive officers&rdquo; for services rendered during fiscal years 2017 and
2016.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white; text-align: left">&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 NOWRAP STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: left">Name and Principal Position</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt; text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Year</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt; text-align: center">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Salary ($)</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt; text-align: center">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Option Awards<BR> ($)</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold; text-align: center">(1)</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt; text-align: center">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">All Other<BR> Compensation ($)</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt; text-align: center">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Total ($)</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 35%">Ilan Danieli</TD><TD STYLE="width: 1%">(2)</TD>
    <TD STYLE="width: 12%; text-align: center">2017</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">250,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">106,666</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">11,979</TD><TD STYLE="width: 1%; text-align: left">(3)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">368,645</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Chief Executive Officer</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">2016</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">200,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">17,234</TD><TD STYLE="text-align: left">(4)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">217,234</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Carl Iberger</TD><TD>(5)</TD>
    <TD STYLE="text-align: center">2017</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">200,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">106,666</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">306,666</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: left">Chief Financial Officer</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">2016</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">53,750</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">53,750</TD><TD STYLE="text-align: left">&nbsp;</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"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white; text-align: left"><SUP>(1) </SUP>The amounts in this
column reflect the aggregate grant date fair value of the stock option awards granted during the respective fiscal year as computed
in accordance with Financial Accounting Standards Board (&ldquo;FASB&rdquo;) Accounting Standards Codification (&ldquo;ASC&rdquo;)
Topic 718, excluding the effect of estimated forfeitures. The amounts shown do not correspond to the actual value that will be
recognized by the named executive officer. The assumptions used in the calculation of these amounts are included in the Notes of
the Financial Statements to the consolidated financial statements for the year ended December 31, 2017, incorporated by reference
within this prospectus.</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"><SUP>(2) </SUP>Mr. Danieli was appointed
our Chief Executive Officer effective as of June 29, 2017. No employment contract has been executed at the time of this filing.
Prior to the merger, Mr. Danieli was the Chief Executive Officer of Precipio Diagnostics, Inc. since November 2011.</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"><SUP>(3)</SUP> Amounts paid to Mr. Danieli
in 2017 consisted of $11,979 in health insurance premiums.</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"><SUP>(4)</SUP> Amounts paid to Mr. Danieli
in 2016 consisted of $13,634 in health insurance premiums and $3,600 in auto allowance.</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"><SUP>(5) </SUP>Mr. Iberger was appointed
our Chief Financial Officer effective June 29, 2017. Prior to the merger, Mr. Iberger was the Chief Financial Officer of Precipio
Diagnostics, Inc. since October 1, 2016.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><FONT><B>2017 Grants of Option
Plan-Based Awards</B></FONT></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; text-indent: 0.5in">The following table
sets forth certain information with respect to grants of plan-based awards in fiscal year 2017 to our named executive officers
and directors. The stock option awards granted in fiscal year 2017 were granted under the Company&rsquo;s 2017 Stock Option and
Incentive Plan, as amended (the &ldquo;2017 Plan&rdquo;). During the year ended December 31, 2017, no other equity awards were
granted to our named executive officers and directors. See the notes below the table for details on option vesting schedules.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&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 NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Name</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt; text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Grant Date</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt; text-align: center">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">All Other Option<BR> Awards:&nbsp;&nbsp;Number<BR> of Securities<BR> Underlying<BR> Options (#)</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt; text-align: center">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt; "><B>Exercise or Price</B></FONT><BR> <FONT STYLE="font-size: 10pt; "><B>of Option Awards</B></FONT><BR> <FONT STYLE="font-size: 10pt; "><B>($/sh) <SUP>(1)</SUP></B></FONT></TD><TD STYLE="padding-bottom: 1pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt; text-align: center">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt; "><B>Grant Date Fair</B></FONT><BR> <FONT STYLE="font-size: 10pt; "><B>Value of Option</B></FONT><BR> <FONT STYLE="font-size: 10pt; "><B>Awards ($)<SUP>(2)</SUP></B></FONT></TD><TD STYLE="padding-bottom: 1pt; font-weight: bold; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0">Ilan Danieli</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right; padding-left: 3pt">&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><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="width: 40%; text-align: left; padding-left: 9pt"><FONT STYLE="font-size: 10pt">Stock options <SUP>(3)</SUP></FONT></TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 12%; text-align: right">9/26/17</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 12%; text-align: right">66,666</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 12%; text-align: right">1.87</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 14%; text-align: right">106,666</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0">Carl R. Iberger</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right; padding-left: 3pt">&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><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>
    <TD STYLE="text-align: left; padding-left: 9pt"><FONT STYLE="font-size: 10pt">Stock options <SUP>(3)</SUP></FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right">9/26/17</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">66,666</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.87</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">106,666</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><SUP>(1) </SUP>The exercise price of the
stock awards represents the fair market value of our common stock on the date of grant as defined in the 2017 Plan.</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"><SUP>(2) </SUP>The amount in this column
reflects the aggregate grant date fair value of each stock award granted to our named executive officers and directors during the
fiscal year as computed in accordance with FASB ASC Topic 718, excluding the effect of estimated forfeitures. The amounts shown
do not correspond to the actual value that will be recognized by the named executive officer. The assumptions used in the calculation
of these amounts are included in Note 13 &ldquo;Equity Incentive Plan&rdquo; to the consolidated financial statements for the year
ended December 31, 2017</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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><SUP>(3) </SUP>25% of the options shall
vest on the first anniversary of the grant and thereafter the reminder shall vest by 36 equal monthly installments (total of 4
years) and so long as the executive officer remains an employee of the Company or a Subsidiary on such dates.</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"><B>Outstanding Equity Awards at Fiscal 2017 Year-End</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">The following table
provides certain information concerning outstanding option awards and SARs held by our named executive officers as of December&nbsp;31,
2017. As of December 31, 2016, no other equity awards granted to our named executive officers were outstanding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&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 NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Name</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">SARs&nbsp;and&nbsp;Option<BR> Award&nbsp;Grant<BR> Date</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Number&nbsp;of<BR> Securities<BR> Underlying<BR> Unexercised<BR> Options<BR> (Exercisable)</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Number&nbsp;of<BR> Securities<BR> Underlying<BR> Unexercised&nbsp;Options<BR> (Unexercisable)</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Option&nbsp;Exercise<BR> Price</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Option<BR> Expiration&nbsp;Date</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 35%; text-align: justify">IIan Danieli</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 12%; text-align: center">9/27/2017</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">66,666</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">1.87</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 12%; text-align: center">9/26/2027</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">Carl Iberger</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">9/27/2017</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">66,666</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1.87</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">9/26/2027</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: left">(1) The award vests over a four year period.
Twenty-five per cent of the options vest on the first anniversary of the Grant and thereafter the reminder shall vest by 36 equal
monthly installments (total of 4 years) and so long as the executive officer remains an employee of the Company or a Subsidiary
on such dates.</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"><B>Fiscal Year 2017 Option Exercises and Stock Vested</B></P>

<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; text-indent: 0.5in">No stock options were
exercised by either of our named executive officers during fiscal year 2017.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>401K-Plan</I></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">We maintain a defined contribution retirement
plan that provides eligible U.S. employees with an opportunity to save for retirement on a tax advantaged basis. Eligible employees
may defer eligible compensation on a&nbsp;pre-tax&nbsp;basis, up to the statutorily prescribed annual limits on contributions
under the Code. We have not historically made discretionary contributions to the 401(k) plan for the benefit of employees. Employee
contributions are allocated to each participant&rsquo;s individual account and are then invested in selected investment alternatives
according to the participant&rsquo;s directions. Employees are immediately and fully vested in their contributions. The 401(k)
plan is intended to be qualified under Section&nbsp;401(a) of the Code with the 401(k) plan&rsquo;s related trust intended to
be tax exempt under Section&nbsp;501(a) of the Code. As a&nbsp;tax-qualified&nbsp;retirement plan, contributions to the 401(k)
plan and earnings on those contributions are not taxable to the employees until distributed from the 401(k) plan.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our named executive officers did not participate
in, or earn any benefits under, a&nbsp;non-qualified&nbsp;deferred compensation plan sponsored by us during the fiscal year ended
December&nbsp;31, 2017.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Agreements with Our Named Executive 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; text-indent: 0.5in">No employment agreements have been entered into for Ilan Danieli,
Chief Executive Officer, or Carl Iberger, Chief Financial Officer, as of the date of this filing. The Company intends to enter
into employment agreements with the named officers but no date has been established by the Board of Directors at this 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>2017 Equity Incentive Plan </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; text-indent: 0.5in"><I>Plan Administration</I>.&nbsp;&nbsp;The
2017 Plan is administered by the Compensation Committee.&nbsp;&nbsp;The Compensation Committee has full power to select, from
among the individuals eligible for awards, the individuals to whom awards will be granted, to make any combination of awards to
participants, and to determine the specific terms and conditions of each award, subject to the provisions of the 2017 Plan.&nbsp;&nbsp;The
Compensation Committee may delegate to our Chief Executive Officer the authority to grant awards to individuals who are not subject
to the reporting and other provisions of Section&nbsp;16 of the Exchange Act and not subject to Section 162(m) of the Code, subject
to certain limitations and guidelines.</P>

<P STYLE="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>Eligibility</I>.&nbsp;&nbsp;Persons
eligible to participate in the 2017 Plan are those full or part-time officers, employees, non-employee directors and consultants
of the Company and its subsidiaries as selected from time to time by the Compensation Committee in its discretion.&nbsp;&nbsp;Approximately
40 individuals are currently eligible to participate in the 2017 Plan, which includes two officers, 32 employees who are not officers,
and six non-employee 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; text-indent: 0.5in"><I>Plan Limits</I>.&nbsp;&nbsp;The maximum
award of stock options or stock appreciation rights granted to any one individual will not exceed 1,000,000 shares of Common Stock
(subject to adjustment for stock splits and similar events) for any calendar year period.&nbsp;&nbsp;If any award of restricted
stock, restricted stock units or performance shares granted to an individual is intended to qualify as &ldquo;performance-based
compensation&rdquo; under Section&nbsp;162(m) of the Code, then the maximum award shall not exceed 1,000,000 shares of Common
Stock (subject to adjustment for stock splits and similar events) to any one such individual in any performance cycle.&nbsp;&nbsp;If
any cash-based award is intended to qualify as &ldquo;performance-based compensation&rdquo; under Section&nbsp;162(m) of the Code,
then the maximum award to be paid in cash in any performance cycle may not exceed $1,000,000.&nbsp;&nbsp;In addition, no more
than&nbsp;6,056,166&nbsp;shares, cumulatively increased on January 1, 2019 and on each January 1 thereafter by the lesser of the
annual increase for such year or 500,000 shares, may be issued in the form of incentive stock options.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Stock Options</I>.&nbsp;&nbsp;The
2017 Plan permits the granting of (1)&nbsp;options to purchase Common Stock intended to qualify as incentive stock options under
Section&nbsp;422 of the Code and (2)&nbsp;options that do not so qualify.&nbsp;&nbsp;Options granted under the 2017 Plan will
be non-qualified options if they fail to qualify as incentive options or exceed the annual limit on incentive stock options.&nbsp;&nbsp;Incentive
stock options may only be granted to employees of the Company and its subsidiaries.&nbsp;&nbsp;Non-qualified options may be granted
to any persons eligible to receive incentive options and to non-employee directors and consultants.&nbsp;&nbsp;The option exercise
price of each option is determined by the Compensation Committee but may not be less than 100% of the fair market value of the
Common Stock on the date of grant.&nbsp;&nbsp;Fair market value for this purpose is the last reported sale price of the shares
of Common Stock on The NASDAQ Capital Market on the date of grant.&nbsp;&nbsp;The exercise price of an option may not be reduced
after the date of the option grant, other than to appropriately reflect changes in our capital structure.</P>

<P STYLE="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">The term of each option will be fixed by
the Compensation Committee and may not exceed ten years from the date of grant.&nbsp;&nbsp;The Compensation Committee will determine
at what time or times each option may be exercised.&nbsp;&nbsp;Options may be made exercisable in installments and the exercisability
of options may be accelerated by the Compensation Committee.&nbsp;&nbsp;In general, unless otherwise permitted by the Compensation
Committee, no option granted under the 2017 Plan is transferable by the optionee other than by will or by the laws of descent
and distribution, and options may be exercised during the optionee&rsquo;s lifetime only by the optionee, or by the optionee&rsquo;s
legal representative or guardian in the case of the optionee&rsquo;s incapacity.</P>

<P STYLE="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">Upon exercise of options, the option exercise
price must be paid in full either in cash, by certified or bank check or other instrument acceptable to the Compensation Committee
or by delivery (or attestation to the ownership) of shares of Common Stock that are not subject to restrictions under any Company
plan.&nbsp;&nbsp;Subject to applicable law, the exercise price may also be delivered to the Company by a broker pursuant to irrevocable
instructions to the broker from the optionee.&nbsp;&nbsp;In addition, the Compensation Committee may permit non-qualified options
to be exercised using a net exercise feature which reduces the number of shares issued to the optionee by the number of shares
with a fair market value equal to the exercise price.</P>

<P STYLE="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">To qualify as incentive options, options
must meet additional federal tax requirements, including a $100,000 limit on the value of shares subject to incentive options
that first become exercisable by a participant in any one calendar year.</P>

<P STYLE="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>Stock Appreciation Rights</I>.&nbsp;&nbsp;The
Compensation Committee may award stock appreciation rights subject to such conditions and restrictions as the Compensation Committee
may determine.&nbsp;&nbsp;Stock appreciation rights entitle the recipient to shares of Common Stock equal to the value of the
appreciation in the stock price over the exercise price.&nbsp;&nbsp;The exercise price is the fair market value of the Common
Stock on the date of grant.&nbsp;&nbsp;The maximum term of a stock appreciation right is ten years.</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"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left"><I>Restricted Stock</I>.&nbsp;&nbsp;The
Compensation Committee may award shares of Common Stock to participants subject to such conditions and restrictions as the Compensation
Committee may determine.&nbsp;&nbsp;These conditions and restrictions may include the achievement of certain performance goals
and/or continued service to us through a specified restricted period.&nbsp;&nbsp;During the vesting period, restricted stock awards
may be credited with dividend equivalent rights (but dividend equivalents payable with respect to restricted stock awards with
vesting tied to the attainment of performance criteria shall not be paid unless and until such performance conditions are attained).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left"><I>Restricted Stock Units</I>.&nbsp;&nbsp;The
Compensation Committee may award restricted stock units to any participants.&nbsp;&nbsp;Restricted stock units are ultimately
payable in the form of shares of Common Stock and may be subject to such conditions and restrictions as the Compensation Committee
may determine.&nbsp;&nbsp;These conditions and restrictions may include the achievement of certain performance goals and/or continued
service to the Company through a specified vesting period.&nbsp;&nbsp; In the Compensation Committee&rsquo;s sole discretion,
it may permit a participant to make an advance election to receive a portion of his or her future cash compensation otherwise
due in the form of a deferred stock unit award, subject to the participant&rsquo;s compliance with the procedures established
by the Compensation Committee and requirements of Section&nbsp;409A of the Code.&nbsp;&nbsp;During the deferral period, the deferred
stock awards may be credited with dividend equivalent rights&nbsp;(but dividend equivalents payable with respect to restricted
stock awards with vesting tied to the attainment of performance criteria shall not be paid unless and until such performance conditions
are attained).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left"><I>Unrestricted Stock Awards</I>.&nbsp;&nbsp;The
Compensation Committee may also grant shares of Common Stock which are free from any restrictions under the 2017 Plan.&nbsp;&nbsp;Unrestricted
stock may be granted to any participant in recognition of past services or other valid consideration and may be issued in lieu
of cash compensation due to such participant.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left"><I>Performance Share Awards</I>.&nbsp;&nbsp;The
Compensation Committee may grant performance share awards to any participant, which entitle the recipient to receive shares of
Common Stock upon the achievement of certain performance goals and such other conditions as the Compensation Committee shall determine.&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left"><I>Dividend Equivalent Rights</I>.&nbsp;&nbsp;The
Compensation Committee may grant dividend equivalent rights to participants, which entitle the recipient to receive credits for
dividends that would be paid if the recipient had held specified shares of Common Stock.&nbsp;&nbsp;Dividend equivalent rights
granted as a component of another award subject to performance vesting may be paid only if the related award becomes vested.&nbsp;&nbsp;Dividend
equivalent rights may be settled in cash, shares of Common Stock or a combination thereof, in a single installment or installments,
as specified in the award.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left"><I>Cash-Based Awards</I>.&nbsp;&nbsp;The
Compensation Committee may grant cash bonuses under the 2017 Plan to participants.&nbsp;&nbsp;The cash bonuses may be subject
to the achievement of certain performance goals.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left"><I>Change of Control Provisions</I>.&nbsp;&nbsp;The
2017 Plan provides that upon the effectiveness of a &ldquo;sale event&rdquo; as defined in the 2017 Plan, except as otherwise
provided by the Compensation Committee in the award agreement, all stock options and stock appreciation rights will automatically
become fully exercisable and the restrictions and conditions on all other awards with time-based conditions will automatically
be deemed waived, unless the parties to the sale event agree that such awards will be assumed or continued by the successor entity.&nbsp;&nbsp;Awards
with conditions and restrictions relating to the attainment of performance goals may become vested and non-forfeitable in connection
with a sale event in the Compensation Committee&rsquo;s discretion&nbsp;or to the extent specified in the relevant award agreement.&nbsp;&nbsp;In
addition, the Company may make or provide for payment, in cash or in kind, to participants holding options and stock appreciation
rights equal to the difference between the per share cash consideration and the exercise price of the options or stock appreciation
rights. The Compensation Committee shall also have the option to make or provide for a payment, in cash or in kind, to grantees
holding other awards in an amount equal to the per share cash consideration multiplied by the number of vested shares under such
awards. All awards will terminate in connection with a sale event unless they are assumed by the successor entity.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left"><I>Adjustments for Stock Dividends, Stock
Splits, Etc.</I>&nbsp;&nbsp;The 2017 Plan requires the Compensation Committee to make appropriate adjustments to the number of
shares of Common Stock that are subject to the 2017 Plan, to certain limits in the 2017 Plan, and to any outstanding awards to
reflect stock dividends, stock splits, extraordinary cash dividends and similar events.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left"><I>Tax Withholding</I>.&nbsp;&nbsp;Participants
in the 2017 Plan are responsible for the payment of any federal, state or local taxes that the Company is required by law to withhold
upon the exercise of options or stock appreciation rights or vesting of other awards.&nbsp;Subject to approval by the Compensation
Committee, participants may elect to have the minimum tax withholding obligations satisfied by authorizing the Company to withhold
shares of Common Stock to be issued pursuant to the exercise or vesting.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left"><I>Amendments and Termination</I>.&nbsp;&nbsp;The
Board of Directors may at any time amend or discontinue the 2017 Plan and the Compensation Committee may at any time amend or
cancel any outstanding award for the purpose of satisfying changes in the law or for any other lawful purpose.&nbsp;&nbsp;However,
no such action may adversely affect any rights under any outstanding award without the holder&rsquo;s consent.&nbsp;&nbsp;To the
extent required under the rules of The NASDAQ Capital Market, any amendments that materially change the terms of the 2017 Plan
will be subject to approval by our stockholders.&nbsp;&nbsp;Amendments shall also be subject to approval by our stockholders if
and to the extent determined by the Compensation Committee to be required by the Code to preserve the qualified status of incentive
options or to ensure that compensation earned under the 2017 Plan qualifies as performance-based compensation under Section&nbsp;162(m)
of the Code. The Compensation Committee is authorized to exercise discretion to reduce the exercise price of outstanding stock
options and stock appreciation rights or effect the repricing of such awards through cancellation and regrants.</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-indent: 0.5in; text-align: left"><I>Effective Date of 2017 Plan</I>.&nbsp;&nbsp;The
Board of Directors originally adopted the 2017 Plan on December 13, 2016, and the 2017 Plan became originally effective on June
5, 2017, the date it was approved by stockholders.&nbsp;&nbsp;The 2017 Plan, as amended and restated, was adopted by the Board
of Directors on December 17, 2017. Awards of incentive options may be granted under the 2017 Plan until December 17, 2027.&nbsp;&nbsp;No
other awards may be granted under the 2017 Plan after the date that is ten years from the date of stockholder approval.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27.35pt; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><B>Compensation Risk Analysis</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; text-indent: 0.5in">We have reviewed our material compensation
policies and practices for all employees and have concluded that these policies and practices are not reasonably likely to have
a material adverse effect on us. While risk-taking is a necessary part of growing a business, our compensation philosophy is focused
on aligning compensation with the long-term interests of our stockholders as opposed to rewarding short-term management decisions
that could pose long-term risks.</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"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>DIRECTOR COMPENSATION</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: left; text-indent: 0.5in">It is our Board&rsquo;s
general policy that compensation for independent directors should be a mix of cash and equity-based compensation. As part of a
director&rsquo;s total compensation, and to create a direct linkage between corporate performance and stockholder interests, our
Board believes that a meaningful portion of a director&rsquo;s compensation should be provided in, or otherwise based on, the
value of appreciation in our common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">Our Board has the
authority to approve all compensation payable to our directors, although our Compensation Committee is responsible for making
recommendations to our Board regarding this compensation. Additionally, our Chief Executive Officer may also make recommendations
or assist our Compensation Committee in making recommendations regarding director compensation. Our Board and Compensation Committee
annually review our director compensation.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><I>Cash Compensation</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; text-indent: 0.5in">Directors who are
also our employees are not separately compensated for serving on the Board other than reimbursement for out-of-pocket expenses
related to attendance at Board and committee meetings. Independent directors are paid an annual retainer of $20,000 and receive
reimbursement for out-of-pocket expenses related to attendance at Board and committee meetings. Independent directors serving
on any committee of the Board are paid an additional annual retainer of $2,500 unless they are also a chairperson of a committee.
The chairperson of the Audit Committee receives an additional annual retainer of $8,000 and the chairperson of any other committee
receives an additional annual retainer of $4,000.</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; text-indent: 0.5in">In 2017, the directors
were granted a non-qualified option to purchase 7,000&nbsp;shares of our common stock. The options vest in full on the third anniversary
of the grant date. A Complete list of the grants is set and their terms are set out below.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><B>Director Summary Compensation Table</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; text-indent: 0.5in">The following table
provides information regarding our compensation for non-employee directors during the year ended December&nbsp;31, 2017. Directors
who are our employees did not receive compensation for serving on the Board or its committees in fiscal year 2017.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="margin-left: 0.5in; border-collapse: collapse; width: 90%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Name</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt"><B>Fees&nbsp;Earned&nbsp;or&nbsp;Paid</B></FONT><BR> <FONT STYLE="font-size: 10pt"><B>in&nbsp;Cash</B><SUP>(3)</SUP><B>&nbsp;($)</B></FONT></TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt"><B>Option&nbsp;Awards&nbsp;($)&nbsp;<SUP>(1)</SUP></B></FONT></TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Total&nbsp;($)</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: 61%; text-align: left">Samuel Riccitelli</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">44,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">11,200</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">55,200</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">David Cohen</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">30,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,190</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">38,190</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">Michael A. Luther, Ph.D.</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">45,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11,200</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">56,200</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Douglas Fisher</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">42,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11,200</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">53,200</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">Mark Rimer</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">39,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11,200</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">50,200</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Jeffrey Cossman</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">42,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11,200</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">53,200</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">Robert M. Patzig(2)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">30,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11,200</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;41,200</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&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">(1)</TD><TD STYLE="text-align: left">The amounts reflected in this
                                         column&nbsp;reflect the grant date fair value of each option award granted during 2017,
                                         as determined in accordance with FASB ASC Topic 718. Actual table with grant dates and
                                         details appear below.</TD></TR></TABLE>

<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; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left; font-style: normal; font-weight: normal">(2)</TD><TD STYLE="text-align: left">Mr. Patzig resigned
                                         from the Board effective November, 8 2017, and the option awards included in this table
                                         were canceled as of that date.</TD></TR></TABLE>

<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; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left">(3)</TD><TD STYLE="text-align: left">Directors are accruing cash compensation
                                         and no compensation has been paid to date.</TD></TR></TABLE>

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


<!-- Field: Page; Sequence: 63; Value: 1 -->
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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

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

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid; padding-left: 0; text-indent: 0">Name</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid; padding-left: 0; text-indent: 0">Grant Date</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid; padding-left: 0; text-indent: 0">All Other <BR> Option Awards:<BR> Number of <BR> Securities <BR> Underlying <BR> Options (#)</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid; padding-left: 0; text-indent: 0"><FONT STYLE="font-size: 10pt"><B>Exercise
or </B></FONT><BR> <FONT STYLE="font-size: 10pt"><B>Price of Option </B></FONT><BR> <FONT STYLE="font-size: 10pt"><B>Awards&nbsp;($/sh)&nbsp;&nbsp;</B></FONT><BR>
<FONT STYLE="font-size: 10pt"><B><SUP>(1)</SUP></B></FONT></TD><TD STYLE="padding-bottom: 1pt; font-weight: bold; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid; padding-left: 0; text-indent: 0"><FONT STYLE="font-size: 10pt"><B>Grant Date </B></FONT><BR> <FONT STYLE="font-size: 10pt"><B>Fair Value of </B></FONT><BR> <FONT STYLE="font-size: 10pt"><B>Option Awards </B></FONT><BR> <FONT STYLE="font-size: 10pt"><B>($)<SUP>(2)</SUP></B></FONT></TD><TD STYLE="padding-bottom: 1pt; font-weight: bold; padding-left: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: 0; padding-left: 0">Riccitelli Samuel</TD><TD STYLE="padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 48%; text-align: left; text-indent: 0; padding-left: 0.125in"><FONT STYLE="font-size: 10pt">Stock options <SUP>(4)</SUP></FONT></TD><TD STYLE="width: 1%; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 12%; padding-left: 0; text-indent: 0">9/26/17</TD><TD STYLE="width: 1%; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="width: 10%; text-align: right; padding-left: 0; text-indent: 0">7,000</TD><TD STYLE="width: 1%; text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="width: 1%; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="width: 10%; text-align: right; padding-left: 0; text-indent: 0">1.87</TD><TD STYLE="width: 1%; text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="width: 1%; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="width: 10%; text-align: right; padding-left: 0; text-indent: 0">11,200</TD><TD STYLE="width: 1%; text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: 0; padding-left: 0">Douglas Fisher</TD><TD STYLE="padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: 0; padding-left: 0.125in">Stock options (4)</TD><TD STYLE="padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-left: 0; text-indent: 0">9/26/17</TD><TD STYLE="padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0; text-indent: 0">7,000</TD><TD STYLE="text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0; text-indent: 0">1.87</TD><TD STYLE="text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0; text-indent: 0">11,200</TD><TD STYLE="text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: 0; padding-left: 0">Mark Rimer</TD><TD STYLE="padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: 0; padding-left: 0.125in">Stock options (4)</TD><TD STYLE="padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-left: 0; text-indent: 0">9/26/17</TD><TD STYLE="padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0; text-indent: 0">7,000</TD><TD STYLE="text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0; text-indent: 0">1.87</TD><TD STYLE="text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0; text-indent: 0">11,200</TD><TD STYLE="text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: 0; padding-left: 0">Michael Luther</TD><TD STYLE="padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: 0; padding-left: 0.125in">Stock options (4)</TD><TD STYLE="padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-left: 0; text-indent: 0">9/26/17</TD><TD STYLE="padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0; text-indent: 0">7,000</TD><TD STYLE="text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0; text-indent: 0">1.87</TD><TD STYLE="text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0; text-indent: 0">11,200</TD><TD STYLE="text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: 0; padding-left: 0">Jeffrey Cossaman</TD><TD STYLE="padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: 0; padding-left: 0.125in">Stock options (4)</TD><TD STYLE="padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-left: 0; text-indent: 0">9/26/17</TD><TD STYLE="padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0; text-indent: 0">7,000</TD><TD STYLE="text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0; text-indent: 0">1.87</TD><TD STYLE="text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0; text-indent: 0">11,200</TD><TD STYLE="text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: 0; padding-left: 0">David Cohen</TD><TD STYLE="padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: 0; padding-left: 0.125in">Stock options (4)</TD><TD STYLE="padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-left: 0; text-indent: 0">11/8/17</TD><TD STYLE="padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0; text-indent: 0">7,000</TD><TD STYLE="text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0; text-indent: 0">1.36</TD><TD STYLE="text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0; text-indent: 0">8,190</TD><TD STYLE="text-align: left; padding-left: 0; text-indent: 0">&nbsp;</TD></TR>
</TABLE>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Equity Compensation Plan 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; text-align: left; text-indent: 0.5in">The following equity
compensation plan information summarizes plans and securities approved and not approved by security holders as of December&nbsp;31,&nbsp;2017.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 95%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font-weight: bold; text-align: center">(a)</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font-weight: bold; text-align: center">(b)</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font-weight: bold; text-align: center">(c)</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font-weight: bold; text-align: left; border-bottom: Black 1pt solid">PLAN CATEGORY</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Number of</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>securities&nbsp;to&nbsp;be</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>issued upon</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>exercise of</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>outstanding&nbsp;options,</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>warrants and rights</B></P></TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Weighted-average</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>exercise price of</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>outstanding</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>options, warrants</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>and rights</B></P></TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Number of securities <BR> remaining available for <BR> future issuance under <BR> equity compensation plans <BR> (excluding securities <BR> reflected in column (a) (3)</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 61%; text-align: left">Equity compensation plans approved by security holders</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">236,484</TD><TD NOWRAP STYLE="width: 1%; text-align: left">(1)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">7.12</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">441,334</TD><TD NOWRAP STYLE="width: 1%; text-align: left">(2)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Equity compensation plans not approved by security holders</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;</TD><TD NOWRAP STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;</TD><TD NOWRAP STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">Total</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">236,484</TD><TD NOWRAP STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">7.12</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">441,334</TD><TD NOWRAP STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>


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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left">(1)</TD><TD STYLE="text-align: left">Includes shares of our common stock issuable upon exercise
of options to purchase common stock awarded under our 2006 Plan and 2017 Plan.</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left">(2)</TD><TD STYLE="text-align: left">All shares of our common stock available for future issuance
are from our 2017 Plan. The 2006 Plan was terminated as to future awards on July 12, 2016.</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left">(3)</TD><TD STYLE="text-align: left">On January 31, 2018, the stockholders of the Company approve
an amendment and restatement of the Company&rsquo;s 2017 Stock Option and Incentive Plan (the &ldquo;2017 Plan&rdquo;) to increase
the aggregate number of shares authorized for issuance under the 2017 Plan by 5,389,500 shares to 6,056,166 shares. Additionally,
on February 16, 2018, the Company granted 3,286,528 options, at an exercise price of $0.71 to Officers, Directors, and Employees.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 22pt; text-align: left; text-indent: -0.25in">&nbsp;</P>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="pi_014"></A><B>CERTAIN RELATIONSHIPS AND RELATED PARTY
TRANSACTIONS</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; text-indent: 0.5in">Commission regulations define the related
person transactions that require disclosure to include any transaction, arrangement or relationship, since January 1, 2014, in
which the amount involved exceeds the lesser of $120,000 or 1% of the average of our total assets at year-end in which we were
or are to be a participant and in which a related person had or will have a direct or indirect material interest. A related person
is: (i) an executive officer, director or director nominee of the Company, (ii) a beneficial owner of more than 5% of our common
stock, (iii) an immediate family member of an executive officer, director or director nominee or beneficial owner of more than
5% of our common stock, or (iv) any entity that is owned or controlled by any of the foregoing persons or in which any of the
foregoing persons has a substantial ownership interest or control&#9;</P>

<P STYLE="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">We recognize that related person transactions
can present potential or actual conflicts of interest and create the appearance that our decisions are based on considerations
which may not be in our best interests or the best interests of our stockholders. Accordingly, as a general matter, we prefer
to avoid related person transactions. Nevertheless, we recognize that there are situations where related person transactions may
be in, or may not be inconsistent with, our best interests. Pursuant to the Audit Committee Charter, the Audit Committee is responsible
for reviewing and overseeing related-party transactions as required by NASDAQ and SEC rules. Related persons include our directors,
executive officers, 5% beneficial owners of our common stock or their respective immediate family members. Our Board will also
review related party transactions in accordance with applicable law and the provisions of our Third Amended and Restated Certificate
of Incorporation, as amended.</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-indent: 0.5in">In addition, our Audit Committee has adopted
a written Related Party Transactions Policy. Under our Related Party Transactions Policy, if any director or executive officer
or any immediate family member or related entity of a related person proposes to enter into a transaction, or if the Company proposes
to enter into a transaction with a 5% beneficial owner of our common stock, then, prior to entering into such transaction, the
related person must notify the Company&rsquo;s Compliance Officer (currently, the Interim Chief Financial Officer) and provide
sufficient knowledge regarding the proposed transaction as is reasonably available to assist the Compliance Officer in determining
whether approval of the Audit Committee is required. The Audit Committee must review and consider any proposed related person
transaction, and the Audit Committee will only approve the transactions it deems are fair to and in the best interests of the
Company. Additionally, the Audit Committee may ratify transactions that were previously unapproved if it finds the transactions
are fair to and in the best interests of the Company.</P>

<P STYLE="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">We have been a party to the following transactions
since January 1, 2017 in which the amount involved exceeded or will exceed $120,000, and in which any director, executive officer
or holder of more than 5% of any class of our voting stock, or any member of the immediate family of or entities affiliated with
any of them, had or will have a material interest.</P>

<P STYLE="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">Between March 2017 and June 2017, Mr. Cohen, a member of our
Board of Directors, purchased convertible promissory notes, or the Notes, from us in an aggregate principal amount of $225,000
and bearing interest at 8% per year. In connection with the closing of our underwritten public offering in August 2017, or the
Offering, the aggregate principal amount under the Notes, together with approximately $50,000 in accrued interest and a redemption
payment in accordance with the terms of the Notes, converted into 110,027 shares of our common stock and warrants to purchase
110,027 shares 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; text-indent: 0.5in">In connection with the Merger with Transgenomic,
LLC in June 2017, we issued to Mr. Cohen 562,708 shares of our common stock and 158,940 shares of our Series A Senior Convertible
Preferred Stock, or Series A Preferred Stock, in respect of the units of Precipio Diagnostics, LLC held by Mr. Cohen. In June
2017, Mr. Cohen also purchased 26,764 shares of Series A Preferred Stock for approximately $100,000. In connection with the closing
of the Offering, all of our Series A Preferred Stock converted into shares of common stock, including shares of Series A Preferred
Stock issued to the holders of Series A Preferred Stock as the Series A Preferred Payment (as defined in our Certificate of Designation
of Series A Senior Convertible Preferred Stock), and we issued warrants to purchase shares of our common stock to the former holders
of Series A Preferred Stock as consideration for the conversion of their shares of Series A Preferred Stock into shares of common
stock. As a result of the foregoing transactions, we issued to Mr. Cohen 188,146 shares of our common stock and warrants to purchase
92,852 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; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Between March 2017 and June 2017, Mr. Rimer,
a member of our Board of Directors and an affiliate (&ldquo;Mr. Rimer&rdquo;), purchased convertible promissory notes, or the Notes,
from us in an aggregate principal amount of $75,000 and bearing interest at 8% per year. In connection with the closing of our
underwritten public offering in August 2017, or the Offering, the aggregate principal amount under the Notes, together with approximately
$17,000 in accrued interest and a redemption payment in accordance with the terms of the Notes, converted into 29,880 shares of
our common stock and warrants to purchase 29,880 shares of our 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">In connection with the Merger with Precipio Diagnostics, LLC
in June 2017, we issued to Mr. Rimer 963,857 shares of our common stock and 257,147 shares of our Series A Senior Convertible Preferred
Stock, or Series A Preferred Stock, in respect of the units of Precipio Diagnostics, LLC held by Mr. Rimer. In June 2017, Mr. Rimer
also purchased 69,586 shares of Series A Preferred Stock for approximately $260,000. In connection with the closing of the Offering,
all of our Series A Preferred Stock converted into shares of common stock, including shares of Series A Preferred Stock issued
to the holders of Series A Preferred Stock as the Series A Preferred Payment (as defined in our Certificate of Designation of Series
A Senior Convertible Preferred Stock), and we issued warrants to purchase shares of our common stock to the former holders of Series
A Preferred Stock as consideration for the conversion of their shares of Series A Preferred Stock into shares of common stock.
As a result of the foregoing transactions, we issued to Mr. Cohen 332,909 shares of our common stock and warrants to purchase 166,454
shares of common stock. In addition, in connection with the Merger, the Company issued Mr. Rimer Side Warrants to purchase an aggregate
of 91,429 shares of the Company's common stock at an exercise price of $7.00 per share (subject to adjustment).</P>



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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="pi_015"></A><B>PRINCIPAL STOCKHOLDERS</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; text-indent: 0.5in">The following table provides information
known to the Company with respect to beneficial ownership of the Company&rsquo;s common stock by its directors, by its named executive
officers, by all of its current executive officers and directors as a group, and by each person the Company believes beneficially
owns more than 5% of its outstanding common stock as of March 31, 2018. Percentage ownership calculations for beneficial ownership
for each person or entity are based on 19,668,572 shares outstanding as of March 31, 2018. The number of shares beneficially owned
by each person or group as of March 31, 2018 includes shares of the Company&rsquo;s common stock that such person or group had
the right to acquire on or within 60 days after March 31, 2018, including, but not limited to, upon the exercise of options, warrants
to purchase common stock or the conversion of securities into common stock. Except as otherwise indicated in the table below,
addresses of named beneficial owners are in care of Precipio, Inc., 4 Science Park, New Haven, CT 06511.</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 NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">Name of Beneficial Owner</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Number of Shares<BR> Beneficially<BR> Owned</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Percent of Class</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%; text-align: left">Randal J. Kirk (1)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">1,768,915</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">8.8</TD><TD STYLE="width: 1%; text-align: left">%</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; text-align: left">Executive Officers and Directors:</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">Ilan Danieli (2)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">169,714</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">*</FONT></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">Carl R. Iberger (3)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">17,060</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Jeffrey Cossman, M.D. (4)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15,776</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">*</FONT></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">Michael A. Luther (5)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16,110</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">David S. Cohen (6)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,086,647</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5.5</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Samuel Riccitelli (4)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15,776</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Mark Rimer (7)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,252,673</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6.3</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Douglas Fisher, M.D. (4)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15,776</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">All executive officers and directors as a group (8&nbsp;persons) (8)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,589,532</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13.1</TD><TD STYLE="text-align: left">%</TD></TR>
</TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0; text-align: left"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">Represents beneficial ownership
of less than 1% of the shares of Common Stock.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;&nbsp;&nbsp;&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: 0.5in; text-align: left"><FONT STYLE="font-size: 10pt">(1)</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">Consists <FONT STYLE="font-family: Times New Roman, Times, Serif">of
    (i) 1,359,121 shares of Common Stock and (ii) 409,794 shares of Common Stock issuable upon exercise of warrants to purchase
    shares of Common Stock that are currently exercisable. </FONT>Based solely on information provided to the Company by the stockholder
    and disclosed in a Schedule 13D/A filed on September 5, 2017. <FONT STYLE="font-family: Times New Roman, Times, Serif">The
    total of the shares of Common Stock and the warrants to purchase shares of Common Stock are held by the following companies:
    Third Security Senior Staff 2008 LLC, Third Security Staff 2010 LLC, Third Security Incentive 2010 LLC and Third Security
    Staff 2014 LLC. These companies are managed by Third Security, LLC, which is managed by Randal J. Kirk. Mr.&nbsp;Randal J.
    Kirk could be deemed to have indirect beneficial ownership of these shares. The&nbsp;business address of these beneficial
    owners is 1881 Grove Avenue, Radford, Virginia 24141</FONT>. </FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">(2)</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">Consists <FONT STYLE="font-family: Times New Roman, Times, Serif">of
    169,714 shares of Common Stock owned by IDP Holdings, LLC</FONT>. Mr. Danieli is the sole member and manager of IDP Holdings,
    LLC.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">(3) </FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">Consists <FONT STYLE="font-family: Times New Roman, Times, Serif">of 17,060 shares of Common
    Stock owned by Mr.&nbsp;Iberger</FONT>.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">(4)</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">Consists <FONT STYLE="font-family: Times New Roman, Times, Serif">of 15,776 shares of Common
    Stock issuable upon the exercise of stock options that are exercisable or will become exercisable within 60 days after March
    31, 2018</FONT>. </FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">(5)</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">Consists <FONT STYLE="font-family: Times New Roman, Times, Serif">of 16,110 shares of Common
    Stock issuable upon the exercise of stock options that are exercisable or will become exercisable within 60 days after March
    31, 2018</FONT>. </FONT></TD></TR>

<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">(6)</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">Consists <FONT STYLE="font-family: Times New Roman, Times, Serif">of (i) 860,881 shares
    of Common Stock; (ii) 210,379 shares of Common Stock issuable upon exercise of warrants to purchase shares of Common Stock
    that are currently exercisable; and (iii) 15,387 shares of Common Stock issuable upon the exercise of stock options that are
    exercisable or will become exercisable within 60 days after March 31, 2018. </FONT>Based on information provided to the Company
    by the stockholder and disclosed in a Schedule 13G filed on July 11, 2017. The business address for David S. Cohen is 299
    Bishop Avenue, Bridgeport, Connecticut 06610.</FONT></TD></TR>
</TABLE>
<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>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-size: 10pt">(7)</FONT></TD><TD><FONT STYLE="font-size: 10pt">Consists of (i) 686,874 shares
of Common Stock held by Chenies Investor LLC; (ii) 340,913 shares of Common Stock held by Chenies Management LLC; (iii) 4,179
shares of Common Stock held by Precipio Employee Holdings, LLC; (iv) warrants to purchase 175,390 shares of Common Stock held
by Chenies Investor LLC; (v) warrants to purchase 29,541 shares of Common Stock held by Chenies Management LLC; and (vi) 15,776
<FONT STYLE="font-family: Times New Roman, Times, Serif">shares of Common Stock issuable upon the exercise of stock options that
are exercisable or will become exercisable within 60 days after March 31, 2018 </FONT>held directly by Mr. Rimer. Mr. Rimer is
managing member of Chenies Investor LLC and Chenies Management LLC. Based on information provided to the Company by the stockholder
and disclosed in a Schedule 13D/A filed on October 17, 2017.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-size: 10pt">(8)</FONT></TD><TD><FONT STYLE="font-size: 10pt">Includes shares which may
be acquired by executive officers and directors as a group <FONT STYLE="font-family: Times New Roman, Times, Serif">within 60
days after March 31, 2018 </FONT>through the exercise of stock options or warrants.</FONT></TD>
</TR></TABLE>
<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"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="pi_016"></A><B>DESCRIPTION OF CAPITAL STOCK </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; text-indent: 0.5in">Our authorized capital stock consists of
150,000,000 shares of common stock, par value $0.01 per share, and 15,000,000 shares of preferred stock, par value $0.01 per share,
and as of December 31, 2017 there are 10,196,620 shares of common stock outstanding and 4,935 shares of preferred stock outstanding.
As of the date of March 31, 2018, there were 19,668,572 shares of our common stock outstanding and approximately 81 holders of
record. In addition, as of March 31, 2018, options to purchase 3,523,012 shares of our common stock are outstanding, 2,544,306
shares of our common stock are reserved for future grants under our stock option plans and warrants to purchase 5,923,789 shares
of our common stock 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">The following description of our capital
stock and provisions of our amended and restated certificate of incorporation, amended and restated by-laws, certificate of designations
and outstanding warrants are summaries of material terms and provisions and are qualified by reference to our amended and restated
certificate of incorporation, amended and restated by-laws, certificate of designations and outstanding warrants, copies of which
have been previously filed with the SEC.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We may issue shares of our common stock
from time to time. Holders of our common stock are entitled to one vote per share on all matters to be voted upon by the stockholders.
Holders of our common stock do not have cumulative voting rights in the election of directors. Subject to the preferences that
may be applicable to any then outstanding preferred stock, holders of common stock are entitled to receive ratably such dividends,
if any, as may be declared by our Board of Directors out of funds legally available therefor. Upon the liquidation, dissolution,
or winding up of our company, holders of common stock are entitled to share ratably in all of our assets which are legally available
for distribution after payment of all debts and other liabilities and liquidation preference of any outstanding preferred stock.
There are no sinking fund provisions applicable to our common stock. Holders of common stock have no preemptive, subscription,
redemption or conversion rights. The rights, preferences and privileges of holders of common stock are subject to, and may be
adversely affected by, the rights of the holders of shares of any series of preferred stock that we have designated and issued
and may designate and issue in the future.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We may issue shares of our preferred stock
from time to time, in one or more series. The 15,000,000 shares of preferred stock authorized are undesignated as to preferences,
privileges and restrictions, other than as set forth herein. Our Board of Directors will determine the rights, preferences and
privileges of the shares of each wholly unissued series, and any qualifications, limitations or restrictions thereon, including
dividend rights, conversion rights, terms of redemption or repurchase, liquidation preferences, sinking fund terms and the number
of shares constituting any series or the designation of any series.</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">The General Corporation Law of the State
of Delaware, the state of our incorporation, provides that the holders of preferred stock will have the right to vote separately
as a class (or, in some cases, as a series) on an amendment to our amended and restated certificate of incorporation if the amendment
would change the par value, the number of authorized shares of the class or the powers, preferences or special rights of the class
or series so as to adversely affect the class or series, as the case may be. This right is in addition to any voting rights that
may be provided for in the applicable certificate of designation.</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">Our Board of Directors may authorize the
issuance of preferred stock with voting or conversion rights that could adversely affect the voting power or other rights of the
holders of our common stock. The issuance of preferred stock, while providing flexibility in connection with possible acquisitions,
financings and other corporate purposes, could, among other things, have the effect of delaying, deferring or preventing a change
in our control and may adversely affect the market price of our common stock and the voting and other rights of the holders of
our common stock. &nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Series B Preferred Stock</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; text-indent: 0.5in">On August 25, 2017, we filed a Certificate
of Designation of Preferences, Rights and Limitations of Series B Convertible Preferred Stock, or the Series B Certificate of
Designation, with the State of Delaware which designates 6,900 shares of our preferred stock as Series B Senior Convertible Preferred
Stock, or the Series B Preferred Stock. The Series B Preferred Stock has a stated value of $1,000 per share and a par value of
$0.01 per share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&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; text-indent: 0.5in">If, prior to the second anniversary of
the original issue date of the Series B Preferred Stock, we sell or grant any option to purchase or sell or grant any right to
reprice, or otherwise dispose of or issue, any of our common stock or securities convertible into or exercisable for shares of
our common stock at an effective price per share that is lower than the then effective conversion price, then the conversion price
will be reduced to equal the higher of (A) such lower price or (B) $0.05, subject to an exception for the following types of issuances
(i) issuances to our employees, officers or directors pursuant to any stock or option plan adopted by a majority of the non-employee
members of our Board of Directors or committee thereof, (ii) issuances upon the exercise or exchange of any securities issued
in connection with the August 2017 Offering or convertible into shares of common stock issued and outstanding on the date of the
underwriting agreement entered into in connection with the August 2017 Offering, provided that such securities have not been amended
since the date of the underwriting agreement to increase the number of securities or decrease the exercise, exchange or conversion
price, or (iii) issuances pursuant to acquisitions or strategic transactions approved by a majority of the disinterested members
of our Board of Directors, provided that such securities are &ldquo;restricted securities&rdquo; under Rule 144 and carry no registration
rights that require or permit the filing of any registration statement in connection therewith during the 90-day period following
the original issuance date of the Series B Preferred Stock, and provided that any such issuance is to a person or its equityholders
that is an operating company or an owner of an asset in a business synergistic with the business of our company and will provide
our company with additional benefits in addition to the investment of funds, but will not include a transaction in which we issue
securities primarily for the purpose of raising capital or to an entity whose primary business is investing in securities (the
issuances referred to in (i) through (iii) above, the &ldquo;Exempt Issuances&rdquo;).</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">In the event of a liquidation, the holders
of Series B Preferred Shares are entitled to an amount equal to the par value of the Series B Preferred Stock and thereafter to
participate on an as-converted-to-common stock basis with holders of the common stock in any distribution of assets of the Company
to the holders of the common stock. The Series B Certificate of Designation provides, among other things, that we will not pay
any dividends on shares of common stock (other than dividends in the form of common stock) unless and until such time as we pay
dividends on each Series B Preferred Share on an as-converted basis. Other than as set forth in the previous sentence, the Series
B Certificate of Designation provides that no other dividends will be paid on Series B Preferred Shares and that we will pay no
dividends (other than dividends in the form of common stock) on shares of common stock unless we simultaneously comply with the
previous sentence. The Series B Certificate of Designation does not provide for any restriction on the repurchase of Series B
Preferred Shares by us while there is any arrearage in the payment of dividends on the Series B Preferred Shares. There are no
sinking fund provisions applicable to the Series B Preferred Shares.</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">In addition, in the event we consummate
a merger or consolidation with or into another person or other reorganization event in which our shares of common stock are converted
or exchanged for securities, cash or other property, or we sell, lease, license, assign, transfer, convey or otherwise dispose
of all or substantially all of our assets or we or another person acquire 50% or more of our outstanding shares of common stock,
then following such event, the holders of the Series B Preferred Shares will be entitled to receive upon conversion of the Series
B Preferred Shares the same kind and amount of securities, cash or property which the holders would have received had they converted
the Series B Preferred Shares immediately prior to such fundamental transaction. Any successor to us or surviving entity is required
to assume the obligations under the Series B Preferred Shares.</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">Notwithstanding the foregoing, in the event
we are not the surviving entity of a fundamental transaction or in the event of a reverse merger or similar transaction where
we are the surviving entity, then, automatically and contemporaneous with the consummation of such transaction, the surviving
entity (or our company in the event of a reverse merger or similar transaction) will purchase the then outstanding shares of Series
B Preferred Stock by paying and issuing, in the event that such consideration given to the holders of our common stock is non-cash
consideration, as the case may be, to each holder an amount equal to the cash consideration plus the non-cash consideration in
the form issuable to the holders of our common stock (in the case of a reverse merger or similar transaction, shares of common
stock issuable to the holders of the acquired company) per share of our common stock in the fundamental transaction multiplied
by the number of shares of common stock underlying the shares of Series B Preferred Stock held by the holder on the date immediately
prior to the consummation of the fundamental transaction. Such amount will be paid in the same form and mix (whether securities,
cash or property, or any combination of the foregoing) as the consideration received by holders of our common stock in the fundamental
transaction.</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">With certain exceptions, as described in
the Series B Certificate of Designation, shares of Series B Preferred Stock, or Series B Preferred Shares, have no voting rights.
However, as long as any shares of Series B Preferred Shares remain outstanding, the Series B Certificate of Designation provides
that we may not, without the affirmative vote of holders of a majority of the then-outstanding Series B Preferred Shares, (a)
alter or change adversely the powers, preferences or rights given to the Series B Preferred Shares or alter or amend the Series
B Certificate of Designation, (b) increase the number of authorized shares of Series B Preferred Shares or (c) amend our Certificate
of Incorporation or other charter documents in any manner that adversely affects any rights of holders of Series B Preferred Shares.</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">Each Series B Preferred Share is convertible
at any time at the holder&rsquo;s option into a number of shares of common stock equal to $1,000 divided by the Series B Conversion
Price. The &ldquo;Series B Conversion Price&rdquo; was initially $2.50 and is subject to adjustment for stock splits, stock dividends,
distributions, subdivisions and combinations and, as discussed above, certain dilutive issuances of our common stock or securities
convertible into or exercisable for shares of our common stock. The Series B Conversion Price was reduced to $0.75 as a result
of our Letter Agreement on March 21,2018, subject to further adjustment as set forth in the Series B Certificate of Designation.
Notwithstanding the foregoing, the Series B Certificate of Designation further provides that we may not effect any conversion
of Series B Preferred Shares, with certain exceptions, to the extent that, after giving effect to an attempted conversion, the
holder of Series B Preferred Shares (together with such holder&rsquo;s affiliates, and any persons acting as a group together
with such holder or any of such holder&rsquo;s affiliates) would beneficially own a number of shares of our common stock in excess
of 4.99% (or, at the election of the holder, 9.99%) of the shares of our common stock then outstanding after giving effect to
such exercise (the &ldquo;Preferred Stock Beneficial Ownership Limitation&rdquo;); provided, however, that upon notice to the
Company, the holder may increase or decrease the Preferred Stock Beneficial Ownership Limitation, provided that in no event may
the Preferred Stock Beneficial Ownership Limitation exceed 9.99% and any increase in the Preferred Stock Beneficial Ownership
Limitation will not be effective until 61 days following notice of such increase from the holder to us.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Series C Preferred Stock</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; text-indent: 0.5in">On November 6, 2017, we filed a Certificate
of Designation of Preferences, Rights and Limitations of Series C Convertible Preferred Stock, or the Series C Certificate of
Designation, with the State of Delaware which designates 2,748 shares of our preferred stock as Series C Convertible Preferred
Stock, or the Series C Preferred Stock. The Series C Preferred Stock has a stated value of $1,000 per share and a par value of
$0.01 per share.</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">If prior to the second anniversary of the
original issue date of the Series C Preferred Stock, we sell or grant any option to purchase or sell or grant any right to reprice,
or otherwise dispose of or issue, any of our common stock or securities convertible into or exercisable for shares of our common
stock at an effective price per share that is lower than the then effective conversion price, then the conversion price will be
reduced to equal the higher of (A) such lower price or (B) $0.05, subject to an exception for the following types of issuances
(i) issuances to our employees, officers or directors pursuant to any stock or option plan adopted by a majority of the non-employee
members of our Board of Directors or committee thereof, (ii) issuances upon the exercise or exchange of any securities issued
in connection with our November 2017 Offering or convertible into shares of common stock issued and outstanding on the date of
the placement agency agreement entered into in connection with our November 2017 Offering, provided that such securities have
not been amended since the date of the placement agency agreement to increase the number of securities or decrease the exercise,
exchange or conversion price, or (iii) issuances pursuant to acquisitions or strategic transactions approved by a majority of
the disinterested members of our Board of Directors, provided that such securities are &ldquo;restricted securities&rdquo; under
Rule 144 and carry no registration rights that require or permit the filing of any registration statement in connection therewith
during the 90-day period following the original issuance date of the Series C Preferred Stock, and provided that any such issuance
is to a person or its equityholders that is an operating company or an owner of an asset in a business synergistic with the business
of our company and will provide our company with additional benefits in addition to the investment of funds, but will not include
a transaction in which we issue securities primarily for the purpose of raising capital or to an entity whose primary business
is investing in securities (the issuances referred to in (i) through (iii) above, the &ldquo;Exempt Issuances&rdquo;).</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">In the event of a liquidation, the holders
of shares of Series C Preferred Stock, or Series C Preferred Shares, are entitled to an amount equal to the par value of the Series
C Preferred Stock and thereafter to participate on an as-converted-to-common stock basis with holders of the common stock in any
distribution of assets of the Company to the holders of the common stock. The Series C Certificate of Designation provides, among
other things, that we will not pay any dividends on shares of common stock (other than dividends in the form of common stock)
unless and until such time as we pay dividends on each Series C Preferred Share on an as-converted basis. Other than as set forth
in the previous sentence, the Series C Certificate of Designation provides that no other dividends will be paid on Series C Preferred
Shares and that we will pay no dividends (other than dividends in the form of common stock) on shares of common stock unless we
simultaneously comply with the previous sentence. The Series C Certificate of Designation does not provide for any restriction
on the repurchase of Series C Preferred Shares by us while there is any arrearage in the payment of dividends on the Series C
Preferred Shares. There are no sinking fund provisions applicable to the Series C Preferred Shares.</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">In addition, in the event we consummate
a merger or consolidation with or into another person or other reorganization event in which our shares of common stock are converted
or exchanged for securities, cash or other property, or we sell, lease, license, assign, transfer, convey or otherwise dispose
of all or substantially all of our assets or we or another person acquire 50% or more of our outstanding shares of common stock,
then following such event, the holders of the Series C Preferred Shares will be entitled to receive upon conversion of the Series
C Preferred Shares the same kind and amount of securities, cash or property which the holders would have received had they converted
the Series C Preferred immediately prior to such fundamental transaction. Any successor to us or surviving entity is required
to assume the obligations under the Series C Preferred Shares.</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">Notwithstanding the foregoing, in the event
we are not the surviving entity of a fundamental transaction or in the event of a reverse merger or similar transaction where
we are the surviving entity, then, automatically and contemporaneous with the consummation of such transaction, the surviving
entity (or our company in the event of a reverse merger or similar transaction) will purchase the then outstanding shares of Series
C Preferred Stock by paying and issuing, in the event that such consideration given to the holders of our common stock is non-cash
consideration, as the case may be, to each holder an amount equal to the cash consideration plus the non-cash consideration in
the form issuable to the holders of our common stock (in the case of a reverse merger or similar transaction, shares of common
stock issuable to the holders of the acquired company) per share of our common stock in the fundamental transaction multiplied
by the number of shares of common stock underlying the shares of Series C Preferred Stock held by the holder on the date immediately
prior to the consummation of the fundamental transaction. Such amount will be paid in the same form and mix (whether securities,
cash or property, or any combination of the foregoing) as the consideration received by holders of our common stock in the fundamental
transaction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&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; text-indent: 0.5in">With certain exceptions, as described in
the Series C Certificate of Designation, the Series C Preferred Shares have no voting rights. However, as long as any shares of
Series C Preferred Shares remain outstanding, the Series C Certificate of Designation provides that we may not, without the affirmative
vote of holders of a majority of the then-outstanding Series C Preferred Shares, (a) alter or change adversely the powers, preferences
or rights given to the Series C Preferred Shares or alter or amend the Series C Certificate of Designation, (b) increase the number
of authorized shares of Series C Preferred Shares or (c) amend our Certificate of Incorporation or other charter documents in
any manner that adversely affects any rights of holders of Series C Preferred Shares.</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">Each Series C Preferred Share is convertible
at any time at the holder&rsquo;s option into a number of shares of common stock equal to $1,000 divided by the Series C Conversion
Price. The &ldquo;Series C Conversion Price&rdquo; is initially $1.40 and is subject to adjustment for stock splits, stock dividends,
distributions, subdivisions and combinations and, as discussed above, certain dilutive issuances of our common stock or securities
convertible into or exercisable for shares of our common stock. The Series C Conversion Price was reduced to $0.75 as a result
of our Letter Agreement on March 21, 2018. Notwithstanding the foregoing, the Series C Certificate of Designation further provides
that we may not effect any conversion of Series C Preferred Shares, with certain exceptions, to the extent that, after giving
effect to an attempted conversion, the holder of Series C Preferred Shares (together with such holder&rsquo;s affiliates, and
any persons acting as a group together with such holder or any of such holder&rsquo;s affiliates) would beneficially own a number
of shares of our common stock in excess of 4.99% (or, at the election of the holder, 9.99%) of the shares of our common stock
then outstanding after giving effect to such exercise (the &ldquo;Preferred Stock Beneficial Ownership Limitation&rdquo;); provided,
however, that upon notice to the Company, the holder may increase or decrease the Preferred Stock Beneficial Ownership Limitation,
provided that in no event may the Preferred Stock Beneficial Ownership Limitation exceed 9.99% and any increase in the Preferred
Stock Beneficial Ownership Limitation will not be effective until 61 days following notice of such increase from the holder to
us.</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">The Series C Certificate of Designation
provides that we will not be obligated to issue any shares of common stock, and a holder will not have the right to convert any
portion of the Series C Preferred Stock, if such issuance (taken together with any prior issuance of shares of common stock upon
conversion of the Series C Preferred Stock) would exceed 1,961,914 shares of common stock, which is the aggregate number of shares
of common stock which we may issue upon conversion of the Series C Preferred Stock without breaching our obligations under the
rules or regulations of the NASDAQ Capital Market, except that such limitation will not apply in the event that we (A) obtain
the approval of our stockholders as required by the applicable rules of the NASDAQ Capital Market for issuances of common stock
in excess of such number of shares of common stock or (B) obtain a written opinion from our outside counsel that such approval
is not required, which opinion will be reasonably satisfactory to the holder. Because we obtained the approval of our stockholders
on January 30, 2018, the foregoing limitation is no longer operative.</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">The Series C Certificate of Designation
also prohibits us from issuing any shares of common stock or securities convertible or exercisable into common stock at a price
per share below the then effective conversion price of the Series C Preferred Stock, subject to certain exceptions, or entering
into any agreement or making any public announcement with respect to such a dilutive issuance, until we have filed a proxy statement
under Section 14(a) of the Exchange Act or information statement pursuant to Section 14(c) of the Exchange Act with the SEC and
obtained approval of the November 2017 Offering from our stockholders, including approval of issuances in excess of the maximum
number of shares issuable under the rules and regulations of the NASDAQ Capital Market. Because we filed a proxy statement and
obtained stockholder approval of the November 2017 Offering on January 30, 2018, the foregoing restriction is no longer operative.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Series A Conversion Warrants</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; text-indent: 0.5in">In August 2017, we issued warrants, or
the Series A Conversion Warrants, to purchase 856,446 shares of our common stock to the former holders of our Series A Preferred
Stock as consideration for the conversion of their shares of Series A Preferred Stock into shares of common stock.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Term</I>. The Series A Conversion Warrants are exercisable
for five years.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0; text-align: left"><I>Exercisability</I>. The Series A Conversion Warrants are
exercisable at any time after their original issuance, on August 28, 2017, and at any time up to the date that is five years after
their original issuance. The Series A Conversion Warrants are exercisable, at the option of each holder, in whole or in part by
delivering to us a duly executed exercise notice and, at any time a registration statement registering the issuance of the shares
of common stock underlying the Series A Conversion Warrants under the Securities Act is effective and available for the issuance
of such shares, or an exemption from registration under the Securities Act is available for the issuance of such shares, by payment
in full in immediately available funds for the number of shares of common stock purchased upon such exercise. If a registration
statement registering the issuance of the shares of common stock underlying the Series A Conversion Warrants under the Securities
Act is not effective or available and an exemption from registration under the Securities Act is not available for the issuance
of such shares, the holder may, in its sole discretion, elect to exercise the Series A Conversion Warrant through a cashless exercise,
in which case the holder would receive upon such exercise the net number of shares of common stock determined according to the
formula set forth in the Series A Conversion Warrant. No fractional shares of common stock will be issued in connection with the
exercise of a Series A Conversion Warrant. In lieu of fractional shares, we will pay the holder an amount in cash equal to the
fractional amount multiplied by the exercise price.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0; text-align: left"><I>Exercise Limitation</I>. A holder does not have the right
to exercise any portion of the Series A Conversion Warrant if the holder (together with 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 the exercise, as
such percentage ownership is determined in accordance with the terms of the Series A Conversion Warrants. However, any holder
may increase or decrease such percentage to any other percentage not in excess of 9.99% upon at least 61 days&rsquo; prior notice
from the holder to us.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0; text-align: left"><I>Exercise Price</I>. The exercise price per whole share of
common stock purchasable upon exercise of the Series A Conversion Warrants is $10.00 per share of common stock. The exercise price
is subject to appropriate adjustment in the event of certain stock dividends and distributions, stock splits, stock combinations,
reclassifications or similar events affecting our common stock and also upon any distributions of assets, including cash, stock
or other property to our stockholders.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0; text-align: left"><I>Transferability</I>. Subject to applicable laws, the Series
A Conversion Warrants may be offered for sale, sold, transferred or assigned without our consent.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0; text-align: left"><I>Fundamental Transactions</I>. In the event of a fundamental
transaction, as described in the Series A Conversion Warrants and generally including any reorganization, recapitalization or
reclassification of our common stock, the sale, transfer or other disposition of all or substantially all of our properties or
assets, our consolidation or merger with or into another person, the acquisition of more than 50% of our outstanding common stock,
or any person or group becoming the beneficial owner of 50% of the voting power represented by our outstanding common stock, the
holders of the Series A Conversion Warrants will be entitled to receive upon exercise of the Series A Conversion Warrants the
kind and amount of securities, cash or other property that the holders would have received had they exercised the Series A Conversion
Warrants immediately prior to such fundamental transaction.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0; text-align: left"><I>Rights as a Stockholder</I>. Except as otherwise provided
in the Series A Conversion Warrants or by virtue of such holder&rsquo;s ownership of shares of our common stock, the holder of
a Series A Conversion Warrant does not have the rights or privileges of a holder of our common stock, including any voting rights,
until the holder exercises the Series A Conversion Warrant.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0; text-align: left"><B><I>Note Conversion Warrants</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0; text-align: left">In August 2017, we issued warrants, or the Note Conversion
Warrants, to purchase 359,999 shares of our common stock to the former holders of certain of our convertible promissory notes
as consideration for the conversion of their convertible promissory notes into shares of common stock.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0; text-align: left"><I>Term</I>. The Note Conversion Warrants are exercisable for
five years.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0; text-align: left"><I>Exercisability</I>. The Note Conversion Warrants are exercisable
at any time after their original issuance, on August 28, 2017, and at any time up to the date that is five years after their original
issuance. The Note Conversion Warrants are exercisable, at the option of each holder, in whole or in part by delivering to us
a duly executed exercise notice and, at any time a registration statement registering the issuance of the shares of common stock
underlying the Note Conversion Warrants under the Securities Act is effective and available for the issuance of such shares, or
an exemption from registration under the Securities Act is available for the issuance of such shares, by payment in full in immediately
available funds for the number of shares of common stock purchased upon such exercise. If a registration statement registering
the issuance of the shares of common stock underlying the Note Conversion Warrants under the Securities Act is not effective or
available and an exemption from registration under the Securities Act is not available for the issuance of such shares, the holder
may, in its sole discretion, elect to exercise the Note Conversion Warrant through a cashless exercise, in which case the holder
would receive upon such exercise the net number of shares of common stock determined according to the formula set forth in the
Note Conversion Warrant. No fractional shares of common stock will be issued in connection with the exercise of a Note Conversion
Warrant. In lieu of fractional shares, we will pay the holder an amount in cash equal to the fractional amount multiplied by the
exercise price.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Exercise Limitation</I>. A holder does not have the right
to exercise any portion of the Note Conversion Warrant if the holder (together with 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 the exercise, as such
percentage ownership is determined in accordance with the terms of the Note Conversion Warrants. However, any holder may increase
or decrease such percentage to any other percentage not in excess of 9.99% upon at least 61 days&rsquo; prior notice from the
holder to us.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Exercise Price</I>. As a result of our November 2017 Offering,
the exercise price per whole share of common stock purchasable upon exercise of the Note Conversion Warrants was reduced to $1.04
on February 8, 2018 as a result of our Equity Line., subject to further adjustment as set forth below. The exercise price is subject
to appropriate adjustment in the event of certain stock dividends and distributions, stock splits, stock combinations, reclassifications
or similar events affecting our common stock and also upon any distributions of assets, including cash, stock or other property
to our stockholders. If, at any time while the Note Conversion Warrants are outstanding, we sell or grant any option to purchase
or sell or grant any right to reprice, or otherwise dispose of or issue, any of our common stock or securities convertible into
or exercisable for shares of our common stock at an effective price per share that is lower than the exercise price then in effect,
then the exercise price will be reduced to equal the higher of (A) such lower price or (B) $0.05, subject to an exception for
the following types of issuances (i) issuances to our employees, officers or directors pursuant to any stock or option plan adopted
by a majority of the non-employee members of our Board of Directors or committee thereof, (ii) issuances upon the exercise or
exchange of any securities issued in connection with this offering or convertible into shares of common stock issued and outstanding
on the date of the issuance of the Note Conversion Warrants, provided that such securities have not been amended since the date
of the issuance of the Note Conversion Warrants to increase the number of securities or decrease the exercise, exchange or conversion
price, or (iii) issuances pursuant to acquisitions or strategic transactions approved by a majority of the disinterested members
of our Board of Directors, provided that such securities are &ldquo;restricted securities&rdquo; under Rule 144 and carry no registration
rights that require or permit the filing of any registration statement in connection therewith during the 90-day period following
the date of the issuance of the Note Conversion Warrants, and provided that any such issuance is to a person or its equityholders
that is an operating company or an owner of an asset in a business synergistic with the business of our company and will provide
our company with additional benefits in addition to the investment of funds, but will not include a transaction in which we issue
securities primarily for the purpose of raising capital or to an entity whose primary business is investing in securities.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Transferability</I>. Subject to applicable laws, the Note
Conversion Warrants may be offered for sale, sold, transferred or assigned without our consent.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Fundamental Transactions</I>. In the event of a fundamental
transaction, as described in the Note Conversion Warrants and generally including any reorganization, recapitalization or reclassification
of our common stock, the sale, transfer or other disposition of all or substantially all of our properties or assets, our consolidation
or merger with or into another person, the acquisition of more than 50% of our outstanding common stock, or any person or group
becoming the beneficial owner of 50% of the voting power represented by our outstanding common stock, the holders of the Note
Conversion Warrants will be entitled to receive upon exercise of the Note Conversion Warrants the kind and amount of securities,
cash or other property that the holders would have received had they exercised the Note Conversion Warrants immediately prior
to such fundamental transaction.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Rights as a Stockholder</I>. Except as otherwise provided
in the Note Conversion Warrants or by virtue of such holder&rsquo;s ownership of shares of our common stock, the holder of a Note
Conversion Warrant does not have the rights or privileges of a holder of our common stock, including any voting rights, until
the holder exercises the Note Conversion Warrant.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>November 2017 Offering 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">In November 2017, we issued warrants, or the November 2017
Offering Warrants, to purchase 1,962,857 shares of our common stock at an exercise price of $1.63 per share.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Exercisability</I>. The November 2017 Offering Warrants
are exercisable at any time six months after their original issuance, on November 9, 2017, and at any time up to the date that
is five years after the date on which they become exercisable. The November 2017 Offering Warrants are exercisable, at the option
of each holder, in whole or in part by delivering to us a duly executed exercise notice and, at any time a registration statement
registering the issuance of the shares of common stock underlying the November 2017 Offering Warrants under the Securities Act
is effective and available for the issuance of such shares, or an exemption from registration under the Securities Act is available
for the issuance of such shares, by payment in full in immediately available funds for the number of shares of common stock purchased
upon such exercise. If a registration statement registering the issuance of the shares of common stock underlying the November
2017 Offering Warrants under the Securities Act is not effective or available and an exemption from registration under the Securities
Act is not available for the issuance of such shares, the holder may, in its sole discretion, elect to exercise the November 2017
Offering Warrant through a cashless exercise, in which case the holder would receive upon such exercise the net number of shares
of common stock determined according to the formula set forth in the November 2017 Offering Warrant. No fractional shares of common
stock will be issued in connection with the exercise of a November 2017 Offering Warrant. In lieu of fractional shares, we will
pay the holder an amount in cash equal to the fractional amount multiplied by the exercise price.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Exercise Limitation</I>. A holder will not have the right
to exercise any portion of the November 2017 Offering Warrant if the holder (together with 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 the exercise,
as such percentage ownership is determined in accordance with the terms of the November 2017 Offering Warrants. However, any holder
may increase or decrease such percentage to any other percentage not in excess of 9.99% upon at least 61 days&rsquo; prior notice
from the holder to us.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Exercise Price</I>. The exercise price per whole share of
common stock purchasable upon exercise of the November 2017 Offering Warrants is $1.63 per share of common stock was reduced to
$0.75 as a result of our March 21, 2018 Letter Agreement. The exercise price is subject to appropriate adjustment in the event
of certain stock dividends and distributions, stock splits, stock combinations, reclassifications or similar events affecting
our common stock and also upon any distributions of assets, including cash, stock or other property to our stockholders. If, at
any time while the November 2017 Offering Warrants are outstanding, we sell or grant any option to purchase or sell or grant any
right to reprice, or otherwise dispose of or issue, any of our common stock or securities convertible into or exercisable for
shares of our common stock at an effective price per share that is lower than the exercise price then in effect, then the exercise
price will be reduced to equal the higher of (A) such lower price or (B) $0.05, subject to an exception for the following types
of issuances (i) issuances to our employees, officers or directors pursuant to any stock or option plan adopted by a majority
of the non-employee members of our Board of Directors or committee thereof, (ii) issuances upon the exercise or exchange of any
securities issued in connection with the November 2017 Offering or convertible into shares of common stock issued and outstanding
on the date of the issuance of the November 2017 Offering Warrants, provided that such securities have not been amended since
the date of the issuance of the November 2017 Offering Warrants to increase the number of securities or decrease the exercise,
exchange or conversion price, or (iii) issuances pursuant to acquisitions or strategic transactions approved by a majority of
the disinterested members of our Board of Directors, provided that such securities are &ldquo;restricted securities&rdquo; under
Rule 144 and carry no registration rights that require or permit the filing of any registration statement in connection therewith
during the 90-day period following the date of the issuance of the November 2017 Offering Warrants, and provided that any such
issuance is to a person or its equityholders that is an operating company or an owner of an asset in a business synergistic with
the business of our company and will provide our company with additional benefits in addition to the investment of funds, but
will not include a transaction in which we issue securities primarily for the purpose of raising capital or to an entity whose
primary business is investing in securities.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Transferability</I>. Subject to applicable laws, the November
2017 Offering Warrants may be offered for sale, sold, transferred or assigned without our consent.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Fundamental Transactions</I>. In the event of a fundamental
transaction, as described in the November 2017 Offering Warrants and generally including any reorganization, recapitalization
or reclassification of our common stock, the sale, transfer or other disposition of all or substantially all of our properties
or assets, our consolidation or merger with or into another person, the acquisition of more than 50% of our outstanding common
stock, or any person or group becoming the beneficial owner of 50% of the voting power represented by our outstanding common stock,
the holders of the November 2017 Offering Warrants will be entitled to receive upon exercise of the November 2017 Offering Warrants
the kind and amount of securities, cash or other property that the holders would have received had they exercised the November
2017 Offering Warrants immediately prior to such fundamental transaction.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Rights as a Stockholder</I>. Except as otherwise provided
in the November 2017 Offering Warrants or by virtue of such holder&rsquo;s ownership of shares of our common stock, the holder
of a November 2017 Offering Warrant does not have the rights or privileges of a holder of our common stock, including any voting
rights, until the holder exercises the November 2017 Offering Warrant.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>August 2017 Offering 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">In August 2017, we issued warrants, or the August 2017 Offering
Warrants, to purchase 2,680,000 shares of our common stock at an exercise price of $3.00 per share. The exercise price of the
August 2017 Offering Warrants was reduced to $0.75 as a result of our March 21, 2018 Letter Agreement, subject to further adjustment
as set forth in the August 2017 Offering 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">The terms of the August 2017 Offering Warrants are substantially
the same as those of the Note Conversion Warrants.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Underwriter 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">In connection with the August 2017 Offering, we issued warrants,
or the Underwriter Warrants, to purchase 60,000 shares of our common stock to designees of the underwriter of the August 2017
Offering. The Underwriter Warrants are exercisable for cash or on a cashless basis at a per share exercise price equal to $3.125,
are exercisable beginning one year after the effective date of the August 2017 Offering and expiring on a date which is no more
than five years from the effective date of the August 2017 Offering. The Underwriter Warrants provide for registration rights,
including unlimited piggyback registration rights. The exercise price and number of shares of our common stock issuable upon exercise
of the Underwriter Warrants may be adjusted in certain circumstances including in the event of a stock dividend, extraordinary
cash dividend or our recapitalization, reorganization, merger or consolidation. However, the exercise price or underlying shares
will not be adjusted for issuances of shares of our common stock at a price below the exercise price of the Underwriter Warrants.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Bridge 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">In connection with the Merger, on June 29, 2017, we issued
warrants, or the Bridge Warrants, to purchase 45,600 shares of our common stock at an exercise price of $7.50 per share (subject
to adjustment as described below).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Term</I>. The Bridge Warrants are exercisable for five years.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Exercise Price</I>. The exercise price of the Bridge Warrants
was $7.50 per share when issued. The exercise price and number of shares of our common stock issuable upon the exercise of the
Bridge Warrants is subject to adjustment in the event of any stock dividends and splits, reverse stock split, recapitalization,
reorganization or similar transaction. In addition, if we complete a financing resulting in at least $5,500,000 of gross proceeds,
the exercise price will become the lower of (i) $7.50 or (ii) 110% of the per share offering price in such financing, but in no
event lower than $1.50 per share. The exercise price of the Bridge Warrants was reduced to $2.75 as a result of our August 2017
Offering.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Exercisability</I>. The Bridge Warrants became exercisable
on the date of issuance and are exercisable at any time for five years thereafter. The Bridge Warrants are exercisable, at the
option of each holder, in whole or in part, by delivering to us a duly executed exercise notice accompanied by payment in full
for the number of shares of our common stock purchased upon such exercise. If there is no effective registration statement registering
the issuance of the shares underlying the Bridge Warrants, then the Bridge Warrants may be exercised by means of a cashless exercise.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Beneficial Ownership Limitation</I>. A holder of Bridge
Warrants does not have the right to exercise any portion of its warrants to the extent the holder, together with 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 such exercise.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>No Fractional Shares</I>. No fractional shares shall be
issued upon the exercise of the Bridge Warrants; instead the number of shares of common stock to be issued will be rounded up
to the nearest whole number.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Transferability</I>. Subject to applicable laws, the Bridge
Warrants may be transferred at the option of the holder upon surrender of the Bridge Warrants to us together with the appropriate
instruments of transfer, provided that we may require an opinion of counsel in connection with certain transfers.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Authorized Shares</I>. During the period the Bridge Warrants
are outstanding, we will reserve from our authorized and unissued common stock a sufficient number of shares to provide for the
issuance of shares of common stock underlying the Bridge Warrants upon the exercise of the Bridge Warrants.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Fundamental Transactions</I>. In the event of any fundamental
transaction, as described in the Bridge Warrants and generally including any merger with or into another entity, sale of all or
substantially all of our assets, tender offer or exchange offer, or reclassification of our common stock, then upon any subsequent
exercise of a Bridge Warrant the holder shall have the right to receive as alternative consideration, for each share of our common
stock that would have been issuable upon such exercise immediately prior to the occurrence of such fundamental transaction, the
number of shares of common stock of the successor or acquiring corporation or of us, if we are the surviving corporation, and
any additional consideration receivable upon or as a result of such transaction by a holder of the number of shares of our common
stock for which the Bridge Warrant is exercisable immediately prior to such event.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Purchase Rights</I>. If we grant, issue or sell any options,
convertible securities or rights to purchase stock, warrants, securities or other property pro rata to the holders of our common
stock, then a holder of Bridge Warrants has the right to acquire such purchase rights which the holder could have acquired had
the holder exercised the Bridge Warrant immediately prior to the record date for the grant, issuance or sale of such purchase
right, subject to certain limitations.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Rights as a Stockholder</I>. Except as otherwise provided
in the Bridge Warrants or by virtue of such holder&rsquo;s ownership of shares of our common stock, the holders of the Bridge
Warrants do not have the rights or privileges of holders of our common stock, including any voting rights, until they exercise
their Bridge Warrants.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Side 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">On June 29, 2017, we issued warrants, or the Side Warrants,
to purchase 91,429 shares of our common stock at an exercise price of $7.00 per share (subject to adjustment as described below).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Term</I>. The Side Warrants are exercisable for five years.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Exercise Price</I>. The exercise price of the Side Warrants
is $7.00 per share. The exercise price and number of shares of our common stock issuable upon the exercise of the Side Warrants
is subject to adjustment in the event of any stock dividends and splits, reverse stock split, recapitalization, reorganization
or similar transaction.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Exercisability</I>. The Side Warrants became exercisable
as to 22,857 shares of our common stock on the date of issuance and will become exercisable as to the remaining 68,572 shares
of our common stock upon the holder&rsquo;s performance of certain obligations as set forth in the Side Warrants. The Side Warrants
are exercisable, at the option of the holder, in whole or in part, by delivering to us a duly executed exercise notice accompanied
by payment in full for the number of shares of our common stock purchased upon such exercise. If there is no effective registration
statement registering the issuance of the shares underlying the Side Warrants, then the Side Warrants may be exercised by means
of a cashless exercise.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>No Fractional Shares</I>. No fractional shares shall be
issued upon the exercise of the Side Warrants; instead the number of shares of common stock to be issued will be rounded down
to the nearest whole number and we will pay the holder in cash the fair market value for any such fractional shares.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Transferability</I>. Subject to applicable laws and certain
restrictions set forth in the Side Warrants, the Side Warrants may be transferred at the option of the holder upon surrender of
the Side Warrants to us together with the appropriate instruments of transfer, provided that we may require an opinion of counsel
in connection with certain transfers.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Authorized Shares</I>. During the period the Side Warrants
are outstanding, we will reserve from our authorized and unissued common stock a sufficient number of shares to provide for the
issuance of shares of common stock underlying the Side Warrants upon the exercise of the Side Warrants.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Fundamental Transactions</I>. In the event of any fundamental
transaction, as described in the Side Warrants and generally including any merger with or into another entity, sale of all or
substantially all of our assets, tender offer or exchange offer, or reclassification of our common stock, then the holder shall
have the right to exercise the Side Warrants contingent and effective upon the closing of such fundamental transaction.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Distribution</I>. If we distribute to holders of our common
stock for no consideration evidences of our indebtedness, any security or rights to purchase any security, or any other asset,
then upon any exercise of the Side Warrants that occurs after the record date for stockholders to receive such distribution, the
holder will be entitled to receive such distribution as the holder would have been entitled to receive had the holder exercised
the Side Warrants immediately prior to such record date.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Rights as a Stockholder</I>. Except as otherwise provided
in the Side Warrants or by virtue of such holder&rsquo;s ownership of shares of our common stock, the holders of the Side Warrants
do not have the rights or privileges of holders of our common stock, including any voting rights, until they exercise their Side
Warrants.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Antitakeover Effects of Delaware Law and Provisions of our
Amended and Restated Certificate of Incorporation and Amended and Restated By-laws<SUP></SUP></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">Certain provisions of the Delaware General Corporation Law
and of our amended and restated certificate of incorporation and amended and restated by-laws could have the effect of delaying,
deferring or discouraging another party from acquiring control of us. These provisions, which are summarized below, are expected
to discourage certain types of coercive takeover practices and inadequate takeover bids and, as a consequence, they might also
inhibit temporary fluctuations in the market price of our common stock that often result from actual or rumored hostile takeover
attempts. These provisions are also designed in part to encourage anyone seeking to acquire control of us to first negotiate with
our board of directors. These provisions might also have the effect of preventing changes in our management. It is possible that
these provisions could make it more difficult to accomplish transactions that stockholders might otherwise deem to be in their
best interests. However, we believe that the advantages gained by protecting our ability to negotiate with any unsolicited and
potentially unfriendly acquirer outweigh the disadvantages of discouraging such proposals, including those priced above the then-current
market value of our common stock, because, among other reasons, the negotiation of such proposals could improve their terms.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Delaware Takeover Statute </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">We are subject to the provisions of Section&nbsp;203 of the
Delaware General Corporation Law. In general, Section&nbsp;203 prohibits a publicly held Delaware corporation from engaging in
a &ldquo;business combination&rdquo; with an &ldquo;interested stockholder&rdquo; for a three-year period following the time that
this stockholder becomes an interested stockholder, unless the business combination is approved in a prescribed manner. Under
Section&nbsp;203, a business combination between a corporation and an interested stockholder is prohibited unless it satisfies
one of the following conditions:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD><TD><FONT STYLE="font-size: 10pt">before the stockholder
became interested, our board of directors approved either the business combination or the transaction which resulted in the stockholder
becoming an interested stockholder;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD><TD><FONT STYLE="font-size: 10pt">upon consummation of
the transaction which resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least
85% of the voting stock of the corporation outstanding at the time the transaction commenced, excluding for purposes of determining
the voting stock outstanding, shares owned by persons who are directors and also officers, and employee stock plans, in some instances,
but not the outstanding voting stock owned by the interested stockholder; or</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD><TD><FONT STYLE="font-size: 10pt">at or after the time
the stockholder became interested, the business combination was approved by our board of directors and authorized at an annual
or special meeting of the stockholders by the affirmative vote of at least two-thirds of the outstanding voting stock which is
not owned by the interested stockholder.</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">Section&nbsp;203 defines a business combination to include:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD><TD><FONT STYLE="font-size: 10pt">any merger or consolidation
involving the corporation and the interested stockholder;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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    <!-- Field: /Page -->

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD><TD><FONT STYLE="font-size: 10pt">any sale, transfer,
lease, pledge or other disposition involving the interested stockholder of 10% or more of the assets of the corporation;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD><TD><FONT STYLE="font-size: 10pt">subject to exceptions,
any transaction that results in the issuance or transfer by the corporation of any stock of the corporation to the interested
stockholder;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD><TD><FONT STYLE="font-size: 10pt">subject to exceptions,
any transaction involving the corporation that has the effect of increasing the proportionate share of the stock of any class
or series of the corporation beneficially owned by the interested stockholder; or</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD><TD><FONT STYLE="font-size: 10pt">the receipt by the interested
stockholder of the benefit of any loans, advances, guarantees, pledges or other financial benefits provided by or through the
corporation.</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">In general, Section&nbsp;203 defines an interested stockholder
as any entity or person beneficially owning 15% or more of the outstanding voting stock of the corporation and any entity or person
affiliated with or controlling or controlled by the entity or person.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Provisions of our Amended and Restated Certificate of Incorporation
and Amended and Restated By-laws </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">Our amended and restated certificate of incorporation and amended
and restated by-laws include a number of provisions that may have the effect of delaying, deferring or discouraging another party
from acquiring control of us and encouraging persons considering unsolicited tender offers or other unilateral takeover proposals
to negotiate with our board of directors 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"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Board composition and filling vacancies.</I> In accordance
with our amended and restated certificate of incorporation, our board is divided into three classes serving staggered three-year
terms, with one class being elected each year. Our amended and restated certificate of incorporation also provides that directors
may be removed only for cause and then only by the affirmative vote of the holders of 75% or more of the shares then entitled
to vote at an election of directors. Furthermore, any vacancy on our board of directors, however occurring, including a vacancy
resulting from an increase in the size of our board, may only be filled by the affirmative vote of a majority of our directors
then in office even if less than a quorum.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>No written consent of stockholders.</I> Our amended and
restated certificate of incorporation provides that all stockholder actions are required to be taken by a vote of the stockholders
at an annual or special meeting, and that stockholders may not take any action by written consent in lieu of a meeting. This limit
may lengthen the amount of time required to take stockholder actions and would prevent the amendment of our by-laws or removal
of directors by our stockholder without holding a meeting of stockholders.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Meetings of stockholders. </I>Our amended and restated by-laws
provide that only a majority of the members of our board of directors then in office may call special meetings of stockholders
and only those matters set forth in the notice of the special meeting may be considered or acted upon at a special meeting of
stockholders. Our amended and restated by-laws limit the business that may be conducted at an annual meeting of stockholders to
those matters properly brought before the meeting.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Advance notice requirements.</I> Our amended and restated
by-laws establish advance notice procedures with regard to stockholder proposals relating to the nomination of candidates for
election as directors or new business to be brought before meetings of our stockholders. These procedures provide that notice
of stockholder proposals must be timely given in writing to our corporate secretary prior to the meeting at which the action is
to be taken. Generally, to be timely, notice must be received at our principal executive offices not less than 90 days or more
than 120 days prior to the first anniversary date of the annual meeting for the preceding year. The notice must contain certain
information specified in our amended and restated by-laws.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Amendment to certificate of incorporation and by-laws.</I>
As required by the Delaware General Corporation Law, any amendment of our amended and restated certificate of incorporation must
first be approved by a majority of our board of directors, and if required by law or our amended and restated certificate of incorporation,
must thereafter be approved by a majority of the outstanding shares entitled to vote on the amendment, and a majority of the outstanding
shares of each class entitled to vote thereon as a class, except that the amendment of the provisions relating to stockholder
action, directors, limitation of liability and the amendment of our amended and restated certificate of incorporation must be
approved by not less than 75% of the outstanding shares entitled to vote on the amendment, and not less than 75% of the outstanding
shares of each class entitled to vote thereon as a class. Our amended and restated by-laws may be amended by the affirmative vote
of a majority vote of the directors then in office, subject to any limitations set forth in the amended and restated by-laws;
and may also be amended by the affirmative vote of at least 75% of the outstanding shares entitled to vote on the amendment, or,
if the board of directors recommends that the stockholders approve the amendment, by the affirmative vote of the majority of the
outstanding shares entitled to vote on the amendment, in each case voting together as a single class.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Undesignated preferred stock.</I> Our amended and restated
certificate of incorporation provides for authorized shares of preferred stock. The existence of authorized but unissued shares
of preferred stock may enable our board of directors to render more difficult or to discourage an attempt to obtain control of
us by means of a merger, tender offer, proxy contest or otherwise. For example, if in the due exercise of its fiduciary obligations,
our board of directors were to determine that a takeover proposal is not in the best interests of us or our stockholders, our
board of directors could cause shares of preferred stock to be issued without stockholder approval in one or more private offerings
or other transactions that might dilute the voting or other rights of the proposed acquirer or insurgent stockholder or stockholder
group. In this regard, our amended and restated certificate of incorporation grants our board of director&rsquo;s broad power
to establish the rights and preferences of authorized and unissued shares of preferred stock. The issuance of shares of preferred
stock could decrease the amount of earnings and assets available for distribution to holders of shares of common stock. The issuance
may also adversely affect the rights and powers, including voting rights, of these holders and may have the effect of delaying,
deterring or preventing a change in control of us.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Choice of forum. </I>Our amended and restated by-laws provide
that the Court of Chancery of the State of Delaware is the sole and exclusive forum for any derivative action or proceeding brought
on our behalf, any action asserting a breach of fiduciary duty, any action asserting a claim against us arising pursuant to the
Delaware General Corporation Law, our certificate of incorporation or our by-laws, or any action asserting a claim against us
that is governed by the internal affairs doctrine. Although our amended and restated by-laws contain the choice of forum provision
described above, it is possible that a court could rule that such a provision is inapplicable for a particular claim or action
or that such provision is unenforceable.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Transfer Agent and Registrar </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 transfer agent and registrar for our common stock is EQ
Shareowner Services.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></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">Our common stock is listed on The NASDAQ Capital Market under
the symbol &ldquo;PRPO.&rdquo;</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"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="pi_017"></A><B>SHARES ELIGIBLE FOR FUTURE SALE</B></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; text-indent: 0.5in; background-color: white">Future sales
of our common stock in the public market, or the availability of such shares for sale in the public market, could adversely affect
market prices prevailing from time to time. As described below, only a limited number of shares will be available for sale shortly
after this offering due to contractual and legal restrictions on resale. Nevertheless, sales of our common stock in the public
market after such restrictions lapse, or the perception that those sales may occur, could adversely affect the prevailing market
price at such time and our ability to raise equity capital in the future.</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">Based on the
number of shares of common stock outstanding as of December 31, 2017, upon completion of this offering, [____]&nbsp;shares of
common stock will be outstanding, assuming no exercise of the underwriter&rsquo;s option to purchase additional shares and no
exercise of options. All of the shares sold in this offering will be freely tradable. The shares sold in ourpublic offering, excluding
any portion of such shares purchased by certain of our existing principal stockholders, are also freely tradable. The remaining
shares of common stock outstanding after this offering are restricted as a result of securities laws or lock-up agreements as
described below. Following the expiration of the lock-up period, all shares will be eligible for resale in compliance with Rule
144 or Rule 701 under the Securities Act. &ldquo;Restricted securities&rdquo; as defined under Rule 144 of the Securities Act
were issued and sold by us in reliance on exemptions from the registration requirements of the Securities Act. These shares may
be sold in the public market only if registered pursuant to an exemption from registration, such as Rule 144 or Rule 701 under
the Securities Act.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>Rule 144</B></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; text-indent: 0.5in; background-color: white">In general, under
Rule 144 under the Securities Act of 1933, as in effect on the date of this prospectus, a person who is one of our affiliates
and has beneficially owned shares of our common stock for at least six months would be entitled to sell within any three-month
period a number of shares that does not exceed the greater of:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD><TD><FONT STYLE="font-size: 10pt">one percent of the number
of shares of common stock then outstanding, which will equal approximately [xx] shares immediately after the completion of this
offering; or</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD><TD><FONT STYLE="font-size: 10pt">the average weekly trading
volume of our common stock on The NASDAQ Global Market during the four calendar weeks preceding the filing of a notice on Form
144 with respect to the sale.</FONT></TD>
</TR></TABLE>
<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; text-indent: 0.5in; background-color: white">Sales under Rule
144 by our affiliates or persons selling shares on behalf of our affiliates are also subject to manner of sale provisions and
notice requirements and to the availability of current public information about us. For a person who has not been deemed to have
been one of our affiliates at any time during the 90&nbsp;days preceding a sale, sales of our securities held longer than six
months, but less than one year, will be subject only to the current public information requirement.</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; text-indent: 0.5in; background-color: white">If such a person
has beneficially owned the shares proposed to be sold for at least one year, including the holding period of any prior owner other
than our affiliates, then such person is entitled to sell such shares without complying with any of the requirements of Rule 144.
[xx] shares of our common stock will qualify for resale under Rule 144 within 90 days of the date of this prospectus, subject
to the lock-up agreements as described under &ldquo;Lock-up Agreements&rdquo; below and under &ldquo;Underwriting&rdquo; in this
prospectus, and to the extent such shares have been released from any repurchase option that we may hold.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>Rule 701</B></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; text-indent: 0.5in; background-color: white">Rule 701 under
the Securities Act, or Rule 701, as in effect on the date of this prospectus, permits resales of shares in reliance upon Rule
144 but without compliance with certain restrictions of Rule 144, including the holding period requirement. Most of our employees,
executive officers or directors who purchased shares under a written compensatory plan or contract may be entitled to rely on
the resale provisions of Rule 701, subject to the lock-up agreements as described under &ldquo;Lock-up Agreements&rdquo; below
and under &ldquo;Underwriting&rdquo; in this prospectus.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>Stock Option Plan</B></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; text-indent: 0.5in; background-color: white">We have filed
a Form S-8 registration statement under the Securities Act to register shares of our common stock subject to options outstanding
or reserved for issuance under our stock plans. Shares covered by this registration statement will thereupon be eligible for sale
in the public markets, subject to Rule 144 limitations applicable to affiliates and any lock-up agreements. For a more complete
discussion of our stock plans, see &ldquo;Executive Compensation&mdash;Stock Option Plans.&rdquo;</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="pi_018"></A><B>MATERIAL U.S. FEDERAL TAX CONSIDERATIONS
TO NON-U.S. HOLDERS</B></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; text-indent: 0.5in; background-color: white">The following
is a general discussion of the material U.S. federal income considerations applicable to non-U.S. holders (as defined below) with
respect to their ownership and disposition of shares of our common stock issued pursuant to this offering. For purposes of this
discussion, a non-U.S. holder means a beneficial owner of our common stock that is for U.S. federal income tax purposes:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD><TD><FONT STYLE="font-size: 10pt">a non-resident alien
individual;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD><TD><FONT STYLE="font-size: 10pt">a foreign corporation
or any other organization taxable as a corporation for U.S. federal income tax purposes; or</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD><TD><FONT STYLE="font-size: 10pt">a foreign estate or trust,
the income of which is not subject to U.S. federal income tax on a net income basis.</FONT></TD>
</TR></TABLE>
<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; text-indent: 0.5in; background-color: white">This discussion
does not address the tax treatment of partnerships or other entities that are pass-through entities for U.S. federal income tax
purposes or persons that hold their common stock through partnerships or other pass-through entities. A partner in a partnership
or other pass-through entity that will hold our common stock should consult his, her or its own tax advisor regarding the tax
consequences of acquiring, holding and disposing of our common stock through a partnership or other pass-through entity, as applicable.</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; text-indent: 0.5in; background-color: white">This discussion
is based on current provisions of the U.S. Internal Revenue Code of 1986, as amended (the &ldquo;Code&rdquo;), existing and proposed
U.S. Treasury Regulations promulgated thereunder, current administrative rulings and judicial decisions, all as in effect as of
the date of this prospectus, all of which are subject to change or to differing interpretation, possibly with retroactive effect.
Any change could alter the tax consequences to non-U.S. holders described in this prospectus. We have not sought and will not
seek any ruling from the Internal Revenue Service (the &ldquo;IRS&rdquo;), with respect to the statements made and conclusions
reached in the following discussion, and there can be no assurance that the IRS, will not challenge one or more of the tax consequences
described herein. We assume in this discussion that a non-U.S. holder holds shares of our common stock as a capital asset, (generally,
property held for investment).</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; text-indent: 0.5in; background-color: white">This discussion
does not address all aspects of U.S. federal income that may be relevant to a particular non-U.S. holder in light of that non-U.S.
holder&rsquo;s individual circumstances nor does it address any aspects of U.S. state, local or non-U.S. taxes, the alternative
minimum tax, any tax considerations resulting from a non-U.S. holder having a functional currency other than the U.S. dollar,
or the Medicare tax on net investment income. This discussion also does not consider any specific facts or circumstances that
may apply to a non-U.S. holder and does not address the special tax rules applicable to particular non-U.S. holders, such as:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD><TD><FONT STYLE="font-size: 10pt">banks, insurance companies
or other financial institutions;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD><TD><FONT STYLE="font-size: 10pt">tax-exempt or government
organizations;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD><TD><FONT STYLE="font-size: 10pt">brokers or dealers in
securities;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD><TD><FONT STYLE="font-size: 10pt">traders in securities
that elect to use a mark-to-market method of accounting for their securities holdings;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD><TD><FONT STYLE="font-size: 10pt">regulated investment
companies or real estate investment trusts;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD><TD><FONT STYLE="font-size: 10pt">persons that own, or
are deemed to own, more than five percent of our capital stock;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD><TD><FONT STYLE="font-size: 10pt">tax-qualified retirement
plans;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD><TD><FONT STYLE="font-size: 10pt">pension plans and pension
funds;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD><TD><FONT STYLE="font-size: 10pt">controlled foreign corporations;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD><TD><FONT STYLE="font-size: 10pt">passive foreign investment
companies;</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-indent: 0.5in; background-color: white">persons deemed to sell our common stock
under the constructive sale provisions of the Code;</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD><TD><FONT STYLE="font-size: 10pt">persons that hold our
common stock as part of a straddle, hedge, conversion transaction, synthetic security or other integrated investment;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD><TD><FONT STYLE="font-size: 10pt">persons who hold or receive
our common stock pursuant to the exercise of an employee stock option or otherwise as compensation; and</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>


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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD><TD><FONT STYLE="font-size: 10pt">U.S. expatriates.</FONT></TD>
</TR></TABLE>
<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; text-indent: 0.5in; background-color: white">This discussion
is for general information only and is not tax advice. Accordingly, all prospective non-U.S. holders of our common stock should
consult their own tax advisors with respect to the U.S. federal, state, local and non-U.S. tax consequences of the purchase, ownership
and disposition of our common stock.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>Distributions on Our Common Stock</B></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; text-indent: 0.5in; background-color: white">As discussed
above in &ldquo;Dividend Policy,&rdquo; we do not anticipate paying any dividends on our common stock in the foreseeable future.
In the event that we do make a distribution of cash or property on our common stock, any such distributions generally 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. If a distribution exceeds our current and accumulated earnings and profits, the excess
will be treated as a tax-free return of the non-U.S. holder&rsquo;s investment, up to such holder&rsquo;s tax basis in the common
stock. Any remaining excess will be treated as capital gain, subject to the tax treatment described below in &ldquo;Gain on Sale,
Exchange or Other Taxable Disposition of Our Common Stock.&rdquo; Any such distributions will also be subject to the discussions
below under the section titled &ldquo;Withholding and Information Reporting Requirements&mdash;FATCA&rdquo; and &ldquo;Backup
Withholding and Information Reporting.&rdquo;</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; text-indent: 0.5in; background-color: white">Dividends paid
to a non-U.S. holder generally will be subject to withholding of U.S. federal income tax at a 30% rate or such lower rate as may
be specified by an applicable income tax treaty between the United States and such non-U.S. holder&rsquo;s country of residence.
Dividends that are treated as effectively connected with a trade or business conducted by a non-U.S. holder within the United
States and, if an applicable income tax treaty so provides, that are attributable to a permanent establishment or a fixed base
maintained by the non-U.S. holder within the United States, are generally exempt from the 30% withholding tax if the non-U.S.
holder satisfies applicable certification and disclosure requirements, including by providing the applicable withholding agent
an IRS Form W-8ECI (or successor form). However, such U.S. effectively connected income, net of specified deductions and credits,
is taxed at the same graduated U.S. federal income tax rates applicable to United States persons (as defined in the Code). Any
U.S. effectively connected income received by a non-U.S. holder that is a corporation may also, under certain circumstances, be
subject to an additional &ldquo;branch profits tax&rdquo; at a 30% rate or such lower rate as may be specified by an applicable
income tax treaty between the United States and such non-U.S. holder&rsquo;s country of residence.</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; text-indent: 0.5in; background-color: white">A non-U.S. holder
of our common stock who claims the benefit of an applicable income tax treaty between the United States and such non-U.S. holder&rsquo;s
country of residence generally will be required to provide a properly executed IRS Form W-8BEN or W-8BEN-E (or successor form)
and satisfy applicable certification and other requirements. Non-U.S. holders are urged to consult their own tax advisors regarding
their entitlement to benefits under a relevant income tax treaty. A non-U.S. holder that is eligible for a reduced rate of U.S.
withholding tax under an income tax treaty may obtain a refund or credit of any excess amounts withheld by timely filing a U.S.
tax return with the IRS.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>Gain on Sale or Other Taxable Disposition
of Our Common Stock</B></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; text-indent: 0.5in; background-color: white">Subject to the
discussions below under &ldquo;Withholding and Information Reporting Requirements&mdash;FATCA&rdquo; and &ldquo;Backup Withholding
and Information Reporting,&rdquo; a non-U.S. holder generally will not be subject to any</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; text-indent: 0.5in; background-color: white">U.S. federal income tax on any gain
realized upon such non-U.S. holder&rsquo;s sale or other taxable disposition (including a redemption but only if the redemption
would be treated as a sale or exchange rather than a distribution for U.S. federal income tax purposes) of shares of our common
stock unless:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD><TD><FONT STYLE="font-size: 10pt">the gain is effectively
connected with the non-U.S. holder&rsquo;s conduct of a U.S. trade or business and, if an applicable income tax treaty so provides,
is attributable to a permanent establishment or a fixed-base maintained by such non-U.S. holder in the United States, in which
case the non-U.S. holder generally will be taxed on a net income basis at the graduated U.S. federal income tax rates applicable
to United States persons (as defined in the Code) and, if the non-U.S. holder is a foreign corporation, the branch profits tax
described above in &ldquo;Distributions on Our Common Stock&rdquo; also may apply;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD><TD><FONT STYLE="font-size: 10pt">the non-U.S. holder is
a nonresident alien individual who is present in the United States for 183 days or more in the taxable year of the disposition
and certain other conditions are met, in which case the non-U.S. holder will be subject to a 30% tax (or such lower rate as may
be specified by an applicable income tax treaty between the United States and such non-U.S. holder&rsquo;s country of residence)
on the net gain derived from the disposition, which may be offset by certain U.S. source capital losses of the non-U.S. holder,
if any (even though the individual is not considered a resident of the United States), provided that the non-U.S. holder has timely
filed U.S. federal income tax returns with respect to such losses; or</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>


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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD><TD><FONT STYLE="font-size: 10pt">we are, or have been,
at any time during the five-year period preceding such disposition (or the non-U.S. holder&rsquo;s holding period, if shorter)
a &ldquo;U.S. real property holding corporation,&rdquo; unless our common stock is regularly traded on an established securities
market and the non-U.S. holder holds no more than 5% of our outstanding common stock, directly or indirectly, actually or constructively,
during the shorter of the five-year period ending on the date of the disposition or the period that the non-U.S. holder held our
common stock. If we are determined to be a U.S. real property holding corporation and the foregoing exception does not apply,
then a purchaser may withhold (at the applicable rate) the proceeds payable to a non-U.S. holder from a sale of our common stock
and the non-U.S. holder generally will be taxed on its net gain derived from the disposition at the graduated U.S. federal income
tax rates applicable to United States persons (as defined in the Code). Generally, a corporation is a U.S. real property holding
corporation only if the fair market value of its U.S. real property interests equals or exceeds 50% of the sum of the fair market
value of its worldwide real property interests plus its other assets used or held for use in a trade or business. Although there
can be no assurance, we do not believe that we are, or have been, a U.S. real property holding corporation, or that we are likely
to become one in the future. No assurance can be provided that our common stock will be regularly traded on an established securities
market for purposes of the rules described above.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>Backup Withholding and Information
Reporting</B></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; text-indent: 0.5in; background-color: white">Generally, we
must report annually to the IRS and to each non-U.S. holder the gross amount of the distributions on our common stock paid to
such non-U.S. holder and the tax withheld, if any, with respect to such distributions. Non-U.S. holders may have to comply with
specific certification procedures to establish that the non-U.S. holder is not a United States person (as defined in the Code)
in order to avoid backup withholding at the applicable rate with respect to dividends on our common stock. Dividends paid to non-U.S.
holders subject to withholding of U.S. federal income tax, as described above in &ldquo;Distributions on Our Common Stock,&rdquo;
generally will be exempt from U.S. backup withholding.</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; text-indent: 0.5in; background-color: white">Information reporting
and backup withholding will generally apply to the proceeds of a disposition of our common stock by a non-U.S. holder effected
by or through the U.S. office of any broker, U.S. or foreign, unless the holder certifies its status as a non-U.S. holder and
satisfies certain other requirements, or otherwise establishes an exemption. Generally, information reporting and backup withholding
will not apply to a payment of disposition proceeds to a non-U.S. holder where the transaction is effected outside the United
States through a non-U.S. office of a broker. However, for information reporting purposes, dispositions effected through a non-</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; text-indent: 0.5in; background-color: white">U.S. office of a broker with substantial
U.S. ownership or operations generally will be treated in a manner similar to dispositions effected through a U.S. office of a
broker. Non-U.S. holders should consult their own tax advisors regarding the application of the information reporting and backup
withholding rules to them. Copies of information returns may be made available to the tax authorities of the country in which
the non-U.S. holder resides or is incorporated under the provisions of a specific treaty or agreement. Backup withholding is not
an additional tax. Any amounts withheld under the backup withholding rules from a payment to a non-U.S. holder can be refunded
or credited against the non-U.S. holder&rsquo;s U.S. federal income tax liability, if any, provided that an appropriate claim
is filed with the IRS in a timely manner.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>Withholding and Information Reporting
Requirements&mdash;FATCA</B></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; text-indent: 0.5in; background-color: white">The Foreign Account
Tax Compliance Act, or FATCA, generally imposes a U.S. federal withholding tax at a rate of 30% on payments of dividends on, or
gross proceeds from the sale or other disposition of, our common stock paid to a foreign entity unless (i)&nbsp;if the foreign
entity is a &ldquo;foreign financial institution,&rdquo; such foreign entity undertakes certain due diligence, reporting, withholding,
and certification obligations, (ii)&nbsp;if the foreign entity is not a &ldquo;foreign financial institution,&rdquo; such foreign
entity identifies certain of its U.S. investors, if any, or (iii)&nbsp;the foreign entity is otherwise exempt under FATCA. Under
applicable U.S. Treasury regulations, withholding under FATCA currently applies to payments of dividends on our common stock,
but will only apply to payments of gross proceeds from a sale or other disposition of our common stock made after December&nbsp;31,
2018. Under certain circumstances, a non-U.S. holder may be eligible for refunds or credits of this withholding tax. An intergovernmental
agreement between the United States and an applicable foreign country may modify the requirements described in this paragraph.
Non-U.S. holders should consult their own tax advisors regarding the possible implications of this legislation on their investment
in our common stock and the entities through which they hold our common stock, including, without limitation, the process and
deadlines for meeting the applicable requirements to prevent the imposition of the 30% withholding tax under FATCA.</P>

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


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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">We have entered into an Equity Purchase
Agreement with Leviston Resources LLC, or the Investor, relating to shares of our common stock offered by us. In accordance with
the terms of such agreement, we may offer and sell shares of our common stock having an aggregate offering price of up to $8,000,000,
or the Aggregate Amount, from time to time to the Investor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">Sales of our common stock, if any, in this
offering may be made in sales deemed to be &ldquo;at-the-market&rdquo; equity offerings as defined in Rule&nbsp;415 promulgated
under the Securities Act of 1933, as amended, or the Securities Act, at a purchase price equal to 97.25% of the volume weighted
average sales price, or VWAP, of the common stock reported on the date that the Investor receives a capital call from us. On any
business day, we have the right to direct the Investor to purchase up to $25,000 shares of our common stock or 30% of the 30-day
average share volume of our common stock, up to a maximum of&thinsp;$150,000 per business day unless otherwise agreed by the Investor.
The Investor will be not be required to purchase shares in excess of 19.99% of our issued and outstanding shares as of the date
of the equity purchase agreement, subject to certain limited exceptions. If the market price of our common stock is below $0.25,
the Investor&rsquo;s obligation to purchase shares will automatically be suspended unless waived by the Investor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">In addition to the regular purchases described
above, if we have delivered a purchase notice by 9&nbsp;am on the date of purchase, we may direct the Investor to make additional
purchases on the same date as set forth 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">(a)</P>

<P STYLE="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 require the Investor to purchase up to 1.5 times the
amount of the shares traded between 7&nbsp;am and 9:15&nbsp;am, provided that the amount of such additional purchases will not
exceed $2,250,000, unless waived by the Investor, subject to a 9.99% affiliate blocker. The price of such additional purchases
will be equal to the lesser of: (i)&nbsp;95% of the VWAP on the day of the additional purchase and (ii) the closing price of our
common stock on the day of the additional purchase. We may increase the number of the additional shares to be purchased if agreed
by the Investor; or</P>

<P STYLE="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)</P>

<P STYLE="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 direct the Investor to accept an additional purchase
on the purchase date calculated by reference to the anticipated daily volume, or ADV, of our common stock on the purchase date.
If by 10&nbsp;am on the purchase date the ADV* is greater than two times the 30-day average volume, we can direct the Investor
to purchase additional shares in the following breakdown, provided that the amount of additional purchases will not exceed $2,250,000,
unless waived by the Investor:</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="CENTER" STYLE="font: 10pt Times New Roman, Times, Serif; width: 40%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 1%; border-bottom: white 1pt solid; text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 42%; border-bottom: black 1pt solid; padding-bottom: 2.5pt; text-align: center"><FONT STYLE="font-size: 10pt"><B>ADV
    </B></FONT></TD>
    <TD NOWRAP STYLE="width: 4%; border-bottom: white 1pt solid; text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 4%; border-bottom: white 1pt solid; text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 48%; border-bottom: black 1pt solid; padding-bottom: 2.5pt; text-align: center"><FONT STYLE="font-size: 10pt"><B>Additional
    Shares </B></FONT></TD>
    <TD NOWRAP STYLE="width: 1%; border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-top: 3.25pt; padding-right: 0.5pt; padding-bottom: 1.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&gt;3.00x
    and &lt;6x </FONT></TD>
    <TD NOWRAP STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-top: 3.25pt; padding-right: 0.5pt; padding-bottom: 1.5pt; text-align: right"><FONT STYLE="font-size: 10pt">20%
    of ADV </FONT></TD>
    <TD NOWRAP STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD NOWRAP STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-top: 3.5pt; padding-right: 0.5pt; padding-bottom: 1.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&gt;6.01x
    </FONT></TD>
    <TD NOWRAP STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-top: 3.5pt; padding-right: 0.5pt; padding-bottom: 1.5pt; text-align: right"><FONT STYLE="font-size: 10pt">25%
    of ADV </FONT></TD>
    <TD NOWRAP STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">The purchase price of the additional purchases
will be equal to the lesser of: (i)&nbsp;95% of the VWAP on the purchase date and (ii) the closing price of our common stock on
the additional purchase date.</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;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><I>*ADV will be calculated by comparing minute-by-minute volume
between 9:30am and 10:00am on the Purchase Date to the average minute-by-minute volume for the previous 30&nbsp;days and using
that difference as a coefficient for an ADV amount. </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"><I>Example: 30-day average daily volume is 1,000 shares. Average
30-day volume between 9:30am and 10:00am is 100 shares. Assuming that on the purchase date, the 9:30am-10:00am volume is 700 shares.
ADV = 7x. Additional purchases can be in the amount of 1,000 x 7 x 25% = 1,750 shares.</I></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; text-indent: 0.5in; background-color: white">We estimate that the total gross proceeds from this offering
will be approximately $8.0&nbsp;million. We estimate the total expenses of this offering, excluding the discount to the Investor,
will be approximately $0.6&nbsp;million of which $0.4&nbsp;million will be paid in stock. As consideration for the Investor entering
into the Equity Purchase Agreement, we have agreed to pay to the Investor a commitment fee in shares of our common stock, or the
Commitment Shares, equal in value to 5.25% of the total Aggregate Amount, payable as follows: 1.75% before February&nbsp;12, 2018;
1.75% on the third calendar day after the date on which this registration statement is declared effective by the SEC; and 1.75%
on the thirtieth calendar day after the date on which this registration statement is declared effective by the SEC. If we fail
to deliver the Commitment Shares within one business day of the date on which they are due under the Equity Purchase Agreement,
we will be required to pay the Investor liquidated damages in an amount equal to $10,000 plus an additional $1,000 per day until
the Commitment Shares are delivered. We also agreed to provide &ldquo;most favored nation&rdquo; status to the Investor with respect
to other equity offerings until the date on which this registration statement is declared effective by the SEC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">We have agreed to pay to the Investor, on
each day the Investor receives a capital call from us, all expenses associated with depositing, clearing, selling and mailing
of the stock certificates, a fee of 0.75% of any amount purchased by the Investor. In addition, we have agreed to reimburse $35,000
to the Investor for a documentation fee for preparing the equity purchase agreement, of which $15,000 was refunded by the Investor
60&nbsp;days after the signing of the equity purchase agreement. We are also required to pay liquidated damages of&thinsp; $100,000
on each event of default under the Equity Purchase Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">The Investor may be deemed to be an &ldquo;underwriter&rdquo;
within the meaning of the Securities Act and any broker-dealers or agents that are involved in selling the shares may also be
deemed to be &ldquo;underwriters&rdquo; within the meaning of the Securities Act in connection with such sales. In such event,
any commissions received by such broker-dealers or agents and any profit on the resale of the shares purchased by them may be
deemed to be underwriting commissions or discounts under the Securities Act. Because the Investor may be an &ldquo;underwriter&rdquo;
within the meaning of the Securities Act, the Investor will be subject to the prospectus delivery requirements of the Securities
Act. This prospectus may be made available and distributed to investors in electronic format.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">Under applicable rules and regulations under
the Exchange Act, any person engaged in the distribution of the resale securities may not simultaneously engage in market making
activities with respect to the common stock for the applicable restricted period, as defined in Regulation&nbsp;M, prior to the
commencement of the distribution. In addition, the Investor will be subject to applicable provisions of the Exchange Act and the
rules and regulations thereunder, including Regulation&nbsp;M, which may limit the timing of purchases and sales of securities
of the common stock by the Investor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="pi_019"></A><B>LEGAL 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; text-indent: 0.5in; background-color: white">The validity of the common stock offered hereby will be passed
upon for us by Goodwin Procter LLP, New York, New York.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="pi_020"></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; text-indent: 0.5in; background-color: white">The consolidated financial statements of
Precipio, Inc. (formerly Transgenomic, Inc.) as of and for the years ended December 31, 2017 and 2016 appearing in our Annual
Report on Form 10-K filed for the year ended December 31, 2017, have been audited by Marcum LLP, independent registered public
accounting firm, to the extent and period as set forth in their report thereon, and incorporated herein by reference in reliance
upon such report given on the authority of such firm as experts in accounting and auditing.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="pi_021"></A><B>WHERE YOU CAN FIND MORE 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; text-indent: 0.5in; background-color: white">We have filed with the SEC a registration statement on Form
S-1 under the Securities Act that registers the shares of our common stock to be sold in this offering. This prospectus does not
contain all of the information set forth in the registration statement and the exhibits and schedules filed as part of the registration
statement. For further information with respect to us and our common stock, we refer you to the registration statement and the
exhibits and schedules filed as a part of the registration statement. Statements contained in this prospectus concerning the contents
of any contract or any other document are not necessarily complete. If a contract or document has been filed as an exhibit to
the registration statement, we refer you to the copy of the contract or document that has been filed. Each statement in this prospectus
relating to a contract or document filed as an exhibit is qualified in all respects by the filed exhibit. The reports and other
information we file with the SEC can be read and copied at the SEC&rsquo;s Public Reference Room at 100 F Street, NE, Washington
D.C. 20549. Copies of these materials can be obtained at prescribed rates from the Public Reference Section of the SEC at the
principal offices of the SEC, 100 F Street, NE, Washington D.C. 20549. You may obtain information regarding the operation of the
public reference room by calling 1(800) SEC-0330. The SEC also maintains a web site (http://www.sec.gov) that contains reports,
proxy and information statements and other information regarding issuers like us that file electronically with the SEC.</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; text-indent: 0.5in; background-color: white">We are required to file annual, quarterly and current reports
and other information with the SEC under the Securities Exchange Act of 1934, as amended. These periodic reports, proxy statements
and other information will be available for inspection and copying at the SEC&rsquo;s public reference room and the web site of
the SEC referred to above.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="pi_022"></A><B>MARKET AND INDUSTRY DATA AND FORECASTS</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; text-indent: 0.5in; background-color: white">Market data and certain industry data and forecasts included
in this prospectus were obtained from internal company surveys, market research, publicly available information, reports of governmental
agencies and industry publications and surveys. We have relied upon industry publications as our primary sources for third-party
industry data and forecasts. Industry surveys, publications and forecasts generally state that the information contained therein
has been obtained from sources believed to be reliable, but that the accuracy and completeness of such information is not guaranteed.
We have not independently verified any of the data from third-party sources, nor have we ascertained the underlying economic assumptions
relied upon therein. Similarly, internal surveys, industry forecasts and market research, which we believe to be reliable based
upon our management&rsquo;s knowledge of the industry, have not been independently verified. Forecasts are particularly likely
to be inaccurate, especially over long periods of time. In addition, we do not know what assumptions regarding general economic
growth were used in preparing the forecasts we cite. Statements as to our market position are based on recently available data.
While we are not aware of any misstatements regarding our industry data presented herein, our estimates involve risks and uncertainties
and are subject to change based on various factors, including those discussed under &ldquo;Risk Factors&rdquo; in this prospectus.
While we believe our internal business research is reliable and market definitions are appropriate, neither such research nor
definitions have been verified by any independent source. This prospectus may only be used for the purpose for which it has been
published.</P>

<P STYLE="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="pi_023"></A><B>INCORPORATION OF CERTAIN INFORMATION
BY REFERENCE</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">This prospectus omits some information
contained in the registration statement in accordance with SEC rules and regulations. You should review the information and exhibits
included in the registration statement of which this prospectus is a part for further information about us and the securities
we are offering. Statements in this prospectus concerning any document we filed as an exhibit to the registration statement or
that we otherwise filed with the SEC are not intended to be comprehensive and are qualified by reference to these filings. You
should review the complete document to evaluate these statements.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">The SEC allows us to &ldquo;incorporate
by reference&rdquo; information we file with it, which means that we can disclose important information to you by referring you
to other documents. The information incorporated by reference is considered to be a part of this prospectus. Information contained
in this prospectus supersedes information incorporated by reference that we have filed with the SEC prior to the date of this
prospectus.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">We incorporate by reference the following
documents listed below (excluding any document or portion thereof to the extent such disclosure is furnished and not filed):</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD><TD><FONT STYLE="font-size: 10pt">Our Annual Report on Form&nbsp;10-K&nbsp;for
the fiscal year ended December&nbsp;31, 2017, filed with the SEC on April&nbsp;13, 2018;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&bull;</TD><TD>Our Current Report on Form&nbsp;8-K&nbsp;filed with
the SEC on March&nbsp;30, 2018, March 21, 2018, March 14, 2018, February 26, 2018, February 13, 2018, February 9, 2018, January
31, 2018, and June 30, 2017; and</TD>
</TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&bull;</TD><TD>The portions of our definitive proxy statement on Schedule
14A relating to our 2018 Annual Meeting of Stockholders, as filed with the SEC on March&nbsp;21, 2018 that are deemed &ldquo;filed&rdquo;
with the SEC under the Exchange Act.</TD>
</TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&bull;</TD><TD>Our quarterly 10-Q report for the second and third
quarter ended June, 30, 2017 and September 30, 2017 filed with the SEC on August 22, 2017 and November 20, 2017.</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-indent: 0.5in; background-color: white">In addition, we hereby incorporate by
reference into this prospectus all documents that we file with the SEC under Sections 13(a), 13(c), 14, or 15(d) of the Exchange
Act after the effective date of this Registration Statement and before we terminate the offering under this prospectus. These
documents include periodic reports, such as annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on
Form 8-K (other than current reports or portions thereof furnished under Items 2.02 or 7.01 of Form 8-K, unless specifically incorporated
herein), as well as proxy statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&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; text-indent: 0.5in; background-color: white">We will provide without charge to each
person, including any beneficial owner, to whom a copy of this prospectus is delivered, upon written or oral request, a copy of
any or all of the foregoing documents which we incorporate by reference in this prospectus (not including exhibits to such documents
unless such exhibits are specifically incorporated by reference to such documents). Requests should be directed to:</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0">4 Science Park </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0">New Haven, CT 06511</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0">(203)&nbsp;787-7888</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">A copy of any or all of the foregoing
documents which we incorporate by reference in this prospectus may be accessed on our corporate web site at&nbsp;<U>http://www.precipiodx.com</U>&nbsp;(Click
the &ldquo;Investors&rdquo; link and then the &ldquo;SEC Filings&rdquo; link).</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Until&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2018 (25 days after commencement of this offering), all dealers that buy, sell, or trade shares of our common stock, whether or
not participating in this offering, may be required to deliver a prospectus. This delivery requirement is in addition to the obligation
of dealers to deliver a prospectus when acting as underwriters and with respect to their unsold allotments or subscriptions.</P>

<P STYLE="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"><B>&nbsp;</B></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0"><IMG SRC="tv491047_img1.jpg" ALT=""></P>

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

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

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2018</B></P>

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


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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item&nbsp;13. <I>Other Expenses of Issuance and Distribution</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 following table sets forth all expenses, other than the
underwriting discounts and commissions, payable by the registrant in connection with the sale of the common stock being registered.
All the amounts shown are estimates except the SEC registration fee and the FINRA filing 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: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt">&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"><FONT STYLE="font-size: 10pt"><B>Total</B></FONT></TD><TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 87%; text-align: left; text-indent: -10pt; padding-left: 10pt">SEC registration fee</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-size: 10pt">[____</FONT></TD><TD STYLE="width: 1%; text-align: left">]</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">FINRA filing fee</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">*</FONT></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; text-indent: -10pt; padding-left: 10pt">NASDAQ listing fee</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Printing and engraving expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">*</FONT></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; text-indent: -10pt; padding-left: 10pt">Legal fees and expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Accounting fees and expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">*</FONT></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; text-indent: -10pt; padding-left: 10pt">Transfer agent and registrar fees</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt; text-indent: -10pt; padding-left: 10pt">Miscellaneous</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">*</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD STYLE="font-size: 1pt">&nbsp;</TD>
    <TD STYLE="font-size: 1pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 1pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 9pt; padding-bottom: 2.5pt">Total</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double">$</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double"><FONT STYLE="font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">&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">* To be provided by amendment</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item&nbsp;14. <I>Indemnification of Directors and Officers</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">Section&nbsp;145(a) of the Delaware General Corporation Law
(the &ldquo;DGCL&rdquo;) provides, in general, that a corporation shall have the power to indemnify any person who was or is a
party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal,
administrative or investigative (other than an action by or in the right of the corporation), by reason of the fact he or she
is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as
a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against
expenses (including attorneys&rsquo; fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by
the person in connection with such action, suit or proceeding, if he or she acted in good faith and in a manner he or she reasonably
believed to be in or not opposed to the best interests of the corporation and, with respect to any criminal action or proceeding,
had no reasonable cause to believe his or her conduct was unlawful.</P>

<P STYLE="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(b) of the DGCL provides, in general, that a corporation
shall have the power to indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending
or completed action or suit by or in the right of the corporation to procure a judgment in its favor because the person is or
was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as a director,
officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses (including
attorneys&rsquo; fees) actually and reasonably incurred by the person in connection with the defense or settlement of such action
or suit if he or she acted in good faith and in a manner he or she reasonably believed to be in or not opposed to the best interests
of the corporation, except that no indemnification shall be made with respect to any claim, issue or matter as to which he or
she shall have been adjudged to be liable to the corporation unless and only to the extent that the Court of Chancery or other
adjudicating court determines that, despite the adjudication of liability but in view of all of the circumstances of the case,
he or she is fairly and reasonably entitled to indemnity for such expenses which the Court of Chancery or other adjudicating court
shall deem proper.</P>

<P STYLE="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(g) of the DGCL provides, in general, that a corporation
shall have the power to purchase and maintain insurance on behalf of any person who is or was a director, officer, employee or
agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee or agent of
another corporation, partnership, joint venture, trust or other enterprise against any liability asserted against such person
and incurred by such person in any such capacity, or arising out of his or her status as such, whether or not the corporation
would have the power to indemnify the person against such liability under Section 145 of the DGCL.</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">Section 9.1 of Article IX of the Registrant&rsquo;s Third Amended
and Restated Certificate of Incorporation, as amended to date (the &ldquo;Certificate of Incorporation&rdquo;), and Section 1
of Article V of the Registrant&rsquo;s Amended and Restated Bylaws, as amended to date (the &ldquo;Bylaws&rdquo;) provide that
each person who was or is made a party or is threatened to be made a party to or is otherwise involved in any action, suit or
proceeding, whether civil, criminal, administrative or investigative (hereinafter a &ldquo;proceeding&rdquo;), by reason of the
fact that he or she is or was a director or officer of the Registrant or is or was serving at the request of the Registrant as
a director or officer of another corporation or of a partnership, joint venture, trust or other enterprise, including service
with respect to employee benefit plans (hereinafter an &ldquo;indemnitee&rdquo;), whether the basis of such proceeding is alleged
action in an official capacity as a director or officer or in any other capacity while serving as a director or officer, shall
be indemnified and held harmless by the Registrant to the fullest extent authorized by the General Corporation Law of the State
of Delaware, as the same exists or may thereafter be amended (but, in the case of any such amendment, only to the extent that
such amendment permits the Registrant to provide broader indemnification rights than such law permitted the Registrant to provide
prior to such amendment), against all expense, liability and loss (including attorneys&rsquo; fees, judgments, fines, excise taxes
or penalties and amounts paid in settlement) reasonably incurred or suffered by such indemnitee in connection therewith and that
such indemnification shall continue as to an indemnitee who has ceased to be a director or officer and shall inure to the benefit
of the indemnitee&rsquo;s heirs, executors and administrators; provided, however, that, except as otherwise provided in the Certificate
of Incorporate or Bylaws, as applicable, the Registrant will indemnify any such indemnitee in connection with a proceeding initiated
by such indemnitee only if such proceeding was authorized by the Board of Directors of the Registrant. The right to indemnification
conferred by the Certificate of Incorporation and Bylaws is a contract right and includes the right to be paid by the Registrant
the expenses incurred in defending any such proceeding in advance of its final disposition (hereinafter an &ldquo;advancement
of expenses&rdquo;); and provided, further, that, if the General Corporation Law of the State of Delaware requires it, an advancement
of expenses incurred by an indemnitee shall be made only upon delivery to the Registrant of an undertaking, by or on behalf of
such indemnitee, to repay all amounts so advanced if it shall ultimately be determined by final judicial decision from which there
is no further right to appeal that such indemnitee is not entitled to be indemnified for such expenses under the Certificate of
Incorporation or Bylaws, as applicable, or otherwise (hereinafter an &ldquo;undertaking&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">Section 9.2 of Article IX of the Certificate of Incorporation
and Section 2 of Article V of the Bylaws provide that if a claim under Section 9.1 of Article IX of the Certificate of Incorporation
or under Section 1 of Article V of the Bylaws, as applicable, is not paid in full by the Registrant within sixty (60) days after
a written claim has been received by the Registrant, except in the case of a claim for an advancement of expenses, in which case
the applicable period shall be twenty (20) days, the indemnitee may at any time thereafter bring suit against the Registrant to
recover the unpaid amount of the claim. If successful in whole or part in any such suit, the indemnitee shall be entitled to be
paid also the expense of prosecuting or defending such suit. In any suit brought by the indemnitee to enforce a right to indemnification
hereunder (but not in a suit brought by the indemnitee to enforce a right to an advancement of expenses), it shall be a defense
that the indemnitee has not met the applicable standard of conduct set forth in the General Corporation Law of the State of Delaware.
Likewise, in any suit by the Registrant to recover an advancement of expenses pursuant to the terms of an undertaking, the Registrant
shall be entitled to recover such expenses upon a final adjudication that the indemnitee has not met such standards. Neither the
failure of the Registrant (including its Board of Directors, independent legal counsel or its stockholders) to have made a determination
prior to the commencement of such suit that indemnification of the indemnitee is proper in the circumstances because the indemnitee
has met the applicable standard of conduct set forth in the General Corporation Law of the State of Delaware, nor an actual determination
by the Registrant (including its Board of Directors, independent legal counsel or its stockholders) that the indemnitee has not
met such applicable standard of conduct, shall create a presumption that the indemnitee has not met the applicable standard of
conduct or, in the case of such a suit brought by indemnitee, be a defense to such suit. In any suit brought by the indemnitee
to enforce a right under such indemnification provisions of the Certificate of Incorporation or Bylaws, as applicable, or by the
Registrant to recover an advancement of expenses pursuant to the terms of an undertaking, the burden of proving that the indemnitee
is not entitled to be indemnified or to such advancement of expenses shall be on the Registrant.</P>

<P STYLE="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 Registrant has entered into indemnification agreements
with each of its directors and executive officers, in addition to the indemnification provisions provided for in its charter documents,
and the Registrant intends to enter into indemnification agreements with any new directors and executive officers 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">The Registrant also maintains a directors&rsquo; and officers&rsquo;
liability insurance policy that insures the Registrant&rsquo;s directors and officers against such liabilities as are customarily
covered by such policies.</P>

<P STYLE="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&nbsp;15. <I>Recent Sales of Unregistered Securities</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 issued&nbsp;unregistered&nbsp;securities&nbsp;in connection
with the Merger as previously disclosed and included in our 10-Q filed on August 22, 2017, November 20, 2017, and 8-K filed on
June 30, 2017.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item&nbsp;16. <I>Exhibits and Financial Statement Schedules</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>(a)&nbsp;Exhibits. </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 exhibits to the registration statement are listed in the
Exhibit Index to this registration statement and are incorporated herein by reference.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>(b)&nbsp;Financial Statement Schedule. </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">None.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><B>Item&nbsp;17. <I>Undertakings</I></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 undersigned registrant hereby undertakes:</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-indent: 1in; text-align: left">(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
file, during any period in which offers or sales are being made, a post-effective amendment 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 0pt 112.2pt; text-indent: 0.3pt">(i)&nbsp;&nbsp;&nbsp;To include any prospectus
required by Section 10(a)(3) of 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 0pt 112.2pt; text-indent: 0.3pt">(ii)&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 SEC 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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 112.2pt; text-indent: 0pt">(iii) 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;</P>

<P STYLE="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: 1in"><I>Provided, however</I>, that paragraphs
(a)(1)(i), (a)(1)(ii) and (a)(1)(iii) 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 SEC by the registrant pursuant to Section 13 or 15(d)
of the Exchange Act that are incorporated by reference in the 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; text-indent: 1in">(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;That,
for the purpose of determining any liability under the Securities Act, 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 <I>bona fide</I> 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; text-indent: 1in">(3)&nbsp;&nbsp;&nbsp;&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">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
13(a) or Section 15(d) of the Exchange Act (and, where applicable, each filing of an employee benefit plan&rsquo;s annual report
pursuant to Section 15(d) of the 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 therein, and the offering of such securities at that time
shall be deemed to be the initial <I>bona fide</I> 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 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 Securities 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 Securities Act and will be governed by the final adjudication of such issue.</P>

<P STYLE="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 Registrant hereby undertakes that:</P>

<P STYLE="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) The Registrant will provide to the underwriter at the closing
as specified in the underwriting agreement, certificates in such denominations and registered in such names as required by the
underwriter to permit prompt delivery to each 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">(b) For purposes of determining any liability under the Securities
Act, the information omitted from the form of prospectus filed as part of this registration statement in reliance upon Rule 430A
and contained in a form of prospectus filed by the Registrant pursuant to Rule 424(b)(1) or (4)&nbsp;or 497(h) under the Securities
Act shall be deemed to be part of this registration statement as of the time it was declared effective.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(c) For the purpose of determining any liability under the
Securities Act each post-effective amendment that contains a form of prospectus 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>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SIGNATURES</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">Pursuant to the requirements of the Securities Act of 1933,
as amended, the Registrant has duly caused this Registration Statement on Form S-1 to be signed on its behalf by the undersigned,
thereunto duly authorized, on the 13<SUP>th</SUP> day of April, 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">PRECIPIO, INC.</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; width: 50%">&nbsp;</TD>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 45%">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">By:</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: Black 1pt solid">/s/
    Ilan Danieli&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 10pt">Ilan Danieli</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 10pt">Chief Executive Officer</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>POWER OF ATTORNEY</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 person whose individual signature appears below hereby
authorizes and appoints Ilan Danieli and Carl Iberger, and each of them, with full power of substitution and resubstitution and
full power to act without the other, as his or her true and lawful attorney in fact and agent to act in his or her name, place
and stead and to execute in the name and on behalf of each person, individually and in each capacity stated below, and to file
any and all amendments to this Registration Statement, including any and all post effective amendments and amendments thereto,
and any registration statement relating to the same offering as this Registration Statement that is to be effective upon filing
pursuant to Rule 462(b) under the Securities Act of 1933, as amended, and to file the same, with all exhibits thereto, and other
documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys in fact and agents,
and each of them, full power and authority to do and perform each and every act and thing, ratifying and confirming all that said
attorneys in fact and agents or any of them or their or his substitute or substitutes may lawfully do or cause to be done by virtue
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">Pursuant to the requirements of the Securities Act of 1933,
as amended, this Registration Statement has been signed by the following persons in the capacities indicated below on the 13<SUP>th
</SUP>day of April, 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: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; width: 28%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Signature</B></P></TD>
    <TD STYLE="padding-bottom: 1pt; width: 1%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; width: 40%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Title</B></P></TD>
    <TD STYLE="text-align: center; padding-bottom: 1pt; width: 1%">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; width: 30%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Date</B></P></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD NOWRAP>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD NOWRAP>&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">/s/ Ilan Danieli</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">Chief Executive Officer and Director (Principal </FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 10pt">April 13, 2018</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 1pt; border-top: black 0.75pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Ilan Danieli</P></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top">Executive Officer)</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">/s/ Carl Iberger</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">Chief Financial Officer (Principal Financial</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 10pt">April 13, 2018</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 1pt; border-top: black 0.75pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Carl Iberger</P></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top">Officer and Principal
    Accounting Officer)</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">/s/ Samuel Riccitelli</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">Chairman of the Board of Directors</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 10pt">April 13, 2018</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 1pt; border-top: black 0.75pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Samuel Riccitelli</P></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">/s/ Michael A. Luther</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">Director</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 10pt">April 13, 2018</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 1pt; border-top: black 0.75pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Michael A. Luther</P></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">/s/ Mark Rimer</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">Director</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 10pt">April 13, 2018</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 1pt; border-top: black 0.75pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Mark Rimer</P></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">/s/ Douglas Fisher, M.D.</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">Director</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; text-align: center">April 13, 2018</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 1pt; border-top: black 0.75pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Douglas Fisher, M.D.</P></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">/s/ Jeffrey Cossman, M.D.</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">Director</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; text-align: center">April 13, 2018</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 1pt; border-top: black 0.75pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Jeffrey Cossman, M.D.</P></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">/s/ David Cohen</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">Director</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; text-align: center">April 13, 2018</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 1pt; border-top: black 0.75pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">David Cohen</P></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;&nbsp;</P>

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    <!-- Field: /Page -->

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

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



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: red; 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="vertical-align: top; text-align: center; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><B>Exhibit
                                         No.</B></P>


</TD>
    <TD STYLE="vertical-align: top; text-align: center; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0pt; text-align: center; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 0pt; text-align: center; border-bottom: Black 1pt solid"><B>Exhibit
    Title</B></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; width: 10%; text-align: center"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000114420416127921/v450427_ex2-1.htm" STYLE="-sec-extract: exhibit">2.1</A></TD>
    <TD STYLE="vertical-align: top; width: 1%; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 1%; padding-left: 0pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 88%; padding-right: 3pt; padding-left: 0pt; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000114420416127921/v450427_ex2-1.htm" STYLE="-sec-extract: exhibit">Agreement
    and Plan of Merger, dated October 12, 2016 by and among Transgenomic, Inc., New Haven Labs Inc. and Precipio Diagnostics,
    LLC (incorporated by reference to Exhibit 2.1 of the Company&rsquo;s Form 8-K filed on October 13, 2016).</A></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000114420417005965/v458392_ex2-1.htm" STYLE="-sec-extract: exhibit">2.2</A></TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 0pt; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000114420417005965/v458392_ex2-1.htm" STYLE="-sec-extract: exhibit">First
    Amendment to Agreement and Plan of Merger, dated as of February 3, 2017 by and among Transgenomic, Inc., New Haven Labs Inc.
    and Precipio Diagnostics, LLC (incorporated by reference to Exhibit 2.1 of the Company&rsquo;s Form 8-K filed on February
    2, 2017).</A></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000114420417035081/v470091_ex2-1.htm" STYLE="-sec-extract: exhibit">2.3</A></TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 0pt; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000114420417035081/v470091_ex2-1.htm" STYLE="-sec-extract: exhibit">Second
    Amendment to Agreement and Plan of Merger, dated as of June 27, 2017 by and among Transgenomic, Inc., New Haven Labs Inc.
    and Precipio Diagnostics, LLC (incorporated by reference to Exhibit 2.1 of the Company&rsquo;s Form 8-K filed on June 30,
    2017).</A></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000114420417035085/v470106_ex3-1.htm" STYLE="-sec-extract: exhibit">3.1</A></TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 0pt; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000114420417035085/v470106_ex3-1.htm" STYLE="-sec-extract: exhibit">Third
    Amended and Restated Certificate of Incorporation, as amended (incorporated by reference to Exhibit 3.1 of the Company&rsquo;s
    8-K filed on June 30, 2017).</A></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000114420417035085/v470106_ex3-2.htm" STYLE="-sec-extract: exhibit">3.2</A></TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 0pt; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000114420417035085/v470106_ex3-2.htm" STYLE="-sec-extract: exhibit">Amended
    and Restated Bylaws (incorporated by reference to Exhibit 3.2 of the Company&rsquo;s Form 8-K filed on June 30, 2017).</A></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000114420417035085/v470106_ex3-3.htm" STYLE="-sec-extract: exhibit">3.3</A></TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 0pt; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000114420417035085/v470106_ex3-3.htm" STYLE="-sec-extract: exhibit">Certificate
    of Elimination (incorporated by reference to Exhibit 3.3 of the Company&rsquo;s Form 8-K filed on June 30, 2017).</A></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000119312517274394/d449841dex31.htm" STYLE="-sec-extract: exhibit">3.4</A></TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 0pt; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000119312517274394/d449841dex31.htm" STYLE="-sec-extract: exhibit">Certificate
    of Designation for Series B Preferred Stock (incorporated by reference to Exhibit 3.1 of the Company&rsquo;s Form 8-K filed
    on August 31, 2017).</A></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000119312517332004/d486748dex31.htm" STYLE="-sec-extract: exhibit">3.5</A></TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 0pt; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000119312517332004/d486748dex31.htm" STYLE="-sec-extract: exhibit">Certificate
    of Designation for Series C Preferred Stock (incorporated by reference to Exhibit 3.1 of the Company&rsquo;s Form 8-K filed
    on November 6, 2017).</A></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000091205700010980/0000912057-00-010980.txt" STYLE="-sec-extract: exhibit">4.1</A></TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 0pt; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000091205700010980/0000912057-00-010980.txt" STYLE="-sec-extract: exhibit">Form
    of Certificate of the Company&rsquo;s Common Stock (incorporated by reference to Exhibit 4 of the Company&rsquo;s Registration
    Statement on Form S-1 (Registration No. 333-32174) filed on March 10, 2000).</A></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000119312517265098/d411884dex41.htm" STYLE="-sec-extract: exhibit">4.2</A></TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 0pt; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000119312517265098/d411884dex41.htm" STYLE="-sec-extract: exhibit">Form
    of Offering Warrant (incorporated by reference to Exhibit 4.1 of the Company&rsquo;s Form 8-K filed on August 23, 2017).</A></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000119312517265098/d411884dex42.htm" STYLE="-sec-extract: exhibit">4.3</A></TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 0pt; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000119312517265098/d411884dex42.htm" STYLE="-sec-extract: exhibit">Form
    of Underwriter Warrant (incorporated by reference to Exhibit 4.2 of the Company&rsquo;s Form 8-K filed on August 23, 2017).</A></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000119312517265098/d411884dex43.htm" STYLE="-sec-extract: exhibit">4.4</A></TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 0pt; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000119312517265098/d411884dex43.htm" STYLE="-sec-extract: exhibit">Form
    of Conversion Warrant (incorporated by reference to Exhibit 4.3 of the Company&rsquo;s Form 8-K filed on August 23, 2017).</A></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000119312517334319/d423153dex41.htm" STYLE="-sec-extract: exhibit">4.5</A></TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 0pt; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000119312517334319/d423153dex41.htm" STYLE="-sec-extract: exhibit">Form
    of Warrant (incorporated by reference to Exhibit 4.1 of the Company&rsquo;s Form 8-K filed on November 6, 2017).</A></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000119312517340908/d461336dex41.htm" STYLE="-sec-extract: exhibit">4.6</A></TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 0pt; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000119312517340908/d461336dex41.htm" STYLE="-sec-extract: exhibit">Form
    of Warrant (incorporated by reference to Exhibit 4.1 of the Company&rsquo;s Form 8-K filed on November 13, 2017).</A></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center">5.1***</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 0pt; text-align: justify"><P STYLE="margin: 0pt 0">Opinion
                                         of Goodwin Procter LLP</P>


</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000119312509225751/dex101.htm" STYLE="-sec-extract: exhibit">10.1</A></TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 0pt; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000119312509225751/dex101.htm" STYLE="-sec-extract: exhibit">License
    Agreement between the Company and Dana-Farber Cancer Institute dated October 8, 2009 (incorporated by reference to Exhibit
    10.1 of the Company&rsquo;s Form 10-Q filed on November 5, 2009).</A></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000114420417002477/v457058_ex10-1.htm" STYLE="-sec-extract: exhibit">10.2</A></TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 0pt; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000114420417002477/v457058_ex10-1.htm" STYLE="-sec-extract: exhibit">Waiver
    Letter Agreement by and among the Company, Potomac Capital Partners, L.P., MAZ Partners, LP, David Wambeke and Craig-Hallum
    Capital Group, LLC dated as of January 10, 2017 (incorporated by reference to Exhibit 10.1 of the Company&rsquo;s Form 8-K
    filed on January 17, 2017).</A></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000114420417003207/v457303_ex10-1.htm" STYLE="-sec-extract: exhibit">10.3</A></TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 0pt; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000114420417003207/v457303_ex10-1.htm" STYLE="-sec-extract: exhibit">First
    Amendment to Unsecured Convertible Promissory Note by and among the Company and MAZ Partners LP, dated as of January 17, 2017
    (incorporated by reference to Exhibit 10.1 of the Company&rsquo;s Form 8-K filed on January 20, 2017).</A></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000114420417005965/v458392_ex10-1.htm" STYLE="-sec-extract: exhibit">10.4</A></TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 0pt; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000114420417005965/v458392_ex10-1.htm" STYLE="-sec-extract: exhibit">Termination
    and Tenth Amendment to Loan and Security Agreement, dated as of February 3, 2017, by and among Third Security Senior Staff
    2008 LLC, as administrative agent and a lender, the other lenders party thereto and the Company (incorporated by reference
    to Exhibit 10.1 of the Company&rsquo;s Form 8-K filed on February 2, 2017).</A></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000114420417005965/v458392_ex10-2.htm" STYLE="-sec-extract: exhibit">10.5</A></TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 0pt; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000114420417005965/v458392_ex10-2.htm" STYLE="-sec-extract: exhibit">Promissory
    Note, dated February 2, 2017 between the Company and Precipio Diagnostics, LLC (incorporated by reference to Exhibit 10.2
    of the Company&rsquo;s Form 8-K filed on February 3, 2017).</A></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000114420417020598/v464291_ex10-1.htm" STYLE="-sec-extract: exhibit">10.6</A></TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 0pt; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000114420417020598/v464291_ex10-1.htm" STYLE="-sec-extract: exhibit">Securities
    Purchase Agreement, dated as of April 13, 2017 by and between the Company and the investors set forth on Schedule A attached
    thereto (incorporated by reference to Exhibit 10.1 of the Company&rsquo;s Form 8-K filed on April 17, 2017).</A></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000114420417020598/v464291_ex10-2.htm" STYLE="-sec-extract: exhibit">10.7</A></TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 0pt; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000114420417020598/v464291_ex10-2.htm" STYLE="-sec-extract: exhibit">Form
    of Promissory Note, issued by the Company to certain investors, dated as of April 13, 2017 (incorporated by reference to Exhibit
    10.2 to the Company&rsquo;s Form 8-K filed on April 17, 2017).</A></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000114420417020598/v464291_ex10-3.htm" STYLE="-sec-extract: exhibit">10.8</A></TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 0pt; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000114420417020598/v464291_ex10-3.htm" STYLE="-sec-extract: exhibit">Form
    of Warrant to Purchase Common Stock, issued by the Company to certain investors, dated as of April 13, 2017 (incorporated
    by reference to Exhibit 10.3 of the Company&rsquo;s Form 8-K filed on April 17, 2017).</A></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000114420417020598/v464291_ex10-4.htm" STYLE="-sec-extract: exhibit">10.9</A></TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 0pt; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000114420417020598/v464291_ex10-4.htm" STYLE="-sec-extract: exhibit">Precipio
    Diagnostics, LLC Subordinated Promissory Note, issued by Precipio to the Company, dated as of April 13, 2017 (incorporated
    by reference to Exhibit 10.4 of the Company&rsquo;s Form 8-K filed on April 17, 2017).</A></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000114420417020598/v464291_ex10-5.htm" STYLE="-sec-extract: exhibit">10.10</A></TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 0pt; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000114420417020598/v464291_ex10-5.htm" STYLE="-sec-extract: exhibit">Subordination
    Agreement, dated as of April 13, 2017, by and between the Company and Webster Bank, National Association (incorporated by
    reference to Exhibit 10.5 of the Company&rsquo;s Form 8-K filed on April 17, 2017).</A></TD></TR>
</TABLE>
<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">&nbsp;&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; width: 10%; text-align: center"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000114420417034456/v469847_ex10-1.htm" STYLE="-sec-extract: exhibit">10.11</A></TD>
    <TD STYLE="vertical-align: top; width: 1%; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 1%; padding-left: 0pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 88%; padding-right: 3pt; padding-left: 0pt; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000114420417034456/v469847_ex10-1.htm" STYLE="-sec-extract: exhibit">Side
    Letter to extend Maturity Date of Unsecured Convertible Promissory Note by and between the Company and MAZ Partners LP, dated
    as of June 21, 2017 (incorporated by reference to Exhibit 10.1 of the Company&rsquo;s Form 8-K filed on June 27, 2017).</A></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000114420417065873/tv482289_def14a.htm" STYLE="-sec-extract: exhibit">10.12&dagger;</A></TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 0pt; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000114420417065873/tv482289_def14a.htm" STYLE="-sec-extract: exhibit">Amended
    and Restated 2017 Stock Option and Incentive Plan (incorporated by reference to Annex D of the Company&rsquo;s Definitive
    Proxy Statement on Schedule 14A filed on December 29, 2017).</A></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000114420417034670/v469811_ex10-2.htm" STYLE="-sec-extract: exhibit">10.13&dagger;</A></TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 0pt; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000114420417034670/v469811_ex10-2.htm" STYLE="-sec-extract: exhibit">Form
    of Non-Qualified Stock Option Agreement for Non-Employee Directors (incorporated by reference to Exhibit 10.2 of the Company&rsquo;s
    Form 8-K filed on June 28, 2017).</A></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000114420417034670/v469811_ex10-3.htm" STYLE="-sec-extract: exhibit">10.14&dagger;</A></TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 0pt; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000114420417034670/v469811_ex10-3.htm" STYLE="-sec-extract: exhibit">Form
    of Non-Qualified Stock Option Agreement for Company Employees (incorporated by reference to Exhibit 10.3 of the Company&rsquo;s
    Form 8-K filed on June 28, 2017).</A></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000114420417034670/v469811_ex10-4.htm" STYLE="-sec-extract: exhibit">10.15&dagger;</A></TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 0pt; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000114420417034670/v469811_ex10-4.htm" STYLE="-sec-extract: exhibit">Form
    of Incentive Stock Option Agreement (incorporated by reference to Exhibit 10.4 of the Company&rsquo;s Form 8-K filed on June
    28, 2017).</A></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000114420417035081/v470091_ex10-1.htm" STYLE="-sec-extract: exhibit">10.16</A></TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 0pt; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000114420417035081/v470091_ex10-1.htm" STYLE="-sec-extract: exhibit">Securities
    Purchase Agreement with the Private Placement Purchasers (incorporated by reference to Exhibit 10.1 of the Company&rsquo;s
    Form 8-K filed on June 30, 2017).</A></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000114420417035081/v470091_ex10-2.htm" STYLE="-sec-extract: exhibit">10.17</A></TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 0pt; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000114420417035081/v470091_ex10-2.htm" STYLE="-sec-extract: exhibit">Investors&rsquo;
    Rights Agreement (incorporated by reference to Exhibit 10.2 of the Company&rsquo;s Form 8-K filed on June 30, 2017).</A></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000114420417035081/v470091_ex10-3.htm" STYLE="-sec-extract: exhibit">10.18</A></TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 0pt; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000114420417035081/v470091_ex10-3.htm" STYLE="-sec-extract: exhibit">Exchange
    Agreement (incorporated by reference to Exhibit 10.3 of the Company&rsquo;s Form 8-K filed on June 30, 2017).</A></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000114420417035081/v470091_ex10-4.htm" STYLE="-sec-extract: exhibit">10.19</A></TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 0pt; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000114420417035081/v470091_ex10-4.htm" STYLE="-sec-extract: exhibit">New
    Bridge Securities Purchase Agreement (incorporated by reference to Exhibit 10.4 of the Company&rsquo;s Form 8-K filed on June
    30, 2017).</A></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000114420417035081/v470091_ex10-5.htm" STYLE="-sec-extract: exhibit">10.20</A></TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 0pt; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000114420417035081/v470091_ex10-5.htm" STYLE="-sec-extract: exhibit">Form
    of New Bridge Promissory Note (incorporated by reference to Exhibit 10.5 of the Company&rsquo;s Form 8-K filed on June 30,
    2017).</A></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000114420417035081/v470091_ex10-6.htm" STYLE="-sec-extract: exhibit">10.21</A></TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 0pt; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000114420417035081/v470091_ex10-6.htm" STYLE="-sec-extract: exhibit">Form
    of New Bridge Warrant (incorporated by reference to Exhibit 10.6 of the Company&rsquo;s Form 8-K filed on June 30, 2017).</A></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000114420417035081/v470091_ex10-7.htm" STYLE="-sec-extract: exhibit">10.22</A></TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 0pt; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000114420417035081/v470091_ex10-7.htm" STYLE="-sec-extract: exhibit">Form
    of Side Warrant (incorporated by reference to Exhibit 10.7 of the Company&rsquo;s Form 8-K filed on June 30, 2017).</A></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000119312517242559/d385198dex101.htm" STYLE="-sec-extract: exhibit">10.23#</A></TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 0pt; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000119312517242559/d385198dex101.htm" STYLE="-sec-extract: exhibit">Amended
    and Restated Pathology Services Agreement, dated March 21, 2017, by and between the Company and Yale University (incorporated
    by reference to Exhibit 10.1 of the Company&rsquo;s Form 8-K/A filed on July 31, 2017).</A></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000119312517242559/d385198dex102.htm" STYLE="-sec-extract: exhibit">10.24</A></TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 3pt; padding-left: 0pt; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000119312517242559/d385198dex102.htm" STYLE="-sec-extract: exhibit">Lease,
    dated July 11, 2017, by and between the Company and Science Park Development Corporation (incorporated by reference to Exhibit
    10.2 of the Company&rsquo;s Form 8K/A filed on July 31, 2017).&nbsp;&nbsp;</A></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000119312517265098/d411884dex11.htm" STYLE="-sec-extract: exhibit">10.25</A></TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 0pt; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000119312517265098/d411884dex11.htm" STYLE="-sec-extract: exhibit">Underwriting
    Agreement, dated August 22, 2017, by and among the Company and the underwriters party thereto (incorporated by reference to
    Exhibit 1.1 of the Company&rsquo;s Form 8-K filed on August 23, 2017).</A></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000119312517332004/d486748dex101.htm" STYLE="-sec-extract: exhibit">10.26</A></TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 0pt; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000119312517332004/d486748dex101.htm" STYLE="-sec-extract: exhibit">Placement
    Agency Agreement, dated as of November 2, 2017, by and between Precipio, Inc. and Aegis Capital Corp. (incorporated by reference
    to Exhibit 10.1 of the Company&rsquo;s Form 8-K filed on November 3, 2017). &lsquo;</A></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000119312517334319/d423153dex101.htm" STYLE="-sec-extract: exhibit">10.27</A></TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 0pt; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000119312517334319/d423153dex101.htm" STYLE="-sec-extract: exhibit">Debt
    Settlement Agreement, dated October 31, 2017, by and among Precipio, Inc., the Creditors and Collateral Services, LLC (incorporated
    by reference to Exhibit 10.1 of the Company&rsquo;s Form 8-K filed on November 6, 2017).</A></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000119312517334319/d423153dex102.htm" STYLE="-sec-extract: exhibit">10.28</A></TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 0pt; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000119312517334319/d423153dex102.htm" STYLE="-sec-extract: exhibit">Security
    Agreement, dated October 31, 2017, by and between Precipio, Inc. and Collateral Services LLC, in its capacity as collateral
    agent for the Vendors (as defined therein) (incorporated by reference to Exhibit 10.2 of the Company&rsquo;s Form 8-K filed
    on November 6, 2017).</A></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000119312517340908/d461336dex101.htm" STYLE="-sec-extract: exhibit">10.29</A></TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 0pt; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1043961/000119312517340908/d461336dex101.htm" STYLE="-sec-extract: exhibit">Amendment,
    dated November 9, 2017, to Placement Agency Agreement, dated November 2, 2017, by and between Precipio, Inc. and Aegis Capital
    Corp. (incorporated by reference to Exhibit 10.1 of the Company&rsquo;s Form 8-K filed on November 13, 2017).</A></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center"><A HREF="tv491047_ex21-1.htm" STYLE="-sec-extract: exhibit">21.1*</A></TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 3pt; padding-left: 0pt; text-align: justify"><A HREF="tv491047_ex21-1.htm" STYLE="-sec-extract: exhibit">Subsidiaries of the Company.</A></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center"><A HREF="tv491047_ex23-1.htm" STYLE="-sec-extract: exhibit">23.1**</A></TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 3pt; padding-left: 0pt; text-align: justify"><A HREF="tv491047_ex23-1.htm" STYLE="-sec-extract: exhibit">Consent of Marcum LLP.</A></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;&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: 24.45pt">*</TD><TD>Furnished herewith.</TD></TR></TABLE>

<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: 24.45pt">**</TD><TD>Filed herewith.</TD></TR></TABLE>

<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: 24.45pt">***</TD><TD>To be filed by amendment.</TD></TR></TABLE>

<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: 24.45pt">&dagger;</TD><TD>Confidential treatment has been granted for portions of
                                         this Exhibit pursuant to Rule 24b-2 promulgated under the Securities Exchange Act of
                                         1934, as amended.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt; text-align: left">#</TD><TD STYLE="text-align: justify">Represents management
                                         contract or compensation plan, contract, or agreement.</TD>
</TR></TABLE>



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

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<DOCUMENT>
<TYPE>EX-21.1
<SEQUENCE>2
<FILENAME>tv491047_ex21-1.htm
<DESCRIPTION>EXHIBIT 21.1
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><B>Exhibit 21.1</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>SUBSIDIARIES OF REGISTRANT</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="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; text-align: center; font-size: 10pt">Name</TD>
    <TD STYLE="width: 50%; text-align: center; font-size: 10pt">State of Incorporation or Organization</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: center; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center; font-size: 10pt">Precipio Diagnostics, LLC</TD>
    <TD STYLE="text-align: center; font-size: 10pt">Connecticut</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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<DOCUMENT>
<TYPE>EX-23.1
<SEQUENCE>3
<FILENAME>tv491047_ex23-1.htm
<DESCRIPTION>EXHIBIT 23.1
<TEXT>
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</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><B>EXHIBIT 23.1</B></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><U>Independent
Registered Public Accounting Firm&rsquo;s Consent</U></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-align: justify">We consent to the inclusion in this Registration
Statement of Precipio, Inc. on Form S-1 of our report, which includes an explanatory paragraph as to the company&rsquo;s ability
to continue as a going concern, dated April 13, 2018 with respect to our audits of the consolidated financial statements of Precipio,
Inc. as of December 31, 2017 and 2016 and for the years ended December 31, 2017 and 2016, which report appears in the Prospectus,
which is part of this Registration Statement. We also consent to the reference to our Firm under the heading &ldquo;Experts&rdquo;
in such Prospectus.</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">/s/ Marcum <FONT STYLE="font-variant: small-caps">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">Marcum <FONT STYLE="font-variant: small-caps">llp</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">April 13, 2018</P>



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

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


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<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>4
<FILENAME>tv491047_img1.jpg
<DESCRIPTION>GRAPHIC
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end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
