NOTE 13: WARRANTS

On January 16, 2018, we entered into the Third Amendment to the Loan and Security Agreement with Slipstream Communications, LLC, a related party investor, under which we obtained a $1.0 million revolving loan, with interest thereon at 8% per annum, maturing on January 16, 2019. In connection with the loan, we issued the lender a five-year warrant to purchase up to 1,851,851 shares of Creative Realities’ common stock at a per share price of $0.27 (subject to adjustment). The fair value of the warrants on the issuance date was $266.

Listed below are the range of inputs used for the probability weighted Black Scholes option pricing model valuations when the warrants were issued and at March 31, 2018.

Issuance Date	Expected Term at Issuance Date		Risk Free Interest Rate at Date of Issuance			Volatility at Date of Issuance			Stock Price at Date of Issuance
8/20/2014		5.00		1.50	%		96.00	%	$	0.63
2/13/2015		5.00		1.28	%		100.00	%	$	0.34
5/22/2015		5.00		1.28	%		107.58	%	$	0.29
10/15/2015		5.00		1.71	%		58.48	%	$	0.22
10/26/2015		5.00		1.71	%		60.47	%	$	0.21
12/21/2015		5.00		1.75	%		58.48	%	$	0.21
12/28/2015		5.00		1.75	%		58.48	%	$	0.16
1/15/2016		5.00		1.76	%		58.48	%	$	0.17
5/3/2016		5.00		1.25	%		51.15	%	$	0.21
6/13/2016		5.00		1.14	%		51.12	%	$	0.17
6/29/2016		5.00		1.01	%		48.84	%	$	0.17
8/17/2016		5.00		1.15	%		51.55	%	$	0.15
11/4/2016		5.00		1.66	%		47.48	%	$	0.16
12/12/2016		5.00		1.90	%		48.54	%	$	0.19
8/19/2017		5.00		1.81	%		64.71	%	$	0.35
11/13/2017		5.00		2.08	%		66.24	%	$	0.29
1/16/2018		5.00		2.36	%		65.07	%	$	0.27

Remaining Expected Term at March 31, 2018		Risk Free Interest Rate at March 31, 2018				Volatility at March 31, 2018				Stock Price at March 31, 2018
0.1 - 4.8			2.18	%			65.07	%		$	0.30

A summary of outstanding debt and equity warrants is included below:

	Warrants (Equity)						Warrants (Liability)
	Amount		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life		Amount		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life
Balance January 1, 2018		33,004,011		0.47		3.55		6,487,500		0.35		1.64
Warrants issued with revolver loan		1,851,852		0.27		4.80		-		-		-
Warrants expired		530,513		10.73		-		-		-		-
Balance March 31, 2018		34,325,350		0.30		3.43		6,487,500		0.35		1.39