8. WARRANTS:

On June 24, 2016, the Company granted warrants to one of the Company’s placement agents to purchase 439 shares of the Company’s Series 2 Convertible Preferred Stock at an initial exercise price of $1,250 per share. The exercise price and aggregate number of shares are subject to adjustment as set forth in the agreement.

The following information was input into the Black Scholes pricing model to compute a fair value of $342.71 for each warrant for a total fair value of $150,451.

Exercise price	$	1,250
Expected life		7 years
Expected volatility		38	%
Dividend yield		0	%
Risk-free interest rate		1.35	%

The following table summarizes information about outstanding stock warrants as of December 31, 2017, all of which are exercisable:

Exercise		Common Stock Warrants		Series 2 Preferred Stock Warrants		Weighted Average Remaining
Price		Outstanding		Outstanding		Contractual Life

$	11.00		134,250			1 years
$	10.00		200,000			3 years
$	5.50		177,303			4 years
$	1,250		-		439	6 years
			511,553		439