5. Warrants

In connection with the Preferred Stock financing (See Note 11), the Company has issued warrants to purchase 10,645,161 shares of the Company’s Common stock. The warrants have a term of seven years from the date of issuance and are non-exercisable until six months after issuance, and have an exercise price of $0.31 per share. In addition, the Company issued a warrant to purchase 483,870 shares of the Company’s Common stock pursuant to the terms of a financial advisory services agreement. The warrant has a term of five years from the date of issuance and is non-exercisable until six months after issuance, and has an exercise price of $0.31 per share. A summary of warrant activity for the year ended December 31, 2016 and the nine months ended September 30, 2017 is as follows:

 

						Weighted
						Average
		Warrants				Price
Balance – December 31, 2015			175,584			$	1.50
Granted			—				—
Exercised			—				—
Expired			—				—
Balance – December 31, 2016			175,584				1.50
Granted			11,129,031				0.31
Exercised			—				—
Expired			(175,584	)			1.50
Balance – September 30, 2017			11,129,031			$	0.31

The warrants outstanding as of September 30, 2017 are as follows:

 

Exercise Price		Warrants Outstanding		Expiration Dates
$                 0.31		4,621,037		5/10/24
$                 0.31		6,024,124		7/25/24
$                 0.31		483,870		9/19/22
		11,129,031