5. Warrants

On April 6, 2018 (the “Closing Date”), the Company entered into a securities purchase agreement with certain new institutional investors for the purchase and sale of 900,000 shares of the Company’s common stock in a registered direct offering. The Company also issued unregistered warrants to the investors in a concurrent private placement to purchase up to an equivalent number of shares of the Company’s common stock with an exercise price of $2.00 per share. The warrants are exercisable six months following the Closing Date and will expire five years from the date of issuance. A summary of warrant activity for the year ended December 31, 2017 and the six months ended June 30, 2018 is as follows:

 

		Warrants				Weighted Average Price
Balance - December 31, 2016			17,559			$	1.50
Granted			2,177,425				3.10
Exercised			—				—
Expired			(17,559	)			1.50
Balance - December 31, 2017			2,177,425				3.10
Granted			900,000				2.00
Exercised			—				—
Expired			—				—
Balance - June 30, 2018			3,077,425			$	2.78

The warrants outstanding as of June 30, 2018 are as follows:

 

Exercise Price		Warrants Outstanding				Expiration Date
$          3.10			48,387				9/19/2022
$          3.10			462,106				5/10/2024
$          3.10			602,414				7/25/2024
$          3.10			1,064,518				11/8/2024
$          2.00			900,000				4/10/2023
			3,077,425