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<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"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">VistaGen Therapeutics, Inc. (NASDAQ: VTGN), a Nevada corporation,
is a clinical-stage biopharmaceutical company dedicated to developing and commercializing innovative product candidates for patients
with diseases and disorders involving the central nervous system (<i>CNS</i>).  Our principal executive offices are located at
343 Allerton Avenue, South San Francisco, California 94080, and our telephone number is (650) 577-3600. Our website address
is <i>www.vistagen.com</i>. Unless the context otherwise requires, the words “<i>VistaGen Therapeutics, Inc.</i>” “<i>VistaGen</i>,”
“<i>we</i>,” “<i>the Company</i>,” “<i>us</i>” and “<i>our</i>” refer to VistaGen
Therapeutics, Inc., a Nevada corporation.</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">Our lead product candidate, AV-101, is a new generation, oral
antidepressant drug candidate in Phase 2 development for the adjunctive treatment of Major Depressive Disorder (<i>MDD</i>) in
patients with an inadequate response to standard antidepressants approved by the U.S. Food and Drug Administration (<i>FDA</i>).  We
believe AV-101 may also have therapeutic potential in chronic neuropathic pain, epilepsy, Huntington’s disease and Parkinson’s
disease.</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">AV-101’s mechanism of action, as an N-methyl D aspartate
receptor (<i>NMDAR</i>) antagonist binding selectively at the glycine binding (<i>GlyB</i>) co-agonist site of the NMDAR, is fundamentally
differentiated from all FDA-approved antidepressants, as well as all atypical antipsychotics used to augment standard antidepressant
therapy.</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">Our ongoing Phase 2a clinical study of AV-101 in subjects with
treatment-resistant MDD is being fully funded by the U.S. National Institute of Mental Health (<i>NIMH</i>) under our February
2015 Cooperative Research and Development Agreement (<i>CRADA</i>) with the NIMH, and is being conducted by Dr. Carlos Zarate,
Jr., Chief of the NIMH’s Experimental Therapeutics & Pathophysiology Branch and its Section on Neurobiology and Treatment
of Mood and Anxiety Disorders. The first patient in this NIMH-sponsored Phase 2a study was dosed in November 2015. Previous NIMH
studies, including studies conducted by Dr. Zarate, have focused on the antidepressant effects of low dose, intravenous (<i>I.V.</i>)
ketamine in patients with treatment-resistant depression. These NIMH studies, as well as clinical research by others, have demonstrated
robust antidepressant effects in patients with treatment-resistant MDD within twenty-four hours of a single low dose of I.V. ketamine.  We
believe AV-101 may have potential to deliver ketamine-like fast-acting antidepressant effects without ketamine’s serious
side effects.</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">We are preparing to launch our Phase 2b clinical study of AV-101
for the adjunctive treatment of MDD in patients with an inadequate response to standard, FDA-approved antidepressants.  We
anticipate commencement of this multi-center, multi-dose, double blind, placebo-controlled Phase 2b efficacy and safety study at
the end of the fourth quarter of 2016. Dr. Maurizio Fava, Professor of Psychiatry at Harvard Medical School and Director, Division
of Clinical Research, Massachusetts General Hospital (<i>MGH</i>) Research Institute, will be the Principal Investigator of our
Phase 2b study of AV-101 in treatment resistant MDD.  Dr. Fava was the co-Principal Investigator with Dr. A. John Rush
of the largest clinical trial conducted in depression to date, the STAR*D study, whose findings were published in journals such
the New England Journal of Medicine (<i>NEJM</i>) and the Journal of the American Medical Association (<i>JAMA</i>). We currently
anticipate top line results in this Phase 2b study in the second quarter of 2018.</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">In addition to clinical development of AV-101, we are focused
on advancing potential commercial applications of our human pluripotent stem cell (<i>hPSC</i>) technology platform with respect
to drug rescue programs aimed at developing proprietary small molecule new chemical entities (<i>NCEs</i>) for our drug candidate
pipeline. We are also focused on potential regenerative medicine applications using blood, cartilage, heart and/or liver cells
derived from hPSCs, and may pursue these applications in collaboration with third-parties.</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"><b>AV-101 and Major Depressive Disorder</b></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"><i>Background</i></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">The World Health Organization (<i>WHO</i>) estimates that 350
million people worldwide are affected by depression. According to the U.S. National Institutes of Health (<i>NIH</i>) major depression
is one of the most common mental disorders in the U.S. The NIMH reports that, in 2014, an estimated 15.7 million adults aged 18
or older in the U.S. had at least one major depressive episode in the past year. This represented 6.7 percent of all U.S. adults.
According to the U.S. Centers for Disease Control and Prevention (<i>CDC</i>) one in 10 Americans over the age of 12 takes an antidepressant
medication.</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">Most standard, FDA-approved antidepressants target neurotransmitter
reuptake inhibition – either serotonin (<i>SSRIs</i>) or serotonin/norepinephrine (<i>SNRIs</i>). Even when effective, these
standard depression medications take many weeks to achieve adequate antidepressant effects. Nearly two out of every three drug-treated
depression patients, including an estimated 6.9 million drug-treated MDD patients in the U.S., obtain inadequate therapeutic benefit
from initial treatment with a standard antidepressant. Unfortunately, even after treatment with as many as four different standard
antidepressants, nearly one out of every three drug-treated depression patients do not achieve adequate therapeutic benefits.  Such
treatment-resistant depression patients often seek to treat their depression with non-drug-related approaches, such as Electroconvulsive
Therapy (<i>ECT</i>), or to augment their inadequate response to standard antidepressants by adding an atypical antipsychotic
(such as, for example, aripiprazole) to their treatment regimen, despite the modest potential therapeutic benefit and significant
risk of additional side effects with such augmentation options. </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">All standard antidepressants have risks of significant side
effects, including, among others, potentially anxiety, metabolic syndrome, sleep disturbance and sexual dysfunction.  They
also have a “Black Box” warning due to risks of worsening depression and suicide in certain groups. Use of atypical
antipsychotics to augment inadequately performing standard antidepressants increases the risk of serious side effects, including,
potentially, tardive dyskinesia, significant weight gain, diabetes and heart disease, while offering only a modest potential increase
in therapeutic benefit. Use of ECT increases the risk of serious side effects, including, headaches, tiredness, disorientation,
intense sleepiness, hallucinations and long-term memory loss.</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"><b><i>AV-101</i></b></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">AV-101, our oral new generation antidepressant drug candidate,
is in Phase 2 clinical development for the adjunctive treatment of MDD patients with an inadequate response to standard antidepressants.
As published in the October 2015 issue of the peer-reviewed, <i>Journal of Pharmacology and Experimental Therapeutics, </i>in
an article entitled, <i>The prodrug 4-chlorokynurenine causes ketamine-like antidepressant effects, but not side effects,
by NMDA/glycineB-site inhibition,</i> using well-established preclinical models of depression, AV-101 was shown to induce
fast-acting, dose-dependent, persistent and statistically significant antidepressant-like responses, following a single treatment.
These responses were equivalent to those seen with a single, sub-anesthetic control dose of the NMDAR antagonist ketamine. In the
same preclinical studies, a standard antidepressant, the SSRI fluoxetine, did not induce rapid onset antidepressant-like responses.
In addition, these studies confirmed that the fast-acting antidepressive effects of AV-101 were mediated through the GlyB site
and involved the activation of a key neurological pathway, the alpha-amino-3-hydroxy-5-methyl-4-isoxazolepropionic acid<b> (</b><i>AMPA</i>)
receptor pathway. Activation of the AMPA receptor pathway is a common feature of fast-acting antidepressants.</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">Following the completion of our NIH-funded, randomized, double
blind, placebo-controlled Phase 1a and Phase 1b safety studies, we are now collaborating with the NIMH in a Phase 2a study. Under
our February 2015 CRADA, the NIMH is funding, and Dr. Carlos Zarate Jr. of the NIMH as Principal Investigator is conducting, our
ongoing Phase 2a efficacy and safety study of AV-101 in subjects with treatment-resistant MDD. The trial is expected to enroll
20 to 28 patients.  The first patient was dosed in November 2015, and we currently anticipate receiving topline results
in the second quarter of 2017.</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">We are preparing to launch our Phase 2b clinical study of AV-101
for the adjunctive treatment of MDD in patients with an inadequate response to standard, FDA-approved antidepressants. We anticipate
the launch of this Phase 2b study, with Dr. Maurizio Fava of Harvard Medical School serving as Principal Investigator, at the end
of the fourth quarter of 2016. We anticipate top line results from this Phase 2b study in the second quarter of 2018.  </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">Several preclinical studies support the hypothesis that AV-101
also has the potential to treat multiple CNS disorders and neurodegenerative diseases in addition to depression, including chronic
neuropathic pain, epilepsy, Parkinson’s disease and Huntington’s disease, where modulation of the NMDAR, AMPA pathway
and/or active metabolites of AV-101 may achieve therapeutic benefit.</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"><b>CardioSafe 3D™; NCE Drug Rescue and Regenerative Medicine</b></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"><i>CardioSafe</i> 3D™ is our customized <i>in
vitro</i> cardiac bioassay system capable of predicting potential human heart toxicity of small molecule NCEs <i>in vitro</i>,
long before they are ever tested in animal and human studies. Our current strategic interests involving our stem cell technology
platform include (i) advancing current internal efforts focused on <i>CardioSafe</i> 3D drug rescue to expand our drug
candidate pipeline with selected proprietary small molecule NCEs, leveraging substantial prior research and development investments
by pharmaceutical companies and others related to public domain NCEs terminated before FDA approval due to heart toxicity risks
and (ii) establishing collaborative arrangements with qualified third-parties focused on regenerative medicine (<i>RM</i>) applications,
including (A) cell-based therapy (injection of stem cell-derived mature organ-specific cells obtained through directed differentiation),
(B) cell repair therapy (induction of regeneration by biologically active molecules administered alone or produced by infused genetically
engineered cells), or (C) tissue engineering (transplantation of <i>in vitro</i> grown complex tissues), involving hPSC-derived
blood, bone, cartilage, heart and/or liver cells.</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"><b>Subsidiaries</b></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">VistaGen Therapeutics, Inc., a California corporation (<i>VistaGen
California</i>), is our wholly-owned subsidiary. Our Condensed Consolidated Financial Statements in this Report also include the
accounts of VistaGen California’s two wholly-owned subsidiaries, Artemis Neuroscience, Inc., a Maryland corporation, and
VistaStem Canada, Inc., a corporation organized under the laws of Ontario, Canada.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The accompanying unaudited Condensed Consolidated Financial
Statements have been prepared in accordance with accounting principles generally accepted in the United States (<i>U.S. GAAP</i>)
for interim financial information and with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, they
do not contain all of the information and footnotes required for complete consolidated financial statements. In the opinion of
management, the accompanying unaudited Condensed Consolidated Financial Statements reflect all adjustments, which include only
normal recurring adjustments, necessary to present fairly our interim financial information. The accompanying Condensed Consolidated
Balance Sheet at March 31, 2016 has been derived from our audited consolidated financial statements at that date but does not include
all disclosures required by U.S. GAAP.  The operating results for the three months ended June 30, 2016 are not necessarily
indicative of the operating results to be expected for our fiscal year ending March 31, 2017 or for any other interim period or
any other future period.</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">The accompanying unaudited Condensed Consolidated Financial
Statements and notes to Condensed Consolidated Financial Statements should be read in conjunction with our audited Consolidated
Financial Statements for the fiscal year ended March 31, 2016 contained in our Annual Report on Form 10-K, as filed with the Securities
and Exchange Commission (<i>SEC</i>) on June 24, 2016.</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">The accompanying Condensed Consolidated Financial Statements
have been prepared assuming we will continue as a going concern. As a developing-technology company having not yet developed commercial
products or achieved sustainable revenues, we have experienced recurring losses and negative cash flows from operations resulting
in a deficit of $133.7 million accumulated from inception through June 30, 2016. We expect losses and negative cash flows from
operations to continue for the foreseeable future as we engage in further potential development of AV-101 and launch and execute
our drug rescue programs and pursue potential drug development and regenerative medicine opportunities.</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">Since our inception in May 1998 through June 30, 2016, we have
financed our operations and technology acquisitions primarily through the issuance and sale of our equity and debt securities,
including convertible promissory notes and short-term promissory notes, for cash proceeds of approximately $44.3 million, as well
as from an aggregate of approximately $16.4 million of government research grant awards, strategic collaboration payments and other
revenues. Additionally, we have issued equity securities with an approximate value at issuance of $29.1 million in non-cash settlements
of certain liabilities, including liabilities for professional services rendered to us or as compensation for such services.</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">Between April 1, 2016 and May 4, 2016, we sold to accredited
investors Series B Preferred Units consisting of 39,714 unregistered shares of our Series B Preferred Stock, par value $0.001 per
share (<i>Series B Preferred</i>), and five year warrants to purchase 39,714 shares of our common stock, from which we received
cash proceeds of $278,000. Further, on May 16, 2016 we consummated an underwritten public offering pursuant to which we issued
an aggregate of 2,570,040 registered shares of our common stock at the public offering price of $4.24 per share and five-year
warrants to purchase up to 2,705,883 registered shares of common stock, with an exercise price of $5.30 per share, at the
public offering price of $0.01 per warrant, including shares and warrants issued pursuant to the exercise of the underwriters'
over-allotment option (the <i>May 2016 Public Offering</i>). We received net cash proceeds of approximately $9.5 million from
the May 2016 Public Offering after deducting fees and expenses. We expect the proceeds of these transactions to provide sufficient
cash to sustain our operations through our fiscal year ending March 31, 2017, however they will not be adequate to enable the completion
of our Phase 2b clinical trial of AV-101 in MDD. Accordingly, we intend to raise additional capital through sales of our securities, which
may include both debt and equity securities. We may also seek research and development collaborations that could generate revenue,
as well as government grant awards. Further, strategic collaborations, such as our February 2015 CRADA with the NIMH providing
for the NIMH to fund our Phase 2a study of AV-101 in MDD, may provide resources to support a portion of our future cash needs and
working capital requirements. Although we may seek additional collaborations that could generate revenue, as well as new government
grant awards, no assurance can be provided that any such collaborations or awards will occur in the future.  Our future working
capital requirements will depend on many factors, including, without limitation, the scope and nature of opportunities related
to our success and the success of certain other companies in clinical trials, including our development of AV-101 as a treatment
for MDD and other CNS conditions, and our stem cell technology platform, the availability of, and our ability to obtain, government
grant awards and our ability to enter into collaborations on terms acceptable to us. To further advance the clinical development
of AV-101 and our stem cell technology platform, as well as support our operating activities, we plan to continue to carefully
manage our routine operating costs, including our employee headcount and related expenses, as well as costs relating to regulatory
consulting, contract research and development, investor relations and corporate development, legal, accounting, public company
compliance and other professional services and working capital costs. </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">Notwithstanding the foregoing, substantial additional financing
may not be available to us on a timely basis, on acceptable terms, or at all. If we are unable to obtain substantial additional
financing on a timely basis in the near term, our business, financial condition, and results of operations may be harmed, the price
of our stock may decline, we may be required to reduce, defer, or discontinue certain of our research and development activities
and we may not be able to continue as a going concern.  These Condensed Consolidated Financial Statements do not include
any adjustments that might result from the outcome of this uncertainty.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Use of Estimates</b></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">The preparation of financial statements in conformity with U.S. GAAP
requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure
of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.  Significant estimates include those relating
to share-based compensation, and assumptions that have been used to value warrants, warrant modifications, warrant liabilities.  We
do not currently have, nor have we had during the periods covered by this report, any arrangements requiring the recognition of
revenue.</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"><b>Research and Development Expenses</b></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">Research and development expenses are composed of both internal
and external costs.  Internal costs include salaries and employment-related expenses of scientific personnel and direct
project costs.  External research and development expenses consist primarily of costs associated with nonclinical and
clinical development of AV-101, now in Phase 2 clinical development, initially for Major Depressive Disorder, stem cell technology-related
research and development costs, and costs related to the filing, maintenance and prosecution of patents and patent applications.
All such costs are charged to expense as incurred.</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"><b>Stock-Based Compensation</b></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">We recognize compensation cost for all stock-based awards to
employees or consultants based on the grant date fair value of the award.  Non-cash, stock-based compensation expense
is recognized over the period during which the employee or consultant is required to perform services in exchange for the award,
which generally represents the scheduled vesting period.  We have no awards with market or performance conditions.  For
equity awards to non-employees, we re-measure the fair value of the awards as they vest and the resulting value is recognized as
an expense during the period over which the services are performed.</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">The table below summarizes stock-based compensation expense
included in the accompanying Condensed Consolidated Statements of Operations and Comprehensive Loss for the three months ended
June 30, 2016 and 2015.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="6" style="text-align: center"><font style="font-size: 10pt"><b>Three Months Ended</b></font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>June 30,</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>2016</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>2015</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 10pt"> Research and development expense:</font></td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 78%; padding-left: 6.1pt"><font style="font-size: 10pt"> Stock option grants</font></td>
<td style="width: 1%; text-align: right"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 8%; text-align: right"><font style="font-size: 10pt">44,000</font></td>
<td nowrap="nowrap" style="width: 1%"> </td>
<td style="width: 1%; text-align: right"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 8%; text-align: right"><font style="font-size: 10pt">15,500</font></td>
<td nowrap="nowrap" style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt; padding-left: 6.1pt"><font style="font-size: 10pt"> Warrants granted to officer in March 2014</font></td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">2,800</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">44,000</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">18,300</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt"> General and administrative expense:</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt"></font></td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 6.1pt"><font style="font-size: 10pt"> Stock option grants</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">63,900</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">7,000</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 6.1pt"><font style="font-size: 10pt"> Warrants granted to officers and directors</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt; padding-left: 6.1pt"><font style="font-size: 10pt">      in March 2014</font></td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">3,900</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">63,900</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">10,900</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 3pt"><font style="font-size: 10pt"> Total stock-based compensation expense</font></td>
<td style="padding-bottom: 3pt; text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">107,900</font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt; text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">29,200</font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td></tr>
</table>
<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">On June 19, 2016, our Board of Directors (<i>Board</i>) approved
the grant of options to purchase an aggregate of 655,000 shares of our common stock at an exercise price of $3.49 per share to
the independent members of our Board and to our officers, including our newly-hired Chief Medical Officer.  We did not
grant any stock options during the three months ended June 30, 2015.  At June 30, 2016, there were stock options outstanding
to purchase 986,987 shares of our common stock at a weighted average exercise price of $5.53 per share. We valued the options granted
in June 2016 using the Black-Scholes Option Pricing Model and the following weighted average assumptions:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid"><font style="font-size: 10pt"><b>Assumption:</b></font></td>
<td style="vertical-align: top; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="vertical-align: bottom; border-bottom: black 1.5pt solid"> </td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom; width: 89%"><font style="font-size: 10pt">Market price per share at grant date</font></td>
<td style="vertical-align: top; width: 1%"> </td>
<td style="vertical-align: bottom; width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 8%; text-align: right"><font style="font-size: 10pt">3.49</font></td>
<td style="vertical-align: bottom; width: 1%"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom"><font style="font-size: 10pt">Exercise price per share</font></td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: bottom"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">3.49</font></td>
<td style="vertical-align: bottom"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom"><font style="font-size: 10pt">Risk-free interest rate</font></td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">1.34%</font></td>
<td style="vertical-align: bottom"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom"><font style="font-size: 10pt">Contractual or estimated term in years</font></td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">6.68</font></td>
<td style="vertical-align: bottom"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom"><font style="font-size: 10pt">Volatility</font></td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">81.69%</font></td>
<td style="vertical-align: bottom"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom"><font style="font-size: 10pt">Dividend rate</font></td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">0.0%</font></td>
<td style="vertical-align: bottom"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom"><font style="font-size: 10pt">Shares</font></td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">655,000</font></td>
<td style="vertical-align: bottom"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom"><font style="font-size: 10pt"><b>Fair Value per share</b></font></td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: bottom"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt"><b>2.50</b></font></td>
<td style="vertical-align: bottom"> </td></tr>
</table>
<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"><b>Comprehensive Loss</b></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">We have no components of other comprehensive loss other than
net loss, and accordingly our comprehensive loss is equivalent to our net loss for the periods presented.</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"><b>Income (Loss) per Common Share</b></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">Basic net income (loss) per share of common stock excludes the
effect of dilution and is computed by dividing net income (loss) by the weighted-average number of shares of common stock outstanding
for the period. Diluted net income (loss) per share of common stock reflects the potential dilution that could occur if securities
or other contracts to issue shares of common stock were exercised or converted into shares of common stock. In calculating diluted
net income (loss) per share, we have historically adjusted the numerator for the change in the fair value of the warrant liability
attributable to outstanding warrants, only if dilutive, and increased the denominator to include the number of potentially dilutive
common shares assumed to be outstanding during the period using the treasury stock method. The change in the fair value of the
warrant liability, which was eliminated in May 2015, had no impact on the diluted net earnings per share calculation in any period
included in these Condensed Consolidated Financial Statements.</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">As a result of our net loss for the periods presented, potentially
dilutive securities were excluded from the computation of net loss per share, as their effect would be antidilutive. For the three
month periods ended June 30, 2016 and 2015, the accrual for dividends on our Series B Preferred and the deemed dividend attributable
to the issuance of our Series B Preferred Units represent deductions from our net loss to arrive at net loss attributable to common
stockholders for those periods.</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">Potentially dilutive securities excluded in determining diluted
net loss attributable to common stockholders per common share are as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>As of June 30,</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>2016</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>2015</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 78%"><font style="font-size: 10pt">Series A Preferred stock issued and outstanding</font><font style="font-size: 7pt"> (1)</font></td>
<td style="width: 1%; text-align: right"> </td>
<td style="width: 1%"> </td>
<td style="width: 8%; text-align: right"><font style="font-size: 10pt">750,000</font></td>
<td nowrap="nowrap" style="width: 1%"> </td>
<td style="width: 1%; text-align: right"> </td>
<td style="width: 1%"> </td>
<td style="width: 8%; text-align: right"><font style="font-size: 10pt">750,000</font></td>
<td nowrap="nowrap" style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Series B Preferred stock issued and outstanding</font><font style="font-size: 7pt"> (2)</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">1,247,740</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">2,995,579</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Series C Preferred stock issued and outstanding</font><font style="font-size: 7pt"> (3)</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">2,318,012</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Outstanding options under the 2008 and 1999 Stock Incentive Plans</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">986,987</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">206,788</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Outstanding warrants to purchase common stock</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">4,606,480</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">3,735,023</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Warrant shares issuable to PLTG upon exchange of Series A Preferred</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">    under the terms of the October 11, 2012 Note Exchange and Purchase</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">    Agreement, as subsequently amended</font></td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">535,715</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 3pt"><font style="font-size: 10pt">Total</font></td>
<td style="padding-bottom: 3pt; text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">9,909,219</font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt; text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">8,223,105</font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">____________</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td colspan="8"><font style="font-size: 7pt">(1)</font><font style="font-size: 10pt"> Assumes exchange under the terms of the October 11, 2012 Note Exchange and Purchase Agreement with PLTG, as amended</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td colspan="8"><font style="font-size: 7pt">(2)</font><font style="font-size: 10pt"> Assumes exchange under the terms of the Certificate of Designation of the Relative Rights and Preferences of the Series B 10% Convertible Preferred Stock, effective May 5, 2015</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td colspan="8"><font style="font-size: 7pt">(3)</font><font style="font-size: 10pt"> Assumes exchange under the terms of the Certificate of Designation of the Relative Rights and Preferences of the Series C Convertible Preferred Stock, effective January 25, 2016</font></td>
<td nowrap="nowrap"> </td></tr>
</table>
<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"><b>Recent Accounting Pronouncements</b></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">There have been no recent accounting pronouncements or changes
in accounting pronouncements during the three months ended June 30, 2016, as compared to the recent accounting pronouncements described
in the Company’s Form 10-K for the fiscal year ended March 31, 2016, that are of significance or potential significance to
the Company.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We do not use derivative instruments for hedging of market risks
or for trading or speculative purposes.</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">In conjunction with certain Senior Secured Convertible Promissory
Notes that we issued to Platinum Long Term Growth VII, LLC (<i>PLTG</i>) between October 2012 and July 2013 and the related PLTG
Warrants, and the contingently issuable Series A Exchange Warrant, we determined that the warrants included certain exercise price
adjustment features requiring the warrants to be treated as liabilities, which were recorded at their issuance-date estimated fair
values and marked to market at each subsequent reporting period. We determined the fair value of the warrant liabilities using
Level 3 (unobservable) inputs, since there was minimal comparable external market data available.  Inputs used to
determine fair value included the remaining contractual term of the warrants, risk-free interest rates, expected volatility of the
price of the underlying common stock, and the probability of a financing transaction that would trigger a reset in the warrant
exercise price, and, in the case of the Series A Exchange Warrant, the probability of PLTG’s exchange of the shares of Series
A Preferred it holds into shares of common stock. The change in the fair value of these warrant liabilities between March 31, 2015
and their subsequent elimination (described below) was recognized as a non-cash expense in the Condensed Consolidated Statement
of Operations and Comprehensive Loss for the three months ended June 30, 2015.</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">On May 12, 2015, we entered into an agreement with PLTG pursuant
to which PLTG agreed to amend the PLTG Warrants to (i) fix the exercise price thereof at $7.00 per share, (ii) eliminate the exercise
price reset features and (iii) fix the number of shares of our common stock issuable thereunder.  This agreement and
the related modification of the PLTG Warrants resulted in the elimination of the warrant liability with respect to the PLTG
Warrants during the quarter ended June 30, 2015.</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">In January 2016, we entered into an Exchange Agreement with
PLTG pursuant to which PLTG exchanged all outstanding PLTG Warrants plus the shares issuable pursuant to the Series A Preferred
Exchange Warrant for unregistered shares of our Series C Convertible Preferred Stock (<i>Series C Preferred</i>) in the ratio of
0.75 share of Series C Preferred for each warrant share cancelled.</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">We carried no assets or liabilities at fair value at June 30,
2016 or March 31, 2016.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Prepaid expenses and other current assets are composed of the
following at June 30, 2016 and March 31, 2016:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>June 30,</b></font></td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>March 31,</b></font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>2016</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>2016</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 78%"><font style="font-size: 10pt"> Insurance</font></td>
<td style="width: 1%; text-align: right"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 8%; text-align: right"><font style="font-size: 10pt">131,500</font></td>
<td nowrap="nowrap" style="width: 1%"> </td>
<td style="width: 1%; text-align: right"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 8%; text-align: right"><font style="font-size: 10pt">27,000</font></td>
<td nowrap="nowrap" style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt"> Prepaid compensation under financial advisory</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">     and other consulting agreements</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">337,500</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt"> Public offering expenses</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">57,400</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt"> Technology license fees and all other</font></td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">3,200</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">4,900</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt; text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">134,700</font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt; text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">426,800</font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Accrued expenses are composed of the following at June 30, 2016
and March 31, 2016:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>June 30,</b></font></td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>March 31,</b></font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>2016</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>2016</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 78%"><font style="font-size: 10pt"> Accrued professional services</font></td>
<td style="width: 1%; text-align: right"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 8%; text-align: right"><font style="font-size: 10pt">326,900</font></td>
<td nowrap="nowrap" style="width: 1%"> </td>
<td style="width: 1%; text-align: right"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 8%; text-align: right"><font style="font-size: 10pt">318,000</font></td>
<td nowrap="nowrap" style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt"> Accrued AV-101 development expenses</font></td>
<td style="text-align: right"> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">232,900</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">186,000</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt"> Accrued compensation</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">310,000</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt"> All other</font></td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">5,000</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt; text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">564,800</font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt; text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">814,000</font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td></tr>
</table>
<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"> </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">The following table summarizes our unsecured promissory notes
at June 30, 2016 and March 31, 2016.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="10" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>June 30, 2016</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="10" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>March 31, 2016</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Principal</b></font></td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Accrued</b></font></td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Principal</b></font></td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Accrued</b></font></td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>Balance</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>Interest</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>Total</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>Balance</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>Interest</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>Total</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 28%; padding-bottom: 3pt"><font style="font-size: 10pt">5.75% Note payable to insurance premium financing company (current)</font></td>
<td style="width: 1%; padding-bottom: 3pt; text-align: right"> </td>
<td style="width: 1%; border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="width: 9%; border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">105,900</font></td>
<td nowrap="nowrap" style="width: 1%; padding-bottom: 3pt"> </td>
<td style="width: 1%; padding-bottom: 3pt; text-align: right"> </td>
<td style="width: 1%; border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="width: 9%; border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap" style="width: 1%; padding-bottom: 3pt"> </td>
<td style="width: 1%; padding-bottom: 3pt; text-align: right"> </td>
<td style="width: 1%; border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="width: 9%; border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">105,900</font></td>
<td nowrap="nowrap" style="width: 1%; padding-bottom: 3pt"> </td>
<td style="width: 1%; padding-bottom: 3pt; text-align: right"> </td>
<td style="width: 1%; border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="width: 9%; border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap" style="width: 1%; padding-bottom: 3pt"> </td>
<td style="width: 1%; padding-bottom: 3pt; text-align: right"> </td>
<td style="width: 1%; border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="width: 9%; border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap" style="width: 1%; padding-bottom: 3pt"> </td>
<td style="width: 1%; padding-bottom: 3pt; text-align: right"> </td>
<td style="width: 1%; border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="width: 9%; border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap" style="width: 1%; padding-bottom: 3pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">7.0% Note payable to Progressive Medical Research</font></td>
<td style="text-align: right"> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">58,800</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">12,000</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">70,800</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt; text-indent: 9pt"><font style="font-size: 10pt">less: current portion</font></td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(31,600</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(12,000</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(43,600</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 3pt"><font style="font-size: 10pt">7.0% Notes payable - non-current portion</font></td>
<td style="padding-bottom: 3pt; text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt; text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt; text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt; text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">27,200</font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt; text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt; text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">27,200</font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-indent: 9pt"><font style="font-size: 10pt">Total notes payable to unrelated parties</font></td>
<td style="text-align: right"> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">105,900</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">105,900</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">58,800</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">12,000</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">70,800</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt; text-indent: 0.25in"><font style="font-size: 10pt">less: current portion</font></td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(105,900</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(105,900</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(31,600</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(12,000</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(43,600</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 3pt; text-indent: 9pt"><font style="font-size: 10pt">Net non-current portion</font></td>
<td style="padding-bottom: 3pt; text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt; text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt; text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt; text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">27,200</font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt; text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt; text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">27,200</font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td></tr>
</table>
<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">Between May 2015 and August 2015, we extinguished the outstanding
balances of approximately $17.2 million of indebtedness, including all senior secured promissory notes, all except $85,100 principal
of unsecured promissory notes, and a substantial portion of other indebtedness, and certain adjustments thereto, that were either
due and payable or would have become due and payable prior to March 31, 2016, by converting all such indebtedness into shares of
our Series B Preferred.  Evaluating each note or debt class separately, we determined that the conversion of each of
the notes or other debt instruments into Series B Preferred should be accounted for as an extinguishment of debt.  Because
the fair value of the Series B Preferred into which the debt instruments were converted in all cases exceeded the carrying value
of the debt, we recorded an aggregate loss on extinguishment of debt of $26,700,200, in our fiscal year ended March 31, 2016, of
which $25,050,900 was recorded in the quarter ended June 30, 2015, as reflected in the accompanying Consolidated Statement of Operations
and Comprehensive Loss for that period.</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">On January 5, 2016, we paid in full the $33,300 outstanding
balance (principal and accrued but unpaid interest) of the promissory note previously issued to University of California at Davis.</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">On June 13, 2016, we paid in full the $71,600 outstanding balance
(principal and accrued but unpaid interest) of the promissory note we issued to Progressive Medical Research in August 2012.</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">In May 2016, we executed a promissory note in the face amount
of $117,500 to finance certain insurance policy premiums.  The note is payable in monthly installments of $12,100, including
principal and interest, through March 2017.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Series B Preferred Unit Offering</i></b><br />
 </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In April and May 2016, in self-placed private placement transactions,
we sold to accredited investors an aggregate of $278,000 of units in our Series B Preferred Unit offering, which units consist
of Series B Preferred and Series B Warrants (together <i>Series B Preferred Units</i>). We issued 39,714 shares of Series B Preferred
and Series B Warrants to purchase 39,714 shares of our common stock.  Through the termination of the Series B Preferred
Unit offering in May 2016, we received an aggregate of $5,303,800 in cash proceeds from our self-placed private placement and sale
of the Series B Preferred Units.</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">We allocated the proceeds from the sale of the Series B Preferred
Units during the quarter ended June 30, 2016 to the Series B Preferred and the Series B Warrants based on their relative fair
values on the dates of the sales. We determined that the fair value of a share of Series B Preferred was equal to the quoted market
value of a share of our common stock on the date of a Series B Preferred Unit sale. We calculated the fair value of the Series
B Warrants using the Black Scholes Option Pricing Model and the weighted average assumptions indicated in the table below. The
table below also presents the aggregate allocation of the Series B Preferred Unit sales proceeds based on the relative fair values
of the Series B Preferred and the Series B Warrants as of their respective Series B Preferred Unit sales dates.  The
difference between the relative fair value per share of the Series B Preferred, approximately $4.20 per share, and its Conversion
Price (or stated value) of $7.00 per share represents a deemed dividend to the purchasers of the Series B Preferred Units. Ac<font style="font-family: Times New Roman, Times, Serif">cordingly,
we have recognized a deemed dividend in the aggregate amount of $111,100 in arriving at net loss attributable to common stockholders
in the accompanying Condensed Consolidated Statement of Operations and Comprehensive Loss for the three months ended June 30,
2016.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font-family: Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td colspan="34" style="border-bottom: black 1.5pt solid; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"><b>Unit
Warrants</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="22" style="border-bottom: black 1.5pt solid; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"><b>Weighted
Average Issuance Date Valuation Assumptions</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" rowspan="4" style="border-bottom: black 1.5pt solid; text-align: center; vertical-align: bottom"><p style="margin-top: 0; margin-bottom: 0"><font style="font: 8pt Times New Roman, Times, Serif"><b>Per</b></font></p>
<p style="margin-top: 0; margin-bottom: 0"><font style="font: 8pt Times New Roman, Times, Serif"><b>Share</b></font></p>
<p style="margin-top: 0; margin-bottom: 0"><font style="font: 8pt Times New Roman, Times, Serif"><b>Fair</b> <b></b></font></p>
<p style="margin-top: 0; margin-bottom: 0"><font style="font: 8pt Times New Roman, Times, Serif"><b>Value of</b></font></p>
<p style="margin-top: 0; margin-bottom: 0"><font style="font: 8pt Times New Roman, Times, Serif"><b>Warrant</b></font></p></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" rowspan="4" style="border-bottom: black 1.5pt solid; text-align: center; vertical-align: bottom"><p style="margin-top: 0; margin-bottom: 0"><font style="font: 8pt Times New Roman, Times, Serif"><b>Aggregate Fair</b></font></p>
<p style="margin-top: 0; margin-bottom: 0"><font style="font: 8pt Times New Roman, Times, Serif"><b> Value</b> <b></b></font></p>
<p style="margin-top: 0; margin-bottom: 0"><font style="font: 8pt Times New Roman, Times, Serif"><b>of
Unit</b></font></p>
<p style="margin-top: 0; margin-bottom: 0"><font style="font: 8pt Times New Roman, Times, Serif"><b>Warrants</b></font></p></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" rowspan="4" style="border-bottom: black 1.5pt solid; text-align: center; vertical-align: bottom"><p style="margin-top: 0; margin-bottom: 0"><font style="font: 8pt Times New Roman, Times, Serif"><b>Aggregate</b></font></p>
<p style="margin-top: 0; margin-bottom: 0"><font style="font: 8pt Times New Roman, Times, Serif"><b>Proceeds</b></font></p>
<p style="margin-top: 0; margin-bottom: 0"><font style="font: 8pt Times New Roman, Times, Serif"><b>of</b></font></p>
<p style="margin-top: 0; margin-bottom: 0"><font style="font: 8pt Times New Roman, Times, Serif"><b>Unit</b></font></p>
<p style="margin-top: 0; margin-bottom: 0"><font style="font: 8pt Times New Roman, Times, Serif"><b>Sales</b></font></p></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="6" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"><b>Aggregate
Allocation of Proceeds</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" rowspan="3" style="border-bottom: black 1.5pt solid; text-align: center; vertical-align: bottom"><p style="margin-top: 0; margin-bottom: 0"><font style="font: 8pt Times New Roman, Times, Serif"><b>Warrant</b></font></p>
<p style="margin-top: 0; margin-bottom: 0"><font style="font: 8pt Times New Roman, Times, Serif"><b>Shares</b></font></p>
<p style="margin-top: 0; margin-bottom: 0"><font style="font: 8pt Times New Roman, Times, Serif"><b>Issued</b></font></p></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" rowspan="3" style="border-bottom: black 1.5pt solid; text-align: center; vertical-align: bottom"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>Risk</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>free</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>Interest</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>Rate</b></font></p></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"><b>Based
on Relative Fair Value of:</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" rowspan="2" style="border-bottom: black 1.5pt solid; text-align: center; vertical-align: bottom"><p style="margin-top: 0; margin-bottom: 0"><font style="font: 8pt Times New Roman, Times, Serif"><b>Market</b></font></p>
<p style="margin-top: 0; margin-bottom: 0"><font style="font: 8pt Times New Roman, Times, Serif"><b>Price</b></font></p></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" rowspan="2" style="border-bottom: black 1.5pt solid; text-align: center; vertical-align: bottom"><p style="margin-top: 0; margin-bottom: 0"><font style="font: 8pt Times New Roman, Times, Serif"><b>Exercise</b></font></p>
<p style="margin-top: 0; margin-bottom: 0"><font style="font: 8pt Times New Roman, Times, Serif"><b>Price</b></font></p></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" rowspan="2" style="border-bottom: black 1.5pt solid; text-align: center; vertical-align: bottom"><p style="margin-top: 0; margin-bottom: 0"><font style="font: 8pt Times New Roman, Times, Serif"><b>Term</b></font></p>
<p style="margin-top: 0; margin-bottom: 0"><font style="font: 8pt Times New Roman, Times, Serif"><b>(Years)</b></font></p></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" rowspan="2" style="border-bottom: black 1.5pt solid; text-align: center; vertical-align: bottom"><p style="margin-top: 0; margin-bottom: 0"><font style="font: 8pt Times New Roman, Times, Serif"><b>Dividend</b></font></p>
<p style="margin-top: 0; margin-bottom: 0"><font style="font: 8pt Times New Roman, Times, Serif"><b>Rate</b></font></p></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" rowspan="2" style="border-bottom: black 1.5pt solid; text-align: center; vertical-align: bottom"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>Unit
</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>Stock</b></font></p></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" rowspan="2" style="border-bottom: black 1.5pt solid; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"><b>Unit
Warrant</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>Volatility</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td colspan="2"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 1%"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 6%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">39,714</font></td>
<td nowrap="nowrap" style="width: 1%"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: right"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 5%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">8.45</font></td>
<td nowrap="nowrap" style="width: 1%"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: right"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 6%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">7.00</font></td>
<td nowrap="nowrap" style="width: 1%"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: right"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 2%"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: -2mm !important; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">5.00</font></td>
<td nowrap="nowrap" style="width: 1%"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: right"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 5%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1.27</font></td>
<td nowrap="nowrap" style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td>
<td style="width: 1%; text-align: right"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 6%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">78.43</font></td>
<td nowrap="nowrap" style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td>
<td style="width: 1%; text-align: right"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 6%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">0.0</font></td>
<td nowrap="nowrap" style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td>
<td style="width: 1%; text-align: right"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 6%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">5.63</font></td>
<td nowrap="nowrap" style="width: 1%"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: right"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 7%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">223,500</font></td>
<td nowrap="nowrap" style="width: 1%"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: right"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 7%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">278,000</font></td>
<td nowrap="nowrap" style="width: 1%"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: right"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 6%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">166,900</font></td>
<td nowrap="nowrap" style="width: 1%"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: right"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 6%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">61,100</font></td>
<td nowrap="nowrap" style="width: 1%"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="margin-top: 0; margin-bottom: 0"><font style="font-family: Times New Roman, Times, Serif"> <b><i> </i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font-family: Times New Roman, Times, Serif"><b><i>May
2016 Public Offering</i></b></font></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"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font-family: Times New Roman, Times, Serif">Effective
on May 16, 2016, we consummated a fully underwritten public offering, pursuant to which we issued an aggreg</font>ate of 2,570,040
registered shares of our common stock at a public sales price of $4.24 per share and five-year warrants exercisable at $5.30 per
share to purchase an aggregate of 2,705,883 shares of our common stock at a public sales price of $0.01 per warrant share, including
shares and warrants issued in June 2016 pursuant to the exercise of the underwriters’ over-allotment option (the <i>May 2016
Public Offering</i>). We received gross proceeds of approximately $10.9 million and net proceeds of approximately $9.5 million
from the May 2016 Public Offering after deducting underwriters’ commissions and other expenses.  The warrants issued
in the May 2016 Public Offering have no anti-dilution or other exercise price or share reset features, except as is customary
with respect to a change in the Company’s capital structure in the event of a stock split or dividend, and, accordingly,
we have accounted for them as equity warrants.</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">The securities included in the May 2016 Public Offering Warrants
were offered, issued and sold under a prospectus filed with the Securities and Exchange Commission (<i>SEC</i>) pursuant to an
effective registration statement (<i>Registration Statement</i>) filed with the SEC on Form S-1 (File No. 333-210152) pursuant
to the Securities Act of 1933, as amended (<i>Securities Act</i>). The Registration Statement was first filed with the SEC on March
14, 2016, and was declared effective on May 10, 2016.</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"><b><i>NASDAQ Uplisting</i></b></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">In connection with the completion of our May 2016 Public Offering,
our common stock was approved for listing on The NASDAQ Capital Market, and began trading under the symbol “VTGN” on
May 11, 2016.</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"><b><i>Conversion of Series B Preferred into Common Stock</i></b></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">During April 2016, prior to the May 2016 Public Offering, holders
of an aggregate of 7,500 shares of Series B Preferred voluntarily converted such shares into an equivalent number of registered
shares of our common stock.  In connection with such conversions, we issued an aggregate of 510 shares of our unregistered
common stock in payment of $4,000 in accrued dividends on the Series B Preferred converted.</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">On May 19, 2016, upon the consummation of the May 2016 Public
Offering, an aggregate of 2,403,051 shares of Series B Preferred were automatically converted into an aggregate of 2,192,847 registered
shares of our common stock and an aggregate of 210,204 shares of our unregistered common stock. Additionally, we issued an aggregate
of 416,806 shares of our unregistered common stock in payment of $1,642,100 in accrued dividends, at the rate of one share of common
stock for each $3.94 of accrued dividends.  On June 15, 2016, pursuant to the underwriters’ exercise of their over-allotment
option, an additional 44,500 shares of Series B Preferred were converted into 44,500 shares of our registered common stock.  We
issued an additional 9,580 shares of our unregistered common stock in payment of $37,400 in accrued dividends, at the rate of one
share of common stock for each $3.90 in accrued dividends.</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"><b><i>Modification of Warrants</i></b></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">Between April 1, 2016 and May 4, 2016, we entered into Warrant
Exchange Agreements with certain holders of outstanding warrants to purchase an aggregate of 41,469 shares of our common stock
pursuant to which the holders agreed to the cancellation of such warrants in exchange for our issuance to them of an aggregate
of 31,238 shares of our unregistered common stock.</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">We accounted for the exchange of these warrants as warrant modifications,
comparing their fair value prior to the exchange with the fair value of the common stock issued. We calculated the weighted average
fair value of the warrants prior to the exchange to be $5.37 per share, or $223,700, using the Black Scholes Option Pricing Model
and the following weighted average assumptions: market price per share: $8.44; exercise price per share: $7.37; risk-free interest
rate: 1.23%; remaining contractual term: 4.77 years; volatility: 79.0%; expected dividend rate: 0%.  The weighted average
fair value of the aggregate of 31,238 shares of common stock issued in the exchange was $8.45 per share or $264,000.  Accordingly,
we recognized the additional fair value, $40,300, as warrant modification expense, included as a component of general and administrative
expenses in the accompanying Condensed Consolidated Statement of Operations and Comprehensive Loss for the three months ended
June 30, 2016.</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"><b><i>Warrants Outstanding</i></b></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">Following the warrant issuances in the May 2016 Public Offering,
the Series B Warrant issuances and the warrant exchanges described above, at June 30, 2016, we had outstanding warrants to purchase
shares of our unregistered common stock at a weighted average exercise price of $6.48 per share as follows:</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"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td colspan="2"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Shares Subject</b></font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Exercise</b></font></td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>to Purchase at</b></font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Price</b></font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: center"><font style="font-size: 10pt"><b>Expiration</b></font></td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>June 30,</b></font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>per Share</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>Date</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>2016</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="2"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 22%; text-align: right"><font style="font-size: 10pt">5.30</font></td>
<td nowrap="nowrap" style="width: 1%"> </td>
<td style="width: 42%; text-align: center"><font style="font-size: 10pt">5/16/2021</font></td>
<td style="width: 1%; text-align: right"> </td>
<td style="width: 1%"> </td>
<td style="width: 31%; text-align: right"><font style="font-size: 10pt">2,705,883</font></td>
<td nowrap="nowrap" style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">7.00</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: center"><font style="font-size: 10pt">12/11/2018 to 3/3/2023</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">1,417,125</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">8.00</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: center"><font style="font-size: 10pt">3/25/2021</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">230,000</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">10.00</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: center"><font style="font-size: 10pt">8/31/2016 to 1/11/2020</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">135,384</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">15.00</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: center"><font style="font-size: 10pt">8/31/2016</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">4,040</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">20.00</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: center"><font style="font-size: 10pt">9/15/2019</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">110,448</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">30.00</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: center"><font style="font-size: 10pt">11/20/2017</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">3,600</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"> </td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td> </td>
<td style="padding-bottom: 3pt; text-align: right"> </td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt; text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">4,606,480</font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td></tr>
</table>
<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"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Cato Holding Company (<i>CHC</i>), doing business as Cato BioVentures
(<i>CBV</i>), and the parent of Cato Research Ltd (<i>CRL</i>) a contract research organization (<i>CRO</i>) engaged with us for
the development of AV-101, is one of our largest institutional stockholders at June 30, 2016, holding approximately 7% of our outstanding
common stock.  Shawn Singh, our Chief Executive Officer and member of our Board of Directors, served as Managing Principal
of CBV and as an officer of CRL until August 2009. On October 10, 2012, we issued to CHC an unsecured promissory note in the principal
amount of $310,400 (the <i>2012 CHC Note</i>) and a five-year warrant to purchase 12,500 restricted shares of our common stock
at a price of $30.00 per share (the <i>CHC Warrant</i>).  Additionally, on October 10, 2012, we issued to CRL: (i) an
unsecured promissory note in the initial principal amount of $1,009,000, payable solely in restricted shares of our common
stock and which accrued interest at the rate of 7.5% per annum, compounded monthly (the <i>CRL Note</i>), as payment in full
for all contract research and development services and regulatory advice rendered to us by CRL through December 31, 2012 with
respect to the preclinical and clinical development of AV-101, and (ii) a five-year warrant to purchase, at a price of
$20.00 per share, 50,450 restricted shares of our common stock, such number of shares to be adjusted in relation to accrued interest
on the CRL Note (<i>CRL Warrant</i>). The Cato Notes and additional amounts payable to CRL for CRO services were extinguished in
June 2015 in exchange for our issuance of an aggregate of 328,571 shares of Series B Preferred to CHC, which shares of Series B
Preferred were automatically converted into an equal number of registered shares of our common stock in connection with the May
2016 Public Offering.  CHC also participated in our February 2016 warrant exchange, exchanging the CHC Warrant and the
CRL Warrant, as adjusted to reflect accrued interest, for an aggregate of 54,894 shares of our unregistered common stock.</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">Under the terms of VistaGen California’s contract research
organization arrangement with CRL related to the development of AV-101, we incurred expenses of $50,400 and $11,200 for the three
month periods ended June 30, 2016 and 2015, respectively.  Total interest expense, including amortization of note discount,
on the notes payable to CHC and CRL was $28,200 for the three month period ended June 30, 2015.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We have evaluated subsequent events through the date of this
report and have found no material matters requiring disclosure.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The accompanying unaudited Condensed Consolidated Financial
Statements have been prepared in accordance with accounting principles generally accepted in the United States (<i>U.S. GAAP</i>)
for interim financial information and with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, they
do not contain all of the information and footnotes required for complete consolidated financial statements. In the opinion of
management, the accompanying unaudited Condensed Consolidated Financial Statements reflect all adjustments, which include only
normal recurring adjustments, necessary to present fairly our interim financial information. The accompanying Condensed Consolidated
Balance Sheet at March 31, 2016 has been derived from our audited consolidated financial statements at that date but does not include
all disclosures required by U.S. GAAP.  The operating results for the three months ended June 30, 2016 are not necessarily
indicative of the operating results to be expected for our fiscal year ending March 31, 2017 or for any other interim period or
any other future period.</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">The accompanying unaudited Condensed Consolidated Financial
Statements and notes to Condensed Consolidated Financial Statements should be read in conjunction with our audited Consolidated
Financial Statements for the fiscal year ended March 31, 2016 contained in our Annual Report on Form 10-K, as filed with the Securities
and Exchange Commission (<i>SEC</i>) on June 24, 2016.</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">The accompanying Condensed Consolidated Financial Statements
have been prepared assuming we will continue as a going concern. As a developing-technology company having not yet developed commercial
products or achieved sustainable revenues, we have experienced recurring losses and negative cash flows from operations resulting
in a deficit of $133.7 million accumulated from inception through June 30, 2016. We expect losses and negative cash flows from
operations to continue for the foreseeable future as we engage in further potential development of AV-101 and launch and execute
our drug rescue programs and pursue potential drug development and regenerative medicine opportunities.</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">Since our inception in May 1998 through June 30, 2016, we have
financed our operations and technology acquisitions primarily through the issuance and sale of our equity and debt securities,
including convertible promissory notes and short-term promissory notes, for cash proceeds of approximately $44.3 million, as well
as from an aggregate of approximately $16.4 million of government research grant awards, strategic collaboration payments and other
revenues. Additionally, we have issued equity securities with an approximate value at issuance of $29.1 million in non-cash settlements
of certain liabilities, including liabilities for professional services rendered to us or as compensation for such services.</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">Between April 1, 2016 and May 4, 2016, we sold to accredited
investors Series B Preferred Units consisting of 39,714 unregistered shares of our Series B Preferred Stock, par value $0.001 per
share (<i>Series B Preferred</i>), and five year warrants to purchase 39,714 shares of our common stock, from which we received
cash proceeds of $278,000. Further, on May 16, 2016 we consummated an underwritten public offering pursuant to which we issued
an aggregate of 2,570,040 registered shares of our common stock at the public offering price of $4.24 per share and five-year
warrants to purchase up to 2,705,883 registered shares of common stock, with an exercise price of $5.30 per share, at the
public offering price of $0.01 per warrant, including shares and warrants issued pursuant to the exercise of the underwriters'
over-allotment option (the <i>May 2016 Public Offering</i>). We received net cash proceeds of approximately $9.5 million from
the May 2016 Public Offering after deducting fees and expenses. We expect the proceeds of these transactions to provide sufficient
cash to sustain our operations through our fiscal year ending March 31, 2017, however they will not be adequate to enable the completion
of our Phase 2b clinical trial of AV-101 in MDD. Accordingly, we intend to raise additional capital through sales of our securities, which
may include both debt and equity securities. We may also seek research and development collaborations that could generate revenue,
as well as government grant awards. Further, strategic collaborations, such as our February 2015 CRADA with the NIMH providing
for the NIMH to fund our Phase 2a study of AV-101 in MDD, may provide resources to support a portion of our future cash needs and
working capital requirements. Although we may seek additional collaborations that could generate revenue, as well as new government
grant awards, no assurance can be provided that any such collaborations or awards will occur in the future.  Our future working
capital requirements will depend on many factors, including, without limitation, the scope and nature of opportunities related
to our success and the success of certain other companies in clinical trials, including our development of AV-101 as a treatment
for MDD and other CNS conditions, and our stem cell technology platform, the availability of, and our ability to obtain, government
grant awards and our ability to enter into collaborations on terms acceptable to us. To further advance the clinical development
of AV-101 and our stem cell technology platform, as well as support our operating activities, we plan to continue to carefully
manage our routine operating costs, including our employee headcount and related expenses, as well as costs relating to regulatory
consulting, contract research and development, investor relations and corporate development, legal, accounting, public company
compliance and other professional services and working capital costs. </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">Notwithstanding the foregoing, substantial additional financing
may not be available to us on a timely basis, on acceptable terms, or at all. If we are unable to obtain substantial additional
financing on a timely basis in the near term, our business, financial condition, and results of operations may be harmed, the price
of our stock may decline, we may be required to reduce, defer, or discontinue certain of our research and development activities
and we may not be able to continue as a going concern.  These Condensed Consolidated Financial Statements do not include
any adjustments that might result from the outcome of this uncertainty.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The preparation of financial statements in conformity with U.S. GAAP
requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure
of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.  Significant estimates include those relating
to share-based compensation, and assumptions that have been used to value warrants, warrant modifications, warrant liabilities.  We
do not currently have, nor have we had during the periods covered by this report, any arrangements requiring the recognition of
revenue.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Research and development expenses are composed of both internal
and external costs.  Internal costs include salaries and employment-related expenses of scientific personnel and direct
project costs.  External research and development expenses consist primarily of costs associated with nonclinical and
clinical development of AV-101, now in Phase 2 clinical development, initially for Major Depressive Disorder, stem cell technology-related
research and development costs, and costs related to the filing, maintenance and prosecution of patents and patent applications.
All such costs are charged to expense as incurred.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We recognize compensation cost for all stock-based awards to
employees or consultants based on the grant date fair value of the award.  Non-cash, stock-based compensation expense
is recognized over the period during which the employee or consultant is required to perform services in exchange for the award,
which generally represents the scheduled vesting period.  We have no awards with market or performance conditions.  For
equity awards to non-employees, we re-measure the fair value of the awards as they vest and the resulting value is recognized as
an expense during the period over which the services are performed.</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">The table below summarizes stock-based compensation expense
included in the accompanying Condensed Consolidated Statements of Operations and Comprehensive Loss for the three months ended
June 30, 2016 and 2015.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="6" style="text-align: center"><font style="font-size: 10pt"><b>Three Months Ended</b></font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>June 30,</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>2016</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>2015</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 10pt"> Research and development expense:</font></td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 78%; padding-left: 6.1pt"><font style="font-size: 10pt"> Stock option grants</font></td>
<td style="width: 1%; text-align: right"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 8%; text-align: right"><font style="font-size: 10pt">44,000</font></td>
<td nowrap="nowrap" style="width: 1%"> </td>
<td style="width: 1%; text-align: right"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 8%; text-align: right"><font style="font-size: 10pt">15,500</font></td>
<td nowrap="nowrap" style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt; padding-left: 6.1pt"><font style="font-size: 10pt"> Warrants granted to officer in March 2014</font></td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">2,800</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">44,000</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">18,300</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt"> General and administrative expense:</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt"></font></td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 6.1pt"><font style="font-size: 10pt"> Stock option grants</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">63,900</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">7,000</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 6.1pt"><font style="font-size: 10pt"> Warrants granted to officers and directors</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt; padding-left: 6.1pt"><font style="font-size: 10pt">      in March 2014</font></td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">3,900</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">63,900</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">10,900</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 3pt"><font style="font-size: 10pt"> Total stock-based compensation expense</font></td>
<td style="padding-bottom: 3pt; text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">107,900</font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt; text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">29,200</font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td></tr>
</table>
<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">On June 19, 2016, our Board of Directors (<i>Board</i>) approved
the grant of options to purchase an aggregate of 655,000 shares of our common stock at an exercise price of $3.49 per share to
the independent members of our Board and to our officers, including our newly-hired Chief Medical Officer.  We did not
grant any stock options during the three months ended June 30, 2015.  At June 30, 2016, there were stock options outstanding
to purchase 986,987 shares of our common stock at a weighted average exercise price of $5.53 per share. We valued the options granted
in June 2016 using the Black-Scholes Option Pricing Model and the following weighted average assumptions:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid"><font style="font-size: 10pt"><b>Assumption:</b></font></td>
<td style="vertical-align: top; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="vertical-align: bottom; border-bottom: black 1.5pt solid"> </td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom; width: 89%"><font style="font-size: 10pt">Market price per share at grant date</font></td>
<td style="vertical-align: top; width: 1%"> </td>
<td style="vertical-align: bottom; width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 8%; text-align: right"><font style="font-size: 10pt">3.49</font></td>
<td style="vertical-align: bottom; width: 1%"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom"><font style="font-size: 10pt">Exercise price per share</font></td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: bottom"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">3.49</font></td>
<td style="vertical-align: bottom"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom"><font style="font-size: 10pt">Risk-free interest rate</font></td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">1.34%</font></td>
<td style="vertical-align: bottom"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom"><font style="font-size: 10pt">Contractual or estimated term in years</font></td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">6.68</font></td>
<td style="vertical-align: bottom"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom"><font style="font-size: 10pt">Volatility</font></td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">81.69%</font></td>
<td style="vertical-align: bottom"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom"><font style="font-size: 10pt">Dividend rate</font></td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">0.0%</font></td>
<td style="vertical-align: bottom"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom"><font style="font-size: 10pt">Shares</font></td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">655,000</font></td>
<td style="vertical-align: bottom"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom"><font style="font-size: 10pt"><b>Fair Value per share</b></font></td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: bottom"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt"><b>2.50</b></font></td>
<td style="vertical-align: bottom"> </td></tr>
</table>
<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">We have no components of other comprehensive loss other than
net loss, and accordingly our comprehensive loss is equivalent to our net loss for the periods presented.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Basic net income (loss) per share of common stock excludes the
effect of dilution and is computed by dividing net income (loss) by the weighted-average number of shares of common stock outstanding
for the period. Diluted net income (loss) per share of common stock reflects the potential dilution that could occur if securities
or other contracts to issue shares of common stock were exercised or converted into shares of common stock. In calculating diluted
net income (loss) per share, we have historically adjusted the numerator for the change in the fair value of the warrant liability
attributable to outstanding warrants, only if dilutive, and increased the denominator to include the number of potentially dilutive
common shares assumed to be outstanding during the period using the treasury stock method. The change in the fair value of the
warrant liability, which was eliminated in May 2015, had no impact on the diluted net earnings per share calculation in any period
included in these Condensed Consolidated Financial Statements.</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">As a result of our net loss for the periods presented, potentially
dilutive securities were excluded from the computation of net loss per share, as their effect would be antidilutive. For the three
month periods ended June 30, 2016 and 2015, the accrual for dividends on our Series B Preferred and the deemed dividend attributable
to the issuance of our Series B Preferred Units represent deductions from our net loss to arrive at net loss attributable to common
stockholders for those periods.</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">Potentially dilutive securities excluded in determining diluted
net loss attributable to common stockholders per common share are as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>As of June 30,</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>2016</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>2015</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 78%"><font style="font-size: 10pt">Series A Preferred stock issued and outstanding</font><font style="font-size: 7pt"> (1)</font></td>
<td style="width: 1%; text-align: right"> </td>
<td style="width: 1%"> </td>
<td style="width: 8%; text-align: right"><font style="font-size: 10pt">750,000</font></td>
<td nowrap="nowrap" style="width: 1%"> </td>
<td style="width: 1%; text-align: right"> </td>
<td style="width: 1%"> </td>
<td style="width: 8%; text-align: right"><font style="font-size: 10pt">750,000</font></td>
<td nowrap="nowrap" style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Series B Preferred stock issued and outstanding</font><font style="font-size: 7pt"> (2)</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">1,247,740</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">2,995,579</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Series C Preferred stock issued and outstanding</font><font style="font-size: 7pt"> (3)</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">2,318,012</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Outstanding options under the 2008 and 1999 Stock Incentive Plans</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">986,987</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">206,788</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Outstanding warrants to purchase common stock</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">4,606,480</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">3,735,023</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Warrant shares issuable to PLTG upon exchange of Series A Preferred</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">    under the terms of the October 11, 2012 Note Exchange and Purchase</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">    Agreement, as subsequently amended</font></td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">535,715</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 3pt"><font style="font-size: 10pt">Total</font></td>
<td style="padding-bottom: 3pt; text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">9,909,219</font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt; text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">8,223,105</font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">____________</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td colspan="8"><font style="font-size: 7pt">(1)</font><font style="font-size: 10pt"> Assumes exchange under the terms of the October 11, 2012 Note Exchange and Purchase Agreement with PLTG, as amended</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td colspan="8"><font style="font-size: 7pt">(2)</font><font style="font-size: 10pt"> Assumes exchange under the terms of the Certificate of Designation of the Relative Rights and Preferences of the Series B 10% Convertible Preferred Stock, effective May 5, 2015</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td colspan="8"><font style="font-size: 7pt">(3)</font><font style="font-size: 10pt"> Assumes exchange under the terms of the Certificate of Designation of the Relative Rights and Preferences of the Series C Convertible Preferred Stock, effective January 25, 2016</font></td>
<td nowrap="nowrap"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">There have been no recent accounting pronouncements or changes
in accounting pronouncements during the three months ended June 30, 2016, as compared to the recent accounting pronouncements described
in the Company’s Form 10-K for the fiscal year ended March 31, 2016, that are of significance or potential significance to
the Company.</p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="6" style="text-align: center"><font style="font-size: 10pt"><b>Three Months Ended</b></font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>June 30,</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>2016</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>2015</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 10pt"> Research and development expense:</font></td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 78%; padding-left: 6.1pt"><font style="font-size: 10pt"> Stock option grants</font></td>
<td style="width: 1%; text-align: right"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 8%; text-align: right"><font style="font-size: 10pt">44,000</font></td>
<td nowrap="nowrap" style="width: 1%"> </td>
<td style="width: 1%; text-align: right"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 8%; text-align: right"><font style="font-size: 10pt">15,500</font></td>
<td nowrap="nowrap" style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt; padding-left: 6.1pt"><font style="font-size: 10pt"> Warrants granted to officer in March 2014</font></td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">2,800</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">44,000</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">18,300</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt"> General and administrative expense:</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">63,900</font></td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 6.1pt"><font style="font-size: 10pt"> Stock option grants</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">63,900</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">7,000</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 6.1pt"><font style="font-size: 10pt"> Warrants granted to officers and directors</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt; padding-left: 6.1pt"><font style="font-size: 10pt">      in March 2014</font></td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">3,900</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">63,900</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">10,900</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 3pt"><font style="font-size: 10pt"> Total stock-based compensation expense</font></td>
<td style="padding-bottom: 3pt; text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">107,900</font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt; text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">29,200</font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid"><font style="font-size: 10pt"><b>Assumption:</b></font></td>
<td style="vertical-align: top; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="vertical-align: bottom; border-bottom: black 1.5pt solid"> </td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom; width: 89%"><font style="font-size: 10pt">Market price per share at grant date</font></td>
<td style="vertical-align: top; width: 1%"> </td>
<td style="vertical-align: bottom; width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 8%; text-align: right"><font style="font-size: 10pt">3.49</font></td>
<td style="vertical-align: bottom; width: 1%"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom"><font style="font-size: 10pt">Exercise price per share</font></td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: bottom"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">3.49</font></td>
<td style="vertical-align: bottom"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom"><font style="font-size: 10pt">Risk-free interest rate</font></td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">1.34%</font></td>
<td style="vertical-align: bottom"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom"><font style="font-size: 10pt">Contractual or estimated term in years</font></td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">6.68</font></td>
<td style="vertical-align: bottom"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom"><font style="font-size: 10pt">Volatility</font></td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">81.69%</font></td>
<td style="vertical-align: bottom"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom"><font style="font-size: 10pt">Dividend rate</font></td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">0.0%</font></td>
<td style="vertical-align: bottom"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom"><font style="font-size: 10pt">Shares</font></td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">655,000</font></td>
<td style="vertical-align: bottom"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom"><font style="font-size: 10pt"><b>Fair Value per share</b></font></td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: bottom"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt"><b>2.50</b></font></td>
<td style="vertical-align: bottom"> </td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>As of June 30,</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>2016</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>2015</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 78%"><font style="font-size: 10pt">Series A Preferred stock issued and outstanding</font><font style="font-size: 7pt"> (1)</font></td>
<td style="width: 1%; text-align: right"> </td>
<td style="width: 1%"> </td>
<td style="width: 8%; text-align: right"><font style="font-size: 10pt">750,000</font></td>
<td nowrap="nowrap" style="width: 1%"> </td>
<td style="width: 1%; text-align: right"> </td>
<td style="width: 1%"> </td>
<td style="width: 8%; text-align: right"><font style="font-size: 10pt">750,000</font></td>
<td nowrap="nowrap" style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Series B Preferred stock issued and outstanding</font><font style="font-size: 7pt"> (2)</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">1,247,740</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">2,995,579</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Series C Preferred stock issued and outstanding</font><font style="font-size: 7pt"> (3)</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">2,318,012</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Outstanding options under the 2008 and 1999 Stock Incentive Plans</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">986,987</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">206,788</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Outstanding warrants to purchase common stock</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">4,606,480</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">3,735,023</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Warrant shares issuable to PLTG upon exchange of Series A Preferred</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">    under the terms of the October 11, 2012 Note Exchange and Purchase</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">    Agreement, as subsequently amended</font></td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">535,715</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 3pt"><font style="font-size: 10pt">Total</font></td>
<td style="padding-bottom: 3pt; text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">9,909,219</font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt; text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">8,223,105</font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">____________</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td colspan="8"><font style="font-size: 7pt">(1)</font><font style="font-size: 10pt"> Assumes exchange under the terms of the October 11, 2012 Note Exchange and Purchase Agreement with PLTG, as amended</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td colspan="8"><font style="font-size: 7pt">(2)</font><font style="font-size: 10pt"> Assumes exchange under the terms of the Certificate of Designation of the Relative Rights and Preferences of the Series B 10% Convertible Preferred Stock, effective May 5, 2015</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td colspan="8"><font style="font-size: 7pt">(3)</font><font style="font-size: 10pt"> Assumes exchange under the terms of the Certificate of Designation of the Relative Rights and Preferences of the Series C Convertible Preferred Stock, effective January 25, 2016</font></td>
<td nowrap="nowrap"> </td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>June 30,</b></font></td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>March 31,</b></font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>2016</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>2016</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 78%"><font style="font-size: 10pt"> Insurance</font></td>
<td style="width: 1%; text-align: right"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 8%; text-align: right"><font style="font-size: 10pt">131,500</font></td>
<td nowrap="nowrap" style="width: 1%"> </td>
<td style="width: 1%; text-align: right"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 8%; text-align: right"><font style="font-size: 10pt">27,000</font></td>
<td nowrap="nowrap" style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt"> Prepaid compensation under financial advisory</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">     and other consulting agreements</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">337,500</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt"> Public offering expenses</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">57,400</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt"> Technology license fees and all other</font></td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">3,200</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">4,900</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt; text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">134,700</font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt; text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">426,800</font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>June 30,</b></font></td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>March 31,</b></font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>2016</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>2016</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 78%"><font style="font-size: 10pt"> Accrued professional services</font></td>
<td style="width: 1%; text-align: right"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 8%; text-align: right"><font style="font-size: 10pt">326,900</font></td>
<td nowrap="nowrap" style="width: 1%"> </td>
<td style="width: 1%; text-align: right"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 8%; text-align: right"><font style="font-size: 10pt">318,000</font></td>
<td nowrap="nowrap" style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt"> Accrued AV-101 development expenses</font></td>
<td style="text-align: right"> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">232,900</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">186,000</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt"> Accrued compensation</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">310,000</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt"> All other</font></td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">5,000</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt; text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">564,800</font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt; text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">814,000</font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="10" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>June 30, 2016</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="10" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>March 31, 2016</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Principal</b></font></td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Accrued</b></font></td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Principal</b></font></td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Accrued</b></font></td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>Balance</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>Interest</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>Total</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>Balance</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>Interest</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>Total</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 28%; padding-bottom: 3pt"><font style="font-size: 10pt">5.75% Note payable to insurance premium financing company (current)</font></td>
<td style="width: 1%; padding-bottom: 3pt; text-align: right"> </td>
<td style="width: 1%; border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="width: 9%; border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">105,900</font></td>
<td nowrap="nowrap" style="width: 1%; padding-bottom: 3pt"> </td>
<td style="width: 1%; padding-bottom: 3pt; text-align: right"> </td>
<td style="width: 1%; border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="width: 9%; border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap" style="width: 1%; padding-bottom: 3pt"> </td>
<td style="width: 1%; padding-bottom: 3pt; text-align: right"> </td>
<td style="width: 1%; border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="width: 9%; border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">105,900</font></td>
<td nowrap="nowrap" style="width: 1%; padding-bottom: 3pt"> </td>
<td style="width: 1%; padding-bottom: 3pt; text-align: right"> </td>
<td style="width: 1%; border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="width: 9%; border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap" style="width: 1%; padding-bottom: 3pt"> </td>
<td style="width: 1%; padding-bottom: 3pt; text-align: right"> </td>
<td style="width: 1%; border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="width: 9%; border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap" style="width: 1%; padding-bottom: 3pt"> </td>
<td style="width: 1%; padding-bottom: 3pt; text-align: right"> </td>
<td style="width: 1%; border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="width: 9%; border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap" style="width: 1%; padding-bottom: 3pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">7.0% Note payable to Progressive Medical Research</font></td>
<td style="text-align: right"> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">58,800</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">12,000</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">70,800</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt; text-indent: 9pt"><font style="font-size: 10pt">less: current portion</font></td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(31,600</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(12,000</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(43,600</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 3pt"><font style="font-size: 10pt">7.0% Notes payable - non-current portion</font></td>
<td style="padding-bottom: 3pt; text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt; text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt; text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt; text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">27,200</font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt; text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt; text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">27,200</font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-indent: 9pt"><font style="font-size: 10pt">Total notes payable to unrelated parties</font></td>
<td style="text-align: right"> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">105,900</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">105,900</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">58,800</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">12,000</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">70,800</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt; text-indent: 0.25in"><font style="font-size: 10pt">less: current portion</font></td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(105,900</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(105,900</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(31,600</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(12,000</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(43,600</font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 3pt; text-indent: 9pt"><font style="font-size: 10pt">Net non-current portion</font></td>
<td style="padding-bottom: 3pt; text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt; text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt; text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt; text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">27,200</font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt; text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt; text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">27,200</font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td colspan="2"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Shares Subject</b></font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Exercise</b></font></td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>to Purchase at</b></font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Price</b></font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: center"><font style="font-size: 10pt"><b>Expiration</b></font></td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>June 30,</b></font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>per Share</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>Date</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>2016</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="2"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 25%; text-align: right"><font style="font-size: 10pt">5.30</font></td>
<td nowrap="nowrap" style="width: 2%"> </td>
<td style="width: 38%; text-align: center"><font style="font-size: 10pt">5/16/2021</font></td>
<td style="width: 1%; text-align: right"> </td>
<td style="width: 2%"> </td>
<td style="width: 30%; text-align: right"><font style="font-size: 10pt">2,705,883</font></td>
<td nowrap="nowrap" style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">7.00</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: center"><font style="font-size: 10pt">12/11/2018 to 3/3/2023</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">1,417,125</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">8.00</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: center"><font style="font-size: 10pt">3/25/2021</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">230,000</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">10.00</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: center"><font style="font-size: 10pt">8/31/2016 to 1/11/2020</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">135,384</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">15.00</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: center"><font style="font-size: 10pt">8/31/2016</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">4,040</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">20.00</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: center"><font style="font-size: 10pt">9/15/2019</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">110,448</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">30.00</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: center"><font style="font-size: 10pt">11/20/2017</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">3,600</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"> </td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td> </td>
<td style="padding-bottom: 3pt; text-align: right"> </td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt; text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">4,606,480</font></td>
<td nowrap="nowrap" style="padding-bottom: 3pt"> </td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td colspan="34" style="border-bottom: black 1.5pt solid; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"><b>Unit
Warrants</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="22" style="border-bottom: black 1.5pt solid; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"><b>Weighted
Average Issuance Date Valuation Assumptions</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" rowspan="4" style="border-bottom: black 1.5pt solid; text-align: center; vertical-align: bottom"><p style="margin-top: 0; margin-bottom: 0"><font style="font: 8pt Times New Roman, Times, Serif"><b>Per</b></font></p>
<p style="margin-top: 0; margin-bottom: 0"><font style="font: 8pt Times New Roman, Times, Serif"><b>Share</b></font></p>
<p style="margin-top: 0; margin-bottom: 0"><font style="font: 8pt Times New Roman, Times, Serif"><b>Fair</b> <b></b></font></p>
<p style="margin-top: 0; margin-bottom: 0"><font style="font: 8pt Times New Roman, Times, Serif"><b>Value of</b></font></p>
<p style="margin-top: 0; margin-bottom: 0"><font style="font: 8pt Times New Roman, Times, Serif"><b>Warrant</b></font></p></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" rowspan="4" style="border-bottom: black 1.5pt solid; text-align: center; vertical-align: bottom"><p style="margin-top: 0; margin-bottom: 0"><font style="font: 8pt Times New Roman, Times, Serif"><b>Aggregate Fair</b></font></p>
<p style="margin-top: 0; margin-bottom: 0"><font style="font: 8pt Times New Roman, Times, Serif"><b> Value</b> <b></b></font></p>
<p style="margin-top: 0; margin-bottom: 0"><font style="font: 8pt Times New Roman, Times, Serif"><b>of
Unit</b></font></p>
<p style="margin-top: 0; margin-bottom: 0"><font style="font: 8pt Times New Roman, Times, Serif"><b>Warrants</b></font></p></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" rowspan="4" style="border-bottom: black 1.5pt solid; text-align: center; vertical-align: bottom"><p style="margin-top: 0; margin-bottom: 0"><font style="font: 8pt Times New Roman, Times, Serif"><b>Aggregate</b></font></p>
<p style="margin-top: 0; margin-bottom: 0"><font style="font: 8pt Times New Roman, Times, Serif"><b>Proceeds</b></font></p>
<p style="margin-top: 0; margin-bottom: 0"><font style="font: 8pt Times New Roman, Times, Serif"><b>of</b></font></p>
<p style="margin-top: 0; margin-bottom: 0"><font style="font: 8pt Times New Roman, Times, Serif"><b>Unit</b></font></p>
<p style="margin-top: 0; margin-bottom: 0"><font style="font: 8pt Times New Roman, Times, Serif"><b>Sales</b></font></p></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="6" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"><b>Aggregate
Allocation of Proceeds</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" rowspan="3" style="border-bottom: black 1.5pt solid; text-align: center; vertical-align: bottom"><p style="margin-top: 0; margin-bottom: 0"><font style="font: 8pt Times New Roman, Times, Serif"><b>Warrant</b></font></p>
<p style="margin-top: 0; margin-bottom: 0"><font style="font: 8pt Times New Roman, Times, Serif"><b>Shares</b></font></p>
<p style="margin-top: 0; margin-bottom: 0"><font style="font: 8pt Times New Roman, Times, Serif"><b>Issued</b></font></p></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" rowspan="3" style="border-bottom: black 1.5pt solid; text-align: center; vertical-align: bottom"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>Risk</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>free</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>Interest</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>Rate</b></font></p></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"><b>Based
on Relative Fair Value of:</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" rowspan="2" style="border-bottom: black 1.5pt solid; text-align: center; vertical-align: bottom"><p style="margin-top: 0; margin-bottom: 0"><font style="font: 8pt Times New Roman, Times, Serif"><b>Market</b></font></p>
<p style="margin-top: 0; margin-bottom: 0"><font style="font: 8pt Times New Roman, Times, Serif"><b>Price</b></font></p></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" rowspan="2" style="border-bottom: black 1.5pt solid; text-align: center; vertical-align: bottom"><p style="margin-top: 0; margin-bottom: 0"><font style="font: 8pt Times New Roman, Times, Serif"><b>Exercise</b></font></p>
<p style="margin-top: 0; margin-bottom: 0"><font style="font: 8pt Times New Roman, Times, Serif"><b>Price</b></font></p></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" rowspan="2" style="border-bottom: black 1.5pt solid; text-align: center; vertical-align: bottom"><p style="margin-top: 0; margin-bottom: 0"><font style="font: 8pt Times New Roman, Times, Serif"><b>Term</b></font></p>
<p style="margin-top: 0; margin-bottom: 0"><font style="font: 8pt Times New Roman, Times, Serif"><b>(Years)</b></font></p></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" rowspan="2" style="border-bottom: black 1.5pt solid; text-align: center; vertical-align: bottom"><p style="margin-top: 0; margin-bottom: 0"><font style="font: 8pt Times New Roman, Times, Serif"><b>Dividend</b></font></p>
<p style="margin-top: 0; margin-bottom: 0"><font style="font: 8pt Times New Roman, Times, Serif"><b>Rate</b></font></p></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" rowspan="2" style="border-bottom: black 1.5pt solid; text-align: center; vertical-align: bottom"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>Unit
</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>Stock</b></font></p></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" rowspan="2" style="border-bottom: black 1.5pt solid; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"><b>Unit
Warrant</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>Volatility</b></font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="padding-bottom: 1.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td colspan="2"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 1%"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 6%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">39,714</font></td>
<td nowrap="nowrap" style="width: 1%"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: right"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 5%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">8.45</font></td>
<td nowrap="nowrap" style="width: 1%"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: right"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 6%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">7.00</font></td>
<td nowrap="nowrap" style="width: 1%"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: right"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 2%"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: -2mm !important; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">5.00</font></td>
<td nowrap="nowrap" style="width: 1%"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: right"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 5%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1.27</font></td>
<td nowrap="nowrap" style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td>
<td style="width: 1%; text-align: right"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 6%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">78.43</font></td>
<td nowrap="nowrap" style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td>
<td style="width: 1%; text-align: right"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 6%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">0.0</font></td>
<td nowrap="nowrap" style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td>
<td style="width: 1%; text-align: right"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 6%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">5.63</font></td>
<td nowrap="nowrap" style="width: 1%"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: right"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 7%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">223,500</font></td>
<td nowrap="nowrap" style="width: 1%"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: right"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 7%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">278,000</font></td>
<td nowrap="nowrap" style="width: 1%"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: right"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 6%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">166,900</font></td>
<td nowrap="nowrap" style="width: 1%"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: right"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 6%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">61,100</font></td>
<td nowrap="nowrap" style="width: 1%"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
</table>
0
1894700
278000
607500
Assumes exchange under the terms of the October 11, 2012 Note Exchange and Purchase Agreement with PLTG, as amended
Assumes exchange under the terms of the Certificate of Designation of the Relative Rights and Preferences of the Series B 10% Convertible Preferred Stock, effective May 5, 2015
Assumes exchange under the terms of the Certificate of Designation of the Relative Rights and Preferences of the Series C Convertible Preferred Stock, effective January 25, 2016