NOTE 11 – SUBSEQUENT EVENTS

In October 2017, the Compensation Committee of the Board of Directors of the Company granted nonqualified stock options to purchase an aggregate of 1,640,000 shares of common stock to certain directors, employees, including executive officers, and key consultants under the Company’s 2016 Consolidated Stock Incentive Plan. Other than the issuance of a stock option to purchase 80,000 shares of common stock issued to one key consultant, one third of the shares of common stock subject to the stock options became exercisable immediately, and one third of the shares of common stock subject to the stock options will become exercisable on each of October 16, 2018 and October 16, 2019. With respect to the stock option to purchase 80,000 shares of common stock issued to one key consultant, one quarter of the shares of common stock subject to the stock option vested immediately, and the remaining three quarters of the shares of common stock subject to the stock option will become exercisable upon the achievements of certain milestones in connection with the Company’s MAKO clinical study. The stock options have an exercise price of $0.67 per share and expire on October 15, 2022.

In October 2017, the Company issued a warrant to purchase 250,000 shares of common stock to a consultant, which vests in six equal consecutive monthly amounts at the end of each calendar month starting October 31, 2017, at an exercise price of $1.00 per share, for a term of two years from the date of issuance. The warrant was issued for services to be provided to the Company.