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<P STYLE="margin-top: 0; text-align: center; margin-bottom: 0"><B>As filed with the Securities and Exchange Commission on
July 15, 2019.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><B>Registration No. 333-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>UNITED STATES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SECURITIES AND EXCHANGE COMMISSION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>WASHINGTON, D.C. 20549</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>FORM S-1</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OF 1933</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 12pt"><B>NeuroOne
Medical Technologies Corporation</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Exact name of registrant as specified
in its charter)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 33%; border-bottom: black 1.5pt solid; text-align: center"><B>Delaware</B></TD>
    <TD STYLE="width: 1%; padding-bottom: 1.5pt; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 33%; border-bottom: black 1.5pt solid; text-align: center"><B>3841</B></TD>
    <TD STYLE="width: 1%; padding-bottom: 1.5pt; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 32%; border-bottom: black 1.5pt solid; text-align: center"><B>27-0863354</B></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">(State or other jurisdiction of</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">(Primary Standard Industrial</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">(I.R.S. Employer</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">incorporation or organization)</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">Classification Code Number)</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">Identification No.)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>10901 Red Circle Drive, Suite 150</B><BR>
<B>Minnetonka, MN 55343</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>952-426-1383</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Address, including zip code, and telephone
number, including area code, of registrant&rsquo;s principal executive offices)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>David Rosa</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>10901 Red Circle Drive, Suite 150</B><BR>
<B>Minnetonka, MN 55343</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>952-426-1383</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Name, address, including zip code, and
telephone number, including area code, of agent for service)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>With copies to:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Phillip D. Torrence, Esq.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Gabrielle L. Sims, Esq.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Honigman LLP</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>650 Trade Centre Way, Suite 200</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Kalamazoo, MI 49002</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Phone: (269) 337-7702</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Fax: (269) 337-7703</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Approximate date of commencement of
proposed sale to the public: From time to time after this Registration Statement becomes effective.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If any securities being registered on
this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, check the
following box: <FONT STYLE="font-family: Times New Roman, Times, Serif">&#9746;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If this Form is filed to register additional
securities for an offering pursuant to Rule 462(b) under the Securities Act, check the following box and list the Securities Act
registration statement number of the earlier effective registration statement for the same offering. &thinsp;<FONT STYLE="font-family: Times New Roman, Times, Serif">&#9744;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If this Form is a post-effective amendment
filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement
number of the earlier effective registration statement for the same offering. &thinsp;<FONT STYLE="font-family: Times New Roman, Times, Serif">&#9744;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If this Form is a post-effective amendment
filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement
number of the earlier effective registration statement for the same offering. &thinsp;<FONT STYLE="font-family: Times New Roman, Times, Serif">&#9744;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Indicate by check mark whether the registrant
is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth
company. See definitions of &ldquo;large accelerated filer,&rdquo; &ldquo;accelerated filer,&rdquo; &ldquo;smaller reporting company&rdquo;
and &ldquo;emerging growth company&rdquo; in Rule 12b-2 of the Exchange Act. (Check one):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: top; width: 21%; padding-top: 0.75pt; padding-right: 3pt; padding-bottom: 0.75pt">Large accelerated
    filer &thinsp;<FONT STYLE="font-family: Times New Roman, Times, Serif">&#9744;</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 29%; padding: 0.75pt 3pt">Accelerated filer &thinsp;<FONT STYLE="font-family: Times New Roman, Times, Serif">&#9744;</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 25%; padding: 0.75pt 3pt">Non-accelerated filer <FONT STYLE="font-family: Times New Roman, Times, Serif">&#9746;</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 25%; padding-top: 0.75pt; padding-bottom: 0.75pt; padding-left: 3pt">Smaller reporting
    company <FONT STYLE="font-family: Times New Roman, Times, Serif">&#9746;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-top: 0.75pt; padding-right: 3pt; padding-bottom: 0.75pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding: 0.75pt 3pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding: 0.75pt 3pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 0.75pt; padding-bottom: 0.75pt; padding-left: 3pt">Emerging growth company <FONT STYLE="font-family: Times New Roman, Times, Serif">&#9744;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If an emerging growth company, indicate
by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial
accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. &thinsp;<FONT STYLE="font-family: Times New Roman, Times, Serif">&#9744;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">CALCULATION OF REGISTRATION
FEE</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="white-space: nowrap; width: 32%; border-bottom: black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Title of Each Class of Securities to be Registered</B></FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 16%; border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Amount to be Registered(1)</B></FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 16%; border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Proposed Maximum Offering Price Per Share(2)</B></FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 16%; border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Proposed Maximum Aggregate Offering Price(1)</B></FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 16%; border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Amount of<BR>
Registration Fee</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="white-space: nowrap; padding-left: 9pt; text-indent: -9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Common stock, par value $0.001 per share</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">8,032,952</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$3.63</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">$29,119,451.00</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$3,529.28</FONT></TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left">(1)</TD><TD STYLE="text-align: justify">Pursuant to Rule 416 under the Securities Act of 1933,
as amended (the &ldquo;Securities Act&rdquo;), this registration statement also covers any additional number of additional shares
of common stock issuable upon stock splits, stock dividends, dividends or other distribution, recapitalization or similar events
with respect to the shares of common stock being registered pursuant to this registration statement</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left">(2)</TD><TD STYLE="text-align: justify">Estimated solely
                                         for the purpose of computing the amount of the registration fee pursuant to Rule 457(c)
                                         under the Securities Act, using the average of the high and low prices of our common
                                         stock as reported on the OTCQB on July 11, 2019, a date within five business days prior
                                         to the date of filing of this Registration Statement.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="color: Red"><B>The information
in this prospectus is not complete and may be changed. The selling stockholders may not sell these securities under this prospectus
until the registration statement of which it is a part and filed with the Securities and Exchange Commission is effective. This
prospectus is not an offer to sell these securities and it is not soliciting an offer to buy these securities in any state where
the offer or sale is not permitted.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PRELIMINARY PROSPECTUS, SUBJECT TO
COMPLETION, DATED JULY 15, 2019</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NeuroOne Medical Technologies Corporation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">8,032,952 Shares of Common Stock
Offered by Selling Stockholders</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">This prospectus relates to the public
offering of up to 8,032,952 <FONT STYLE="font-size: 10pt">shares of common stock of NeuroOne Medical Technologies Corporation (the
&ldquo;Company&rdquo;) by the selling stockholders listed on page 42 (the &ldquo;Selling Stockholders&rdquo;), which includes
(i) 3,633,630 outstanding shares of our common stock, par value $0.001 per share (the &ldquo;Common Stock&rdquo;) and (ii) an
aggregate of 4,399,322 shares of our Common Stock issuable upon exercise of certain common stock purchase warrants. We are registering
these shares on behalf of the Selling Stockholders, to be offered and sold by them from time to time.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are not selling any securities
under this prospectus and we will not receive proceeds from the sale of Common Stock by the Selling Stockholders. However, we
may receive proceeds from the cash exercise of the warrants, which, if exercised in cash at the current applicable exercise
price with respect to all of the  <FONT STYLE="font-size: 10pt">4,399,322 shares of Common Stock, would result in gross
proceeds to the Company of $12,594,510.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We will pay the expenses of registering
the shares of Common Stock offered by this prospectus, but all selling and other expenses incurred by each Selling Stockholder
will be paid by such Selling Stockholder. The Selling Stockholders may sell the shares of our Common Stock offered by this prospectus
from time to time on terms to be determined at the time of sale through ordinary brokerage transactions or through any other means
described in this prospectus under &ldquo;Plan of Distribution.&rdquo; The prices at which the Selling Stockholders may sell shares
will be determined by the prevailing market price for shares of our Common Stock or in negotiated transactions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Investing in our Common Stock
involves a high degree of risk. You should consider carefully the risk factors beginning on page 3  of this prospectus before
purchasing any of the shares offered by this prospectus.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our Common Stock is quoted on the
OTCQB and trades under the symbol &ldquo;NMTC.&rdquo; The last reported sale price of our Common Stock on the OTCQB on July
12, 2019 was $3.30 per share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>We may amend or supplement this prospectus
from time to time by filing amendments or supplements as required. You should read the entire prospectus and any amendments or
supplements carefully before you make your investment decision.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Neither the Securities and Exchange
Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus
is truthful or complete. Any representation to the contrary is a criminal offense.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>The date of this prospectus is&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2019.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NEUROONE MEDICAL TECHNOLOGIES CORPORATION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>TABLE OF CONTENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 90%; padding-left: 10pt; text-indent: -10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A HREF="#a_001">PROSPECTUS SUMMARY</A></B></FONT></TD>
    <TD STYLE="width: 10%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>1</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 10pt; text-indent: -10pt"><A HREF="#a_002"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>RISK FACTORS</B></FONT></A></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>3</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 10pt; text-indent: -10pt"><A HREF="#a_003"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>FORWARD-LOOKING STATEMENTS</B></FONT></A></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>40</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 10pt; text-indent: -10pt"><A HREF="#a_004"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>USE OF PROCEEDS</B></FONT></A></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>41</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 10pt; text-indent: -10pt"><A HREF="#a_005"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>SELLING STOCKHOLDERS</B></FONT></A></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>42</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 10pt; text-indent: -10pt"><A HREF="#a_006"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>PLAN OF DISTRIBUTION</B></FONT></A></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>47</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 10pt; text-indent: -10pt"><A HREF="#a_007"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>DESCRIPTION OF SECURITIES TO BE REGISTERED</B></FONT></A></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>49</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 10pt; text-indent: -10pt"><A HREF="#a_008"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>DESCRIPTION OF BUSINESS</B></FONT></A></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>51</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 10pt; text-indent: -10pt"><A HREF="#a_009"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>DESCRIPTION OF PROPERTY</B></FONT></A></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>76</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 10pt; text-indent: -10pt"><A HREF="#a_010"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>LEGAL PROCEEDINGS</B></FONT></A></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>77</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 10pt; text-indent: -10pt"><A HREF="#a_011"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>MANAGEMENT&rsquo;S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS</B></FONT></A></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>78</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 10pt; text-indent: -10pt"><A HREF="#a_012"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>MARKET FOR AND DIVIDENDS ON REGISTRANT&rsquo;S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS</B></FONT></A></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>95</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 10pt; text-indent: -10pt"><A HREF="#a_013"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE</B></FONT></A></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>96</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 10pt; text-indent: -10pt"><A HREF="#a_014"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>DIRECTORS AND EXECUTIVE OFFICERS</B></FONT></A></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>97</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 10pt; text-indent: -10pt"><A HREF="#a_015"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>EXECUTIVE COMPENSATION</B></FONT></A></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>103</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 10pt; text-indent: -10pt"><A HREF="#a_016"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT</B></FONT></A></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>115</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 10pt; text-indent: -10pt"><A HREF="#a_017"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE</B></FONT></A></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>116</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 10pt; text-indent: -10pt"><A HREF="#a_018"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>ADDITIONAL INFORMATION</B></FONT></A></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>119</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 10pt; text-indent: -10pt"><A HREF="#a_019"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>DISCLOSURE OF COMMISSION POSITION ON INDEMNIFICATION FOR SECURITIES ACT LIABILITIES</B></FONT></A></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>120</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 10pt; text-indent: -10pt"><A HREF="#a_020"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>LEGAL MATTERS</B></FONT></A></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>122</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 10pt; text-indent: -10pt"><A HREF="#a_021"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>EXPERTS</B></FONT></A></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>123</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 10pt; text-indent: -10pt"><A HREF="#a_022"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>INDEX TO FINANCIAL STATEMENTS</B></FONT></A></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>F-1</B></FONT></TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">You may only rely on the information contained
in this prospectus or that we have referred you to. We have not authorized anyone to provide you with different information. This
prospectus does not constitute an offer to sell or a solicitation of an offer to buy any securities other than the common stock
offered by this prospectus. This prospectus does not constitute an offer to sell or a solicitation of an offer to buy any common
stock in any circumstances in which such offer or solicitation is unlawful. Neither the delivery of this prospectus nor any sale
made in connection with this prospectus shall, under any circumstances, create any implication that there has been no change in
our affairs since the date of this prospectus or that the information contained by reference to this prospectus is correct as
of any time after its date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">ABOUT THIS PROSPECTUS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">This prospectus relates to the resale from time to time of up to 8,032,952 shares of Common Stock of the
Company by the Selling Stockholders listed on page 42. As described below under &ldquo;About this Offering,&rdquo; the shares of
our Common Stock registered by this prospectus include (i) 2,317,179 shares of our Common Stock and 2,338,179 shares of our Common
Stock issuable upon the exercise of warrants issued to investors in the 2019 Private Placement (as described below), (ii) 839,179
shares of our Common Stock and 1,678,358 shares of our Common Stock issuable upon the exercise of warrants issued on February 28,
2019 to certain noteholders upon the automatic conversion of outstanding convertible notes, (iii) 382,785 shares of our Common
Stock issuable upon the exercise of warrants issued to placement agents pursuant to certain placement agent agreements, (iv) 250,000
shares of our Common Stock issued to a service provider pursuant to a consulting agreement, and (v) 227,272 shares of our Common
Stock purchased from a former officer of the Company by certain investors in February 2018. We are not selling any shares of Common
Stock under this prospectus and will not receive any proceeds from the sale of shares of Common Stock by the Selling Stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">This prospectus is part of a registration
statement on Form S-1 that we filed with the Securities and Exchange Commission (&ldquo;SEC&rdquo;). It omits some of the information
contained in the registration statement and reference is made to the registration statement for further information with regard
to us and the securities being offered by the Selling Stockholders. You should review the information and exhibits in the registration
statement for further information about us and the securities being offered hereby. Statements in this prospectus concerning any
document we filed as an exhibit to the registration statement or that we otherwise filed with the SEC are not intended to be comprehensive
and are qualified by reference to the filings. You should review the complete document to evaluate these statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">You should read this prospectus, any documents
that we incorporate by reference in this prospectus and the additional information described below under &ldquo;Additional Information&rdquo;
before making an investment decision. You should rely only on the information contained or incorporated by reference in this prospectus.
We have not authorized any other person to provide you with different information. If anyone provides you with additional, different
or inconsistent information, you should not rely on it. This prospectus is not an offer to sell these securities and it is not
soliciting an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">You should not assume that the information
in this prospectus or any documents we incorporate by reference herein is accurate as of any date other than the date on the front
of such document. Our business, financial condition, results of operations and prospects may have changed since those dates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<DIV STYLE="padding-right: 5pt; padding-left: 5pt; border: Black 1.5pt solid; width: 97%">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><A NAME="a_001"></A>PROSPECTUS SUMMARY</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>This summary highlights information
contained in other parts of this prospectus. Because it is only a summary, it does not contain all of the information that you
should consider before investing in shares of our Common Stock and it is qualified in its entirety by, and should be read in conjunction
with, the more detailed information included or incorporated by reference in this prospectus. You should read the entire prospectus
carefully, especially &ldquo;Risk Factors,&rdquo; &ldquo;Management&rsquo;s Discussion and Analysis of Financial Condition and
Results of Operations&rdquo; and our financial statements, related notes and other financial information included or incorporated
by reference in this prospectus, before deciding to buy shares of our Common Stock. Unless the context requires otherwise, references
in this prospectus to &ldquo;we,&rdquo; &ldquo;us,&rdquo; &ldquo;the Company&rdquo; and &ldquo;our&rdquo; refer to NeuroOne Medical
Technologies Corporation, together with its subsidiary, NeuroOne Inc. </I></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">About Us</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are a medical technology company focused
on the development and commercialization of thin film electrode technology for continuous electroencephalogram (cEEG) and stereoelectroencephalography
(sEEG) recording, brain stimulation and ablation solutions for patients suffering from epilepsy, Parkinson&rsquo;s disease, dystonia,
essential tremors and other related brain related disorders. Additionally, we are investigating the potential applications of
our technology associated with artificial intelligence. Members of our management team have held senior leadership positions at
a number of medical technology and biopharmaceutical companies, including Boston Scientific, St. Jude Medical, Stryker Instruments,
C.R. Bard, A-Med Systems, Sunshine Heart, Empi, Don-Joy and PMT Corporation (&ldquo;PMT&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our principal executive offices are located
at 10901 Red Circle Drive, Suite 150, Minnetonka, MN 55343, and our telephone number is 952-426-1383.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">About this Offering</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>2019 Private Placement</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Between December 28, 2018 and July 1, 2019, the Company entered into subscription agreements with certain
accredited investors, whereby we issued and sold 2,338,179 units at a price of $2.50 per unit for gross proceeds of approximately
$5,845,448 (the &ldquo;2019 Private Placement&rdquo;). Each unit consists of one share of Common Stock, and a warrant to purchase
one share of Common Stock. The warrants issued in the 2019 Private Placement have an exercise price of $3.00 per share and are
exercisable from the date of issuance through December 28, 2023. At the close of the 2019 Private Placement and pursuant to placement
agent agreements, we also issued warrants to purchase up to an aggregate of (i) 193,417 shares of our Common Stock to Paulson Investment
Company, LLC (&ldquo;Paulson&rdquo;) and its designees, which have an initial exercise price of $2.75 per share, and (ii) 17,760
shares of our Common Stock to Corinthian Partners, LLC (&ldquo;Corinthian&rdquo;) and its designees, which have an initial exercise
price of $3.00 per share (each subject to adjustment as set forth therein), which are immediately exercisable and expire on July
1, 2024.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>2018 Private Placement Broker Warrants</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I></I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">From July 9, 2018 through November 30, 2018, the Company entered
into purchase agreements with accredited investors, pursuant to which the Company, agreed to issue and sell units, each consisting
of (i) one share of our Common Stock and (ii) a warrant to purchase 1 share of Common Stock at an initial exercise price of $3.00
per share (the &ldquo;2018 Private Placement&rdquo;). In connection with the 2018 Private Placement and pursuant to a placement
agent agreement, on July 1, 2019, the Company issued to Corinthian and its designees warrants to purchase 36,096 shares of Common
Stock at an exercise price of $3.00 per share, which warrants were exercisable beginning on the date of issuance, July 1, 2019,
and expiring on July 1, 2024.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Series 3 Note Conversion </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Between October 2017 and May 2018, the
Company issued 8% convertible notes (the &ldquo;Series 3 Notes&rdquo;) to certain accredited investors in an aggregate
principal amount of $1.5 million and warrants to purchase shares of the Company&rsquo;s capital stock. On February 28, 2019,
the Company completed an equity round of financing resulting in more than $3 million in gross proceeds when it closed on the
sale of units in connection with the 2019 Private Placement. Following such financing, the outstanding principal and interest
of the Series 3 Notes of $1.7 million was automatically converted in accordance with the terms of the Series 3 Notes into
839,179 shares of Common Stock and 839,179 warrants, which have an exercise price equal to $3.00 per share. Additionally, the
previously issued warrants became immediately exercisable for 839,179 shares of Common Stock, at an exercise price equal to
$2.50 per share (each subject to adjustment as set forth therein), and will expire on February 28, 2024. In connection with
this transaction, we also issued to the placement agent warrants as described below under &ldquo;Prospectus Summary - About
this Offering - Note Transactions Broker Warrants&rdquo;.<B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

</DIV>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<DIV STYLE="padding-right: 5pt; padding-left: 5pt; border: Black 1.5pt solid; width: 97%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I></I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Note Transactions
Broker Warrants</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I></I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">From November 2016 to June 2017, the Company issued 8% convertible
promissory notes in an aggregate principal amount of $1.6 million (the &ldquo;Series 1 Notes&rdquo;) and warrants to purchase shares
of the Company&rsquo;s capital stock. In August 2017, the Company entered into a subscription agreement and issued interest free
promissory notes in an aggregate principal amount of $253,000 to certain accredited investors, which notes were subsequently amended
to become 8% convertible promissory notes and to increase warrant coverage among other items (the &ldquo;Series 2 Notes&rdquo;
and, together with the Series 1 Notes and Series 3 Notes, the &ldquo;Notes&rdquo;). The Notes were converted to Common Stock in
accordance with their terms. In connection with the Notes transactions and pursuant to a placement agent agreement, on July 1,
2019, the Company issued to Corinthian and its designees warrants to purchase 135,512 shares of Common Stock at an exercise price
of $2.00 per share, which warrants were exercisable beginning on the date of issuance, July 1, 2019 and expiring on July 1, 2024.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Consulting Agreement</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On February 6, 2018, pursuant to a services
agreement with JLS Ventures, LLC (&ldquo;JLS&rdquo;), the Company agreed to issue to JLS an aggregate of 250,000 shares of Common
Stock for investor relations services. The Company issued to JLS 100,000 shares of Common Stock on April 26, 2018, 50,000 shares
of Common Stock on May 7, 2018, 50,000 shares of Common Stock on August 29, 2018, and 50,000 shares of Common Stock on November
2, 2018.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>February Stock Purchase&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On February 28, 2018, pursuant to stock purchase agreements, three investors purchased an aggregate of
227,272 shares of Common Stock from Wade Fredrickson, our former Vice President of Therapy and Product Development.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are filing a registration statement on Form S-1, of which this prospectus is a part, to provide for
the resale by the holders of all of the (i) shares of our Common Stock issued in connection with the agreements and transactions
described above and (ii) shares of our Common Stock issuable upon exercise of common stock purchase warrants we issued in connection
with the agreements and transactions described above, totaling an aggregate of up to 8,032,952 shares of our Common Stock.</P></DIV>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><A NAME="a_002"></A>RISK FACTORS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">An investment in our Common Stock involves
a high degree of risk. Before deciding whether to invest in our Common Stock, you should consider carefully the risks and uncertainties
described under the section captioned &ldquo;Risk Factors&rdquo; contained in our most recent Transition Report on Form 10-KT,
as amended, and other filings we make with the SEC from time to time, which are incorporated by reference herein in their entirety,
together with other information in this prospectus and in the documents incorporated by reference in this prospectus. We caution
you that the risks and uncertainties we have described, among others, could cause our actual results to differ materially from
those expressed in forward-looking statements made by us or on our behalf in filings with the SEC, press releases, communications
with investors and oral statements. We undertake no obligation to update any forward-looking statements, whether as a result of
new information, future events or otherwise. You are advised, however, to consult any further disclosure we make in our reports
filed with the SEC.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Risks Related to Our Business</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have incurred significant
operating losses since inception and cannot assure you that we will ever achieve or sustain profitability.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have incurred losses since inception,
and as of September 30, 2018 and March 31, 2019, we had an accumulated deficit of $10.5 million and $14.0 million, respectively,
primarily as a result of expenses incurred in connection with our general and administrative expenses associated with our operations
and from our research and development programs. We expect to continue to incur significant expenses and increasing operating costs
resulting in net losses for the foreseeable future. To date, we have financed our operations primarily through debt and equity
financings, and our primary activities have been limited to, and our limited resources have been dedicated to, performing business
and financial planning, raising capital, recruiting personnel, negotiating with business partners and the licensors of our intellectual
property and conducting development activities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">To implement our business strategy we
need to, among other things, successfully complete the development, testing and 510(k) device submission to the U.S. Food and
Drug Administration (&ldquo;FDA&rdquo;) for our cortical and strip electrodes for the diagnosis of epilepsy, successfully complete
the development, testing and all required steps for regulatory approval of our depth electrodes for sEEG recording in the U.S.,
develop and introduce a minimally invasive delivery system for our cortical electrodes, develop an all-in-one diagnostic and therapeutic
solution, successfully complete the necessary testing and clinical trials required for regulatory approval of our technology for
ablation and stimulation therapies, gain approval for other brain or motor related disorders such as Parkinson&rsquo;s with the
therapeutic technologies developed for epilepsy, convince physicians and patients that our technology, if approved, represents
an improvement over existing diagnostic or treatment options, hire direct experienced sales representatives to market our technology,
if approved, in the United States, evaluate international opportunities and initiate and successfully complete the approval processes
in targeted geographies and engage in beneficial partnerships that can leverage our core technology. We have never been profitable
and do not expect to be profitable in the foreseeable future. We expect our expenses to increase significantly as we pursue our
objectives. The extent of our future operating losses and the timing of profitability are highly uncertain, and we expect to continue
incurring significant expenses and operating losses over the next several years. Our prior losses have had, and will continue
to have, an adverse effect on our stockholders&rsquo; equity and working capital. Any additional operating losses may have an
adverse effect on our stockholders&rsquo; equity, and we cannot assure you that we will ever be able to achieve profitability.
Even if we achieve profitability, we may not be able to sustain or increase profitability on a quarterly or annual basis. Our
failure to become and remain profitable would depress the value of our Company and could impair our ability to raise capital,
expand our business, maintain our development efforts, obtain regulatory approvals or continue our operations.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have a limited operating
history, making it difficult for you to evaluate our business and your investment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our operating subsidiary, NeuroOne, Inc.
was incorporated on October 7, 2016, and our predecessor, NeuroOne LLC (the &ldquo;LLC&rdquo;), had very limited operations. We
are an early-stage medical technology company developing comprehensive neuromodulation cEEG and sEEG monitoring, ablation, and
brain stimulation solutions to diagnose and treat patients with epilepsy, Parkinson&rsquo;s disease, essential tremors, and other
brain related disorders. Our cortical strip technology under development has only been used by Mayo Foundation for Medical Education
and Research (&ldquo;Mayo&rdquo;) in five patients for research purposes and has not been tested in any clinical trials. Our operations
are subject to all of the risks inherent in the establishment of a new business enterprise, including but not limited to the absence
of an operating history, lack of fully-developed or commercialized products, insufficient capital, expected substantial and continual
losses for the foreseeable future, limited experience in dealing with regulatory issues, lack of manufacturing and marketing experience,
need to rely on third parties for the development and commercialization of our proposed products, a competitive environment characterized
by well-established and well-capitalized competitors and reliance on key personnel.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Since inception, we have not established
any revenues or operations that will provide financial stability in the long term, and there can be no assurance that we will
realize our plans on our projected timetable (or at all) in order to reach sustainable or profitable operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Investors are subject to all the risks
incident to the creation and development of a new business and each investor should be prepared to withstand a complete loss of
his, her or its investment. Furthermore, the accompanying financial statements have been prepared assuming that we will continue
as a going concern. We have not emerged from the development stage, and may be unable to raise further equity. These factors raise
substantial doubt about our ability to continue as a going concern. Our 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; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our Company has limited experience in
medical device development and may not be able to successfully develop any device or therapy. Our ability to become profitable
depends primarily on: our ability to develop our cortical strip, grid electrode and depth electrode technology, our successful
completion of all necessary pre-clinical testing and clinical trials on such technology, our ability to obtain approval for such
technology and, if approved, successfully commercialize such technology, our ongoing research and development efforts, the timing
and cost of clinical trials, our ability to identify personnel with the necessary skill sets or enter into favorable alliances
with third-parties who can provide substantial capabilities in clinical development, regulatory affairs, sales, marketing and
distribution and our ability to obtain and maintain necessary intellectual property rights to such technology. Our limited experience
in medical device development may make it more difficult for us to complete these tasks.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Even if we successfully develop and market
such technology, we may not generate sufficient or sustainable revenue to achieve or sustain profitability, which could cause
us to cease operations and cause you to lose all of your investment. Because we are subject to these risks, you may have a difficult
time evaluating our business and your investment in our Company.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our ability to continue our
operations requires that we raise additional capital and our operations could be curtailed if we are unable to obtain the additional
funding as or when needed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Upon the completion of the audit
of our financial statements for the nine month transition period ended September 30, 2018 and the year ended December 31,
2017, and management&rsquo;s assessment of our ability to continue as a going concern, we concluded there was substantial
doubt about our ability to continue as a going concern. Our independent registered public accounting firm included an
explanatory paragraph in its reports on our financial statements as of and for the nine months ended September 30, 2018 and as
of and for the year ended December 31, 2017, noting the existence of substantial doubt about our ability to continue as a
going concern. As of March 31, 2019, there has been no changes to management&rsquo;s conclusion that there remains
substantial doubt about our ability to continue as a going concern.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">At March 31, 2019, September 30, 2018
and December 31, 2017, we had $2.3 million, $13,260 and $26,467, respectively, in cash deposits. Our existing cash and cash
equivalents will not be sufficient to fund our operating expenses throughout our fiscal year ending September 30, 2019. To continue
to fund operations, we will need to secure additional funding. We may obtain additional financing in the future through the issuance
of our Common Stock, through other equity or debt financings or through collaborations or partnerships with other companies. We
may not be able to raise additional capital on terms acceptable to us, or at all.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We will need to raise substantial
additional funds in the future, and these funds may not be available on acceptable terms or at all. A failure to obtain this necessary
capital when needed could force us to delay, limit, scale back or cease some or all operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The continued growth of our business,
including the development, regulatory approval and commercialization of our cortical strip, grid electrode and depth electrode
technology, will significantly increase our expenses going forward. As a result, we will be required to seek substantial additional
funds in the future. Our future capital requirements will depend on many factors, including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                         cost of developing our cortical strip, grid electrode and depth electrode technology;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">obtaining
                                         and maintaining regulatory clearance or approval for our cortical strip, grid electrode
                                         and depth electrode technology;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                         costs associated with commercializing our cortical strip, grid electrode and depth electrode
                                         technology;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">any
                                         change in our development priorities;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                         revenue generated by sales of our cortical strip, grid electrode and depth electrode
                                         technology, if approved;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                         costs associated with expanding our sales and marketing infrastructure for commercialization
                                         of our cortical strip grid electrode and depth electrode technology, if approved;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">any
                                         change in our plans regarding the manner in which we choose to commercialize any approved
                                         product in the United States or internationally;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                         cost of ongoing compliance with regulatory requirements;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">expenses
                                         we incur in connection with potential litigation or governmental investigations;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                         costs to develop additional intellectual property;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">anticipated
                                         or unanticipated capital expenditures; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">unanticipated
                                         general and administrative expenses.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As a result of these and other factors,
we do not know whether and the extent to which we may be required to raise additional capital. We may in the future seek additional
capital from public or private offerings of our capital stock, borrowings under credit lines or other sources.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We may not be able to raise additional
capital on terms acceptable to us, or at all. Any failure to raise additional capital could compromise our ability to execute
on our business plan, and we may be forced to liquidate our assets. In such a scenario, the values we receive for our assets in
liquidation or dissolution could be significantly lower than the values reflected in our financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If we issue equity or debt securities
to raise additional funds, our existing stockholders may experience dilution, and the new equity or debt securities may have rights,
preferences and privileges senior to those of our existing stockholders. In addition, if we raise additional funds through collaborations,
licensing, joint ventures, strategic alliances, partnership arrangements or other similar arrangements, it may be necessary to
relinquish valuable rights to our potential future products or proprietary technologies, or grant licenses on terms that are not
favorable to us.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Medical device development
involves a lengthy and expensive process, with an uncertain outcome. We may incur additional costs or experience delays in completing,
or ultimately be unable to complete, the development and commercialization of any product.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Before obtaining marketing approval from
regulatory authorities for the sale of our cortical strip, grid electrode and depth electrode technology under development in
the United States or elsewhere, we must complete all pre-clinical testing, clinical trials and other regulatory requirements necessitated
by the FDA and foreign regulatory bodies and demonstrate the performance and safety of our technology. Clinical testing is expensive,
difficult to design and implement, can take many years to complete and is inherently uncertain as to outcome. A failure of one
or more clinical trials can occur at any stage of testing. Further, the outcomes of completed clinical trials may not be predictive
of the success of later clinical trials, and interim results of a clinical trial do not necessarily predict final results. Clinical
data is often susceptible to varying interpretations and analyses, and many companies that have believed their products performed
satisfactorily in clinical trials have nonetheless failed to obtain marketing approval. We have limited resources to complete
the expensive process of medical device development, pre-clinical testing and clinical trials, putting us at a disadvantage, particularly
compared to some of our larger and established competitors, and we may not have sufficient resources to commercialize our products
under development in a timely fashion, if ever.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We may experience numerous unforeseen
events during or as a result of clinical trials that could delay or prevent our ability to receive marketing approval or commercialize
our products, including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">regulators
                                         may not authorize us or our investigators to commence a clinical trial or conduct a clinical
                                         trial at a prospective trial site;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                         failure to successfully complete pre-clinical testing requirements required by the FDA
                                         and international organizations;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">we
                                         may experience delays in reaching, or fail to reach, agreement on acceptable clinical
                                         trial contracts with third parties or clinical trial protocols with prospective trial
                                         sites, the terms of which can be subject to extensive negotiation and may vary significantly
                                         among different trial sites;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">clinical
                                         trials of our cortical strip, grid electrode and depth electrode technology may produce
                                         negative or inconclusive results, including failure to demonstrate statistical significance,
                                         and we may decide, or regulators may require us, to conduct additional clinical trials
                                         or abandon our development programs;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                         number of people with brain related disorders required for clinical trials may be larger
                                         than we anticipate, enrollment in these clinical trials may be slower than we anticipate
                                         or people may drop out of these clinical trials or fail to return for post-treatment
                                         follow-up at a higher rate than we anticipate;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">our
                                         products may have undesirable side effects or other unexpected characteristics, causing
                                         us or our investigators, regulators or institutional review boards to suspend or terminate
                                         the trials;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">our
                                         third-party contractors conducting the clinical trials may fail to comply with regulatory
                                         requirements or meet their contractual obligations to us in a timely manner, or at all;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">regulators
                                         may require that we or our investigators suspend or terminate clinical development for
                                         various reasons, including noncompliance with regulatory requirements or a finding that
                                         the participants are being exposed to unacceptable health risks;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                         cost of clinical trials of our products may be greater than we anticipate;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                         supply or quality of our products or other materials necessary to conduct clinical trials
                                         of our products may be insufficient or inadequate; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">delays
                                         from our suppliers and manufacturers could impact clinical trial completion and impact
                                         revenue.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If we are required to conduct additional
clinical trials or other testing of our cortical strip, grid electrode and depth electrode technology under development beyond
those that we contemplate, if we are unable to successfully complete clinical trials of our cortical strip, grid electrode and
depth electrode technology under development or other testing, if the results of these trials or tests are not favorable or if
there are safety concerns, we may:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">not
                                         obtain marketing approval at all;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">be
                                         delayed in obtaining marketing approval for our cortical strip, grid electrode and depth
                                         electrode technology under development in a jurisdiction;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">be
                                         subject to additional post-marketing testing requirements; or</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">have
                                         our cortical strip, grid electrode and depth electrode technology removed from the market
                                         after obtaining marketing approval.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our development costs will also increase
if we experience delays in testing or marketing approvals. We do not know whether any of our clinical trials will begin as planned,
will need to be restructured or will be completed on schedule, or at all. Significant clinical trial delays also could allow our
competitors to bring innovative products to market before we do and impair our ability to successfully commercialize our products.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Changes in the configuration
of our cortical strip, grid electrode and depth electrode technology under development may result in additional costs or delay.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As products are developed through pre-clinical
testing and clinical trials towards approval and commercialization, it is common that various aspects of the development program,
such as manufacturing methods and configuration, are altered along the way in an effort to optimize processes and results. Any
changes we make carry the risk that they will not achieve the intended objectives. Any of these changes could cause our products
to perform differently and affect the results of planned clinical trials or other future clinical trials conducted with the altered
device. Such changes may also require additional testing, regulatory notification or regulatory approval. This could delay completion
of pre-clinical testing or clinical trials, increase costs, delay approval of our future products and jeopardize our ability to
commence sales and generate revenue.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have no products that are
approved for commercial sale. If we are unable to successfully develop, receive regulatory approval for and commercialize our
cortical strip, grid electrode and depth electrode technology under development, or if we experience significant delays in doing
so, our business will be harmed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have no products that are approved
for commercial sale. We initially plan to seek regulatory approval to commercialize our cortical strip, grid electrode and depth
electrode technology under development in the United States and we may seek approval to commercialize in select international
geographies. Our ability to generate revenue from our developed products, if any, will depend heavily on their successful development,
regulatory approval and eventual commercialization. The success of any products that we develop will depend on several factors,
including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">FDA
                                         approval of our planned regulatory pathway (or approval of foreign regulatory body if
                                         we seek approval in any jurisdiction outside the United States);</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">successful
                                         completion of all necessary pre-clinical testing and clinical trials;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">receipt
                                         of timely commercialization approvals from applicable regulatory authorities;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">our
                                         ability to procure and maintain suppliers and manufacturers of the components of our
                                         current cortical strip, grid electrode and depth electrode technology and future versions;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">launching
                                         commercial sales of our cortical strip, grid electrode and depth electrode technology,
                                         if approved for marketing;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">market
                                         acceptance of our cortical strip, grid electrode and depth electrode technology, if approved,
                                         by people with epilepsy, Parkinson&rsquo;s disease, essential tremors and other brain
                                         related disorders, the medical community and third-party payors;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">our
                                         ability to obtain extensive coverage and reimbursement for our cortical strip, grid electrode
                                         and depth electrode technology and implantation procedures;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">our
                                         success in educating healthcare providers and people with epilepsy, Parkinson&rsquo;s
                                         disease, essential tremors and other brain related disorders about the benefits, administration
                                         and use of our cortical strip, grid electrode and depth electrode technology and future
                                         versions;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                         prevalence and severity of adverse events;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                         perceived advantages, cost, safety, convenience and accuracy of alternative therapies;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: 10pt Symbol; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Symbol; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">obtaining
                                         and maintaining patent, trademark and trade secret protection and regulatory exclusivity
                                         for our cortical strip, grid electrode and depth electrode technology and otherwise protecting
                                         our rights in our intellectual property portfolio;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">maintaining
                                         compliance with regulatory requirements, including current good manufacturing practices;
                                         and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">obtaining
                                         and maintaining a continued acceptable performance and safety profile of our cortical
                                         strip, grid electrode and depth electrode technology following approval.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Whether regulatory approval will be granted
is unpredictable and depends upon numerous factors, including the substantial discretion of the regulatory authorities. Our success
in clinical trials will not guarantee regulatory approval. The FDA and, if we seek to commercialize in select international geographies,
other comparable foreign regulatory authorities may require that we conduct additional pre-clinical testing or clinical trials,
provide additional data, take additional manufacturing steps, or require other conditions before they will grant us approval.
If the FDA or other comparable foreign regulatory authorities require additional clinical trials or data, we would incur increased
costs and delays in the marketing approval process, which may require us to expend more resources than we have available. In addition,
the FDA or other comparable foreign regulatory authorities may not consider sufficient any additional required clinical trials,
data or information that we perform and complete or generate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In cases where we are successful in obtaining
regulatory approval to market one or more of our products, our revenue will be dependent, in part, upon the size of the markets
in the territories for which we gain regulatory approval, the accepted price for the product, the ability to obtain coverage and
reimbursement, and whether we own the commercial rights for that territory. If the number of people we target is not as significant
as we estimate or the treatment population is narrowed by competition, physician choice or treatment guidelines, we may not generate
significant revenue from sales of such products, even if approved.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Approval or clearance in the United States
by the FDA or by a regulatory agency in another country does not guarantee approval by the regulatory authorities in other countries
or jurisdictions or ensure approval for the same conditions of use. In addition, clinical trials conducted in one country may
not be accepted by regulatory authorities in other countries. Approval processes vary among countries and can involve additional
product testing and validation and additional administrative review periods. It is possible that no product we develop will ever
obtain regulatory approval in the United States or any other jurisdiction, even if we expend substantial time and resources seeking
such approval. If we do not achieve one or more of these approvals in a timely manner or at all, we could experience significant
delays or an inability to fully commercialize any product and achieve profitability.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Both before and after a product is commercially
released, we will have ongoing responsibilities under U.S. and foreign regulations. We will also be subject to periodic inspections
by the FDA and comparable foreign authorities to determine compliance with regulatory requirements, such as the Quality System
Regulation, or QSR, of the FDA, medical device reporting regulations, vigilance in reporting of adverse events and regulations
regarding notification, corrections, and recalls. These inspections can result in observations or reports, warning letters or
other similar notices or forms of enforcement action. If the FDA or any comparable foreign authority concludes that we are not
in compliance with applicable laws or regulations, or that any of our products are ineffective or pose an unreasonable health
risk, such authority could ban these products, suspend or cancel our marketing authorizations, impose &ldquo;stop-sale&rdquo;
and &ldquo;stop-import&rdquo; orders, refuse to issue export certificates, detain or seize adulterated or misbranded products,
order a recall, repair, replacement, correction or refund of such products, or require us to notify health providers and others
that the products present unreasonable risks of substantial harm to the public health. Discovery of previously unknown problems
with our product&rsquo;s design or manufacture may result in restrictions on use, restrictions placed on us or our suppliers,
or withdrawal of an existing regulatory clearance. The FDA or comparable foreign authorities may also impose operating restrictions,
enjoin and restrain certain violations of applicable law pertaining to medical devices, assess civil or criminal penalties against
our officers, employees or us, or recommend criminal prosecution of our Company. Adverse regulatory action may restrict us from
effectively marketing and selling our products. In addition, negative publicity and product liability claims resulting from any
adverse regulatory action could have a material adverse effect on our business, financial condition, and operating results.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Foreign governmental regulations have
become increasingly stringent and more extensive, and we may become subject to even more rigorous regulation by foreign governmental
authorities in the future. Penalties for a company&rsquo;s noncompliance with foreign governmental regulation could be severe,
including revocation or suspension of a company&rsquo;s business license and civil or criminal sanctions. In some jurisdictions,
such as Germany, a violation of law related to medical devices may also be considered to be a violation of unfair competition
law. In such cases, governmental authorities, our competitors and business or consumer associations may file lawsuits to prohibit
us from commercializing a product in such jurisdictions. Our competitors may also sue us for damages. Any domestic or foreign
governmental law or regulation imposed in the future may have a material adverse effect on our business, financial condition and
operating results.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Depending on the cost and market opportunity,
we may never seek approval to commercialize our cortical strip, grid electrode and depth electrode technology in the European
Union. We anticipate the cost to seek approval to commercialize in the European Union will be significantly greater than the cost
to seek approval to commercialize in the United States. This is because we believe commercial approval by the corresponding Notified
Body in the European Union and the European Economic Area, or EEA, even for diagnostic purposes, will require human clinical trials,
which we do not believe will be required for regulatory approval by the FDA in the United States in order to seek approval of
the use of our technology for diagnostic purposes.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our success depends on our
ability to continue to develop, commercialize and gain market acceptance for our product under development, our cortical strip,
grid electrode and depth electrode technology.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our current business strategy is highly
dependent on developing and commercially launching one product, our cortical strip, grid electrode and depth electrode technology,
and achieving and maintaining market acceptance. In order for us to sell cortical strip, grid electrode and depth electrode technology
to people with epilepsy, Parkinson&rsquo;s disease, essential tremors and other brain related disorders, we must convince them,
their caregivers and healthcare providers that cortical strip, grid electrode and depth electrode technology is an attractive
alternative to competitive products for neuromodulation cEEG and sEEG recording, ablation, and brain stimulation. Market acceptance
and adoption of our cortical strip, grid electrode and depth electrode technology depends on educating people with epilepsy, Parkinson&rsquo;s
disease, essential tremors and other brain related disorders, as well as their caregivers and healthcare providers, and other
perceived benefits of our cortical strip, grid electrode and depth electrode technology as compared to competitive products. We
may face challenges convincing physicians, many of whom have extensive experience with competitors&rsquo; products and established
relationships with other companies, to appreciate the benefits of our cortical strip, grid electrode and depth electrode technology
and, in particular, its ability to successfully diagnose and treat epilepsy, Parkinson&rsquo;s disease, and other brain related
disorders in a way that is superior to and differentiated from currently available technology, and adopt it for treatment of their
patients.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Achieving and maintaining market acceptance
of cortical strip, grid electrode and depth electrode technology could be negatively impacted by many factors, including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                         failure of our cortical strip, grid electrode and depth electrode technology to achieve
                                         wide acceptance among people with epilepsy, Parkinson&rsquo;s disease, essential tremors
                                         and other brain related disorders, their caregivers, healthcare providers, third-party
                                         payors and key opinion leaders in the community;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">lack
                                         of evidence supporting the performance criteria or other perceived benefits of our cortical
                                         strip, grid electrode and depth electrode technology over competitive products or other
                                         currently available technology;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">perceived
                                         risks associated with the use of our cortical strip, grid electrode and depth electrode
                                         technology or similar products or technologies generally;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                         introduction of competitive products and the rate of acceptance of those products as
                                         compared to our cortical strip, grid electrode and depth electrode technology;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">adverse
                                         results of clinical trials relating to our cortical strip, grid electrode and depth electrode
                                         technology or similar competitive products; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">loss
                                         of regulatory approval for our cortical strip, grid electrode and depth electrode technology,
                                         adverse publicity or other adverse events including any product liability lawsuits.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition, our cortical strip, grid
electrode and depth electrode technology may be perceived by people with epilepsy, Parkinson&rsquo;s disease, essential tremors
and other brain related disorders, their caregivers or healthcare providers to be more complicated or less effective than current
technology, and people may be unwilling to change their current regimens.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Moreover, we believe that healthcare providers
tend to be slow to change their medical treatment practices because of perceived liability risks arising from the use of new products
and the uncertainty of third-party reimbursement. Accordingly, healthcare providers may not recommend our cortical strip, grid
electrode and depth electrode technology until, if ever, there is sufficient evidence to convince them to alter the treatment
methods they typically recommend, such as receiving recommendations from prominent healthcare providers or other key opinion leaders
in the community.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If we are not successful in convincing
people with epilepsy, Parkinson&rsquo;s disease, essential tremors and other brain related disorders of the benefits of our cortical
strip, grid electrode and depth electrode technology, or if we are unable to achieve the support of caregivers and healthcare
providers or widespread market acceptance for our cortical strip, grid electrode and depth electrode technology, then our sales
potential, strategic objectives and profitability could be negatively impacted, which would adversely affect our business, financial
condition and operating results.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We may fail to obtain regulatory
approvals to market our products in the United States or in other countries.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Before we can market or sell a new regulated
product in the United States, we must obtain either clearance under Section 510(k) of the Federal Food, Drug, and Cosmetic Act
(&ldquo;FDCA&rdquo;) or approval of a pre-market approval (&ldquo;PMA&rdquo;) application from the FDA, unless an exemption from
pre-market review applies. In the 510(k) clearance process, the FDA must determine that a proposed device is &ldquo;substantially
equivalent&rdquo; to a device legally on the market, known as a &ldquo;predicate&rdquo; device, with respect to intended use,
technology and safety and effectiveness, in order to clear the proposed device for marketing. Clinical data is sometimes required
to support substantial equivalence. The PMA pathway requires an applicant to demonstrate the safety and effectiveness of the device
based, in part, on extensive data, including, but not limited to, technical, preclinical, clinical trial, manufacturing and labeling
data. The PMA process is typically required for devices that are deemed to pose the greatest risk, such as life-sustaining, life-supporting
or implantable devices. Both the 510(k) and PMA processes can be expensive and lengthy and require the payment of significant
fees, unless exempt. The FDA&rsquo;s 510(k) clearance process usually takes from three to 12 months, but may last longer. The
process of obtaining a PMA is much more costly and uncertain than the 510(k) clearance process and generally takes from one to
three years, or even longer, from the time the application is submitted to the FDA until an approval is obtained. The process
of obtaining regulatory clearances or approvals to market a medical device can be costly and time-consuming, and we may not be
able to obtain these clearances or approvals on a timely basis, if at all.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Even if we obtain clearance or approval
by the FDA, said clearance or approval by the FDA does not ensure approval or certification by regulatory authorities in other
countries or jurisdictions, and approval or certification by one foreign regulatory authority does not ensure approval or certification
by regulatory authorities in other foreign countries or by the FDA. The foreign regulatory approval or certification process may
include all of the risks associated with obtaining FDA clearance or approval. We may not obtain foreign regulatory approvals on
a timely basis, if at all. We may not be able to file for regulatory approvals or certifications and may not receive necessary
approvals to commercialize our products in any market. If we fail to receive necessary approvals or certifications to commercialize
our products in foreign jurisdictions on a timely basis, or at all, our business, results of operations and financial condition
could be adversely affected.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Failure to secure or retain
coverage or adequate reimbursement for our cortical strip, grid electrode and depth electrode technology or future versions thereof,
including the implantation procedures, by third-party payors could adversely affect our business, financial condition and operating
results.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We plan to derive nearly all of our revenue
from sales of our cortical strip, grid electrode and depth electrode technology under development, if approved, in the United
States and potentially select international geographies and expect to do so for the next several years. We anticipate a substantial
portion of the purchase price of our cortical strip, grid electrode and depth electrode technology will be paid for by third-party
payors, including private insurance companies, preferred provider organizations and other managed care providers. Patients who
receive treatment for their medical conditions and their healthcare providers generally rely on third-party payors to reimburse
all or part of the costs associated with their medical treatment, including healthcare providers&rsquo; services. Coverage and
adequate reimbursement from third-party payors, including governmental healthcare programs, such as Medicare and Medicaid, and
commercial payors, is critical to new product acceptance. Future sales of our cortical strip, grid electrode and depth electrode
technology will be limited unless people with epilepsy, Parkinson&rsquo;s disease, essential tremors and other brain related disorders
can rely on third-party payors to pay for all or part of the cost to purchase our cortical strip, grid electrode and depth electrode
technology. Access to adequate coverage and reimbursement for our cortical strip, grid electrode and depth electrode technology
by third-party payors is essential to the acceptance of our products by people with epilepsy, Parkinson&rsquo;s disease, essential
tremors and other brain related disorders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In the United States, a third-party payor&rsquo;s
decision to provide coverage for our products does not imply that an adequate reimbursement rate will be obtained. Further, one
third-party payor&rsquo;s decision to cover our products does not assure that other payors will also provide coverage for the
products or will provide coverage at an adequate reimbursement rate. Healthcare providers may choose not to order a product unless
third-party payors pay a substantial portion of the product. Within and outside the United States, reimbursement is obtained from
a variety of sources, including government-sponsored and private health insurance plans. These third-party payors determine whether
to provide coverage and reimbursement for specific products and procedures. Coverage determinations and reimbursement levels of
both our products and the healthcare provider&rsquo;s performance of the insertion and removal procedures are critical to the
commercial success of our product, and if we are not able to secure positive coverage determinations and reimbursement levels
for our products or the insertion and removal procedures, our business would be materially adversely affected.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition, there may be significant
delays in obtaining reimbursement, and coverage may be more limited than the purposes for which the product is cleared by the
FDA or other foreign regulatory authorities. Moreover, eligibility for reimbursement does not imply that any product will be paid
for in all cases or at a rate that covers our costs, including research, development, manufacture, sale and distribution. Payment
rates may vary according to the use of the product and the clinical setting in which it is used, may be based on payments allowed
for lower cost products that are already reimbursed, and may be incorporated into existing payments for other services. Net prices
for products may be reduced by mandatory discounts or rebates required by government healthcare programs or third-party payors
and by any future relaxation of laws that presently restrict imports of products from countries where they may be sold at lower
prices than in the United States.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Because there is generally no separate
reimbursement for medical devices and other supplies used in such procedures, including our cortical strip, grid electrode and
depth electrode technology, and because we believe that our cortical strip, grid electrode and depth electrode technology, if
approved, would be adequately described by existing DRG and ICD-9 codes for epilepsy surgery, some of our target customers may
be unwilling to adopt our cortical strip, grid electrode and depth electrode technology over more established or lower cost therapeutic
alternatives already available or subsequently become available. Further, any decline in the amount payors are willing to reimburse
our customers for procedures using our cortical strip, grid electrode and depth electrode technology could make it difficult for
new customers to adopt our cortical strip, grid electrode and depth electrode technology and could create additional pricing pressure
for us, which could adversely affect our ability to invest in and grow our business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Third-party payors, whether foreign or
domestic, or governmental or commercial, are developing increasingly sophisticated methods of controlling healthcare costs. In
addition, in the United States, no uniform policy of coverage and reimbursement for medical device products and services exists
among third-party payors. Therefore, coverage and reimbursement for medical device products and services can differ significantly
from payor to payor. In addition, payors continually review new technologies for possible coverage and can, without notice, deny
coverage for these new products and procedures. As a result, the coverage determination process is often a time-consuming and
costly process that will require us to provide scientific and clinical support for the use of our products to each payor separately,
with no assurance that coverage and adequate reimbursement will be obtained, or maintained if obtained.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Reimbursement systems in international
markets vary significantly by country and by region within some countries, and reimbursement approvals must be obtained on a country-by-country
basis. In many international markets, a product must be approved for reimbursement before it can be approved for sale in that
country. Further, many international markets have government-managed healthcare systems that control reimbursement for new devices
and procedures. In most markets there are private insurance systems as well as government-managed systems. If sufficient coverage
and reimbursement is not available for our any product we develop, in either the United States or internationally, the demand
for our products and our revenues will be adversely affected.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Reimbursement by Medicare
is highly regulated and subject to change.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Medicare program is administered by
the Centers for Medicare and Medicaid Services, or CMS, which imposes extensive and detailed requirements on medical services
providers, including, but not limited to, rules that govern how we structure our relationships with physicians, and how and where
we provide our solutions. Our failure to comply with applicable Medicare rules could result in discontinuing the ability for physicians
to receive reimbursement as they will likely utilize our cortical strip, grid electrode and depth electrode technology under the
Medicare payment program, civil monetary penalties, and/or criminal penalties, any of which could have a material adverse effect
on our business and revenues.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The impact of the Patient
Protection and Affordable Care Act (&ldquo;ACA&rdquo;) remains uncertain.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In 2010, significant reforms to the health
care system were adopted as law in the United States. The law includes provisions that, among other things, reduce or limit Medicare
reimbursement, require all individuals to have health insurance (with limited exceptions) and impose increased taxes. These factors,
in turn, could result in reduced demand for our products, if approved, and increased downward pricing pressure. Because other
parts of the 2010 health care law remain subject to implementation, the long-term impact on us is uncertain. The new law or any
future legislation could reduce medical procedure volumes, lower reimbursement for our products, and impact the demand for our
products or the prices at which we sell our products.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition, some of the provisions of
the ACA have yet to be implemented, and there have been legal and political challenges to certain aspects of the ACA. Since January
2017, President Trump has signed executive orders and other directives designed to delay, circumvent, or loosen certain requirements
mandated by the ACA. Concurrently, Congress has considered legislation that would repeal or repeal and replace all or part of
the ACA. While Congress has not passed repeal legislation, the Tax Cuts and Jobs Act of 2017 (H.R. 1) (the &ldquo;Tax Act&rdquo;)
includes a provision repealing, effective January 1, 2019, the tax-based shared responsibility payment imposed by the ACA on certain
individuals who fail to maintain qualifying health coverage for all or part of a year that is commonly referred to as the &ldquo;individual
mandate.&rdquo; Congress may consider other legislation to repeal or replace elements of the ACA. We continue to evaluate the
effect that the ACA and its possible repeal and replacement has on our business but expect that the ACA, as currently enacted
or as it may be amended in the future, and other healthcare reform measures that may be adopted in the future could have a material
adverse effect on our industry generally and on our ability to successfully commercialize our cortical strip, grid electrode and
depth electrode technology, if approved. In addition to the ACA, there will continue to be proposals by legislators at both the
federal and state levels, regulators and third party payors to keep healthcare costs down while expanding individual healthcare
benefits.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Accordingly, while it is too early to
understand and predict the ultimate impact of the ACA on our business, the legislation and resulting regulations could have a
material adverse effect on our business, cash flows, financial condition and results of operations.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If our competitors are better
able to develop and market products for the diagnosis and treatment of epilepsy, Parkinson&rsquo;s disease, essential tremors
and other brain related disorders that are safer, more effective, less costly, easier to use or otherwise more attractive than
our cortical strip, grid electrode and depth electrode technology, our business will be adversely impacted.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The medical device industry is highly
competitive and subject to technological change. Our success depends, in part, upon our ability to establish a competitive position
in the market for the diagnosis and treatment of epilepsy, Parkinson&rsquo;s disease, essential tremors and other brain related
disorders by securing broad market acceptance of our cortical strip, grid electrode and depth electrode technology under development.
Any product we develop that achieves regulatory clearance or approval will have to compete for market acceptance and market share.
If developed as anticipated, we believe that the primary competitive factors of our cortical strip, grid electrode and depth electrode
technology under development will be: reduced infections, ability to record additional brain activity, minimally invasive surgical
procedure, ease of use and cost effectiveness. We face significant competition in the United States and internationally, which
we believe will intensify. For example, our major competitors (i) in the market for diagnosis are PMT, Ad-Tec Medical
and Integra Lifesciences, (ii) in the market for neuro-ablation are Medtronic and Monteris Medical and (iii) in the market for
neurostimulation are Medtronic, Boston Scientific, NeuroPace Biotronik and Abbott. Each of the foregoing competitors has systems
approved in the United States and certain foreign jurisdictions and has been established for several years. We face a particular
challenge overcoming the long-standing practices by some physicians of using the existing technology of our larger, more established
competitors. Physicians may be reluctant to try new products from a source with which they are less familiar. If these physicians
do not try to subsequently adopt our product, then we may never achieve profitability and such failure to adopt our product could
have a material adverse effect on our business, financial condition and operating results.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Additionally, the Mayo Clinic is conducting
testing of its own minimally invasive cortical electrode delivery device. In the event the Mayo Clinic completes development of
its own device prior to us, we may forego completing development of our device and we may be unable to enter into any arrangement
with Mayo Clinic relating to its device. If we are unable to pursue the development of a minimally invasive cortical electrode
device, this may delay our ability to become profitable and we could be forced to terminate our operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition to facing competition from
major competitors and potentially our development partner, we may also face competition from other emerging competitors or smaller
companies with active development programs that may emerge in the future.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Many of the companies developing or marketing
competing products enjoy several advantages over us, including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">more
                                         experienced sales forces;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">greater
                                         name recognition;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">more
                                         established sales and marketing programs and distribution networks;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">earlier
                                         regulatory approval in the United States or foreign jurisdictions;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">long
                                         established relationships with physicians and hospitals;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">significant
                                         patent portfolios, including issued U.S. and foreign patents and pending patent applications,
                                         as well as the resources to enforce patents against us or any of our third-party suppliers
                                         and distributors;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                         ability to acquire and integrate our competitors and/or their technology;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">demonstrated
                                         ability to develop product enhancements and new product offerings;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">established
                                         history of product reliability, safety and durability;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                         ability to offer rebates or bundle multiple product offerings to offer greater discounts
                                         or incentives;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">greater
                                         financial and human resources for product development, sales, and marketing; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">greater
                                         experience in and resources for conducting research and development, clinical studies,
                                         manufacturing, preparing regulatory submissions, obtaining regulatory clearance or approval
                                         for products and marketing approved products.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our competitors may develop and patent
processes or products earlier than us, obtain patents that may apply to us at any time, obtain regulatory clearance or approvals
for competing products more rapidly than us or develop more effective or less expensive products or technologies that render our
technology or products obsolete or less competitive. Furthermore, the frequent introduction by competitors of products that are,
or claim to be, superior to our products may create market confusion that may make it difficult to differentiate the benefits
of our products over competitive products. In addition, the entry of multiple new products may lead some of our competitors to
employ pricing strategies that could adversely affect the pricing of any product we may develop and commercialize. We also face
fierce competition in recruiting and retaining qualified sales, scientific, and management personnel, establishing clinical trial
sites and enrolling patients in clinical studies. If our competitors are more successful than us in these matters, our business
may be harmed.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The size and future growth
in the market for our cortical strip, grid electrode and depth electrode technology under development has not been established
with precision and may be smaller than we estimate, possibly materially. If our estimates and projections overestimate the size
of this market, our sales growth may be adversely affected.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our estimates of the size and future growth
in the market for our cortical strip, grid electrode and depth electrode technology under development, including the number of
people with epilepsy, Parkinson&rsquo;s disease, essential tremors and other brain related disorders who may benefit from and
be amenable to using cortical strip, grid electrode and depth electrode technology for diagnosis and treatment, is based on a
number of internal and third-party studies, reports and estimates. In addition, our internal estimates are based in large part
on current treatment patterns by healthcare providers using current generation technology and our belief is that the incidence
of epilepsy, Parkinson&rsquo;s disease, essential tremors and other brain related disorders in the United States and worldwide
is increasing. While we believe these factors have historically provided and may continue to provide us with effective tools in
estimating the total market for cortical strip, grid electrode and depth electrode technology, these estimates may not be correct
and the conditions supporting our estimates may change at any time, thereby reducing the predictive accuracy of these underlying
factors. The actual incidence of brain related disorders, and the actual demand for our products or competitive products, could
differ materially from our projections if our assumptions are incorrect. As a result, our estimates of the size and future growth
in the market for cortical strip, grid electrode and depth electrode technology may prove to be incorrect. If the actual number
of people with brain related disorders who would benefit from cortical strip, grid electrode and depth electrode technology and
the size and future growth in the market for cortical strip, grid electrode and depth electrode technology is smaller than we
have estimated, it may impair our projected sales growth and have an adverse impact on our business.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We depend on intellectual
property licensed from Wisconsin Alumni Research Foundation (&ldquo;WARF&rdquo;) for our technology under development, and the
termination of this license would harm our business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">WARF has granted us the WARF License (as
defined below), to make, use and sell, in the United States only, products that employ certain licensed patents for a neural probe
array or thin-film micro electrode array and method. See &ldquo;Business &mdash; WARF License&rdquo; for additional information
regarding our license agreement with WARF.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have agreed to diligently develop,
manufacture, market and sell products under the WARF License in the United States during the term of the agreement and, specifically,
that we would submit a business plan to WARF by February 1, 2018, which we submitted on January 18, 2018 and file an application
for 510(k) marketing clearance with the FDA by February 1, 2019, which we filed on January 28, 2019. WARF may terminate this license
in the event that we fail to meet these milestones on 30 days&rsquo; written notice, if we default on the payments of amounts
due to WARF or fail to timely submit development reports, actively pursue our development plan or breach any other covenant in
the WARF License and fail to remedy such default in 90 days or in the event of certain bankruptcy events involving us. WARF may
also terminate this license (i) on 90 days&rsquo; notice if we fail to have commercial sales of one or more FDA-approved products
under the WARF License by September 30, 2019 or (ii) if, after royalties earned on sales begin to be paid, such earned royalties
cease for more than four calendar quarters. The WARF License otherwise expires by its terms on the date that no valid claims on
the patents licensed thereunder remain.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Disputes may arise between us and WARF
regarding intellectual property subject to this agreement, including with respect to: the scope of rights granted under the WARF
License and other interpretation-related issues; whether and the extent to which our technology and processes infringe on intellectual
property of WARF that is not subject to the WARF License; the amount and timing of milestones and royalty payments; the rights
of WARF under the license; our right to sublicense; and the ownership of inventions and know-how resulting from the WARF License.
For example, if we or any of our sublicenses for any reason contest the validity of any patent licensed under the WARF License,
the royalty rate will be doubled during the pendency of such contest and, if the contested patent is found to be valid and would
be infringed by us if not for the WARF License, the royalty rate will be tripled for the remaining term of the WARF License.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Any disputes with WARF may prevent or
impair our ability to maintain our current licensing arrangement. We depend on the intellectual property licensed from WARF to
develop our cortical strip, grid electrode and depth electrode technology. We cannot assure you that we will be able to meet the
milestones or commercialize a product under the WARF License by the dates required. In fact, the original license agreement entered
into with WARF in 2014 required that we meet certain earlier milestones than set forth above and make certain payments to WARF.
We failed to do so and were in default under the original license agreement. Furthermore, the LLC was not able to transfer the
rights and obligations under the 2014 WARF Agreement to us at the time of the Merger (as defined below) without the consent of
WARF. As a result, in February 2017, we signed an amendment to the WARF License which, among other things, modified and removed
certain previous milestones and provided WARF&rsquo;s consent to such transfer. Because of this past breach, WARF may be less
likely to waive future defaults or breaches or further amend the WARF License in the future, to the extent we request any waiver
or amendment. See &ldquo;Note 4&mdash;Commitments and Contingencies&rdquo; to the financial statements included in this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Termination of our license could result
in the loss of significant rights and would harm our ability to further develop our cortical strip, grid electrode and depth electrode
technology. In addition, WARF reserves the right to grant non-profit research institutions and government agencies non-exclusive
licenses to practice and use the inventions of the licensed patents for non-commercial research purposes, and we grant WARF a
non-exclusive, sub licensable, royalty-free right and license for non-commercial research purposes to use improvements to the
licensed patents. In the event that we discontinue use or commercialization of the licensed patents or improvements thereon, we
must grant WARF an option to obtain a non-exclusive, sub-licensable royalty-bearing license to use the improvements for commercial
purposes. Such rights, if exercised by WARF, could harm our ability to develop and commercialize our cortical strip, grid electrode
and depth electrode technology.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We depend on our partnership
with Mayo to license certain know how for the development and commercialization of our technology. Termination of this partnership
would harm our business, and even if this partnership continues, it may not be successful.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have entered into the Amended and Restated
License and Development Agreement with Mayo (the &ldquo;Mayo Development Agreement&rdquo;) to (i) exclusively license worldwide
certain Mayo improvements for the development and commercialization of products, methods and processes related to flexible circuit
technology for the recording and stimulation of tissue and (ii) license, on a non-exclusive basis, worldwide Mayo thin film electrode
technology know-how for the development and commercialization of products, methods and processes related to flexible circuit technology
for the recording and stimulation of tissue. Mayo has agreed to assist the Company by providing access to the Mayo Principal Investigators
in developing a minimally invasive device/delivery system and procedure for a minimally invasive approach for the implantation
of any flexible circuit technology developed by the Company, including prototype development, animal testing, protocol development
for human and animal use, abstract development and presentation and access to and license of any intellectual property that the
Mayo Principal Investigators develop relating to the procedure. See &ldquo;Business&mdash;Mayo Foundation for Medical Education
and Research License and Development Agreement&rdquo; for additional information regarding our agreement with Mayo.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Mayo Development Agreement generally
will expire in October 2034, unless the Mayo know-how and improvements under the Mayo Development Agreement remain in use, and
the Mayo Development Agreement may be terminated by Mayo for cause or under certain circumstances. Mayo and the Company may not
be successful in their efforts to develop any product, method, process, device, delivery system or minimally invasive approach
by such expiration date or termination, if at all. If no such minimally invasive device or delivery system and procedure for minimally
invasive approach is developed, the Company may never receive regulatory approval of its cortical strip, grid electrode and depth
electrode technology under development or the market may never accept such technology, if approved.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Disputes may arise between us and Mayo
regarding intellectual property subject to the Mayo Development Agreement or other matters, including with respect to: the scope
of rights granted under the agreement and other interpretation-related issues; the amount and timing of payments; the rights and
obligations of Mayo under the license agreement; and the ownership of inventions and know-how resulting from the joint creation
or use of intellectual property by Mayo and us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Any disputes with Mayo may prevent or
impair our ability to maintain our current arrangement. We depend on the intellectual property licensed from and development assistance
from Mayo to develop our cortical strip, grid electrode and depth electrode technology. We cannot assure you that we will be able
to continue to comply with the Mayo Development Agreement. In fact, the original license and development agreement entered into
with Mayo in 2014 required that, upon the Merger with the LLC, we make certain payments and issue shares of common stock to Mayo,
which we failed to do at such time. We signed the Mayo Development Agreement in May 2017, which, among other things, modified
or removed certain provisions of the original agreement, including those we breached. In addition, pursuant to the Mayo Development
Agreement signed in May 2017, we agreed to pay Mayo a cash payment of approximately $92,000 on the earlier of September 30, 2017
or the date we raise a minimum amount of financing. We did not make this payment by September 30, 2017 and breached this provision
of the Mayo Development Agreement. Mayo granted us an extension of this deadline to December 31, 2017, and we made this payment
within such extended deadline. Because of our past breach, Mayo may be less likely to waive future defaults or breaches or further
amend the Mayo Development Agreement in the future, to the extent we request any waiver or amendment. Termination of the Mayo
Development Agreement could result in the loss of significant rights and would harm our ability to further develop our technology.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Even if we have our cortical
strip, grid electrode and depth electrode technology approved for commercial sale, if we are unable to expand our sales and marketing
infrastructure, we may not be successful in commercializing our cortical strip, grid electrode and depth electrode technology
in the United States.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are an early stage development company
with limited resources. Even if we had products available for sale, which we currently do not, we have not secured sufficient
sales and marketing staff at this early stage of operations to sell products. In 2019, we hired a Vice President of Sales and
a Senior Director of Marketing. However, to achieve commercial success in the United States for our cortical strip, grid electrode
and depth electrode technology, we will need to expand our sales and marketing infrastructure to drive adoption of our products,
which will include a team of educators that will train healthcare providers and people with brain related disorders on the benefits
and use of our cortical strip, grid electrode and depth electrode technology. There is significant competition for sales personnel
experienced in relevant medical device sales. We expect that we will face significant challenges as we recruit and subsequently
grow our sales and marketing infrastructure. If we are unable to attract and retain sufficient, and skilled, sales and marketing
representatives, our sales could be adversely affected. If one of our sales or marketing representatives were to depart and be
retained by one of our competitors, they could help competitors solicit business from customers, which could further harm our
sales. In addition, if our sales and marketing representatives or educators fail to achieve their objectives or if we are not
able to recruit and retain a network of educators, we may not be able to successfully train healthcare providers on the use of
our cortical strip, grid electrode and depth electrode technology, which could delay new sales and harm our reputation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As we increase our sales and marketing
expenditures with respect to our cortical strip, grid electrode and depth electrode technology under development, if approved,
or future versions thereof, we will need to hire, train, retain and motivate skilled sales and marketing representatives with
significant industry-specific knowledge in various areas. Our success will depend largely on the competitive landscape for our
products and the ability of our sales personnel to obtain access to healthcare providers and persuade those healthcare providers
to recommend our cortical strip, grid electrode and depth electrode technology. Recently hired sales representatives require training
and take time to achieve full productivity. If we fail to train new hires adequately, or if we experience high turnover in our
sales force in the future, we cannot be certain that new hires will become as productive as may be necessary to maintain or increase
our sales. In addition, the expansion of our sales and marketing personnel will place significant burdens on our management team.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If approved for sale, we anticipate that
we will derive nearly all of our U.S. revenue from the sales of our cortical strip, grid electrode and depth electrode technology
or future versions thereof. As a result, our financial condition and operating results will be highly dependent on the ability
of our sales representatives to adequately promote, market and sell our cortical strip, grid electrode and depth electrode technology
and the ability of our educators to train healthcare providers on the use of our cortical strip, grid electrode and depth electrode
technology. If we are unable to expand our sales and marketing capabilities, we may not be able to effectively commercialize our
existing or planned products, or enhance the strength of our brand, either of which could impair our projected sales growth and
have an adverse impact on our business.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We will depend on a limited
number of third-party suppliers for the components of our cortical strip, grid electrode and depth electrode technology under
development and the loss of any of these suppliers, or their inability to provide us with an adequate supply of materials, could
harm our business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We will rely on third-party suppliers
to supply and manufacture the components of our cortical strip, grid electrode and depth electrode technology. For our business
strategy to be successful, our suppliers must be able to provide us with components in sufficient quantities, in compliance with
regulatory requirements and quality control standards, in accordance with agreed upon specifications, at acceptable costs and
on a timely basis. Future increases in sales of our cortical strip and sheet electrode technology, if approved, whether expected
or unanticipated, could strain the ability of our suppliers to deliver an increasingly large supply of components and our cortical
strip, grid electrode and depth electrode technology in a manner that meets these various requirements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We will likely use a small number of suppliers
of components for our products. Depending on a limited number of suppliers exposes us to risks, including limited control over
pricing, availability, quality and delivery schedules. We may not have long-term supply agreements with our suppliers and, in
many cases, we may make our purchases on a purchase order basis. Our ability to purchase adequate quantities of components or
our products may be limited and we may not be able to convince suppliers to make components and products available to us. Additionally,
our suppliers may encounter problems that limit their ability to supply components or manufacture products for us, including financial
difficulties, damage to their manufacturing equipment or facilities, or product discontinuations. As a result, there is a risk
that certain components could be discontinued and no longer available to us. We may be required to make significant &ldquo;last
time&rdquo; purchases of component inventory that is being discontinued by the supplier to ensure supply continuity. If we fail
to obtain sufficient quantities of high quality components to meet demand for our products in a timely manner or on terms acceptable
to us, we would have to seek alternative sources of supply. Because of factors such as the proprietary nature of our products,
our quality control standards and regulatory requirements, we may not be able to quickly engage additional or replacement suppliers
for some of our critical components. Failure of any supplier to deliver components at the level our business requires could disrupt
the manufacturing of our products and, if approved, limit our ability to meet our sales commitments, which could harm our reputation
and adversely affect our business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Furthermore, vandalism, terrorism or a
natural or other disaster, such as an earthquake, fire or flood, could damage or destroy equipment or our inventory of component
supplies or finished products, cause substantial delays in development or our operations, result in the loss of key information,
and cause us to incur additional expenses. We do not currently have insurance to cover such losses or expenses and, once we obtain
such insurance, it may not cover our losses in any particular case. In addition, regardless of the level of insurance coverage,
damage to our or our suppliers&rsquo; facilities could harm our business, financial condition and operating results.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We may also have difficulty obtaining
similar components from other suppliers that are acceptable to the FDA or other regulatory agencies, and the failure of any supplier
to comply with strictly enforced regulatory requirements could expose us to regulatory action including warning letters, product
recalls, and termination of distribution, product seizures or civil penalties. It could also require us to cease using the components,
seek alternative components or technologies and modify our products to incorporate alternative components or technologies, which
could result in a requirement to seek additional regulatory approvals. Any disruption of this nature or increased expenses could
harm our development, approval or commercialization efforts and adversely affect our operating results.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We plan to contract with third
parties for the manufacture of our cortical strip, grid electrode and depth electrode technology under development and expect
to continue to do so for clinical trials and commercialization. Risks associated with the manufacturing of our products could
reduce our gross margins and negatively affect our operating results.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We currently rely, and expect to continue
to rely, on third parties for the manufacture of our cortical strip, grid electrode and depth electrode technology during development,
for clinical testing, as well as for commercial manufacture if our cortical strip, grid electrode and depth electrode technology
receives regulatory approval. Therefore, our business strategy depends on our third-party manufacturers&rsquo; ability to manufacture
our cortical strip, grid electrode and depth electrode technology and future generations thereof in sufficient quantities and
on a timely basis so as to meet consumer demand, while adhering to product quality standards, complying with regulatory requirements
and managing manufacturing costs. To date, we have only had an initial supply of our product manufactured. As a result, we currently
have limited data and experience regarding the quality, reliability and timeliness of our third-party manufacturers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are subject to numerous risks relating
to the manufacturing capabilities of our third-party manufacturers, including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">quality
                                         or reliability defects;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">inability
                                         to secure product components in a timely manner, in sufficient quantities or on commercially
                                         reasonable terms;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">failure
                                         to increase production to meet demand;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">inability
                                         to modify production lines to enable us to efficiently produce future products or implement
                                         changes in current products in response to regulatory requirements;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">difficulty
                                         identifying and qualifying alternative manufacturers in a timely manner;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">inability
                                         to manufacture product components cost-effectively;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">inability
                                         to establish agreements with future third-party manufacturers or to do so on acceptable
                                         terms; or</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">potential
                                         damage to or destruction of our manufacturers&rsquo; equipment or facilities.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">These risks are likely to be exacerbated
by our limited experience with our cortical strip, grid electrode and depth electrode technology and its manufacturing process.
As demand for our products increases, our third-party suppliers will need to invest additional resources to purchase components,
hire and train employees, and enhance their manufacturing processes. If our manufacturers fail to increase production capacity
efficiently, our sales may not increase in line with our expectations and our operating margins could fluctuate or decline. In
addition, manufacturing any future versions of our cortical strip, grid electrode and depth electrode technology may require the
modification of production lines, the identification of new manufacturers for specific components, or the development of new manufacturing
technologies. It may not be possible for us to manufacture these products at a cost or in quantities sufficient to make any future
versions of our cortical strip, grid electrode and depth electrode technology commercially viable.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If we or our third-party suppliers
or manufacturers fail to comply with the FDA&rsquo;s good manufacturing practice regulations, this could impair our ability to
market our products in a cost-effective and timely manner.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We and our third-party suppliers are required
to comply with the FDA&rsquo;s QSR, which covers the methods and documentation of the design, testing, production, control, quality
assurance, labeling, packaging, sterilization, storage and shipping of our products. The FDA audits compliance with the QSR through
periodic announced and unannounced inspections of manufacturing and other facilities. The FDA may impose inspections or audits
at any time. If we or our suppliers or manufacturers have significant non-compliance issues or if any corrective action plan that
we or our suppliers propose in response to observed deficiencies is not sufficient, the FDA could take enforcement action against
us. Any of the foregoing actions could impair our reputation, business, financial condition and operating results.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Various factors outside our
direct control may adversely affect manufacturing, sterilization and distribution of our products.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The manufacture, sterilization and distribution
of our products is challenging. Changes that our suppliers may make outside the purview of our direct control can have an impact
on our processes, quality of our products and the successful delivery of products to our customers. Necessary materials for our
product under development may not be available from our third-party suppliers in a timely fashion or at all. Mistakes and mishandling
are not uncommon and can affect supply and delivery. Some of these risks include:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">failure
                                         to complete sterilization on time or in compliance with the required regulatory standards;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">transportation
                                         and import and export risk;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">delays
                                         in analytical results or failure of analytical techniques that we will depend on for
                                         quality control and release of products;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">natural
                                         disasters, labor disputes, financial distress, raw material availability, issues with
                                         facilities and equipment or other forms of disruption to business operations affecting
                                         our manufacturers or suppliers; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">latent
                                         defects that may become apparent after products have been released and that may result
                                         in a recall of such products.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If any of these risks were to materialize,
our ability to develop products, conduct clinical trials or provide our products to customers on a timely basis, if approved,
would be adversely impacted.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Potential complications from
our cortical strip, grid electrode and depth electrode technology may come to light or may not be revealed by our clinical experience.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Based on our industry experience and the
experience of the physicians that use products similar to our cortical strip, grid electrode and depth electrode technology, complications
from use of our cortical strip, grid electrode and depth electrode technology may include post-operative hemorrhage, infection,
brain inflammation, brain tissue necrosis, inability to accurately localize the epileptogenic focus (the area of the cerebral
cortex responsible for causing epileptic seizures), neurologic deficit (abnormal function of a body area due to weaker function
of the brain, spinal cord, muscles or nerves, such as abnormal reflexes, inability to speak and decreased sensation) and extra
axial fluid collections (fluid that occurs in the brain after surgery). If these or unanticipated complications or side-effects
result from the use of our cortical strip, grid electrode and depth electrode technology, our product development may be delayed,
we may not be able to obtain regulatory approval for any product, we could be subject to liability and, even if approved, our
technology would not be widely adopted. Additionally, we have no clinical experience with use of our cortical strip, grid electrode
and depth electrode technology. We cannot assure you that use, even for a limited time, would not result in unanticipated complications,
even after the device is removed.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Undetected errors or defects
in our cortical strip, grid electrode and depth electrode technology under development or future versions thereof could harm our
reputation, decrease the market acceptance of our cortical strip, grid electrode and depth electrode technology or expose us to
product liability claims.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our cortical strip, grid electrode and
depth electrode technology may contain undetected errors or defects. Disruptions or other performance problems with our cortical
strip, grid electrode and depth electrode technology may delay development, prevent regulatory approval or harm our reputation.
If that occurs, we may incur significant costs, the attention of our key personnel could be diverted or other significant customer
relations problems may arise. We may also be subject to warranty and liability claims for damages related to errors or defects
in our cortical strip and sheet electrode technology or future versions thereof. A material liability claim or other occurrence
that harms our reputation or decreases market acceptance of our cortical strip, grid electrode and depth electrode technology
could harm our business and operating results. This risk exists even if a device is cleared or approved for commercial sale and
manufactured in facilities licensed and regulated by the FDA or an applicable foreign regulatory authority. Our products are designed
to affect, and any future products will be designed to affect, important bodily functions and processes. Any side effects, manufacturing
defects, misuse or abuse associated with our cortical strip, grid electrode and depth electrode technology or future versions
thereof could result in patient injury or death. The medical device industry has historically been subject to extensive litigation
over product liability claims, and we cannot offer any assurance that we will not face product liability lawsuits.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The sale and use of our cortical strip,
grid electrode and depth electrode technology or future versions thereof could lead to the filing of product liability claims
if someone were to allege that our cortical strip, grid electrode and depth electrode technology or one of our products contained
a design or manufacturing defect. A product liability claim could result in substantial damages and be costly and time consuming
to defend, either of which could materially harm our business or financial condition. Product liability claims may be brought
against us by patients, healthcare providers or others selling or otherwise coming into contact with our products, among others.
If we cannot successfully defend ourselves against product liability claims, we will incur substantial liabilities and reputational
harm. In addition, regardless of merit or eventual outcome, product liability claims may result in:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">litigation;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">distraction
                                         of management&rsquo;s attention from our primary business;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                         inability to commercialize our cortical strip, grid electrode and depth electrode technology;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">decreased
                                         demand;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">damage
                                         to our business reputation;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">product
                                         recalls or withdrawals from the market;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">withdrawal
                                         of clinical trial participants;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">substantial
                                         monetary awards to patients or other claimants; or</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">loss
                                         of revenue.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Product liability lawsuits and claims,
safety alerts or product recalls, with or without merit, could cause us to incur substantial costs, delay our product development
efforts, place a significant strain on our financial resources, divert the attention of management from our core business, harm
our reputation, increase our product liability insurance rates, once we obtain such insurance, or prevent us from securing such
insurance coverage in the future and adversely affect our ability to attract and retain customers, if approved, any of which could
harm our business, financial condition and operating results.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We do not currently maintain any product
liability insurance and do not anticipate obtaining product liability insurance until we commence clinical trials. Once we obtain
such insurance, we cannot assure you that such insurance would adequately protect our assets from the financial impact of defending
a product liability claim. Even if any product liability loss is covered by an insurance policy, these policies typically have
substantial deductibles for which we are responsible. Product liability claims in excess of applicable insurance coverage would
negatively impact our business, financial condition and operating results. Insurance coverage varies in cost and can be difficult
to obtain, and we cannot guarantee that we will be able to obtain insurance coverage in the future on terms acceptable to us or
at all.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If there are significant disruptions
in our information technology systems, our business, financial condition and operating results could be adversely affected.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The efficient operation of our business
depends on our information technology systems. We rely on our information technology systems to effectively manage product development
tasks, research and development data and accounting and financial functions. We expect in the future we will rely on our information
technology systems for inventory management and technical support functions, if and once implemented. Our information technology
systems are vulnerable to damage or interruption from earthquakes, fires, floods and other natural disasters, terrorist attacks,
attacks by computer viruses or hackers, power losses, and computer system or data network failures. In addition, our data management
application and a variety of our software systems are hosted by third-party service providers whose security and information technology
systems are subject to similar risks, which could be subject to computer viruses or hacker attacks or other failures. If our or
our third-party service provider&rsquo;s security systems are breached or fail, unauthorized persons may be able to obtain access
to sensitive data.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">To the extent that any disruption or security
breach were to result in a loss of, or damage to, our data or applications, or inappropriate disclosure of confidential or proprietary
information, we could incur liability, and the failure of our or our service providers&rsquo; information technology systems or
our transmitter&rsquo;s software to perform as we anticipate or our failure to effectively implement new information technology
systems could disrupt our entire operation or adversely affect our products and could delay our product development, clinical
trial or commercialization efforts, result in increased overhead costs and damage our reputation, all of which could negatively
affect our business, financial condition and operating results.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We may enter into collaborations,
in-licensing arrangements, joint ventures, strategic alliances or partnerships with third-parties that may not result in the development
of commercially viable products or the generation of significant future revenues.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In the ordinary course of our business,
we may enter into collaborations, in-licensing arrangements, joint ventures, strategic alliances, partnerships or other arrangements
to develop products and to pursue new markets. Proposing, negotiating and implementing collaborations, in-licensing arrangements,
joint ventures, strategic alliances or partnerships may be a lengthy and complex process. Other companies, including those with
substantially greater financial, marketing, sales, technology or other business resources, may compete with us for these opportunities
or arrangements. We may not identify, secure, or complete any such transactions or arrangements in a timely manner, on a cost-effective
basis, on acceptable terms or at all. We have limited institutional knowledge and experience with respect to these business development
activities, and we may also not realize the anticipated benefits of any such transaction or arrangement. In particular, these
collaborations may not result in the development of products that achieve commercial success or result in significant revenues
and could be terminated prior to developing any products.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Additionally, we may not be in a position
to exercise sole decision making authority regarding the transaction or arrangement, which could create the potential risk of
creating impasses on decisions, and our future collaborators may have economic or business interests or goals that are, or that
may become, inconsistent with our business interests or goals. It is possible that conflicts may arise with our collaborators,
such as conflicts concerning the achievement of performance milestones, or the interpretation of significant terms under any agreement,
such as those related to financial obligations or the ownership or control of intellectual property developed during the collaboration.
If any conflicts arise with any future collaborators, they may act in their self-interest, which may be adverse to our best interest,
and they may breach their obligations to us. In addition, we may have limited control over the amount and timing of resources
that any future collaborators devote to our or their future products. Disputes between us and our collaborators may result in
litigation or arbitration which would increase our expenses and divert the attention of our management. Further, these transactions
and arrangements will be contractual in nature and will generally be terminable under the terms of the applicable agreements and,
in such event, we may not continue to have rights to the products relating to such transaction or arrangement or may need to purchase
such rights at a premium.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If we enter into in-bound intellectual
property license agreements, we may not be able to fully protect the licensed intellectual property rights or maintain those licenses.
Future licensors could retain the right to prosecute and defend the intellectual property rights licensed to us, in which case
we would depend on the ability of our licensors to obtain, maintain and enforce intellectual property protection for the licensed
intellectual property. These licensors may determine not to pursue litigation against other companies or may pursue such litigation
less aggressively than we would. Further, entering into such license agreements could impose various diligence, commercialization,
royalty or other obligations on us. Future licensors may allege that we have breached our license agreement with them, and accordingly
seek to terminate our license, which could adversely affect our competitive business position and harm our business prospects.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We may seek to grow our business
through acquisitions of complementary products or technologies, and the failure to manage acquisitions, or the failure to integrate
them with our existing business, could harm our business, financial condition and operating results.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">From time to time, we may consider opportunities
to acquire other companies, products or technologies that may enhance our product platform or technology, expand the breadth of
our markets or customer base, or advance our business strategies. Potential acquisitions involve numerous risks, including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">problems
                                         assimilating the acquired products or technologies;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">issues
                                         maintaining uniform standards, procedures, controls and policies;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">unanticipated
                                         costs associated with acquisitions;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">diversion
                                         of management&rsquo;s attention from our existing business;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">risks
                                         associated with entering new markets in which we have limited or no experience;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">increased
                                         legal and accounting costs relating to the acquisitions or compliance with regulatory
                                         matters; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">unanticipated
                                         or undisclosed liabilities of any target.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have no current commitments with respect
to any acquisition. We do not know if we will be able to identify acquisitions we deem suitable, whether we will be able to successfully
complete any such acquisitions on favorable terms or at all, or whether we will be able to successfully integrate any acquired
products or technologies. Our potential inability to integrate any acquired products or technologies effectively may adversely
affect our business, operating results and financial condition.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our future success depends
on our ability to retain key executives and to attract, retain and motivate qualified personnel.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are highly dependent on the management,
research and development, clinical, financial and business development expertise of our officers and advisory board members. See
&ldquo;Advisory Boards&rdquo; under &ldquo;Directors and Executive Officers&rdquo;. Although we have an employment agreement with
David Rosa, he (and each of our other key employees) may terminate his employment with us at any time and will continue to be
able to do so. We do not maintain &ldquo;key person&rdquo; insurance for any of our executives or employees.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Recruiting and retaining qualified scientific
and clinical personnel will also be critical to our success. The loss of the services of our executive officers or other key employees
could impede the achievement of our research, development and commercialization objectives and seriously harm our ability to successfully
implement our business strategy. Furthermore, replacing executive officers and key employees may be difficult and may take an
extended period of time because of the limited number of individuals in our industry with the breadth of skills and experience
required to successfully develop, gain regulatory approval of and commercialize our products. Competition to hire from this limited
pool is intense, and we may be unable to hire, train, retain or motivate these key personnel on acceptable terms given the competition
among numerous medical device companies for similar personnel, many of which have greater financial and other resources dedicated
to attracting and retaining personnel. We also experience competition for the hiring of scientific and clinical personnel from
universities and research institutions. In addition, we rely on consultants and advisors, including scientific and clinical advisors,
to assist us in formulating our research and development and commercialization strategy. Our consultants and advisors may be employed
by employers other than us and may have commitments under consulting or advisory contracts with other entities that may limit
their availability to us. If we are unable to continue to attract and retain high quality personnel, our ability to pursue our
growth strategy will be limited.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Prolonged negative economic
conditions could adversely affect us, our customers and third-party partners, manufactures or suppliers, if any, which could harm
our financial condition.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are subject to the risks arising from
adverse changes in general economic and market conditions. Uncertainty about future economic conditions could negatively impact
our existing and potential customers, adversely affect the financial ability of health insurers to pay claims, adversely impact
our expenses and ability to obtain financing of our operations, and cause delays or other problems with key suppliers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Healthcare spending in Europe and the
United States has been, and is expected to continue to be, under significant pressure and there are many initiatives to reduce
healthcare costs. As a result, we believe that some insurers are scrutinizing insurance claims more rigorously and delaying or
denying coverage and reimbursement more often. Because the sale, if approved, of our cortical strip, grid electrode and depth
electrode technology under development will generally depend on the availability of third-party coverage and reimbursement, any
delay or decline in coverage and reimbursement will adversely affect our sales.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Risks Related to our Intellectual Property</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our ability to protect our
intellectual property and proprietary technology is uncertain.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We rely primarily on patent, trademark
and trade secret laws, as well as confidentiality and non-disclosure agreements, to protect our proprietary technologies. Our
patent estate consists of three issued United States patents licensed from WARF relating to a neural probe array and thin-film
micro electrode array and method, and two pending U.S. patent applications filed by us and published October 11, 2018 relating
to a wide variety of concepts, ranging from accessories for brain surgery to ablation and stimulation concepts for both cortical
and depth electrodes. The licensed issued patents expire between 2025 and 2030, subject to any patent extensions that may be available
for such patents. If a patent is issued on our pending patent application, the resulting patent is projected to expire in 2038.
We continue to review new technological developments in order to make decisions about what additional filings would be the most
appropriate for us. We also plan to seek patent protection for our proprietary technology in select countries internationally.
We also have one pending U.S. trademark application and one pending foreign trademark application, as well as one foreign trademark
registration. We have applied for patent protection relating to certain existing and proposed products and processes. Currently,
several of our issued U.S. patents licensed from WARF as well as our pending U.S. patent application relate to our cortical and
depth electrode technologies and are therefore important to the functionality of our products. If we fail to timely file a patent
application in any jurisdiction, we may be precluded from doing so at a later date. Furthermore, we cannot assure you that any
patent application will be approved in a timely manner or at all. The rights granted to us under our patents, and the rights we
are seeking to have granted in our pending patent applications, may not be meaningful or provide us with any commercial advantage.
In addition, those rights could be opposed, contested or circumvented by our competitors, or be declared invalid or unenforceable
in judicial or administrative proceedings. The failure of our patents to adequately protect our technology might make it easier
for our competitors to offer the same or similar products or technologies. Even if we are successful in receiving patent protection
for certain products and processes, our competitors may be able to design around our patents or develop products that provide
outcomes which are comparable to ours without infringing on our intellectual property rights. Due to differences between foreign
and U.S. patent laws, our patented intellectual property rights may not receive the same degree of protection in foreign countries
as they would in the United States. Even if patents are granted outside the United States, effective enforcement in those countries
may not be available.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We rely on our trademarks and trade names
to distinguish our products from the products of our competitors, and have registered or applied to register many of these trademarks.
For example, we have one pending application in the United States for the &ldquo;NeuroOne&rdquo; trademark. We cannot assure you
that our trademark applications will be approved in a timely manner or at all. Third parties also may oppose our trademark applications,
or otherwise challenge our use of the trademarks. In the event that our trademarks are successfully challenged, we could be forced
to rebrand our products, which could result in loss of brand recognition, and could require us to devote additional resources
to marketing new brands. Further, we cannot assure you that competitors will not infringe upon our trademarks, or that we will
have adequate resources to enforce our trademarks.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We also rely on trade secrets, know-how
and technology, which are not protectable by patents, to maintain our competitive position. We try to protect this information
by entering into confidentiality agreements and intellectual property assignment agreements with our officers, employees, temporary
employees and consultants regarding our intellectual property and proprietary technology. In the event of unauthorized use or
disclosure or other breaches of those agreements, we may not be provided with meaningful protection for our trade secrets or other
proprietary information. In addition, our trade secrets may otherwise become known or be independently discovered by competitors.
To the extent that our commercial partners, collaborators, employees and consultants use intellectual property owned by others
in their work for us, disputes may arise as to the rights in the related or resulting know-how and inventions. If any of our trade
secrets, know-how or other technologies not protected by a patent were to be disclosed to or independently developed by a competitor,
our business, financial condition and results of operations could be materially adversely affected.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If a competitor infringes upon one of
our patents, trademarks or other intellectual property rights, enforcing those patents, trademarks and other rights may be difficult
and time-consuming. Patent law relating to the scope of claims in the industry in which we operate is subject to rapid change
and constant evolution and, consequently, patent positions in our industry can be uncertain. Even if successful, litigation to
defend our patents and trademarks against challenges or to enforce our intellectual property rights could be expensive and time
consuming and could divert management&rsquo;s attention from managing our business. Moreover, we may not have sufficient resources
or desire to defend our patents or trademarks against challenges or to enforce our intellectual property rights. Litigation also
puts our patents at risk of being invalidated or interpreted narrowly and our patent applications at risk of not issuing. Additionally,
we may provoke third-parties to assert claims against us. We may not prevail in any lawsuits that we initiate and the damages
or other remedies awarded, if any, may not be commercially valuable. The occurrence of any of these events may harm our business,
financial condition and operating results.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We may not be able to establish
or strengthen our brand.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We believe that establishing and strengthening
our brand is critical to achieving widespread acceptance of our cortical strip, grid electrode and depth electrode technology.
Promoting and positioning our brand will depend largely on the success of our marketing efforts and our ability to provide physicians
with a reliable product for successful treatment of brain-related disorders. Additionally, we believe the quality and reliability
of our product is critical to building physician support in the United States, and any negative publicity regarding the quality
or reliability of our cortical strip, grid electrode and depth electrode technology could significantly damage our reputation
in the market. Further, given the established nature of our competitors, it is likely that our future marketing efforts will require
us to incur significant additional expenses. These brand promotion activities may not yield increased sales and, even if they
do, any sales increases may not offset the expenses we incur to promote our brand. If we fail to successfully promote and maintain
our brand, or if we incur substantial expenses in an unsuccessful attempt to promote and maintain our brand, our cortical strip,
grid electrode and depth electrode technology may not be accepted by physicians, which would adversely affect our business, results
of operations and financial condition.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The medical device industry
is characterized by patent litigation, and we could become subject to litigation that could be costly, result in the diversion
of management&rsquo;s time and efforts, stop our development and commercialization measures or require us to pay damages.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our success will depend in part on not
infringing the patents or violating the other proprietary rights of third-parties. Significant litigation regarding patent rights
exists in our industry. Our competitors in both the United States and abroad, many of which have substantially greater resources
and have made substantial investments in competing technologies, may have applied for or obtained or may in the future apply for
and obtain, patents that will prevent, limit or otherwise interfere with our ability to make and sell our products. The large
number of patents, the rapid rate of new patent issuances, and the complexities of the technology involved increase the risk of
patent litigation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In the future, we could receive communications
from various industry participants alleging our infringement of their intellectual property rights. Any potential intellectual
property litigation could force us to do one or more of the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">stop
                                         selling our products or using technology that contains the allegedly infringing intellectual
                                         property;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">incur
                                         significant legal expenses;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">pay
                                         substantial damages to the party whose intellectual property rights we are allegedly
                                         infringing;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">redesign
                                         those products that contain the allegedly infringing intellectual property; or</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">attempt
                                         to obtain a license to the relevant intellectual property from third-parties, which may
                                         not be available on reasonable terms or at all, and if available, may be non-exclusive,
                                         thereby giving our competitors access to the same technology.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Patent litigation can involve complex
factual and legal questions, and its outcome is uncertain. Any litigation or claim against us, even those without merit, may cause
us to incur substantial costs, and could place a significant strain on our financial resources, divert the attention of management
from our core business and harm our reputation. Further, as the number of participants in the neurostimulation market increases,
the possibility of intellectual property infringement claims against us increases.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We may be subject to damages
resulting from claims that we, or our employees, have wrongfully used or disclosed alleged trade secrets of our competitors or
are in breach of non-competition or non-solicitation agreements with our competitors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Some of our current or future employees
may have previously been employed at other medical device companies, including those that are our direct competitors or could
potentially be our direct competitors. We may be subject to claims that we, or our employees, have inadvertently or otherwise
used or disclosed trade secrets or other proprietary information of these former employers or competitors. In addition, we may
in the future be subject to allegations that we caused an employee to breach the terms of his or her non-competition or non-solicitation
agreement. Litigation may be necessary to defend against these claims.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In May 2017, NeuroOne, Inc. received a
letter from PMT, the former employer of Mark Christianson and Wade Fredrickson. PMT claimed that these
officers had breached their restrictive covenant obligations with PMT by virtue of their work for NeuroOne, Inc. and such officer&rsquo;s
prior work during employment with the prior employer, that these officers had breached their confidentiality and non-disclosure
obligations to PMT and federal and state law by misappropriating confidential and trade secret information, and that the Company
is responsible for tortious interference with the contracts. The letter demanded that Mr. Fredrickson (who resigned from the Company
in June 2017), Mr. Christianson and NeuroOne, Inc. cease and desist all competitive activities, that Mr. Fredrickson step down
from his position and that Mr. Christianson and NeuroOne, Inc. provide the former employer access to NeuroOne, Inc.&rsquo;s systems
to demonstrate that it is not using trade secrets or proprietary information nor competing with the former employer.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On March 29, 2018, we were served with
a complaint filed by PMT adding the Company, NeuroOne, Inc. and Mr. Christianson to its existing lawsuit against Mr. Fredrickson.
In the lawsuit, PMT claims that Mr. Fredrickson and Mr. Christianson breached their non-competition, non-solicitation and non-disclosure
obligations, breached their fiduciary duty obligations, were unjustly enriched, engaged in unfair competition, engaged in a civil
conspiracy, tortiously interfered with PMT&rsquo;s contracts and prospective economic advantage, and breached a covenant of good
faith and fair dealing. Against Mr. Fredrickson, PMT also alleges that he intentionally or negligently spoliated evidence, made
negligent or fraudulent misrepresentations, misappropriated trade secrets in violation of Minnesota law, and committed the tort
of conversion and statutory civil theft. Against the Company and NeuroOne, Inc., PMT alleges that the Company and NeuroOne, Inc.
were unjustly enriched and engaged in unfair competition. PMT asks the Court to impose a constructive trust over the shares held
by Mr. Fredrickson and Mr. Christianson and to award compensatory damages, equitable relief, punitive damages, attorneys&rsquo;
fees, costs and interest. The Company, NeuroOne, Inc. and Mr. Christianson (who has not worked for PMT since 2012) intend to defend
themselves vigorously. Furthermore, Mr. Christianson is a key officer and the loss of him would be detrimental to our operations
and prospects.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On April 18, 2018, Mr. Christianson, the
Company and NeuroOne, Inc. filed a motion for dismissal, which was heard by the Court on October 11, 2018. The motion for dismissal
states that: the contract claims against Mr. Christianson fail because his agreement was not supported by consideration; the Minnesota
Uniform Trade Secrets Act preempts plaintiff&rsquo;s claims for unfair competition, civil conspiracy and unjust enrichment; plaintiff
fails to state a claim regarding alleged breach of the duties of loyalty and good faith/fair dealing; plaintiff cannot legally
obtain a constructive trust; plaintiff has insufficiently pled its tortious interference claims; and Plaintiff has not stated
a claim for unfair competition. On January 7, 2019, the judge granted the motion for dismissal with respect to PMT&rsquo;s claim
for breach of the duty of good faith and fair dealing, and denied the motion for dismissal with respect to the other claims presented.
Discovery is now virtually complete. On June 28, 2019, the Company presented to the special master evidence of what it believed
to reflect significant litigation misconduct by PMT relating to a manufactured non-compete agreement for Wade Fredrickson that
it had attempted to pass off as a business record of PMT. Based on the evidence presented, the special master ruled that PMT had
waived the attorney client privilege with respect to certain communications with respect to the Fredrickson non-compete with both
its former and current litigation counsel and authorized a deposition of the former litigation counsel concerning these communications.
On August 30, 2019 the Hennepin County District Court will hear dispositive motions in this case. The Company, NeuroOne, Inc.
and Mr. Christianson (who has not worked for PMT since February 2012) intend to continue to defend themselves vigorously. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Even if we successfully defend against
these claims, litigation could cause us to incur substantial costs, and could place a significant strain on our financial resources,
divert the attention of management from our core business and harm our reputation. If our defense to those claims fails, in addition
to paying monetary damages, we may lose valuable intellectual property rights or personnel. There can be no assurance that this
type of litigation will not occur, and any future litigation or the threat thereof may adversely affect our ability to hire additional
employees. A loss of key personnel or their work product could hamper or prevent our ability to develop or commercialize our cortical
strip, grid electrode and depth electrode technology or future versions thereof, which could have an adverse effect on our business,
financial condition and operating results.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are subject to the patent
laws of countries other than the United States, which may not offer the same level of patent protection and whose rules could
seriously affect how we draft, file, prosecute and maintain patents, trademarks and patent and trademark applications.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Many countries, including certain countries
in Europe, have compulsory licensing laws under which a patent owner may be compelled to grant licenses to third parties (for
example, the patent owner has failed to &ldquo;work&rdquo; the invention in that country, or the third party has patented improvements).
In addition, many countries limit the enforceability of patents against government agencies or government contractors. In these
countries, the patent owner may have limited remedies, which could materially diminish the value of the patent. Moreover, the
legal systems of certain countries, particularly certain developing countries, do not favor the aggressive enforcement of patent
and other intellectual property protection which makes it difficult to stop infringement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We cannot be certain that the patent or
trademark offices of countries outside the United States will not implement new rules that increase costs for drafting, filing,
prosecuting and maintaining patents, trademarks and patent and trademark applications or that any such new rules will not restrict
our ability to file for patent protection. For example, we may elect not to seek patent protection in some jurisdictions in order
to save costs. We may be forced to abandon or return the rights to specific patents due to a lack of financial resources.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Intellectual property rights
do not necessarily address all potential threats to our competitive advantage.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The degree of future protection afforded
by our intellectual property rights is uncertain because intellectual property rights have limitations, and may not adequately
protect our business, or permit us to maintain our competitive advantage. The following examples are illustrative:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">others
                                         may be able to make devices that are the same as or similar to our cortical strip, grid
                                         electrode and depth electrode technology but that are not covered by the claims of the
                                         patents that we own;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">we
                                         or any collaborators might not have been the first to make the inventions covered by
                                         the issued patents or pending patent applications that we own;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">we
                                         might not have been the first to file patent applications covering certain of our inventions;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">others
                                         may independently develop similar or alternative technologies or duplicate any of our
                                         technologies without infringing our intellectual property rights;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">it
                                         is possible that our pending patent applications will not lead to issued patents;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">issued
                                         patents that we own may not provide us with any competitive advantages, or may be held
                                         invalid or unenforceable as a result of legal challenges;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">we
                                         might enforce our patent rights or defend a challenge to our issued patents or pending
                                         application, putting the patents and patent applications at risk of being invalidated
                                         or interpreted narrowly;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">our
                                         competitors might conduct research and development activities in the United States and
                                         other countries that provide a safe harbor from patent infringement claims for certain
                                         research and development activities, as well as in countries where we do not have patent
                                         rights, and then use the information learned from such activities to develop competitive
                                         products for sale in our major commercial markets; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">we
                                         may not develop additional proprietary technologies that are patentable.</TD></TR></TABLE>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Risks Related to our Legal and Regulatory Environment</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our products and operations
are subject to extensive governmental regulation, and failure to comply with applicable requirements could cause our business
to suffer.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The medical device industry is regulated
extensively by governmental authorities, principally the FDA and corresponding state regulatory agencies in the United States
and the European Commission and corresponding Notified Body in the European Union and the EEA. The regulations are very complex
and are subject to rapid change and varying interpretations. Regulatory restrictions or changes could limit our ability to carry
on or expand our operations or result in higher than anticipated costs or lower than anticipated sales. These governmental authorities
enforce laws and regulations that are meant to assure product safety and effectiveness, including the regulation of, among other
things:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">product
                                         design and development;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">pre-clinical
                                         studies and clinical trials;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">product
                                         safety;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">establishment
                                         registration and product listing;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">labeling,
                                         content and language of instructions for use and storage;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">marketing,
                                         manufacturing, sales and distribution;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">pre-market
                                         clearance or approval;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">servicing
                                         and post-market surveillance;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">record-keeping
                                         procedures;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">product
                                         import and export;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">advertising
                                         and promotion; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">recalls
                                         and field safety corrective actions.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The regulations to which we are subject
are complex and have tended to become more stringent over time. Regulatory changes could result in restrictions on our ability
to carry on or expand our operations, higher than anticipated costs or lower than anticipated revenues.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Failure to comply with applicable regulations
could jeopardize our ability to sell our products and result in enforcement actions such as fines, civil penalties, injunctions,
warning letters, recalls of products, delays in the introduction of products into the market, refusal of the regulatory agency
or other regulators to grant future clearances or approvals, and the suspension or withdrawal of existing approvals by such regulatory
agencies. Any of these sanctions could result in higher than anticipated costs or lower than anticipated sales and harm our reputation,
business, financial condition and operating results.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The FDA regulatory clearance
process is expensive, time-consuming and uncertain, and the failure to obtain and maintain required regulatory clearances and
approvals could prevent us from commercializing our cortical strip, grid electrode and depth electrode technology under development
and future versions thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our products and operations are subject
to extensive and rigorous regulation by the FDA under the Federal Food, Drug, and Cosmetic Act, or FDCA, and its implementing
regulations, guidance, and standards. The FDA regulates the research, testing, manufacturing, safety, labeling, storage, recordkeeping,
promotion, distribution, and production of medical devices in the United States to ensure that medical products distributed domestically
are safe and effective for their intended uses. The FDA also regulates the export of medical devices manufactured in the United
States to international markets. Any violations of these laws and regulations could result in a material adverse effect on our
business, financial condition and results of operations. In addition, if there is a change in law, regulation or judicial interpretation,
we may be required to change our business practices, which could have a material adverse effect on our business, financial condition
and results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under the FDCA, medical devices are classified
into one of three classes&mdash;Class I, Class II or Class III&mdash;depending on the degree of risk associated with each medical
device and the extent of control needed to ensure safety and effectiveness.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Class I devices are those for which safety
and effectiveness can be assured by adherence to FDA&rsquo;s &ldquo;general controls&rdquo; for medical devices, which include
compliance with the applicable portions of the QSR facility registration and product listing, reporting of adverse medical events,
and appropriate, truthful and non-misleading labeling, advertising, and promotional materials. Some Class I devices also require
premarket clearance by the FDA through the 510(k) premarket notification process described below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Class II devices are subject to FDA&rsquo;s
general controls, and any other &ldquo;special controls&rdquo; deemed necessary by FDA to ensure the safety and effectiveness
of the device. Premarket review and clearance by the FDA for Class II devices is accomplished through the 510(k) premarket notification
procedure, though certain Class II devices are exempt from this premarket review process. When a 510(k) is required, the manufacturer
must submit to the FDA a premarket notification submission demonstrating that the device is &ldquo;substantially equivalent&rdquo;
to a legally marketed device, which in some cases may require submission of clinical data. A legally marketed device is defined
by statute to mean a device that was legally marketed prior to May 28, 1976, the date upon which the Medical Device Amendments
of 1976 were enacted, or another commercially available, similar device that was cleared through the 510(k) process. Unless a
specific exemption applies, 510(k) premarket notification submissions are subject to user fees. If the FDA determines that the
device, or its intended use, is not substantially equivalent to a legally marketed device, the FDA will place the device, or the
particular use of the device, into Class III, and the device sponsor must then fulfill much more rigorous premarketing requirements
in the form of a premarket approval, or PMA.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A Class III device includes devices deemed
by the FDA to pose the greatest risk such as life-supporting or life-sustaining devices, or implantable devices, in addition to
a device that has a new intended use or utilizes advanced technology that is not substantially equivalent to that of a legally
marketed device. The safety and effectiveness of Class III devices cannot be assured solely by general and special controls. These
devices almost always require formal clinical studies to demonstrate safety and effectiveness. Submission and FDA approval of
a PMA application is required before marketing of a Class III device can proceed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We believe our cortical strip, grid electrode
and depth electrode technology under development will be a Class II medical device. The FDA has not made any determination about
whether our specific technology is a Class II medical device. While such a determination is not necessary in order for us to list
a device with the FDA and bring that device to the U.S. market, we may decide to get clarification from the FDA prior to introducing
a product into the market. From time to time, the FDA may disagree with the classification and require us to apply for approval
as a Class III medical device. In the event that the FDA determines that our technology should be classified as Class III, we
could be precluded from marketing the devices for clinical use within the United States for months, years or longer, depending
on the specific change in the classification. Reclassification of our technology as Class III could significantly increase our
regulatory costs, including the timing and expense associated with required clinical trials and other costs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If the FDA requires us to go through more
costly, lengthy and uncertain PMA process for our cortical strip, grid electrode and depth electrode technology, future products
or modifications to existing products than we had expected, we may be less likely to receive approval for our cortical strip,
grid electrode and depth electrode technology or such approval may take longer and be more costly.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The FDA can delay, limit or deny clearance
or approval of a device for many reasons, including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">we
                                         may not be able to demonstrate that our products are safe and effective for their intended
                                         users;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                         data from our clinical trials may be insufficient to support clearance or approval; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                         manufacturing process or facilities we use may not meet applicable requirements.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">When FDA approval of a device requires
human clinical trials, and if the device presents a &ldquo;significant risk&rdquo; to human health, the device sponsor is required
to file an investigational device exemption, or IDE, application with the FDA and obtain IDE approval prior to commencing the
human clinical trial. If the device is considered a &ldquo;non-significant risk,&rdquo; IDE submission to FDA is not required.
Instead, only approval from the Institutional Review Board, or IRB, overseeing the investigation at each clinical trial site is
required. Human clinical studies are generally required in connection with approval of Class III devices and may be required for
Class I and II devices. The FDA or the IRB at each institution at which a clinical trial is being performed may suspend a clinical
trial at any time for various reasons, including a belief that the subjects are being exposed to an unacceptable health risk.
We believe that we will need to complete human clinical trials and submit an application for an IDE in order to seek approval
to use of our cortical strip, grid electrode and depth electrode technology for stimulation and ablation but not for diagnostic
purposes. Because any IDE, if required, must be cleared by the FDA prior to the start of a clinical investigation, this requirement
may delay our product development or clinical trial efforts. Any delay in, or failure to receive or maintain, clearance or approval
for our products under development could prevent us from generating revenue from these products or achieving profitability.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition, the FDA may change its clearance
and approval policies, adopt additional regulations or revise existing regulations, or take other actions which may prevent or
delay approval or clearance of our products under development or impact our ability to modify our currently cleared or approved
products on a timely basis.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">After the FDA permits a device to enter
commercial distribution, numerous regulatory requirements apply. These include: compliance with the QSR, which requires manufacturers
to follow elaborate design, testing, control, documentation and other quality assurance procedures during the manufacturing process;
labeling regulations; the FDA&rsquo;s general prohibition against promoting products for unapproved or &ldquo;off-label&rdquo;
uses; the reports of Corrections and Removals regulation, which requires manufacturers to report recalls and field actions to
the FDA if initiated to reduce a risk of health posed by the device or to remedy a violation of the Federal Food, Drug and Cosmetic
Act; and the Medical Device Reporting regulation, which requires that manufacturers report to the FDA if their device may have
caused or contributed to a death or serious injury or malfunctioned in a way that would likely cause or contribute to a death
or serious injury if it were to reoccur. Manufacturers are also required to register and list their devices with the FDA, based
on which the FDA will conduct inspections to ensure continued compliance with applicable regulatory requirements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The FDA has broad post-market and regulatory
and enforcement powers. Failure to comply with the applicable U.S. medical device regulatory requirements could result in, among
other things, warning letters; fines; injunctions; consent decrees; civil penalties; repairs, replacements or refunds; recalls,
corrections or seizures of products; total or partial suspension of production; the FDA&rsquo;s refusal to grant future premarket
clearances or approvals; withdrawals or suspensions of current product applications; and criminal prosecution. Regulatory enforcement
or inquiries, or other increased scrutiny on us, could dissuade some people with brain related disorders from using our products
and adversely affect our reputation and the perceived accuracy and safety of our products. If any of these events were to occur,
they could have a material adverse effect on our business, financial condition and results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">International sales are subject to regulatory
requirements in the countries in which our products are sold. The regulatory review process varies from country to country and
may in some cases require the submission of clinical data. In addition, the FDA must be notified of, or approve the export to
certain countries of devices that require a PMA, and are not yet approved in the United States.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A recall of our products,
or the discovery of serious safety issues with our products, could have a significant negative impact on us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The FDA has the authority to require the
recall of commercialized products in the event of material deficiencies or defects in design or manufacture or in the event that
a product poses an unacceptable risk to health. Our third-party suppliers may, under their own initiative, recall a product if
any material deficiency in a device is found. A government-mandated or voluntary recall by us or one of our third-party distributors,
if any, could occur as a result of an unacceptable risk to health, component failures, manufacturing errors, design or labeling
defects or other deficiencies and issues. Recalls of any of our products would divert managerial and financial resources and have
an adverse effect on our reputation, financial condition and operating results, which could impair our ability to produce our
products in a cost-effective and timely manner.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Further, under the FDA&rsquo;s medical
device reporting regulations, we are required to report to the FDA any incident in which our product may have caused or contributed
to a death or serious injury or in which our product malfunctioned and, if the malfunction were to recur, would likely cause or
contribute to death or serious injury. Repeated product malfunctions may result in a voluntary or involuntary product recall,
which could divert managerial and financial resources, impair our ability to manufacture our products in a cost-effective and
timely manner and have an adverse effect on our reputation, financial condition and operating results.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Any adverse event involving our products
could result in future voluntary corrective actions, such as recalls or customer notifications, or regulatory agency action, which
could include inspection, mandatory recall or other enforcement action. Any corrective action, whether voluntary or involuntary,
will require the dedication of our time and capital, distract management from operating our business and may harm our reputation
and financial results.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We will be subject to
the U.S. Foreign Corrupt Practices Act (&ldquo;FCPA&rdquo;), the U.K. Bribery Act and other anti-corruption and anti-money-laundering laws, as
well as export control laws, customs laws, sanctions laws and other laws governing our future global operations. If we fail
to comply with these laws, we could be subject to civil or criminal penalties, other remedial measures and legal expenses,
which could adversely affect our business, results of operations and financial condition.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our future global operations will expose
us to trade and economic sanctions and other restrictions imposed by the United States, the European Union and other governments
and organizations. The U.S. Departments of Justice, Commerce, State and Treasury and other federal agencies and authorities have
a broad range of civil and criminal penalties they may seek to impose against corporations and individuals for violations of economic
sanctions laws, export control laws, the FCPA, and other federal statutes and regulations,
including those established by the Office of Foreign Assets Control, or OFAC. In addition, the U.K. Bribery Act of 2010, or the
Bribery Act, prohibits both domestic and international bribery, as well as bribery across both private and public sectors. An
organization that &ldquo;fails to prevent bribery&rdquo; by anyone associated with the organization can be charged under the Bribery
Act unless the organization can establish the defense of having implemented &ldquo;adequate procedures&rdquo; to prevent bribery.
Under these laws and regulations, as well as other anti-corruption laws, anti-money-laundering laws, export control laws, customs
laws, sanctions laws and other laws governing our operations, various government agencies may require export licenses, may seek
to impose modifications to business practices, including cessation of business activities in sanctioned countries or with sanctioned
persons or entities and modifications to compliance programs, which may increase compliance costs, and may subject us to fines,
penalties and other sanctions. A violation of these laws or regulations could adversely impact our business, results of operations
and financial condition.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We will implement and maintain policies
and procedures designed to ensure compliance by us, and our directors, officers, employees, representatives, third-party distributors,
if any, consultants and agents with the FCPA, OFAC restrictions, the Bribery Act and other export control, anticorruption, anti-money-laundering
and anti-terrorism laws and regulations. We cannot assure you, however, that our policies and procedures will be sufficient or
that directors, officers, employees, representatives, third-party distributors, if any, consultants and agents have not engaged
and will not engage in conduct for which we may be held responsible, nor can we assure you that our business partners have not
engaged and will not engage in conduct that could materially affect their ability to perform their contractual obligations to
us or even result in our being held liable for such conduct. Violations of the FCPA, OFAC restrictions, the Bribery Act or other
export control, anti-corruption, anti-money-laundering and anti-terrorism laws or regulations may result in severe criminal or
civil sanctions, and we may be subject to other liabilities, which could have a material adverse effect on our business, financial
condition, cash flows and results of operations.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are subject to additional
federal, state and foreign laws and regulations relating to our healthcare business; our failure to comply with those laws could
have an adverse impact on our business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Although we will not provide healthcare
services, submit claims for third-party reimbursement, or receive payments directly from government health insurance programs
or other third-party payors for our cortical strip, grid electrode and depth electrode technology, we are subject to healthcare
fraud and abuse regulation and enforcement by federal, state and foreign governments, which could adversely impact our business.
Healthcare fraud and abuse and health information privacy and security laws potentially applicable to our operations include,
but are not limited to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                         federal Anti-Kickback Statute (the &ldquo;Anti-Kickback Statute&rdquo;), which will apply to our marketing practices, educational
                                         programs, pricing policies and relationships with healthcare providers, by prohibiting,
                                         among other things, soliciting, receiving, offering or providing remuneration intended
                                         to induce the purchase or recommendation of an item or service reimbursable under a federal
                                         healthcare program, such as the Medicare or Medicaid programs. A person or entity does
                                         not need to have actual knowledge of this statute or specific intent to violate it to
                                         have committed a violation;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">federal
                                         civil and criminal false claims laws and civil monetary penalty laws, including civil
                                         whistleblower or qui tam actions that prohibit, among other things, knowingly presenting,
                                         or causing to be presented, claims for payment or approval to the federal government
                                         that are false or fraudulent, knowingly making a false statement material to an obligation
                                         to pay or transmit money or property to the federal government or knowingly concealing
                                         or knowingly and improperly avoiding or decreasing an obligation to pay or transmit money
                                         or property to the federal government. The government may assert that a claim including
                                         items or services resulting from a violation of the Anti-Kickback Statute constitutes
                                         a false or fraudulent claim for purposes of the false claims statutes;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the Health Insurance Portability and Accountability Act of 1996 (&ldquo;HIPAA&rdquo;),
                                                                                                             and its
                                                                                                             implementing
                                                                                                             regulations,
                                                                                                             which                                                                                                              created
                                                                                                             federal criminal laws that prohibit,                                          among other things, executing a scheme
                                                                                                             to defraud any healthcare benefit program or making                                          false statements relating to
                                                                                                             healthcare matters. A person or entity does not need to                                          have actual knowledge of
                                                                                                             these statutes or specific intent to violate them;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">HIPAA,
                                         as amended by the Health Information Technology for Economic and Clinical Health Act
                                         of 2009, and their implementing regulations, also imposes certain regulatory and contractual
                                         requirements regarding the privacy, security and transmission of individually identifiable
                                         health information;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">federal
                                         &ldquo;sunshine&rdquo; requirements imposed by the ACA on device manufacturers regarding
                                         any &ldquo;transfer of value&rdquo; made or distributed to physicians and teaching hospitals.
                                         Failure to submit required information may result in civil monetary penalties of up to
                                         an aggregate of $150,000 per year (or up to an aggregate of $1 million per year for &ldquo;knowing
                                         failures&rdquo;), for all payments, transfers of value or ownership or investment interests
                                         that are not timely, accurately, and completely reported in an annual submission. Manufacturers
                                         must submit reports by the 90th day of each subsequent calendar year;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">federal
                                         consumer protection and unfair competition laws, which broadly regulate marketplace activities
                                         and activities that potentially harm consumers;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">state
                                         law equivalents of each of the above federal laws, such as anti-kickback and false claims
                                         laws that may apply to items or services reimbursed by any third-party payor, including
                                         commercial insurers; state laws that require device companies to comply with the industry&rsquo;s
                                         voluntary compliance guidelines and the relevant compliance guidance promulgated by the
                                         federal government or otherwise restrict payments that may be made to healthcare providers;
                                         state laws that require device manufacturers to report information related to payments
                                         and other transfers of value to physicians and other healthcare providers or marketing
                                         expenditures; and state laws governing the privacy and security of certain health information,
                                         many of which differ from each other in significant ways and often are not preempted
                                         by HIPAA; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">foreign
                                         data privacy regulations, such as the EU Data Protection Directive (Directive 95/46/EC),
                                         and the country-specific regulations that implement Directive 95/46/EC, which impose
                                         strict obligations and restrictions on the ability to collect, analyze and transfer personal
                                         data, including health data from clinical trials and adverse event reporting, and may
                                         be stricter than U.S. laws.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The risk of our being found in violation
of these laws and regulations is increased by the fact that the scope and enforcement of these laws is uncertain, many of them
have not been fully interpreted by the regulatory authorities or the courts, their provisions are open to a variety of interpretations,
or they vary country by country. We are unable to predict what additional federal, state or foreign legislation or regulatory
initiatives may be enacted in the future regarding our business or the healthcare industry in general, or what effect such legislation
or regulations may have on us. Federal, state or foreign governments may (i) impose additional restrictions or adopt interpretations
of existing laws that could have a material adverse effect on us or (ii) challenge our current or future activities under these
laws. Any of these challenges could impact our reputation, business, financial condition and operating results.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If our operations are found to be in violation
of any of the laws described above or any other governmental regulations that apply to us now or in the future, we may be subject
to penalties, including civil and criminal penalties, damages, fines, disgorgement of profits, exclusion from governmental health
care programs, and the curtailment or restructuring of our operations, any of which could adversely affect our ability to operate
our business and our financial results. Any federal, state or foreign regulatory review to which we may become subject, regardless
of the outcome, would be costly and time-consuming.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For example, to enforce compliance with
the federal laws, the U.S. Department of Justice, or DOJ, has recently increased its scrutiny of interactions between healthcare
companies and healthcare providers, which has led to a number of investigations, prosecutions, convictions and settlements in
the healthcare industry. Dealing with investigations can be time and resource consuming and can divert management&rsquo;s attention
from our core business. Additionally, if we settle an investigation with law enforcement or other regulatory agencies, we may
be forced to agree to additional onerous compliance and reporting requirements as part of a consent decree or corporate integrity
agreement. Any such investigation or settlement could increase our costs or otherwise have an adverse effect on our business.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We may be liable if the FDA
or another regulatory agency concludes that we have engaged in the off-label promotion of our products.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our promotional materials and training
methods must comply with FDA and other applicable laws and regulations, including the prohibition of the promotion of the off-label
use of our products. Healthcare providers may use our products, if approved, off-label, as the FDA does not restrict or regulate
a physician&rsquo;s choice of treatment within the practice of medicine. However, if the FDA determines that our promotional materials
or training constitute promotion of an off-label use, it could request that we modify our training or promotional materials or
subject us to regulatory or enforcement actions, including the issuance of an untitled letter, a warning letter, injunction, seizure,
civil fine and criminal penalties. It is also possible that other federal, state or foreign enforcement authorities might take
action if they consider our promotional or training materials to constitute promotion of an unapproved use, which could result
in significant fines or penalties. Although we intend to train our marketing and direct sales force to not promote our products
for uses outside of their cleared uses and our policy will be to refrain from statements that could be considered off-label promotion
of our products, the FDA or another regulatory agency could disagree and conclude that we have engaged in off-label promotion.
In addition, the off-label use of our products may increase the risk of product liability claims. Product liability claims are
expensive to defend and could result in substantial damage awards against us and harm our reputation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Further, if we seek commercial approval
in Europe, the advertising and promotion of our products is subject to the laws of EEA Member States implementing Directive 93/42/EEC
concerning medical devices, Directive 2006/114/EC concerning misleading and comparative advertising, and Directive 2005/29/EC
on unfair commercial practices, as well as other EEA Member State legislation governing the advertising and promotion of medical
devices. A new Medical Device Regulation (2017/745) that replaced Directive 93/42/EEC was published in 2017, with a three year
implementation period, which will impose significant additional premarket and post-market certification requirements on medical
devices marketed in the EU. EEA Member State legislation may also restrict or impose limitations on our ability to advertise our
products directly to the general public. In addition, voluntary EU and national codes of conduct provide guidelines on the advertising
and promotion of our products to the general public and may impose limitations on our promotional activities with healthcare providers
harming our business, operating results and financial condition.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Legislative or regulatory
healthcare reforms may make it more difficult and costly for us to obtain regulatory clearance or approval of our products.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Recent political, economic and regulatory
influences are subjecting the healthcare industry to fundamental changes. The sales of our products depend in part on the availability
of coverage and reimbursement from third-party payors such as government health administration authorities, private health insurers,
health maintenance organizations and other healthcare-related organizations. Both the federal and state governments in the United
States continue to propose and pass new legislation and regulations designed to contain or reduce the cost of healthcare. This
legislation and regulation may result in decreased reimbursement for medical devices, which may further exacerbate industry-wide
pressure to reduce the prices charged for medical devices. This could harm our ability to market our products and generate sales.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition, FDA regulations and guidance
are often revised or reinterpreted by the FDA in ways that may significantly affect our business and our products. Any new regulations
or revisions or reinterpretations of existing regulations may impose additional costs or lengthen review times of our products.
Delays in receipt of or failure to receive regulatory clearances or approvals for our products would harm our business, financial
condition and operating results.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">While one often stated goal of healthcare
reform is to expand coverage to more individuals, it also involves increased government price controls, additional regulatory
mandates and other measures designed to constrain medical costs. For example, the ACA was enacted in March 2010. The ACA substantially
changes the way healthcare is financed by both governmental and private insurers, encourages improvements in the quality of healthcare
items and services and significantly impacts the medical device industries. Among other things, the ACA:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">establishes
                                         a new Patient-Centered Outcomes Research Institute to oversee, identify priorities in
                                         and conduct comparative clinical effectiveness research; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">implements
                                         payment system reforms including value-based payment programs, increased funding for
                                         comparative effectiveness research, reduced hospital payments for avoidable readmissions
                                         and hospital acquired conditions, and pilot programs to evaluate alternative payment
                                         methodologies that promote care coordination (such as bundled physician and hospital
                                         payments).</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">At this time, we cannot predict which,
if any, additional healthcare reform proposals will be adopted, when they may be adopted or what impact they, or the ACA, may
have on our business and operations, and any of these impacts may be adverse on our operating results and financial condition.
Our financial performance may be adversely affected by medical device tax provisions in the healthcare reform laws.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The ACA imposes, among other things, an
annual excise tax of 2.3% on any entity that manufactures or imports medical devices offered for sale in the United States beginning
in 2013. Due to subsequent legislative amendments, the excise tax has been suspended from January 1, 2016 to December 31, 2019,
and, absent further legislative action, will be reinstated starting January 1, 2020. We do not believe that our cortical strip,
grid electrode and depth electrode technology under development is currently subject to this tax based on the retail exemption
under applicable Treasury Regulations. However, the availability of this exemption is subject to interpretation by the Internal
Revenue Service, or IRS, and the IRS may disagree with our analysis. In addition, future products that we manufacture, produce
or import may be subject to this tax. The financial impact this tax may have on our business is unclear and there can be no assurance
that our business will not be materially adversely affected by it.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Tax matters, including the
changes in corporate tax rates, disagreements with taxing authorities and imposition of new taxes could impact our results of
operations and financial condition.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are subject to income and other taxes
in the U.S. and our operations, plans and results are affected by tax and other initiatives. On December 22, 2017, the Tax Act
was signed into law by President Trump. The Tax Act contains significant changes to corporate taxation, including reduction of
the corporate tax rate from a top marginal rate of 35% to a flat rate of 21%, limitation of the tax deduction for interest expense
to 30% of earnings (except for certain small businesses), limitation of the deduction for net operating losses to 80% of current
year taxable income and elimination of net operating loss carrybacks, one-time taxation of offshore earnings at reduced rates
regardless of whether they are repatriated, elimination of U.S. tax on foreign earnings (subject to certain important exceptions),
immediate deductions for certain new investments instead of deductions for depreciation expense over time, and modifying or repealing
many business deductions and credits. Notwithstanding the reduction in the corporate income tax rate, guidance on tax reform continues
to be released and such guidance may adversely affect our business and financial condition. While the new federal tax law did
not extend the moratorium on the medical device excise tax, the reinstatement of which could negatively impact our operating results
as we begin full commercialization of our platforms in the United States, the moratorium was subsequently extended until 2020.
It is also unknown if and to what extent various states will conform to the newly enacted federal tax law. The impact of this
tax reform on holders of our Common Stock is likewise uncertain and could be adverse. We urge you to consult with your legal and
tax advisors with respect to this legislation and the potential tax consequences of investing in our Common Stock. The decrease
in the corporate tax rate resulted in changes in the valuation of our deferred tax assets and liabilities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are also subject to regular reviews,
examinations, and audits by the Internal Revenue Service and other taxing authorities with respect to our taxes. Although we believe
our tax estimates are reasonable, if a taxing authority disagrees with the positions we have taken, we could face additional tax
liability, including interest and penalties. There can be no assurance that payment of such additional amounts upon final adjudication
of any disputes will not have a material impact on our results of operations and financial position.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We also need to comply with new, evolving
or revised tax laws and regulations. The enactment of or increases in tariffs, or other changes in the application or interpretation
of the Tax Act, or on specific products that we sell or with which our products compete, may have an adverse effect on our business
or on our results of operations.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Inadequate funding for the
FDA, the SEC and other government agencies could hinder their ability to hire and retain key leadership and other personnel, prevent
new products and services from being developed or commercialized in a timely manner or otherwise prevent those agencies from performing
normal business functions on which the operation of our business may rely, which could negatively impact our business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The ability of the FDA to review and approve
new products can be affected by a variety of factors, including government budget and funding levels, ability to hire and retain
key personnel and accept the payment of user fees, and statutory, regulatory, and policy changes. Average review times at the
agency have fluctuated in recent years as a result. Disruptions at the FDA and other agencies may also slow the time necessary
for new drugs, devices and treatments to be reviewed and/or approved by necessary government agencies, which would adversely affect
our business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition, government funding of the
SEC and other government agencies on which our operations may rely, is subject to the political process, which is inherently fluid
and unpredictable. For example, over the last several years, including beginning on December 22, 2018, the U.S. government has
shut down several times and certain regulatory agencies, such as the FDA and the SEC, have had to furlough critical FDA, SEC and
other government employees and stop critical activities. If a prolonged government shutdown occurs, it could significantly impact
the ability of the FDA to timely review and process our regulatory submissions, which could have a material adverse effect on
our business. Further, upon completion of this offering and in our operations as a public company, future government shutdowns
could impact our ability to access the public markets and obtain necessary capital in order to properly capitalize and continue
our operations.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Risks Related to our Common Stock</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">An active and visible public
trading market for our Common Stock may not develop.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We do not currently have an active or
visible trading market. We cannot predict whether an active market for our Common Stock will ever develop in the future. In the
absence of an active trading market:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">Investors
                                         may have difficulty buying and selling or obtaining market quotations;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">Trading
                                         of our Common Stock may be extremely sporadic;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">Market
                                         visibility for shares of our Common Stock may be limited; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">A
                                         lack of visibility for shares of our Common Stock may have a depressive effect on the
                                         market price for shares of our Common Stock.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our Common Stock is quoted over-the-counter
on a market operated by OTC Markets Group, Inc. These markets are relatively unorganized, inter-dealer, over-the-counter markets
that provide significantly less liquidity than Nasdaq or the NYSE MKT. No assurances can be given that our Common Stock, even
if quoted on such markets, will ever actively trade on such markets, much less a senior market like Nasdaq or NYSE MKT. In this
event, there would be a highly illiquid market for our Common Stock and you may be unable to dispose of your Common Stock at desirable
prices or at all. Moreover, there is a risk that our Common Stock could be delisted from its current tier of the OTC Market, in
which case our stock may be quoted on markets even more illiquid.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The price of our Common Stock
might fluctuate significantly, and you could lose all or part of your investment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Volatility in the market price of our
Common Stock may prevent you from being able to sell your shares of our Common Stock at or above the price you paid for your shares.
The trading price of our Common Stock may be volatile and subject to wide price fluctuations in response to various factors, including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">actual
                                         or anticipated fluctuations in our quarterly financial and operating results;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">our
                                         progress toward developing our cortical strip and sheet electrode technology;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                         commencement, enrollment and results of our future clinical trials;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">adverse
                                         results from, delays in or termination of our clinical trials;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">adverse
                                         regulatory decisions, including failure to receive regulatory approval;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">publication
                                         of research reports about us or our industry or positive or negative recommendations
                                         or withdrawal of research coverage by securities analysts, if any;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">perceptions
                                         about the market acceptance of our products and the recognition of our brand;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">adverse
                                         publicity about our products or industry in general;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">overall
                                         performance of the equity markets;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">introduction
                                         of products, or announcements of significant contracts, licenses or acquisitions, by
                                         us or our competitors;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">legislative,
                                         political or regulatory developments;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">additions
                                         or departures of key personnel;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">threatened
                                         or actual litigation and government investigations;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">third-party
                                         promotional activities, which are subject to ongoing regulatory obligations;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">sale
                                         of shares of our Common Stock by us or members of our management; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">general
                                         economic conditions.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">These and other factors might cause the
market price of our Common Stock to fluctuate substantially, which may negatively affect the liquidity of our Common Stock. In
addition, in recent years, the stock market has experienced significant price and volume fluctuations. This volatility has had
a significant impact on the market price of securities issued by many companies across many industries. The changes frequently
appear to occur without regard to the operating performance of the affected companies. Accordingly, the price of our Common Stock
could fluctuate based upon factors that have little or nothing to do with our Company, and these fluctuations could materially
reduce our share price.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Securities class action litigation has
often been instituted against companies following periods of volatility in the overall market and in the market price of a company&rsquo;s
securities. This litigation, if instituted against us, could result in substantial costs, divert our management&rsquo;s attention
and resources, and harm our business, operating results and financial condition.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Concentration of ownership
of our Common Stock among our existing executive officers, directors and principal stockholders may prevent new investors from
influencing significant corporate decisions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of July 1, 2019, our executive officers,
directors and current beneficial owners of 5% or more of our Common Stock and their respective affiliates, in the aggregate, beneficially
own approximately 50.7% of our outstanding Common Stock. As a result, these persons, acting together, would be able to significantly
influence all matters requiring stockholder approval, including the election and removal of directors, any merger, consolidation,
sale of all or substantially all of our assets, or other significant corporate transactions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Some of these persons or entities may
have interests different than yours. For example, they may be more interested in selling our Company to an acquirer than other
investors, or they may want us to pursue strategies that deviate from the interests of other stockholders.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our management has identified
certain internal control deficiencies, which management believes constitute material weaknesses. Our failure to establish and
maintain an effective system of internal controls could result in material misstatements of our financial statements or cause
us to fail to meet our reporting obligations or fail to prevent fraud in which case, our stockholders could lose confidence in
our financial reporting, which would harm our business and could negatively impact the price of our stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Prior to the Acquisition (as defined below),
NeuroOne, Inc. was a private company with limited accounting personnel and other resources with which to address our internal
controls and procedures. We review and update our internal controls, disclosure controls and procedures, and corporate governance
policies as our Company continues to evolve. In addition, in connection with the Acquisition and becoming a company required to
file reports with the SEC, we are required to comply with the internal control evaluation and certification requirements of Section
404 of the Sarbanes-Oxley Act of 2002 (&ldquo;SOX&rdquo;) and management is required to report annually on our internal control
over financial reporting. Our independent registered public accounting firm will not be required to formally attest to the effectiveness
of our internal control over financial reporting pursuant to Section 404 of SOX until the date we have a public float of $75 million
or greater.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the audits for the periods ended
September 30, 2018 and December 31, 2017, it was determined that our internal control over financial reporting is not effective.
Such shortcomings could have an adverse effect on our business and financial results. This lack of control effectiveness could
also make it more difficult or more costly for us to obtain certain types of insurance, including director and officer liability
insurance, and we may be forced to accept reduced policy limits and coverage or incur substantially higher costs to obtain the
same or similar coverage. Any system of internal controls, however well designed and operated, is based in part on certain assumptions
and can provide only reasonable, not absolute, assurances that the objectives of the system are met. Any failure or circumvention
of the controls and procedures or failure to comply with regulation concerning control and procedures could have a material effect
on our business, results of operation and financial condition. Any of these events could result in an adverse reaction in the
financial marketplace due to a loss of investor confidence in the reliability of our financial statements, which ultimately could
negatively affect the market price of our shares, increase the volatility of our stock price and adversely affect our ability
to raise additional funding. The effect of these events could also make it more difficult for us to attract and retain qualified
persons to serve on our Board of Directors (the &ldquo;Board&rdquo;) and as executive officers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our management&rsquo;s evaluation of the
effectiveness of our internal controls over financial reporting as of March 31, 2019 concluded that our controls were not effective,
due to material weaknesses resulting from an ineffective overall control environment. The material weaknesses stem primarily from
our small company size and include the inability to maintain effective controls over (i) accounting for non-routine and complex
debt and equity transactions, (ii) the financial statement close and reporting process, (iii) accounting for routine transactions,
and (iv) segregation of duties.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Management believes there is a reasonable
possibility that these control deficiencies, if uncorrected, could result in material misstatements in the annual or interim financial
statements that would not be prevented or detected in a timely manner. Accordingly, we have determined that these control deficiencies
constitute material weaknesses. Subject to limitations on liquidity, the Company is planning to take steps to remediate these
material weaknesses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We will need to evaluate our existing
internal controls over financial reporting against the criteria set forth in Internal Control &ndash; Integrated Framework (2013)
issued by the Committee of Sponsoring Organizations of the Treadway Commission. During the course of our ongoing evaluation of
the internal controls, we may identify other areas requiring improvement, and may have to design enhanced processes and controls
to address issues identified through this review. Remediating any deficiencies, significant deficiencies or material weaknesses
that we or our independent registered public accounting firm may identify may require us to incur significant costs and expend
significant time and management resources. We cannot assure you that any of the measures we implement to remedy any such deficiencies
will effectively mitigate or remedy such deficiencies. The existence of one or more material weaknesses could affect the accuracy
and timing of our financial reporting. Investors could lose confidence in our financial reports, and the value of our Common Stock
may be harmed, if our internal controls over financial reporting are found not to be effective or if we make disclosure of existing
or potential material weaknesses in those controls.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Even if we conclude that our internal
control over financial reporting provides reasonable assurance regarding the reliability of financial reporting and the preparation
of financial statements for external purposes in accordance with generally accepted accounting principles, because of its inherent
limitations, internal control over financial reporting may not prevent or detect fraud or misstatements. Failure to implement
required new or improved controls, or difficulties encountered in their implementation, could harm our operating results or cause
us to fail to meet our future reporting obligations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our reporting obligations as a public
company will place a significant strain on our management, operational and financial resources and systems for the foreseeable
future. If we fail to timely achieve and maintain the adequacy of our internal control over financial reporting, we may not be
able to produce reliable financial reports or help prevent fraud. Our failure to achieve and maintain effective internal control
over financial reporting could prevent us from filing our periodic reports on a timely basis which could result in the loss of
investor confidence in the reliability of our financial statements, harm our business and negatively impact the trading price
of our Common Stock.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We intend to issue more shares
to raise capital, which will result in substantial dilution.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our certificate of incorporation authorizes
the issuance of a maximum of 100,000,000 shares of Common Stock and 10,000,000 shares of preferred stock. Any additional financings
effected by us may result in the issuance of additional securities without stockholder approval and the substantial dilution in
the percentage of Common Stock held by our then existing stockholders. Moreover, the Common Stock issued in any such transaction
may be valued on an arbitrary or non-arm&rsquo;s-length basis by our management, resulting in an additional reduction in the percentage
of Common Stock held by our current stockholders. Our Board has the power to issue any or all of such authorized but unissued
shares without stockholder approval. To the extent that additional shares of Common Stock are issued in connection with a financing,
dilution to the interests of our stockholders will occur and the rights of the holder of Common Stock might be materially and
adversely affected.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of March 31, 2019, we had outstanding warrants to purchase an aggregate of 6,448,613 shares of Common
Stock at a weighted average exercise price of $2.52 per share, and options to purchase an aggregate of 600,209 shares of Common
Stock at a weighted average exercise price of $1.26 per share. We are registering 4,399,322 shares of our Common Stock issuable
upon exercise of warrants on this registration statement of which this prospectus is a part. Once sold under the registration statement,
of which this prospectus is a part, the shares of Common Stock issuable upon exercise of the warrants will be freely tradable in
the hands of persons other than our affiliates. For a description of our outstanding warrants and information about the number
of shares of Common Stock for which they are exercisable, see &ldquo;Management&rsquo;s Discussion and Analysis of Financial Condition
and Results of Operations-Liquidity and Capital Resources-Historical Capital Resources.&rdquo; To the extent these outstanding
options or warrants are exercised, there will be further dilution to holders of our Common Stock.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Anti-takeover provisions in
the Company&rsquo;s certificate of incorporation and bylaws may prevent or frustrate attempts by stockholders to change the Board
or current management and could make a third-party acquisition of the Company difficult.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company&rsquo;s certificate of incorporation
and bylaws contain provisions that may discourage, delay or prevent a merger, acquisition or other change in control that stockholders
may consider favorable, including transactions in which stockholders might otherwise receive a premium for their shares. For example,
our certificate of incorporation permits the Board without stockholder approval to issue up to 10,000,000 shares of preferred
stock and to fix the designation, power, preferences, and rights of those shares. Furthermore, our Board has the ability to increase
the size of the Board and fill the newly created vacancies without stockholder approval. These provisions could limit the price
that investors might be willing to pay in the future for shares of the Common Stock.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are a smaller reporting
company, and the reduced reporting requirements applicable to smaller reporting companies may make our Common Stock less attractive
to investors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are a &ldquo;smaller reporting company&rdquo;
as defined in Section 12 of the Exchange Act. For as long as we continue to be a smaller reporting company, we may take advantage
of exemptions from various reporting requirements that are applicable to other public companies that are not smaller reporting
companies such as, reduced disclosure obligations regarding executive compensation in our annual and periodic reports and proxy
statements, and exemptions from the requirements of holding nonbinding advisory votes on executive compensation, and stockholder
approval of any golden parachute payments not previously approved. We will remain a &ldquo;smaller reporting company&rdquo; as
long as (i) our public float remains less than $250 million or (ii) our annual revenues are less than $100 million and we either
have no public float, or our public float is less than $700 million. Public float is measured as of the last business day of our
most recently-completed second fiscal quarter, and annual revenues are as of the most recently completed fiscal year for which
audited financial statements are available. We cannot predict if investors will find our Common Stock less attractive because
we may rely on these exemptions. If some investors find our Common Stock less attractive as a result, there may be a less active
trading market for our Common Stock and our stock price may be more volatile.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our Common Stock is subject
to the &ldquo;penny stock&rdquo; rules of the SEC, which makes transactions in our stock cumbersome and may reduce the value of
an investment in our stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The SEC has adopted regulations which
generally define a &ldquo;penny stock&rdquo; as an equity security that has a market price of less than $5.00 per share, subject
to specific exemptions. The SEC&rsquo;s penny stock rules require a broker-dealer, before a transaction in a penny stock not otherwise
exempt from the rules, to deliver a standardized risk disclosure document that provides information about penny stocks and the
risks in the penny stock market. The broker-dealer must also provide the customer with current bid and offer quotations for the
penny stock, the compensation of the broker-dealer and the salesperson in the transaction, and monthly account statements showing
the market value of each penny stock held in the customer&rsquo;s account. In addition, the penny stock rules generally require
that before a transaction in a penny stock occurs, the broker-dealer must make a special written determination that the penny
stock is a suitable investment for the purchaser and receive the purchaser&rsquo;s agreement to the transaction. These rules may
restrict the ability of brokers-dealers to sell our Common Stock and may affect the ability of investors to sell their shares,
until our Common Stock no longer is considered a penny stock.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The market for penny stocks
has experienced numerous frauds and abuses, which could adversely impact investors in our stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">OTC Market securities are frequent targets
of fraud or market manipulation, both because of their generally low prices and because reporting requirements are less stringent
than those of the stock exchanges such as Nasdaq and The New York Stock Exchange. Patterns of fraud and abuse include:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">Control
                                         of the market for the security by one or a few broker-dealers that are often related
                                         to the promoter or issuer;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">Manipulation
                                         of prices through prearranged matching of purchases and sales and false and misleading
                                         press releases;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">&ldquo;Boiler
                                         room&rdquo; practices involving high pressure sales tactics and unrealistic price projections
                                         by inexperienced sales persons;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">Excessive
                                         and undisclosed bid-ask differentials and markups by selling broker-dealers; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">Wholesale
                                         dumping of the same securities by promoters and broker-dealers after prices have been
                                         manipulated to a desired level, along with the inevitable collapse of those prices with
                                         consequent investor losses.</TD></TR></TABLE>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have not paid dividends
in the past and do not expect to pay dividends in the future, and any return on investment may be limited to the value of our
stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have never declared or paid cash dividends
on our capital stock. We currently intend to retain all available funds and any future earnings for use in the operation and expansion
of our business and do not anticipate paying any cash dividends in the foreseeable future. Accordingly, you may have to sell some
or all of your shares of our Common Stock in order to generate cash flow from your investment. You may not receive a gain on your
investment when you sell shares and you may lose the entire amount of the investment.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We expect to incur increased
costs and demands upon management as a result of being a public company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As a public company in the United States,
we expect to incur significant additional legal, accounting and other costs. These additional costs could negatively affect our
financial results. In addition, changing laws, regulations and standards relating to corporate governance and public disclosure,
including regulations implemented by the SEC and the stock exchange on which we may list our Common Stock, may increase legal
and financial compliance costs and make some activities more time-consuming. These laws, regulations and standards are subject
to varying interpretations and, as a result, their application in practice may evolve over time as new guidance is provided by
regulatory and governing bodies. We intend to invest resources to comply with evolving laws, regulations and standards, and this
investment may result in increased general and administrative expenses and a diversion of management&rsquo;s time and attention
from revenue-generating activities to compliance activities. If, notwithstanding our efforts to comply with new laws, regulations
and standards, we fail to comply, regulatory authorities may initiate legal proceedings against us and our business may be harmed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Failure to comply with these rules might
also make it more difficult for us to obtain some types of insurance, including director and officer liability insurance, and
we might be forced to accept reduced policy limits and coverage or incur substantially higher costs to obtain the same or similar
coverage. The impact of these events could also make it more difficult for us to attract and retain qualified persons to serve
on our Board, on committees of our Board or as members of senior management.</P>

<P STYLE="font: 6pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A significant portion of our
total outstanding shares are restricted from immediate resale but may be sold into the market in the future. This could cause
the market price of our Common Stock to drop significantly, even if our business is doing well.</P>

<P STYLE="font: 6pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Sales of a substantial number of shares
of our Common Stock in the public market could occur at any time. If our stockholders sell, or the market perceives that our stockholders
intend to sell substantial amounts of our Common Stock in the public market, the market price of our Common Stock could decline
significantly.</P>

<P STYLE="font: 6pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Certain shares of our outstanding Common Stock are freely tradable without restriction by stockholders
who are not our affiliates. Upon the effectiveness of the registration statement of which this prospectus is a part, 8,032,952
shares of our Common Stock will be freely tradable by the Selling Stockholders without restriction. However, we have shares of
Common Stock that are restricted under securities laws but will be able to be resold in the future. In addition to the shares we
are registering hereunder, we also may register additional shares of Common Stock that we may issue in connection with our future
capital raising efforts. Once we register those shares, they can be freely sold in the public market.</P>

<P STYLE="font: 6pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Furthermore, shares issued pursuant to
awards under our equity incentive plans and registered under a registration statement on Form S-8 will be available for sale in
the public market subject to vesting arrangements and exercise of options and the restrictions of Rule 144 in the case of our
affiliates.</P>

<P STYLE="font: 6pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If securities or industry
analysts do not publish research or reports, or publish unfavorable research or reports, about us, our business or our market,
our stock price and trading volume could decline.</P>

<P STYLE="font: 6pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The trading market for our Common Stock
will be influenced by the research and reports that securities or industry analysts publish about us and our business. Securities
or industry analysts may elect not to provide coverage of our Common Stock, and such lack of coverage may adversely affect the
market price of our Common Stock. In the event we do not secure additional securities or industry analyst coverage, we will not
have any control over the analysts or the content and opinions included in their reports. The price of our stock could decline
if one or more securities or industry analysts downgrade our stock or issue other unfavorable commentary or research. If one or
more securities or industry analysts ceases coverage of our Company or fails to publish reports on us regularly, demand for our
stock could decrease, which in turn could cause our stock price or trading volume to decline.</P>

<P STYLE="font: 6pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Risks Related to the Acquisition</P>

<P STYLE="font: 6pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We may be subject to unknown
risks as a result of our completed acquisition by Original Source Entertainment, Inc.</P>

<P STYLE="font: 6pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Original Source Entertainment, Inc., which
was renamed NeuroOne Medical Technologies Corporation in connection with the Acquisition, was formed to license songs to the television
and movie industry and has generated very little revenues. Prior to the Acquisition, its operations have been primarily limited
to organizational, start-up, and capital formation activities, with no employees other than the former officers. On February 5,
2014, the board of directors of Original Source Entertainment, Inc. authorized the spin-off of Original Source Music, Inc., a
wholly-owned subsidiary which then held all of our operations and assets, to our stockholders of record as of February 25, 2014.
Under the terms of the spin-off, the common stock, par value $0.001 per share, of Original Source Music, Inc. was distributed
on a pro-rata basis to each holder of our common stock on the February 25, 2014 record date without any consideration or action
on the part of such holders, and the holders of our common stock as of the February 25, 2014 record date became owners of 100%
of the common stock of Original Source Music, Inc. The spin-off of Original Source Music, Inc. was effective as of May 13, 2016,
due to the satisfactory resolution of all comments from the SEC to the Registration Statement on Form 10 of Original Source Music,
Inc. and the Form 10&rsquo;s effectiveness. Therefore, upon the spinoff of Original Source Music, which held all of our operations
and assets at the time, on May 13, 2016, Original Source Entertainment, Inc. ceased having a specific business plan and purpose.</P>

<P STYLE="font: 6pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In connection with the Acquisition, the
liabilities existing in Original Source Entertainment, Inc. at the time of the Acquisition were cancelled or paid by a related
party, as required by the Merger Agreement with NeuroOne, Inc. and OSOK Acquisition Company (the &ldquo;Merger Agreement&rdquo;).
Despite this requirement and the representations and warranties of Original Source Entertainment, Inc. in the Merger Agreement,
there may be unknown liabilities, or liabilities that were known but believed to be immaterial, related to the business of Original
Source Entertainment, Inc. that may become material liabilities we are subject to in the future. If we are subject to material
liabilities as a result of the conduct of Original Source Entertainment, Inc., we may have limited recourse for such liabilities,
which could have a material impact on our business and stock price.</P>

<P STYLE="font: 6pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Because we were engaged in
a transaction that can be generally characterized as a &ldquo;reverse merger,&rdquo; we may not be able to attract the attention
of major brokerage firms.</P>

<P STYLE="font: 6pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Additional risks may exist since we were
engaged in a transaction that can be generally characterized as a &ldquo;reverse merger.&rdquo; Securities analysts of major brokerage
firms may not provide coverage of the Company since there is little incentive to brokerage firms to recommend the purchase of
the Common Stock. No assurance can be given that brokerage firms will want to conduct any secondary offerings.&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><A NAME="a_003"></A>FORWARD-LOOKING
STATEMENTS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">This prospectus contains forward-looking
statements that involve substantial risks and uncertainties. The forward-looking statements are contained principally in the sections
entitled &ldquo;Risk Factors,&rdquo; &ldquo;Management&rsquo;s Discussion and Analysis of Financial Condition and Results of Operations&rdquo;
and &ldquo;Description of Business,&rdquo; but are also contained elsewhere in this prospectus. In some cases, you can identify
forward-looking statements by the words &ldquo;may,&rdquo; &ldquo;might,&rdquo; &ldquo;will,&rdquo; &ldquo;could,&rdquo; &ldquo;would,&rdquo;
&ldquo;should,&rdquo; &ldquo;expect,&rdquo; &ldquo;intend,&rdquo; &ldquo;plan,&rdquo; &ldquo;objective,&rdquo; &ldquo;anticipate,&rdquo;
&ldquo;believe,&rdquo; &ldquo;estimate,&rdquo; &ldquo;predict,&rdquo; &ldquo;project,&rdquo; &ldquo;potential,&rdquo; &ldquo;target,&rdquo;
&ldquo;seek,&rdquo; &ldquo;contemplate,&rdquo; &ldquo;continue&rdquo; and &ldquo;ongoing,&rdquo; or the negative of these terms,
or other comparable terminology intended to identify statements about the future. These statements involve known and unknown risks,
uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially
different from the information expressed or implied by these forward-looking statements. Although we believe that we have a reasonable
basis for each forward-looking statement contained in this prospectus, we caution you that these statements are based on a combination
of facts and factors currently known by us and our expectations of the future, about which we cannot be certain. Forward-looking
statements include statements about:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">our
                                         plans to develop and commercialize our cortical strip, grid and depth electrode technology;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">our
                                         plans for and our expectations regarding the pre-clinical testing and clinical trials
                                         of our cortical strip, grid and depth electrode technology that will be required by the
                                         FDA or foreign regulatory bodies;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                         timing and availability of data from pre-clinical tests or clinical trials;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                         timing of our planned regulatory filings;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                         timing of and our ability to obtain and maintain regulatory approval of our cortical
                                         strip, grid and depth electrode technology;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">our
                                         expectations regarding international opportunities for commercializing our cortical strip,
                                         grid and depth electrode technology under development;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the
                                         clinical utility of our cortical strip, grid and depth electrode technology under development;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">our
                                         ability to develop our cortical strip, grid and depth electrode technology with the benefits
                                         we hope to offer as compared to existing technology, or at all;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">our
                                         ability to develop future generations of our cortical strip, grid and depth electrode
                                         technology;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">our
                                         future development priorities;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">our
                                         ability to obtain reimbursement coverage for our cortical strip, grid and depth electrode
                                         technology;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">our
                                         expectations about the willingness of healthcare providers to recommend our cortical
                                         strip, grid and depth electrode technology to people with epilepsy, Parkinson&rsquo;s
                                         disease, essential tremors, and other brain related disorders;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">our
                                         future commercialization, marketing and manufacturing capabilities and strategy;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">estimates
                                         of the impact of material weaknesses in the internal control over financial reporting;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">our
                                         ability to comply with applicable regulatory requirements;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">our
                                         ability to maintain our intellectual property position;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">our
                                         estimates regarding the size of, and future growth in, the market for our technology
                                         under development; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">our
                                         estimates regarding our future expenses and needs for additional financing.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Forward-looking statements are based on
management&rsquo;s current expectations, estimates, forecasts and projections about our business and the industry in which we
operate, and management&rsquo;s beliefs and assumptions are not guarantees of future performance or development and involve known
and unknown risks, uncertainties and other factors that are in some cases beyond our control. You should refer to the &ldquo;Risk
Factors&rdquo; section of this prospectus for a discussion of important factors that may cause our actual results to differ materially
from those expressed or implied by our forward-looking statements. As a result of these factors, we cannot assure you that the
forward-looking statements in this prospectus will prove to be accurate. Furthermore, if our forward-looking statements prove
to be inaccurate, the inaccuracy may be material. In light of the significant uncertainties in these forward-looking statements,
you should not regard these statements as a representation or warranty by us or any other person that we will achieve our objectives
and plans in any specified time frame, or at all.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">These forward-looking statements speak
only as of the date of this prospectus. Except as required by law, we assume no obligation to update or revise these forward-looking
statements for any reason, even if new information becomes available in the future. You should, however, review the factors and
risks and other information we describe in the reports we will file from time to time with the SEC after the date of this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><A NAME="a_004"></A>USE OF PROCEEDS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are not selling any
securities under this prospectus and will not receive any proceeds from the sale of shares of Common Stock offered by this
prospectus by the Selling Stockholders. However, we may receive proceeds from the cash exercise of the warrants, which, if
exercised in cash at the current exercise price with respect to all warrants, would result in gross proceeds to us of
approximately <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$12.6 million.</FONT> The use of proceeds
from such Warrant exercises, if any, will be used for research and development, clinical studies, legal fees and
sales and marketing expenses, as well as working capital and general corporate purposes. For information about the Selling
Stockholders, see &ldquo;Selling Stockholders.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Selling Stockholders will pay any
underwriting discounts and commissions and expenses incurred by the Selling Stockholders for brokerage or legal services or any
other expenses incurred by the Selling Stockholders in disposing of the shares of Common Stock offered hereby. We will bear all
other costs, fees and expenses incurred in effecting the registration of the shares of Common Stock covered by this prospectus,
including all registration and filing fees and fees and expenses of our counsel and accountants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><A NAME="a_005"></A>SELLING STOCKHOLDERS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">This prospectus covers an aggregate
of up to 8,032,952 <FONT STYLE="font-size: 10pt">shares of our common stock that may be sold or otherwise disposed of by the
Selling Stockholders identified herein. Such shares include (a) shares of Common Stock and shares issuable upon the exercise
of certain warrants we issued and/or sold to (i) investors in the 2019 Private Placement (ii) noteholders upon the automatic
conversion of the Series 3 Notes, (iii) placement agents pursuant to placement agent agreements, and (iv) an investor
relations firm in connection with certain consulting services, and (b) shares of Common Stock sold to three investors by a former officer of the Company.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
table below sets forth, to our knowledge, information concerning the beneficial ownership of shares of our Common Stock by the
Selling Stockholders as of </FONT>July 1, 2019. The information in the table below with respect to the Selling Stockholders has
been obtained from the Selling Stockholders. The Selling Stockholders may sell all, some or none of the shares of Common Stock
subject to this prospectus. See &ldquo;Plan of Distribution.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Beneficial ownership is determined in
accordance with the rules of the SEC, and includes voting or investment power with respect to shares. To our knowledge, except
as indicated in the footnotes to this table, (i) each person named in the table has sole voting and investment power with respect
to all shares of Common Stock shown in the table to be beneficially owned by such person, and (ii) none of the selling stockholders
has had any position, office or other material relationship with us or any of our predecessors or affiliates within the past three
years. Except as set forth below, none of the selling stockholders is a broker-dealer or an affiliate of a broker-dealer.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have assumed all shares of Common Stock
reflected on the table will be sold from time to time in the offering covered by this prospectus, although the Selling Stockholders
are under no obligation known to us to sell any shares of Common Stock at this time. Because the Selling Stockholders may offer
all or any portions of the shares of Common Stock listed in the table below, no estimate can be given as to the amount of those
shares of Common Stock covered by this prospectus that will be held by the Selling Stockholders upon the termination of the offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: center; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: center; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Number
    of</B><BR>
    <B>Shares of</B><BR>
    <B>Common Stock<BR>
    Beneficially <BR></B></FONT></TD>
    <TD STYLE="vertical-align: top; text-align: left; font-family: Times New Roman, Times, Serif; white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: center; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Number
    of<BR>
    Shares of</B> <BR></FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: center; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;<FONT STYLE="font-size: 10pt">&nbsp;</FONT></FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: center; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Number
    of Shares</B><BR>
    <B>of Common Stock</B><BR>
    <B>Offered</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: center; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: center; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Beneficial
    Ownership After&nbsp;Offering</B></FONT></TD></TR>
<TR STYLE="font-family: Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: bottom; width: 47%; border-bottom: black 1.5pt solid; padding-bottom: 1pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Name
    of Selling Stockholder</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 1%; padding-bottom: 1pt; text-align: center; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 9%; border-bottom: black 1.5pt solid; text-align: center; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Owned&nbsp;Prior</B><BR>
    <B>to Offering<BR>
    (1)</B></FONT></TD>
    <TD STYLE="vertical-align: top; width: 5%; padding-bottom: 1pt; text-align: left; font-family: Times New Roman, Times, Serif; white-space: nowrap"></TD>
    <TD STYLE="width: 1%; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 9%; border-bottom: black 1.5pt solid; text-align: center; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Common<BR>
    Stock Offered</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 1%; padding-bottom: 1pt; text-align: center; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 8%; border-bottom: black 1.5pt solid; text-align: center; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Upon&nbsp;<FONT STYLE="font-size: 10pt">Exercise
    of</FONT></B><FONT STYLE="font-size: 10pt"><BR> <B>Warrants</B></FONT></FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 1%; padding-bottom: 1pt; text-align: center; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 8%; border-bottom: black 1.5pt solid; text-align: center; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Number
    of</B><BR>
    <B>Shares</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 2%; padding-bottom: 1pt; text-align: center; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 8%; border-bottom: black 1.5pt solid; text-align: center; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Ownership</B><BR>
    <B>Percentage(2)</B></FONT></TD></TR>
<TR STYLE="background-color: #CCEEFF; font-family: Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; padding-left: 10pt; text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Allen
    Gabriel</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">40,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: left; font-family: Times New Roman, Times, Serif; white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">20,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">20,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: white; font-family: Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; padding-left: 10.1pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Douglas
    Harnar LLC</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">200,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: left; font-family: Times New Roman, Times, Serif; white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)(4)</FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">100,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">100,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: #CCEEFF; font-family: Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; padding-left: 10pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">J&amp;C
    Resources, LLC</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">80,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: left; font-family: Times New Roman, Times, Serif; white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)(5)</FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">40,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">40,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: white; font-family: Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; padding-left: 10pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Bruce
    Walter McFadden</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">8,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: left; font-family: Times New Roman, Times, Serif; white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">4,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">4,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: #CCEEFF; font-family: Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; padding-left: 10pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Ousama
    Elsaadi</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">20,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: left; font-family: Times New Roman, Times, Serif; white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">10,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">10,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: white; font-family: Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; padding-left: 10pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Joseph
    Tagliaferro</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">12,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: left; font-family: Times New Roman, Times, Serif; white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">6,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">6,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: #CCEEFF; font-family: Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; padding-left: 10pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Christopher
    James Carrie</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">80,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: left; font-family: Times New Roman, Times, Serif; white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">40,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">40,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: white; font-family: Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; padding-left: 10pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Samuel
    J. Chantilis</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">64,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: left; font-family: Times New Roman, Times, Serif; white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">32,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">32,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: #CCEEFF; font-family: Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; padding-left: 10pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Dr.
    George E. Deshon Jr.</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">10,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: left; font-family: Times New Roman, Times, Serif; white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">5,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">5,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: white; font-family: Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; padding-left: 10pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">David
    and Martha Kadue Living Trust</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">40,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: left; font-family: Times New Roman, Times, Serif; white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)(6)</FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">20,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">20,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: #CCEEFF; font-family: Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; padding-left: 10pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Christopher
    P. Gutek</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">20,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: left; font-family: Times New Roman, Times, Serif; white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">10,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">10,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: white; font-family: Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; padding-left: 10pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">David
    R. Gienapp</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">32,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: left; font-family: Times New Roman, Times, Serif; white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">16,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">16,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: #CCEEFF; font-family: Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; padding-left: 10pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">S.
    Bruce Lansky Revocable Trust</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">20,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: left; font-family: Times New Roman, Times, Serif; white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)(7)</FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">10,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">10,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: white; font-family: Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; padding-left: 10pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Jack
    Cavin Holland 1979 Trust u/a/d 02/14/1979</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">48,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: left; font-family: Times New Roman, Times, Serif; white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)(8)</FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">24,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">24,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: #CCEEFF; font-family: Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; padding-left: 10pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Charles
    Brian Evans &amp; Lisa Smith Evans</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">20,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: left; font-family: Times New Roman, Times, Serif; white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">10,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">10,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: white; font-family: Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; padding-left: 10pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Robert
    Biederman</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">40,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: left; font-family: Times New Roman, Times, Serif; white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">20,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">20,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: #CCEEFF; font-family: Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; padding-left: 10pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Dr.
    Steve Sahai</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">80,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: left; font-family: Times New Roman, Times, Serif; white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">40,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">40,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: white; font-family: Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; padding-left: 10pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Flying
    S Ranch Trust</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">40,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: left; font-family: Times New Roman, Times, Serif; white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)(9)</FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">20,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">20,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: #CCEEFF; font-family: Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; padding-left: 10pt; font-family: Times New Roman, Times, Serif"><P STYLE="margin: 0pt 0">The GBS Living Trust</P>


</TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">20,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: left; font-family: Times New Roman, Times, Serif; white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT>(10)</TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">10,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">10,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: white; font-family: Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; padding-left: 10pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Alain
    M. Baudry</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">33,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: left; font-family: Times New Roman, Times, Serif; white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">14,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">14,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">5,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: #CCEEFF; font-family: Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; padding-left: 10pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Nickitas
    Michael Panayotou</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">219,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: left; font-family: Times New Roman, Times, Serif; white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">99,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">120,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>

</TABLE>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

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<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; width: 47%; padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Dean
    Bekken</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 9%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">40,000</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; width: 5%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 9%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">20,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 1%; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 8%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">20,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 8%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 2%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 8%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 10.1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Francis
    Lymburner</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">40,000</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">20,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">20,000</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">William
    M. Stocker III</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">40,000</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">20,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">20,000</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Paul
    G. Darr &amp; Dawn L. Darr</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">40,000</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">20,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">20,000</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Bradley
    Rotter</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">200,000</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">100,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">100,000</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Gregory
    H. Blaine</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">20,000</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10,000</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Veronica
    Marano &amp; Thomas M. Volckening</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">160,000</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">80,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">80,000</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Clayton
    A. Struve</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">160,000</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">80,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">80,000</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Nachiketa
    Das</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">20,000</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10,000</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Barrie
    Peterson</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">40,000</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">20,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">20,000</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Stephen
    Kann</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right">2<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0,000</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10,000</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">0</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">CD
    Walker LLC</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">40,000</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)(11)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">20,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">20,000</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Kenneth
    Grutman</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">20,000</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10,000</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">DKS&amp;C
    Enterprises, LLC</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">40,000</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)(12)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">20,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">20,000</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mohammad
    Jainal Bhuiyan</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><P STYLE="margin: 0pt 0">883,629</P>


</TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)(13)(14)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">204,545</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right">150,971</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><P STYLE="margin: 0pt 0">528,113</P>


</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">David
    L. Salentine</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right">42,400</TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right">21,200</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">21,200</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">0</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-left: 10pt">RBC Capital Markets, LLC CUST FBO David L. Salentine IRA</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">24<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">,000</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">12,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">12,000</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Noah
    Anderson</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">160,000</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">80,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">80,000</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Jerry
    B. Watkins Revocable Trust Dated 01/03/01</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">90,000</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)(15)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">40,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">40,000</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10,000</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Cagan-Wolfenbarger
    Family Trust</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">400,000</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)(16)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">200,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">200,000</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Gary
    W. Levine</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">20,000</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10,000</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Antonie
    Wobbe Ploegsma</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">100,000</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">50,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">50,000</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Kari
    Beth Widhalm &amp; Samuel Thomas Widhalm</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">16,000</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)(17)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">8,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">8,000</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Darrell
    R. Heinen</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">40,000</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10,000</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">20,000</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Kenneth
    Ashkin</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right">2<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0,000</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10,000</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Michael
    Connor</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">12,000</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">6,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">6,000</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Aaron
    Lehmann</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">30,000</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">15,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">15,000</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Ipai
    Terry Hsiao</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">40,000</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">20,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">20,000</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">KBB
    Asset Management LLC</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">40,000</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)(18)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">20,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">20,000</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Amy
    Milam &amp; Terry </FONT>Milam</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">40,000</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT>(19)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">20,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">20,000</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Arnold
    Balsam</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right">3<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0,000</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">15,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">15,000</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Khristopher
    M. Lugo</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">30,000</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">15,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">15,000</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Resolute
    Venture Partners L.P.</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">220,000</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)(20)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">110,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">110,000</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Kamaljit
    Khara</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">20,000</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10,000</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Patrick
    J. Wanner</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right">48,000</TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom">(3)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">16,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">16,000</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">16,000</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Paul
    Russo</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">12,000</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">6,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">6,000</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Shital
    Mehta D.O.</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">40,000</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">20,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">20,000</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Randy
    Rabin</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">20,000</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10,000</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Thomas
    Nolan &amp; Patricia N. Nolan Jt/Wros</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">40,000</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT>(21)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">20,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">20,000</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Martin
    Siegel</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">39,958</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">19,979</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">19,979</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">John
    Avon</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">20,000</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10,000</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">David
    Templeton</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right">40<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">,000</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10,000</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">20<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">,000</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Steven
    E. Wietsma</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">20,000</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10,000</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 10pt">RBC Capital Markets, LLC CUST FBO David L. Salentine IRA</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">24<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">,000</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">12,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">12,000</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Currie
    Family Trust</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">80,000</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT>(22)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">40,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">40,000</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">William
    Murphy</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">240,000</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">120,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">120,000</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Alexander
    Tosi</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">60,000</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">30,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">30,000</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Gerald
    W. Simonson</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">80,000</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">40,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">40,000</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Gary
    Lyn Hadwin Sr.</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">40,000</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10,000</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">20,000</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Christopher
    Frattaroli</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">80,000</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">40,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">40,000</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Joseph
    J. McElmeel, Jr. Trust dated 11/17/1993</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">24,000</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)(23)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">6,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">6,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">12,000</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">David
    S. Gray</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10,000</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">5,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">5,000</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
</TABLE>


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<P STYLE="margin: 0"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; width: 47%; padding-left: 10pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Efrat
    Investments</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 1%; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 9%; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">80,000</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; width: 5%; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)(24)</FONT></TD>
    <TD STYLE="width: 1%; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 9%; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">40,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 1%; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 8%; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">40,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 1%; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 8%; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 2%; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 8%; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: White; font-family: Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; padding-left: 10pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">James
    T. Betts</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">20,000</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255); font-family: Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; padding-left: 10pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Larry
    Vaught</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">20,000</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: White; font-family: Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; padding-left: 10pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Charles
    Robinson</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">20,000</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255); font-family: Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; padding-left: 10pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Miller
    Living Trust</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">12,000</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)(25)</FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">6,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">6,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: White; font-family: Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; padding-left: 10pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mark
    Robert Barrett</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;178,954</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(26)
    </FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;27,822</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;55,644</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">95,488</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255); font-family: Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; padding-left: 10pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Michael
    Logar</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;83,466</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">(26)</FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;27,822</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;55,644</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: White; font-family: Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; padding-left: 10pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Sean
    Wambold</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;143,774</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">(26)</FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;46,004</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;55,644</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">42,126</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255); font-family: Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; padding-left: 10pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Asif
    Zaman</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;41,493</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">(26)</FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;13,831</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;27,662</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: White; font-family: Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; padding-left: 10pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Leonard
    Mazur</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;368,651</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">(26)</FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;81,139</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;162,278</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">125,234</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255); font-family: Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; padding-left: 10pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Nabil
    Mallick</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;66,333</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">(26)</FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;22,111</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;44,222</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: White; font-family: Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; padding-left: 10pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
    Len Mertz Trust</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;165,801</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">(26)(27)
    </FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;55,267</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;110,534</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255); font-family: Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; padding-left: 10pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Adam
    Lipson</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;82,566</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">(26)</FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;27,522</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;55,044</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: White; font-family: Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; padding-left: 10pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Karen
    Torpey</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;82,566</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">(26)</FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;27,522</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;55,044</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255); font-family: Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; padding-left: 10pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Daniel
    Kramer Revocable Trust</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;82,299</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">(26)(28)
    </FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;27,433</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;54,866</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: White; font-family: Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; padding-left: 10pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Edward
    G. Gleason</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;82,299</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">(26) </FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;27,433</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;54,866</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255); font-family: Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; padding-left: 10pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Qasim
    M. Husain</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;164,433</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">(26)</FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;54,811</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;109,622</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: White; font-family: Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; padding-left: 10pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">H.
    Edward Wilkin III</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;81,999</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">(26)</FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;27,333</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;54,666</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255); font-family: Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; padding-left: 10pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Kenan
    M. Basha</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;408,750</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">(26)</FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;136,250</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;272,500</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: White; font-family: Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; padding-left: 10pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Farzana
    Hakeem</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;81,618</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">(26)</FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;27,206</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;54,412</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255); font-family: Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; padding-left: 10pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Lifestyle
    Healthcare LLC</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;1,058,435</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">(26)(29)
    </FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;172,267</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;135,444</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">750,724</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: White; font-family: Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; padding-left: 10pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Lev
    Grzhonko</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;40,149</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">(26) </FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;13,383</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;26,766</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>

<TR STYLE="background-color: rgb(204,238,255); font-family: Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; padding-left: 10pt; width: 47%; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Barry
    Pressman Family Trust</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 1%; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; width: 9%; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">286,081</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; width: 5%; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">(26)(30)
    </FONT></TD>
    <TD STYLE="width: 1%; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; width: 9%; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;53,533</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; width: 1%; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; width: 8%; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;107,066</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 1%; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; width: 8%; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">125,482</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 2%; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; width: 8%; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: White; font-family: Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; padding-left: 10pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mark
    H. Rephen</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;160,167</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">(26)</FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;53,389</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;106,778</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255); font-family: Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; padding-left: 10pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Bosun
    Hau</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;39,951</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">(26)</FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;13,317</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;26,634</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: White; font-family: Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; padding-left: 10pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mustafa
    Ameenuddin</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;79,533</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">(26)</FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;26,511</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;53,022</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255); font-family: Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; padding-left: 10pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Corinthian
    Partners, LLC</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">28,405</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(13)(31)</FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;0</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">28,405</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: White; font-family: Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; padding-left: 10pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Marta
    Wypych</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">8,050</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">(13)</FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;0</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;8,050</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255); font-family: Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; padding-left: 10pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Nickolay
    Kukekov</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">50,971</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">(13)</FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;0</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">50,971</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: White; font-family: Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; padding-left: 10pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Theodore
    Kalem</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">297,804</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">(13)</FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;0</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;50,971</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">246,833</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255); font-family: Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; padding-left: 10pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">JLS
    Ventures, LLC</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">50,000</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(32)</FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">50,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: left; font-family: Times New Roman, Times, Serif"></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;0</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: White; font-family: Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; padding-left: 10pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">JOJ Holdings,
    LLC</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">200,000</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">(32)</FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">200,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: left; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">0</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">0</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">*</FONT></TD></TR>
</TABLE>


<P STYLE="margin: 0"></P>

<P STYLE="margin: 0"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 47%; text-align: left; padding-bottom: 0; padding-left: 10pt">James Diemert</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="width: 9%; text-align: right">20,000</TD>
    <TD STYLE="width: 5%">(3)</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 9%; text-align: right">10,000</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 8%; text-align: right">10,000</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 8%; text-align: right">0</TD>
    <TD STYLE="width: 2%">&nbsp;</TD><TD STYLE="width: 8%; padding-bottom: 1.5pt; text-align: right">*</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 0; padding-left: 10pt">Ken Lyons</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: right">12,000</TD>
    <TD>(3)</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6,000</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6,000</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">0</TD>
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">*</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 0; padding-left: 10pt">Robert Susie</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: right">20,000</TD>
    <TD>(3)</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">10,000</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">10,000</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">0</TD>
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">*</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 0; padding-left: 10pt">Baxter House Properties, LLC</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: right">80,000</TD>
    <TD>(3)(33)</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">40,000</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">40,000</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">0</TD>
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">*</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 0; padding-left: 10pt">Dmitry Aksenov </TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: right">4,700</TD>
    <TD>(34)</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">0</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,700</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">0</TD>
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">*</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 0; padding-left: 10pt">Todd Bennschneider </TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: right">300</TD>
    <TD>(34)</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">0</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">300</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">0</TD>
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">*</TD></TR>
</TABLE>

<P STYLE="margin: 0">&nbsp;&nbsp;</P>

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<P STYLE="margin: 0"></P>

<P STYLE="margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 0; padding-left: 10pt; width: 47%">Christopher Clark </TD><TD STYLE="padding-bottom: 1.5pt; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 9%">30,251</TD>
    <TD STYLE="width: 5%">(34)</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 9%">0</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 8%">30,251</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 8%">0</TD>
    <TD STYLE="width: 2%">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right; width: 8%">*</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 0; padding-left: 10pt">Basil Christakos</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: right">1,702</TD>
    <TD>(34)</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">0</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,702</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">0</TD>
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">*</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 0; padding-left: 10pt">Tim Dabulis</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: right">1,750</TD>
    <TD>(34)</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">0</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,750</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">0</TD>
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">*</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 0; padding-left: 10pt">Trent Davis</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: right">3,199</TD>
    <TD>(34)</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">0</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,199</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">0</TD>
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">*</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 0; padding-left: 10pt">Thomas Endres</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: right">600</TD>
    <TD>(34)</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">0</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">600</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">0</TD>
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">*</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 0; padding-left: 10pt">Mark Finckle</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: right">2,902</TD>
    <TD>(34)</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">0</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,902</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">0</TD>
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">*</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 0; padding-left: 10pt">Peter Fogarty</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: right">7,500</TD>
    <TD>(34)</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">0</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">7,500</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">0</TD>
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">*</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 0; padding-left: 10pt">Dane Grouell</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: right">681</TD>
    <TD>(34)</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">0</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">681</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">0</TD>
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">*</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 0; padding-left: 10pt">Stephen Kann</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: right">17,400</TD>
    <TD>(34)</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">0</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">17,400</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">0</TD>
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">*</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 0; padding-left: 10pt">Albert Landstrom</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: right">3,075</TD>
    <TD>(34)</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">0</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,075</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">0</TD>
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">*</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 0; padding-left: 10pt">Lorraine Maxfield</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: right">1,702</TD>
    <TD>(34)</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">0</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,702</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">0</TD>
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">*</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 0; padding-left: 10pt">John Nole</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: right">1,968</TD>
    <TD>(34)</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">0</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,968</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">0</TD>
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">*</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 0; padding-left: 10pt">Evan Paliotta</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: right">300</TD>
    <TD>(34)</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">0</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">300</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">0</TD>
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">*</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 0; padding-left: 10pt">Thomas Parigian</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: right">30,251</TD>
    <TD>(34)</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">0</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">30,251</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">0</TD>
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">*</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 0; padding-left: 10pt">Gary Saccaro</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: right">8,100</TD>
    <TD>(34)</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">0</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,100</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">0</TD>
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">*</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 0; padding-left: 10pt">Robert Setteducati</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: right">30,251</TD>
    <TD>(34)</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">0</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">30,251</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">0</TD>
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">*</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 0; padding-left: 10pt">Timothy Touloukian</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: right">800</TD>
    <TD>(34)</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">0</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">800</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">0</TD>
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">*</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 0; padding-left: 10pt">Eugene Webb</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: right">10,800</TD>
    <TD>(34)</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">0</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">10,800</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">0</TD>
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">*</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 0; padding-left: 10pt">Malcolm Alexander Winks</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: right">3,199</TD>
    <TD>(34)</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">0</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,199</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">0</TD>
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">*</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 0; padding-left: 10pt">Paulson Investment Company, LLC</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: right">31,986</TD>
    <TD STYLE="white-space: nowrap">(34)(35)</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">0</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">31,986</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">0</TD>
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">*</TD></TR>
</TABLE>



<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">*Less than 1%.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(1)</TD><TD STYLE="text-align: justify">Beneficial ownership is determined
                                         in accordance with Rule 13d-3 under the Securities Act, and includes any shares of Common Stock as to
                                         which the Selling Stockholder has sole or shared voting power or investment power, and
                                         also any shares which the Selling Stockholder has the right to acquire within 60 days
                                         of July 1, 2019, whether through the exercise or conversion of any stock option, convertible
                                         security, warrant or other right. The indication herein that shares are beneficially
                                         owned is not an admission on the part of the Selling Stockholder that he, she or it is
                                         a direct or indirect beneficial owner of those shares.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(2)</TD><TD STYLE="text-align: justify">Based upon 13,463,765 shares of Common
                                         Stock issued and outstanding as of July 1, 2019.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(3)</TD><TD STYLE="text-align: justify">Includes shares of Common Stock issuable
                                         upon exercise of warrants issued in the 2019 Private Placement.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in">&nbsp;&nbsp;&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(4)</TD><TD STYLE="text-align: justify">Douglas Harnar
                                         has voting control and investment discretion over the securities reported herein that
                                         are held by Douglas Harnar LLC.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(5)</TD><TD STYLE="text-align: justify">Charles Johnston
                                         has voting control and investment discretion over the securities reported herein that
                                         are held by J&amp;C Resources, LLC.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(6)</TD><TD STYLE="text-align: justify">Martha Elaine
                                         Kadue has voting control and investment discretion over the securities reported herein
                                         that are held by the David and Martha Kadue Living Trust.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(7)</TD><TD STYLE="text-align: justify">Bruce Lansky has
                                         voting control and investment discretion over the securities reported herein that are
                                         held by the S. Bruce Lansky Revocable Trust.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(8)</TD><TD STYLE="text-align: justify"> Jack C. Holland has voting control and investment discretion over the securities
reported herein that are held by the Jack Cavin Holland 1979 Trust u/a/d 02/14/1979.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in">&nbsp;&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(9)</TD><TD STYLE="text-align: justify">Ryan Shay has voting control and investment discretion over the securities reported herein that are held
by the Flying S Ranch Trust.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">(10)</TD>
    <TD STYLE="text-align: justify">Gregory B. Stewart, the trustee of the trust, has voting and dispositive power over the
    securities
reported herein that are held by the GBS Living Trust.</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in">&nbsp;&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(11)</TD><TD STYLE="text-align: justify">Curtis Walker has voting control and investment discretion over the securities reported herein that are
held by CD Walker LLC.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(12)</TD><TD STYLE="text-align: justify">Dale Powell and Katharine Powell have shared voting control and investment discretion over the securities
reported herein that are held by DKS&amp;C Enterprises, LLC.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>



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<P STYLE="margin-top: 0; text-align: center; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">
<TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(13)</TD><TD STYLE="text-align: justify">Includes shares of Common Stock issuable                                          upon
                                                            exercise of outstanding warrants issued to the selling stockholder as the designee
                                                            of our placement agent, Corinthian, a registered broker dealer,  as compensation for placement
                                                            agent                                                                                                      services in
                                                            connection with certain offerings. The selling stockholder is an affiliate of Corinthian. Corinthian is an
                                                            affiliate of                                                             HRA
                                                            Capital. HRA Capital is affiliated with Chromium 24 LLC and Lifestyle Healthcare LLC, which have been greater than 5%
                                                            stockholders at some point within the past three years. For more information, see &ldquo;Certain
                                                            Relationships                                                             and
                                                            Related Transactions and Director Independence.&rdquo;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(14)</TD><TD STYLE="text-align: justify">The selling stockholder is a partner
                                         at HRA Capital, and HRA Capital&rsquo;s affiliate, Corinthian, a registered
                                         broker-dealer, has acted as a placement agent for private placements by the Company and
                                         NeuroOne, Inc. Additionally, HRA Capital is affiliated with Chromium 24 LLC and Lifestyle
                                         Healthcare LLC, which have been greater than 5% stockholders at some point within the
                                         past three years. For more information, see &ldquo;Certain Relationships and Related
                                         Transactions and Director Independence.&rdquo;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(15)</TD><TD STYLE="text-align: justify">Jerry B. Watkins has voting control and investment discretion over the securities reported herein that
are held by the Jerry B. Watkins Revocable Trust Dated 01/03/01.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(16)</TD><TD STYLE="text-align: justify">Laird Cagan has voting control and investment discretion over the securities reported herein that are
held by the Cagan-Wolfenbarger Family Trust.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in; text-align: left">(17)</TD><TD STYLE="text-align: justify">Kari Beth Widhalm and Samuel Thomas Widhalm have shared voting control and investment
                                                                              discretion over the securities reported herein.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in"><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(18)</TD><TD STYLE="text-align: justify">Steve Segal has voting control and investment discretion over the securities reported herein that are
held by KBB Asset Management LLC.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in; text-align: left">(19)</TD><TD STYLE="text-align: justify">Amy Milam &amp; Terry Milam have shared voting control
and investment discretion over the securities herein.</TD>
</TR></TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(20)</TD><TD STYLE="text-align: justify">Victor and Judd Morgenstern, the general partners of Resolute Venture
                                                            Partners L.P., have shared voting control and
                                                            investment                                                             discretion over
                                                            the                                                                                                 securities reported
                                                            herein that are held by Resolute Venture
                                                            Partners L.P.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in; text-align: left">(21)</TD><TD STYLE="text-align: justify">Thomas Nolan and Patricia N. Nolan have shared voting control
and investment discretion over the securities herein.</TD>
</TR></TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in; text-align: left">(22)</TD><TD STYLE="text-align: justify">Malcom Currie has voting control and investment discretion
over the securities reported herein that are held by the Currie Family Trust.</TD>
</TR></TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in"><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(23)</TD><TD STYLE="text-align: justify">Joseph J. McElmeel, Jr., the trustee
                                         of the trust, has voting and dispositive power over the shares.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(24)</TD><TD STYLE="text-align: justify">Pinny Rotter has voting control and investment discretion over the securities reported herein that are
held by Efrat Investments.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(25)</TD><TD STYLE="text-align: justify">David Vincent Miller has voting control and investment discretion over the securities reported herein
that are held by Miller Living Trust.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">
<TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(26)</TD><TD STYLE="text-align: justify">Includes shares of Common Stock issuable
                                         upon exercise of outstanding warrants issued upon the conversion of Series 3 Notes.</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(27)</TD><TD STYLE="text-align: justify">Len P. Mertz, the trustee of the trust, has voting control and investment
                                                            discretion                                                             over the securities reported herein that are held by
                                                            The Len Mertz Trust.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(28)</TD><TD STYLE="text-align: justify"> Daniel Kramer, the trustee of the trust, has voting control and investment
                                                            discretion                                                             over the securities reported herein that are held by
                                                            Daniel Kramer Revocable
                                                            Trust.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(29)</TD><TD STYLE="text-align: justify">Nickolay Kukekov has voting and dispositive
                                         power over the shares. Nickolay Kukekov is the Managing Director at HRA Capital, and
                                         a partner at HRA Capital&rsquo;s affiliate, Corinthian, a registered broker-dealer
                                         which has acted as a placement agent for private placements by the Company and NeuroOne,
                                         Inc. Additionally, the selling stockholder has provided consulting services to NeuroOne,
                                         Inc. For more information, see &ldquo;Certain Relationships and Related Transactions
                                         and Director Independence.&rdquo;</TD></TR></TABLE>

<P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(30)</TD><TD STYLE="text-align: justify">Barry Pressman has voting control and investment discretion over the securities reported herein that are
held by the Barry Pressman Family Trust.</TD></TR></TABLE>

<P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in"></P>

<P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(31)</TD><TD STYLE="text-align: justify">Richard Calabrese and Mitchell Manoff have voting control and investment
                                                            discretion over the securities reported herein that are held by Corinthian.</TD></TR></TABLE>

<P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(32)</TD><TD STYLE="text-align: justify">Justin Schreiber has voting control and investment
                                                            discretion                                                             over the securities reported herein that are held by
                                                            JLS and JOJ Holdings, LLC.</TD></TR></TABLE>

<P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">(33)</TD>
    <TD STYLE="text-align: justify">Amarjit S. Bhalla has voting control and investment discretion over the securities reported
    herein that are held by Baxter House Properties, LLC.</TD></TR>
</TABLE>
<P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">(34)</TD>
    <TD STYLE="text-align: justify">Includes shares of Common Stock issuable upon exercise of outstanding warrants issued to the
    selling stockholder as the designee of our placement agent, Paulson, a registered broker dealer, as     compensation for
    placement agent services in connection with the 2019 Private Placement. The selling stockholder is an affiliate of Paulson.</TD></TR>
</TABLE>
<P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in">&nbsp;&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(35)</TD><TD STYLE="text-align: justify"> Trent Donald Davis, the chief executive officer of Paulson, has
                                                            voting                                                             control and
                                                            investment                                                                                              discretion
                                                            over the                                                             securities reported herein that are held by
                                                            Paulson.</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in"></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><A NAME="a_006"></A>PLAN OF DISTRIBUTION</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">This prospectus includes <FONT STYLE="font-size: 10pt">8,032,952
shares of Common Stock offered by the Selling Stockholders.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Each Selling Stockholder and any of its
pledgees, assignees and successors-in-interest may, from time to time, sell any or all of its shares of Common Stock on the OTCQB
or any other stock exchange, market or trading facility on which our shares are traded or in private transactions. These sales
may be at fixed or negotiated prices. A selling stockholder may use any one or more of the following methods when selling shares:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">ordinary
                                         brokerage transactions and transactions in which the broker-dealer solicits purchasers;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">block
                                         trades in which the broker-dealer will attempt to sell the shares as agent but may position
                                         and resell a portion of the block as principal to facilitate the transaction;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">purchases
                                         by a broker-dealer as principal and resale by the broker-dealer for its account;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">an
                                         exchange distribution in accordance with the rules of the applicable exchange;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">privately
                                         negotiated transactions;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">settlement
                                         of short sales entered into after the effective date of the registration statement of
                                         which this prospectus is a part;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">broker-dealers
                                         may agree with the Selling Stockholders to sell a specified number of such shares at
                                         a stipulated price per share;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">through
                                         the writing or settlement of options or other hedging transactions, whether through an
                                         options exchange or otherwise;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">a
                                         combination of any such methods of sale; or</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">any
                                         other method permitted pursuant to applicable law.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Selling Stockholders may also sell
shares under Rule 144 under the Securities Act, if available, rather than under this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition, the Selling Stockholders
may transfer the shares of Common Stock by other means not described in this prospectus. If the Selling Stockholders effect such
transactions by selling shares of Common Stock to or through underwriters, broker-dealers or agents, such underwriters, broker-dealers
or agents may receive commissions in the form of discounts, concessions or commissions from the Selling Stockholders or commissions
from purchasers of the shares of Common Stock for whom they may act as agent or to whom they may sell as principal (which discounts,
concessions or commissions as to particular underwriters, broker-dealers or agents may be in excess of those customary in the
types of transactions involved). In connection with sales of the shares of Common Stock or otherwise, the Selling Stockholders
may enter into hedging transactions with broker-dealers, which may in turn engage in short sales of the shares of Common Stock
in the course of hedging in positions they assume. The Selling Stockholders may also sell shares of Common Stock short and deliver
shares of Common Stock covered by this prospectus to close out short positions and to return borrowed shares in connection with
such short sales. The Selling Stockholders may also loan or pledge shares of Common Stock to broker-dealers that in turn may sell
such shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Selling Stockholders may pledge or
grant a security interest in some or all of the shares of Common Stock owned by them and, if they default in the performance of
their secured obligations, the pledgees or secured parties may offer and sell the shares of Common Stock from time to time pursuant
to this prospectus or any amendment to this prospectus under Rule 424(b)(3) or other applicable provision of the Securities Act
amending, if necessary, the list of Selling Stockholders to include the pledgee, transferee or other successors in interest as
Selling Stockholders under this prospectus. The Selling Stockholders also may transfer and donate the shares of Common Stock in
other circumstances in which case the transferees, donees, pledgees or other successors in interest will be the selling beneficial
owners for purposes of this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">To the extent required by the Securities
Act and the rules and regulations thereunder, the Selling Stockholders and any broker-dealer participating in the distribution
of the shares of Common Stock may be deemed to be &ldquo;underwriters&rdquo; within the meaning of the Securities Act, and any
commission paid, or any discounts or concessions allowed to, any such broker-dealer may be deemed to be underwriting commissions
or discounts under the Securities Act. At the time a particular offering of the shares of Common Stock is made, a prospectus supplement,
if required, will be distributed, which will set forth the aggregate amount of shares of Common Stock being offered and the terms
of the offering, including the name or names of any broker-dealers or agents, any discounts, commissions and other terms constituting
compensation from the Selling Stockholders and any discounts, commissions or concessions allowed or re-allowed or paid to broker-dealers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">There can be no assurance that any Selling Stockholder will sell any or all of the shares of Common Stock
registered pursuant to the registration statement, of which this prospectus is a part.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Selling Stockholders and any other
person participating in such distribution will be subject to applicable provisions of the Exchange Act, and the rules and regulations
thereunder, including, without limitation, to the extent applicable, Regulation M of the Exchange Act, which may limit the timing
of purchases and sales of any of the shares of Common Stock by the Selling Stockholders and any other participating person. To
the extent applicable, Regulation M may also restrict the ability of any person engaged in the distribution of the shares of Common
Stock to engage in market-making activities with respect to the shares of Common Stock. All of the foregoing may affect the marketability
of the shares of Common Stock and the ability of any person or entity to engage in market-making activities with respect to the
shares of Common Stock. We will pay all expenses of the registration of the shares of Common Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Once sold under the registration statement, of which this prospectus is a part, the shares of Common Stock
will be freely tradable in the hands of persons other than our affiliates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="margin-top: 0; text-align: center; margin-bottom: 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><A NAME="a_007"></A>DESCRIPTION OF SECURITIES
TO BE REGISTERED</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">This prospectus relates to the resale from time to time of up to 8,032,952 shares of Common Stock of the
Company by the selling stockholders listed on page 42. As described below under &ldquo;About this Prospectus&rdquo; and &ldquo;Prospectus
Summary About this Offering,&rdquo; the shares of our Common Stock registered by this prospectus include (i) 2,317,179 shares of
our Common Stock and 2,338,179 shares of our Common Stock issuable upon the exercise of warrants issued to investors in the 2019
Private Placement, (ii) 839,179 shares of our Common Stock and 1,678,358 shares of our Common Stock issuable upon the exercise
of warrants issued on February 28, 2019 to the noteholders upon the automatic conversion of the Series 3 Notes, (iii) 382,785 shares
of our Common Stock issuable upon the exercise of warrants issued to placement agents pursuant to certain placement agent agreements,
(iv) 250,000 shares issued to JLS pursuant to a consulting agreement, and (v) 227,272 shares of our Common Stock purchased from
a former officer of the Company by certain investors in February 2018. We are not selling any shares of Common Stock under this
prospectus and will not receive any proceeds from the sale of shares of Common Stock by the Selling Stockholders.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company&rsquo;s authorized capital
stock consists of 100,000,000 shares of common stock, par value of $0.001 per share, and 10,000,000 shares of preferred stock,
par value $0.001 per share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><B>Common Stock </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Holders of the Company&rsquo;s Common Stock
are entitled to one vote for each share on all matters submitted to a stockholder vote. Holders of Common Stock do not have cumulative
voting rights. Therefore, holders of a majority of the shares of Common Stock voting for the election of directors can elect all
of the directors. Holders of the Company&rsquo;s Common Stock representing a majority of the voting power of the Company&rsquo;s
capital stock issued, outstanding and entitled to vote, represented in person or by proxy, are necessary to constitute a quorum
at any meeting of stockholders. A vote by the holders of a majority of the Company&rsquo;s outstanding Common Stock is required
to effectuate certain fundamental corporate changes such as liquidation, merger or an amendment to the Company&rsquo;s certificate
of incorporation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Holders of the Company&rsquo;s Common Stock
are entitled to share in all dividends that the Company&rsquo;s board of directors, in its discretion, declares from legally available
funds. In the event of a liquidation, dissolution or winding up, each outstanding share entitles its holder to participate pro
rata in all assets that remain after payment of liabilities and after providing for each class of stock, if any, having preference
over the Common Stock. The Company&rsquo;s Common Stock has no pre-emptive rights, no conversion rights and there are no redemption
provisions applicable to the Company&rsquo;s Common Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company&rsquo;s certificate of incorporation
authorize the issuance of 10,000,000 shares of &ldquo;blank check&rdquo; preferred stock, par value $0.001 per share, in one or
more series, subject to any limitations prescribed by law, without further vote or action by the stockholders. Each such series
of preferred stock shall have such number of shares, designations, preferences, voting powers, qualifications, and special or relative
rights or privileges as shall be determined by our board of directors, which may include, among others, dividend rights, voting
rights, liquidation preferences, conversion rights and preemptive rights.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Anti-Takeover Provisions</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are subject to Section 203 of the Delaware
General Corporation Law, or Section 203. Section 203 generally prohibits a public Delaware corporation from engaging in a &ldquo;business
combination&rdquo; with an &ldquo;interested stockholder&rdquo; for a period of three years after the date of the transaction in
which the person became an interested stockholder, unless:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">prior to the date of the transaction, the board of directors of the corporation approved either
the business combination or the transaction which resulted in the stockholder becoming an interested stockholder;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">the interested stockholder owned at least 85% of the voting stock of the corporation outstanding
upon consummation of the transaction, excluding for purposes of determining the number of shares outstanding (a) shares owned by
persons who are directors and also officers and (b) shares owned by employee stock plans in which employee participants do not
have the right to determine confidentially whether shares held subject to the plan will be tendered in a tender or exchange offer;
or</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">on or subsequent to the consummation of the transaction, the business combination is approved by
the board of directors and authorized at an annual or special meeting of stockholders, and not by written consent, by the affirmative
vote of at least 66 2/3% of the outstanding voting stock which is not owned by the interested stockholder.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Section 203 defines a business combination
to include:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">any merger or consolidation involving the corporation and the interested stockholder;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">any sale, transfer, pledge or other disposition involving the interested stockholder of 10% or
more of the assets of the corporation;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">subject to exceptions, any transaction involving the corporation that has the effect of increasing
the proportionate share of the stock of any class or series of the corporation beneficially owned by the interested stockholder;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">subject to exceptions, any transaction that results in the issuance or transfer by the corporation
of any stock of the corporation to the interested stockholder; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">the receipt by the interested stockholder of the benefit of any loans, advances, guarantees, pledges
or other financial benefits provided by or through the corporation.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In general, Section 203 defines an interested
stockholder as any entity or person beneficially owning 15% or more of the outstanding voting stock of the corporation and any
entity or person affiliated with or controlling or controlled by the entity or person.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Certificate of Incorporation and Bylaws</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Provisions of our certificate of incorporation
and bylaws may delay or discourage transactions involving an actual or potential change in our control or change in our management,
including transactions in which stockholders might otherwise receive a premium for their shares or transactions that our stockholders
might otherwise deem to be in their best interests. Therefore, these provisions could adversely affect the price of our Common
Stock. Among other things, our certificate of incorporation and bylaws:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">permit our board of directors to issue up to 10,000,000 shares of preferred stock, with any rights,
preferences and privileges as they may designate;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">provide that the authorized number of directors may be changed only by resolution adopted by a
majority of the board of directors;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">provide that the board of directors or any individual director may only be removed with cause and
the affirmative vote of the holders of at least 66 2/3% of the voting power of all of our then outstanding capital stock;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">provide that all vacancies, including newly created directorships, may, except as otherwise required
by law or subject to the rights of holders of preferred stock as designated from time to time, be filled by the affirmative vote
of a majority of directors then in office, even if less than a quorum;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">divide our board of directors into three classes;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">require that any action to be taken by our stockholders must be effected at a duly called annual
or special meeting of stockholders and not be taken by written consent or electronic transmission;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">provide that stockholders seeking to present proposals before a meeting of stockholders or to nominate
candidates for election as directors at a meeting of stockholders must provide notice in writing in a timely manner and also specify
requirements as to the form and content of a stockholder&rsquo;s notice;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">do not provide for cumulative voting rights, which means that holders of a majority of the shares
of Common Stock entitled to vote in any election of directors can elect all of the directors standing for election;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">provide that special meetings of our stockholders may only be called by the chairman of the board
of directors, our Chief Executive Officer or by the board of directors pursuant to a resolution adopted by a majority of the total
number of authorized directors (whether or not any vacancies exist); and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">provide that the Court of Chancery of the State of Delaware will be the sole and exclusive forum
for (i) any derivative action or proceeding brought on our behalf, (ii) any action asserting a claim of breach of a fiduciary duty
owed by any of our directors or officers to us or our stockholders, (iii) any action asserting a claim against us arising pursuant
to any provision of the DGCL, or (iv) any action asserting a claim against us governed by the internal affairs doctrine.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The amendment of any of these provisions,
with the exception of the ability of our board of directors to issue shares of preferred stock and designate any rights, preferences
and privileges thereto, would require the affirmative vote of the holders of at least 66 2/3% of the voting power of all of our
then outstanding capital stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><A NAME="a_008"></A>DESCRIPTION OF BUSINESS</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Overview</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Corporate Overview of NeuroOne Medical Technologies Corporation</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We were originally incorporated as Original
Source Entertainment, Inc. under the laws of the State of Nevada on August 20, 2009. Prior to the closing of the Acquisition, we
completed a series of steps contemplated by a Plan of Conversion pursuant to which we, among other things, changed our name to
NeuroOne Medical Technologies Corporation, increased our authorized number of shares of Common Stock from 45,000,000 to 100,000,000,
increased our authorized number of shares of preferred stock from 5,000,000 to 10,000,000 and reincorporated in Delaware. On July
20, 2017, we acquired NeuroOne, Inc. (the &ldquo;Acquisition&rdquo;). Immediately following the closing of the Acquisition, the
business of NeuroOne, Inc. became our sole focus. Unless otherwise stated or unless the context otherwise requires, the description
of our business set forth below is provided on a combined basis, taking into account our wholly-owned subsidiary, NeuroOne, Inc.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Corporate Overview and History of NeuroOne, Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">NeuroOne, Inc. was incorporated under the
laws of the State of Delaware on October 7, 2016. Its predecessor entity, the LLC,  was formed on December
13, 2013 and operated as a limited liability company until it was merged with and into NeuroOne, Inc. on October 27, 2016 with
NeuroOne, Inc. as the surviving entity (the &ldquo;Merger&rdquo;). As a result of the Merger, all of the properties, rights, privileges
and powers of the LLC vested in NeuroOne, Inc., and all debts, liabilities and duties of the LLC became the debts, liabilities
and duties of NeuroOne, Inc., except for the license agreement (the &ldquo;WARF License&rdquo;) with the WARF which was not legally
transferred until May 2017. The purposes of the Merger were to: change the jurisdiction of incorporation from Minnesota to Delaware;
change the ownership of the LLC&rsquo;s underlying assets; and convert from a limited liability company to a corporation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are a medical technology company focused
on the development and commercialization of thin film electrode technology for cEEG and sEEG recording, brain stimulation and ablation
solutions for patients suffering from epilepsy, Parkinson&rsquo;s disease, dystonia, essential tremors and other related brain
related disorders. Additionally, we are investigating the potential applications of our technology associated with artificial intelligence.
Members of our management team have held senior leadership positions at a number of medical technology and biopharmaceutical companies,
including Boston Scientific, St. Jude Medical, Stryker Instruments, C.R. Bard, A-Med Systems, Sunshine Heart, Empi, Don-Joy and
PMT.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are developing our cortical and sheet
and depth electrode technology to provide solutions for diagnosis through cEEG recording and sEEG recording and treatment through
brain stimulation and ablation, all in one product. A cEEG is a continuous recording of the electrical activity of the brain that
identifies the location of irregular brain activity, which information is required for proper treatment. cEEG recording involves
an invasive surgical procedure, referred to as a craniotomy. sEEG involves a less invasive procedure whereby doctors place electrodes
in targeted brain areas by drilling small holes through the skull. Both methods of seizure diagnosis are used to identify areas
of the brain where epileptic seizures originate in order to precisely locate the seizure source for therapeutic treatment if possible.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Deep brain stimulation, or DBS, therapies
involve activating or inhibiting the brain with electricity that can be given directly by electrodes on the surface or implanted
deeper in the brain via depth electrodes. Introduced in 1987, this procedure involves implanting a power source referred to as
a neurostimulator, which sends electrical impulses through implanted depth electrodes, to specific targets in the brain for the
treatment of disorders such as Parkinson&rsquo;s disease, essential tremor, dystonia, and chronic pain. Alzheimer&rsquo;s is another
indication evaluating the effects of DBS. Unlike ablative technologies, the effects of DBS are reversible.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">RF ablation is a procedure that uses radiofrequency
under the electrode contacts that is directed to the site of the brain tissue that is targeted for removal. The process involves
delivering energy to the contacts, thereby heating them and destroying the brain tissue. The ablation does not remove the tissue.
Rather, it is left in place and typically scar tissue forms in the place where the ablation occurs. This procedure is also known
as brain lesioning as it causes irreversible lesions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our cortical sheet electrode and depth
electrode technology has been tested over the years by both WARF, the owners of our licensed patents, and Mayo Clinic located in
Rochester, Minnesota, in both pre-clinical models as well as through an IRB approval at Mayo Clinic for clinical research. Regarding
our ablation electrode, the Cleveland Clinic has performed testing in bench top models and pre-clinical (or animal testing) modes.
These pre-clinical tests have demonstrated that the technology is capable of recording, ablation and acute stimulation, although
our technology remains in product development (meaning that additional trials will be needed prior to it being approved for sale
by the FDA) for all of the recording (or diagnostic) and therapeutic modalities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Prior to commercialization of our technology,
we will have to obtain regulatory approval as discussed in &ldquo;&mdash;Clinical Development and Regulatory Pathway&rdquo; and
&ldquo;&mdash;Government Regulation&rdquo; below.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our Market Opportunity</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Epilepsy Market</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We expect to initially target the diagnosis
and treatment of epilepsy. Epilepsy can be caused by a variety of conditions that affect a person&rsquo;s brain, some of which
are: stroke, brain tumor, traumatic brain injury and central nervous system infections. According to the Centers for Disease Control
and Prevention (the &ldquo;CDC&rdquo;) and Citizens United for Research in Epilepsy (&ldquo;CURE&rdquo;), there are approximately
3,000,000 patients annually suffering with epilepsy in the United States, with an additional 200,000 diagnosed every year. They
also estimate that epilepsy costs the United States $15.5 billion per year. We believe the European market is similar. Approximately
720,000 of these patients are not receptive to pharmaceutical treatment and therefore are appropriate for surgical treatment of
this disorder. In addition to poor quality of life, epilepsy also is associated with fairly high mortality rates, especially in
children. CURE reported that Sudden Unexpected Death in Epilepsy accounts for 34% of all deaths in children. Such deaths have increased
by close to 100% from 2005 to 2015 according to the CDC. Despite the large market opportunity, it is estimated that there are only
16,000 craniotomies performed for epilepsy cases each year in the United States with 18,000 performed in Europe.1 These numbers
represent an underpenetrated market due to the invasiveness of a full craniotomy required just to perform the diagnostic procedure.
After the diagnostic procedure, a second therapeutic procedure is required and at times even a third surgery if the seizures persist.
We believe patients are unwilling to proceed due to the long diagnostic times (one-four weeks in the hospital with a craniotomy),
infection rates and 50% rate of success in the diagnosis and treatment of the disorder. As detailed above, after the diagnosis
is completed, if successful, the patient must undergo an additional procedure to have the affected area of brain tissue removed.
The average cost for the diagnostic technology per procedure is $10,000, with ablation devices costing $15,000 and brain stimulation
devices costing $25,000 to $30,000. We believe our technology, once developed, will offer an all in one solution with diagnostic
and therapeutic capabilities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;American
Association of Neurological Surgeons National Neurosurgical Procedural Statistics 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We believe that many leading neurologists
believe that the limits of today&rsquo;s current technologies are the reason the exact affected area of the brain causing epileptic
seizures is not well-determined. We expect our technology, which has been developed to date by physicians at WARF and Mayo Clinic,
will provide a number of advantages over the current commercially available technologies, including the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">Our proprietary thin film technology under development has a smaller footprint with many more electrodes.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">We expect that our technology will eventually be able to be implanted using a minimally invasive
procedure utilizing a dime sized burr hole rather than a full craniotomy which is typically required to implant the currently available
technology.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">Our technology may provide more accurate detection of irregular brain activity over currently available
technology. In limited clinical testing, doctors at Mayo Clinic have documented pre-seizure activity (micro-seizures) during their
clinical research with their patients using our cEEG technology.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We expect our technology can ablate through
the electrodes as well as perform brain stimulation, allowing for diagnosis and treatment through the same product and in the same
procedure.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Parkinson&rsquo;s Disease</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Parkinson&rsquo;s Disease Foundation
estimates that as many as 1,000,000 patients in the United States live with Parkinson&rsquo;s disease with an additional 60,000
patients diagnosed per year. Over 10,000,000 patients worldwide are living with Parkinson&rsquo;s disease. There have not been
any drugs introduced that have been effective at treating Parkinson&rsquo;s disease. The average onset is over 60 years old but
some people have been diagnosed as young as 40 years old. Parkinson&rsquo;s is a disorder of the central nervous system caused
by loss of brain cells throughout various regions of the brain. It is attributed to the loss of dopamine production in the brain,
a messenger in the brain that allows for movement and coordination. There are no objective tests to diagnose Parkinson&rsquo;s
disease, and misdiagnosis rates are still very high. Doctors look to find two or more signs to make a diagnosis, including balance
problems, rigidity and tremors that occur during rest. In 2011, the FDA approved the first imaging device called a DaTscan that
can capture images of the dopamine system in the brain. By itself, these scans cannot diagnose Parkinson&rsquo;s but can help confirm
a doctor&rsquo;s diagnosis. Parkinson&rsquo;s disease is typically not fatal; however, complications caused by the symptoms of
Parkinson&rsquo;s, such as difficulty swallowing causing food to travel to the lungs resulting in pulmonary issues or falls related
to loss of balance, can be fatal.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Today&rsquo;s primary treatment for Parkinson&rsquo;s
disease involves medications that have not proven to resolve symptoms but rather ease symptoms. Years ago, surgical procedures
such as thalamotomy and pallidotomy targeted certain parts of the brain and involved destroying the tissue. More recently, these
procedures have been replaced with DBS. A doctor evaluates the patient by reviewing the patient&rsquo;s symptoms and medications
taken and administering detailed memory, thinking and imaging tests to determine if they are appropriate for DBS. According to
the Michael J. Fox Parkinson&rsquo;s Disease Research Foundation website, patients that seem to do best with DBS are those that
have had the disease for at least four years and have benefited from taking medications prescribed to control the disease. In addition,
DBS seems to help with reducing the issues with motor functions such as tremors, stiffness and slowness but not for balance issues.
Doctors are evaluating treatment to other parts of the brain in an effort to address more symptoms to treat walking or balance
issues. In addition, research is being conducted to provide stimulation when the symptoms return as opposed to all of the time.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Essential Tremors</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Essential tremors are thought to be due
to electrical irregularities in the brain that send abnormal signals to the muscles. It is a progressive condition that worsens
over time and is linked to genetic disorders that typically appear in people who are over 40. Essential tremors usually occur alone
and without any other neurological symptoms or signs. The tremors usually occur when the hands are raised and primarily affect
the hands. Muscles in the trunk, face and neck may also experience symptoms. Sometimes misdiagnosed as Parkinson&rsquo;s disease,
essential tremors are an involuntary rhythmic shaking of the hands that is not present at rest. It is apparent during activities
such as drinking, writing and eating. Symptoms can worsen due to stress, anxiety, smoking, caffeine, fatigue, etc. Genetics Home
Reference estimates that as many as 10,000,000 people in the United States are affected by the disease. Treatments for the disease
include medical therapy, weighting the limbs and DBS. Patients need to eliminate any medications they are taking that cause tremors
as this can exacerbate the symptoms. For some patients, using wrist weights may ease symptoms allowing the patient to function.
Other patients may also use relaxation techniques as stress can increase symptoms. Medical therapy is also used to treat patients&rsquo;
symptoms. Primidone is typically the first drug prescribed as it has had success in some situations for epilepsy. Botox is also
used at times to control head tremors. When these fail, surgery is the next alternative. A surgical procedure used years ago created
lesions in the ventral intermediate thalamus and was highly successful with treating essential tremors but is no longer commonly
used due to increased risk of developing speech problems. The latest therapy is DBS, which, unlike other therapies, is reversible
and programmable, helping to adjust the settings to maximize patient benefit. Similar to Parkinson&rsquo;s disease, the ability
to detect this irregular brain activity before it causes a tremor is highly desirable.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Dystonia</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Dystonia is a neurological condition recognized
as a motion disorder that involves over activity of a variety of different muscles simultaneously that work against each other.
It presents itself in a variety of symptoms but typically involves repetitive, patterned and often twisting involuntary muscle
contractions resembling tremors. According to the Dystonia Medical Research Foundation, over 300,000 people are affected in the
United States and Canada alone. Dystonia is the third most common problem seen in movement disorder clinics. Because it has many
different manifestations, it is often misdiagnosed. In addition, similar to Parkinson&rsquo;s disease, there are no specific tests
that can positively diagnose dystonia. A doctor typically will evaluate patient and family history, potentially do genetic testing,
EEG testing, blood and urine tests. There are also many treatment options for patients but depend on the type of dystonia. Botox
and certain medications may be helpful or DBS may be used.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Artificial Intelligence</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The brain consists of approximately 100
billion nerve cells, which are small wires that pass electrical signals to control all of its functions. There have been a number
of successful clinical trials in which small metal wires, known as electrodes, are implanted in the brain to correct nerve damage
using wireless communication between implanted wires to simulate functional nerve cells. In addition to correcting damaged nerve
cells, certain scientists have theorized that if millions of wires could be implanted in the brain, these electrodes could present
an opportunity to use artificial intelligence to create infrared sight, increase hearing or perfect memory recall. However, there
currently is no commercially available manufacturing platform capable of making thousands of wires that can be placed within or
on the brain and work reliably for the lifetime of a subject, and are soft enough to match the tissue of the brain, that avoid
damage to the brain.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Limitations of Currently Available Therapies</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">There are a limited number of currently
available products for diagnosis and treatment for people with neurological disorders such as epilepsy. Although the currently
available systems provide diagnosis and treatment for patients, they have certain inherent limitations and shortcomings that we
believe limit their use and validate the need for improved technology in the market. These limitations include:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify"><B>Lengthy diagnostic times:</B> Patients spend one to four weeks in the hospital waiting to have
seizures that will allow doctors to determine where the seizures are occurring.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify"><B>Lower Accuracy:</B> Historically, clinical electrode manufacturers primarily provided electrodes
that sample brain tissue at approximately centimeter spacial scales. Advances in digital EEG acquisition have made recordings at
sub-millimeter spatial scales possible, but high-spatial resolution EEG has been slow to impact clinical practice. Existing, higher
spatial scales increase the potential for missing data that may be critical in the removal of brain tissue causing the irregular
activity.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify"><B>Need to perform a full craniotomy (invasiveness):</B> Currently available cortical electrode
technology is placed through a craniotomy, which requires removing the top part of the cranium and is a very painful and invasive
procedure. Procedural times for a craniotomy range from a minimum of four to eight hours. A variety of complications can occur
when a full craniotomy is performed, including but not limited to: stroke, bleeding, infection, seizures, swelling of the brain
(which may require a second craniotomy), nerve damage, which may cause muscle paralysis or weakness, cerebrospinal fluid (CSF)
leak, which may require repair, loss of mental functions and permanent brain damage with associated disabilities. The invasiveness,
procedural times and possible surgical complications have limited the growth of surgical treatment of epilepsy.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify"><B>Multiple technologies required for diagnosis and treatment:</B> Currently, a patient undergoes
a craniotomy for implantation of diagnostic film technologies. The patient then waits in the hospital for one to four weeks waiting
to have seizures that will allow doctors to pinpoint where the seizures are occurring in the brain. After this is complete, a patient
has to undergo another lengthy procedure to have the brain tissue removed or undergo permanent implantation of depth electrodes
for chronic stimulation. There is a need for an all in one technology that can potentially allow for diagnosis and treatment concurrently
and potentially offer real time treatment without the need for surgery.</TD></TR></TABLE>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our Solution</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As a result of the inherent limitations
and inconvenience of existing systems, we believe that there is a significant unmet need among people with neurological disorders
for cortical strip, grid and depth electrodes that provide diagnostic capabilities through cEEG and sEEG recording in addition
to therapeutic modalities, such as brain stimulation and ablation, offered as an all in one product. In comparison to currently
available technologies, we are currently developing our strip, grid and depth electrodes with the goal of providing the following
expected advantages:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify"><B>Reduced time for diagnosis:</B> If we are successful in identifying brain activity more quickly,
in offering a minimally invasive procedure and developing an all in one solution, we expect our technology will reduce overall
procedural times. While our pre-clinical and clinical experience to date is very limited, our cortical grid technology under development
has, in some cases, demonstrated the ability to provide hi fidelity recordings that have allowed physicians to identify the affected
brain tissue causing seizures in hours versus weeks. This represents the potential for meaningful cost savings for hospitals and
patients and improved quality of life for patients.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify"><B>Improved accuracy of diagnostic technologies:</B> Because we believe our thin film technology
will be capable of recording at higher fidelity than current technologies used in EEG recording, we believe our technology may
be able to more precisely determine the brain tissue causing seizures. Additionally, in the limited clinical tests performed by
Mayo Clinic with five patients to date, our technology under development has identified what clinicians refer to as pre-seizure
activity (made possible by the ability to detect brain activity using sub-millimeter spatial scales). We believe our technology
under development may be able to improve outcomes compared to using other therapeutic technologies regardless of whether we are
able to offer an all in one diagnostic and therapeutic solution.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify"><B>Implantation via minimally invasive procedure with fewer post-procedure complications:</B> We
are currently developing an approach to deliver the cortical electrodes, including minimizing the invasiveness of the procedure.
We expect that patients who have qualified for this therapy will be more accepting of a minimally-invasive procedure. Such a procedure
would potentially reduce the patient&rsquo;s pain, bleeding and other adverse events associated with a full craniotomy. Our technology
is expected to also have fewer wires, also referred to as tails, exiting the patient&rsquo;s head, which can also reduce the potential
for infections. Furthermore, the material we currently use in our cortical electrodes has shown in pre-clinical evaluations to
cause less inflammation than current electrode substrates as it appears more compatible with brain tissue. As discussed under &ldquo;Our
Strategy&rdquo; below, our technology under development, if approved, will be implanted via a full craniotomy until such time,
if ever, as we are able to develop our minimally invasive procedure.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify"><B>All-in-one diagnostic and therapeutic technology solution:</B> Due to the expected high fidelity
recording capabilities of our technology under development, we have received feedback from physicians that they will attempt to
perform the diagnosis and treatment in a single procedure, thereby eliminating the need for a second surgical procedure, reducing
the likelihood of patient infection and minimizing the diagnostic, procedural and hospital costs. As discussed under &ldquo;Our
Strategy&rdquo; below, our initial product offering will offer diagnostic-only capabilities while we advance the development of
our all in one approach.</TD></TR></TABLE>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our Strategy</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our goal is to be the global leader in
cEEG and sEEG recording, deep brain stimulation and ablation, owning the procedure from diagnosis through treatment. The key elements
of our strategy include:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify"><B>Introduce cortical strip
                                         and grid electrodes for the diagnosis of epilepsy in United States<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">:
                                         </FONT></B><FONT STYLE="font: 10pt Times New Roman, Times, Serif">In January 2019, we
                                         filed a 510(k) device submission to the FDA for our cortical and strip electrodes for
                                         temporary (less than 30 day) use with recording, monitoring, and acute stimulation equipment
                                         for the recording, monitoring and stimulation of electrical signals on the surface of
                                         the brain. In June 2019, the FDA requested additional data, which the Company plans to
                                         submit by the end of July 2019. If the FDA agrees that the device is substantially equivalent
                                         to a legally marketed predicate device, it will grant clearance to commercially market
                                         the device. Our initial product offering will be placed through traditional surgical
                                         means involving a craniotomy until such time, if any, that we launch our minimally invasive
                                         procedure. We believe, due to physician feedback, that our technology under development
                                         would represent a major improvement over existing cortical electrodes for the recording
                                         of brain activity. We are initially targeting epilepsy as we believe this is a clinical
                                         area of great need and a market that is underserved with a quick path to commercialization.
                                         We believe the largest and quickest-to-market geography for our cortical strip and grid
                                         technology under development is in the United States for a number of reasons, including
                                         the following: (i) many industry sources believe there is a large underserved U.S. market,
                                         (ii) healthy procedural reimbursement for centers and physicians, (iii) robust average
                                         selling prices, (iv) physician enthusiasm for our technology under development. We expect
                                         to hire direct experienced sales representatives to market our technology, if approved,
                                         in the United States.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify"><B>Launch depth electrodes for sEEG recording:</B> Given the reluctance of patients to undergo
epilepsy surgery due to its invasiveness, a number of epilepsy centers have adopted the use of depth electrodes, which are placed
by drilling small holes into the patient&rsquo;s cranium, thereby avoiding a craniotomy. We believe our technology will offer advantages
to current depth electrode technology and will enable us to offer a therapeutic solution using this technology in the future. As
we develop our technology, we plan to release further information about the expected advantages of our technology over currently
available therapies.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify"><B>Introduce minimally invasive delivery system for cortical electrodes: </B>Cortical electrodes
generally require a craniotomy, which is a very invasive procedure that can cause patient complications. Because of this, many
patients have opted to not have epilepsy surgery, instead accepting the consequences and risks associated with epilepsy. We intend
to develop a procedure that may include a delivery system placed through a small circular incision in the skull for implantation
of the cortical grid and strip electrodes. We believe this will increase patient willingness to accept the surgery and increase
market penetration. Until we are able to develop this procedure, if at all, our initial product offering will be placed through
traditional surgical means involving a craniotomy and may be less likely to be adopted by physicians and patients due to unwillingness
of patients to undergo epilepsy surgery.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify"><B>Utilize these core technologies to develop all in one diagnostic and therapeutic solutions:
</B>Patients currently undergo one surgical procedure for diagnosis (either to have a cortical electrode placed via a craniotomy
or depth electrodes placed via holes drilled into the skull) and, hopefully after the brain recordings successfully indicate where
the affected brain tissue is located, a second procedure or surgery is then required to treat the patient. There is strong physician
interest in being able to perform both the diagnostic and therapeutic procedure concurrently. We are developing our technology
with the goal of being able to offer this benefit although there can be no assurance that we will be able to do so. We are pursuing
cortical grid, strip and depth electrode technology that can record brain activity (diagnose), ablate brain tissue and also provide
both acute and long term stimulation. The technology has demonstrated these functions in acute and short term animal models; however,
additional development is required to offer a device that has long term therapeutic application. These therapeutic technologies
are expected to require more robust regulatory approvals for the United States, ranging from a 510(k) with human clinical data
to PMAs. We will engage the FDA at the proper time to determine the most efficient clinical
path.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify"><B>Gain approval for other brain or motor related disorders such as Parkinson&rsquo;s with the
therapeutic technologies developed for epilepsy: </B>While we are developing our technology for the diagnosis and treatment of
epilepsy, we believe that our technology has strong application and utilization for other brain or motor related disorders such
as Parkinson&rsquo;s disease, dystonia, essential tremors and facial pain as these diseases are currently treated with DBS if medications
are not effective. As previously mentioned, we are planning to offer electrodes that can be implanted for long term stimulation
applications, but such use will require that we pursue additional approvals from the FDA and any international regulatory bodies
where we seek to commercialize our technology.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify"><B>Explore partnerships with other companies that leverage our core technology: </B>Given that
our technology enables, complements and/or competes with a number of companies that are in the market or attempting to enter the
market with diagnostic or therapeutic technologies to treat brain related disorders, we believe there may be opportunities to establish
mutually beneficial relationships. In addition, our technology may have application in cardiovascular, orthopedic and pain related
indications that could benefit from a hi-fidelity thin film electrode product that can provide stimulation and/or ablation therapies.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify"><B>Investigate the potential applications associated with Artificial Intelligence:</B> We have
been informed by some of our corporate advisors that the ability to offer scale-able electrode technology that can provide thousands
of electrodes in the brain may be helpful in treating medical conditions that may benefit from using artificial intelligence. The
Company has formed an advisory board that will provide guidance to the Company as we continue to explore the opportunities in this
exciting field.</TD></TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our Technology</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Epilepsy Mapping and Monitoring</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Epileptic seizures occur when the neurons
in the brain miscommunicate. This miscommunication typically results in involuntary muscle seizure activities and/or periods of
perceptual disconnect where the individual appears frozen. Modern medical science has advanced the treatment of epileptic seizures
by mapping the electrical communication activity of neurons and understanding their special orientation in the brain. This mapping
is accomplished by access to the cranium (through a craniotomy) and placing conductive contacts on the brain directly. The craniotomy
procedure is very invasive, traumatic to the surrounding tissue, results in high patient down time, and increases the risk of infection.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our Technology</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We seek to leverage scale-able technology
and produce ultra-thin, or paper-thin electrodes that allow for high-resolution and high-definition recordings, which would improve
mapping resolution and signal acquisition. If the Company is able to leverage scale-able technology, it would mean that our technology
would be able to incorporate smaller electrodes and thereby increase the number of electrodes on a given surface area. We expect
that this would increase the imaging resolution so that brain activity is displayed in greater definition. We also believe that
the electrodes&rsquo; unique thinness and flexibility will provide a less invasive approach to electrode placement. The electrodes
would be able to be placed through a small quarter size hole instead of by an invasive full craniotomy procedure.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><IMG SRC="image_001.jpg" ALT="">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The images under &ldquo;Cortical Electrode,&rdquo;
from bottom to top, are images of our cortical electrode strip, our grid electrode, and the placement of the grid electrode on
the brain, respectively. The images under &ldquo;High Density Interconnect&rdquo; are both images of our product that connects
our electrodes to the head box, which is a piece of hardware that connects to electrodes to acquire, amplify, display, store and
archive electrophysiological signals, and is integrated as part of our manufactured electrode product. The images under &ldquo;Head
Box&rdquo; and &ldquo;Signal Monitoring and Mapping&rdquo; are images of the device which processes information received through
the high density interconnect, and a sample output of data acquisition, respectively, neither of which is one of a Company product.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our technology consists of three primary
types of cortical electrodes: grid electrodes, strip electrodes and dual-sided electrodes. These electrodes have a patented design
that utilizes proprietary processing and materials technology, which we believe will allow the electrodes to have improved features
over the current industry standard recording electrodes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">What sets our technology apart from others
is the integration of state of the art design leveraging the latest in flexible printed circuit technology. We believe our patented
designs will provide the surgeon a higher tactile perspective on electrode placement allowing for ultra-precise neuron recording.
We expect the benefits of our electrode designs to include the ability to detect better defined margins between healthy tissue
and resect-able tissue, less immune-response from the brain and surrounding tissue, better signal acquisition due to superior conformability
of the electrode over the brain, improved flexibility that physicians have requested, which we expect will enable a minimally invasive
approach and the electrodes unique thinness that is unmatched by current products being used.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Future of Neurology Mapping
with NeuroOne</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We seek to develop superior &ldquo;scale-able&rdquo;
technology for future product system iterations in higher density contact placement. This will open the doors to other brain related
disease recording procedures by providing hi-fidelity, more accurate diagnostic capabilities and also the ability to provide an
all in one therapy capable of diagnosis, ablation and/or stimulation. Beyond the brain, we believe our technology under development
has applications in other neurological signal recording disease states related to voluntary or involuntary motor neuron abnormalities,
understanding sensory neuro behavior (pain), limb prosthetics and degenerative muscle disease.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Clinical Development and Regulatory Pathway</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Clinical Experience, Future
Development and Clinical Trial Plans</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our technology under development has not
been approved for commercialization by any U.S. or foreign regulatory body. To date, the Company has performed a number of bench
top (which includes feasibility testing) and pre-clinical tests (which include animal testing of device placement, ergonomics,
performance, ease of use, and other tests required by FDA regulations). As described in &ldquo;&mdash;Government Regulation&rdquo;
below, the Company will be required to perform additional testing of its technology in connection with obtaining regulatory approvals.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In parallel with the development and testing
needed to launch our cortical strip and grid electrodes, we intend to expand our product offerings to include less invasive means
and all in one solutions, thus providing both patients and physicians better options to treat epilepsy and other brain related
disorders. While we expect to make modifications to this initial system, we believe that most of our future product development
initiatives will involve unique and transformational next generation technology that should drive further appeal of our products
with both physicians and patients.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are utilizing a number of resources
to develop these technologies. We license three critical patents from WARF that are the foundation of the technology we are developing
and intend to commercialize and benefit from the thin film technology know-how of Mayo Clinic doctors through our license and development
agreement. WARF, Mayo Clinic and Cleveland Clinic have been responsible for all pre-clinical studies of our technology under development
to date. See &ldquo;&mdash;WARF License&rdquo; and &ldquo;&mdash;Mayo Foundation for Medical Education and Research License and
Development Agreement&rdquo; below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Below we have summarized, for each component
of our technology under development, the current stage of development, the pre-clinical testing done to date by WARF, The Cleveland
Clinic or Mayo Clinic on such component, if any, our plans for further testing or clinical trials and our expectations regarding
the requirements for regulatory approval and timing of regulatory submissions:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in; color: red"><B>&nbsp;</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 20%; border-bottom: black 1.5pt solid">
        <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>Technology</B></P></TD>
    <TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 39%; border-bottom: black 1.5pt solid; font-size: 10pt; text-align: center"><B>Stage of Development and Pre-Clinical Testing to Date</B></TD>
    <TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 39%; border-bottom: black 1.5pt solid; font-size: 10pt; text-align: center"><B>Additional Expected Steps for Regulatory Approval</B></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt"><B>Cortical strip and grid electrodes for the diagnosis of epilepsy</B></TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 6.45pt 0pt 4.9pt; text-align: justify">Company has finalized the
        design for the product and there are no further expected changes to the device (&ldquo;design freeze&rdquo;).</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 6.45pt 0pt 4.9pt; text-align: justify">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 6.45pt 0pt 4.9pt; text-align: justify">Pre-clinical testing and
        clinical testing on the final design has been conducted by Mayo Clinic and WARF (as described in &ldquo;Mayo Clinic Studies&rdquo;
        below).</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 6.45pt 0pt 4.9pt; text-align: justify">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 6.45pt 0pt 4.9pt; text-align: justify">510(k) filing submitted
        to the FDA in January 2019. In June 2019, the FDA requested additional data, which the Company plans to submit by the
        end of July 2019.</P></TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 4.5pt 0pt 2.35pt; text-align: justify">There may be continued clinical
        evaluation of the technology under a pre-existing IRB research protocol approved by Mayo&rsquo;s institutional review board, which
        will provide us with additional clinical evidence that may assist with product acceptance and launch.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 4.5pt 0pt 2.35pt; text-align: justify">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 4.5pt 0pt 2.35pt; text-align: justify">Commercial launch
        is planned to begin in the United States <FONT STYLE="font-size: 10pt">by</FONT> <FONT STYLE="font-size: 10pt">the end</FONT>
        <FONT STYLE="font-size: 10pt">of 2019 pending FDA 510(k) clearance and sufficient capital to hire sales representatives.</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 4.5pt 0pt 2.35pt; text-align: justify">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 4.5pt 0pt 2.35pt; text-align: justify">As described in &ldquo;&mdash;Government
        Regulation&rdquo; below, FDA 510(k) clearance often takes longer than 90 days, and clearance is never assured. The FDA may require
        further information, including clinical data which could delay the planned launch.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 4.5pt 0pt 2.35pt; text-align: justify">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt"><B>Depth electrodes for recording (diagnostic) purposes</B></TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 6.45pt 0pt 4.9pt; text-align: justify">Design freeze for one design;
        currently there are additional alternative designs under evaluation.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 6.45pt 0pt 4.9pt; text-align: justify">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 6.45pt 0pt 4.9pt; text-align: justify">Bench top testing and pre-clinical
        tests (animal testing) were conducted in the third and fourth calendar quarters of 2018.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 6.45pt 0pt 4.9pt; text-align: justify">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 6.45pt 0pt 4.9pt; text-align: justify">No clinical testing has
        been conducted to date.</P></TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 4.5pt 0pt 2.35pt; text-align: justify">The Company is
        currently evaluating two additional alternative designs for this product. Design freeze was completed in the fourth calendar
        quarter of 2018 for one of the three designs in consideration. Additional pre-clinical tests (including safety and performance
        tests) expected to occur <FONT STYLE="font-size: 10pt">by</FONT> <FONT STYLE="font-size: 10pt">the end</FONT> <FONT STYLE="font-size: 10pt">of
        2019. The tests will need to demonstrate: biocompatibility (including extractables/leachables (whether the product results
        in any leaching of metals), and ease of implantation)), which we estimate will require $100,000;</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 4.5pt 0pt 2.35pt; text-align: justify">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 4.5pt 0pt 2.35pt; text-align: justify">Sterilization validation
        and adoption, which we estimate will require $25,000 to complete; and</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 4.5pt 0pt 2.35pt; text-align: justify">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 4.5pt 0pt 2.35pt; text-align: justify">Electrical safety, which
        we estimate will require $60,000 to complete.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 4.5pt 0pt 2.35pt; text-align: justify">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 4.5pt 0pt 2.35pt; text-align: justify">Pending the outcome
        of these tests, we expect to file for FDA 510(k) marketing clearance for one design in the second calendar quarter of
        <FONT STYLE="font-size: 10pt">2020</FONT><FONT STYLE="font-size: 10pt">.</FONT></P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt"><B>Minimally invasive cortical electrode delivery system</B></TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 6.45pt 0pt 4.9pt; text-align: justify">No design freeze.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 6.45pt 0pt 4.9pt; text-align: justify">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 6.45pt 0pt 4.9pt; text-align: justify">An initial pre-clinical
        feasibility study was conducted by the Mayo Clinic utilizing their device with our cortical film technology in December 2018. Additional
        testing is expected in the second half of 2019.</P></TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 4.5pt 0pt 2.35pt; text-align: justify">Pre-clinical testing
        <FONT STYLE="font-size: 10pt">was conducted in</FONT> <FONT STYLE="font-size: 10pt">the first calendar quarter of 2019,
        and regulatory requirements will continue to be evaluated as we develop the design of this product. The Company is refining
        the design and expects to conduct additional cadaver and animal studies in the third quarter of 2019.</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 4.5pt 0pt 2.35pt; text-align: justify">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 4.5pt 0pt 2.35pt; text-align: justify">The Mayo Clinic is conducting
        testing of its own device. In the event the Mayo Clinic completes development of its own device prior to us, we may forego completing
        development of our device and seek to enter into an arrangement with Mayo Clinic relating to its device (such as, for example,
        an acquisition/licensing, or distribution agreement).</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 4.5pt 0pt 2.35pt; text-align: justify">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 4.5pt 0pt 2.35pt; text-align: justify">Otherwise, to complete development
        of our own device, testing will need to demonstrate design verification, which we estimate will require $50,000.</P></TD></TR>
</TABLE>

<P STYLE="margin: 0"></P>

<P STYLE="margin: 0"></P>

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    <TD STYLE="border-bottom: black 1.5pt solid; width: 20%">
        <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>Technology</B></P></TD>
    <TD STYLE="font-size: 10pt; width: 1%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; font-size: 10pt; text-align: center; width: 39%"><B>Stage of Development and Pre-Clinical Testing to Date</B></TD>
    <TD STYLE="font-size: 10pt; width: 1%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; font-size: 10pt; text-align: center; width: 39%"><B>Additional Expected Steps for Regulatory Approval</B></TD></TR>

<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt; width: 20%"><B>Depth electrode diagnostic and ablation devices</B></TD>
    <TD STYLE="font-size: 10pt; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 39%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 6.45pt 0pt 4.9pt; text-align: justify">No design freeze.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 6.45pt 0pt 4.9pt; text-align: justify">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 6.45pt 0pt 4.9pt; text-align: justify">Pre-clinical testing, including
        benchtop and animal testing, has been conducted on early designs.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 6.45pt 0pt 4.9pt; text-align: justify">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 6.45pt 0pt 4.9pt; text-align: justify">No clinical testing has
        been conducted to date.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 6.45pt 0pt 4.9pt; text-align: justify">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 6.45pt 0pt 4.9pt; text-align: justify">The Company has partnered
        with the Cleveland Clinic to co-develop the product.</P></TD>
    <TD STYLE="font-size: 10pt; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 39%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 4.5pt 0pt 2.35pt; text-align: justify">Additional pre-clinical
        testing at the Cleveland Clinic was completed in the <FONT STYLE="font-size: 10pt">second</FONT> <FONT STYLE="font-size: 10pt">calendar
        quarter of 2019. </FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 4.5pt 0pt 2.35pt; text-align: justify">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 4.5pt 0pt 2.35pt; text-align: justify">Once the design is finalized
        we will be required to conduct additional pre-clinical testing, which may include additional benchtop or animal testing for safety
        and performance. Additionally, the FDA may require that we conduct human clinical studies.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 4.5pt 0pt 2.35pt; text-align: justify">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 4.5pt 0pt 2.35pt; text-align: justify">No FDA feedback has been
        sought or received by us to date on the clinical process that may be required for an ablation indication, but we expect regulatory
        clearance/approval will require a more robust clinical process, which could range from 510(k) clearance with human clinical data
        to a PMA, depending on proposed indications for use. We expect that we will need to demonstrate design verification, which we estimate
        will require $75,000 to complete, biocompatibility, which we estimate will require $100,000 to complete, and sterilization validation
        and adoption, which we estimate will require $25,000 to complete. We may also need to demonstrate electrical safety, which we estimate
        will require $60,000.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 4.5pt 0pt 2.35pt; text-align: justify">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 4.5pt 0pt 2.35pt; text-align: justify">Future pre-clinical and
        clinical testing requirements for regulatory clearance will continue to be evaluated as we develop the design of this product</P></TD></TR>
</TABLE>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

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    <TD STYLE="border-bottom: black 1.5pt solid; width: 20%">
        <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>Technology</B></P></TD>
    <TD STYLE="font-size: 10pt; width: 1%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; font-size: 10pt; text-align: center; width: 39%"><B>Stage of Development and Pre-Clinical Testing to Date</B></TD>
    <TD STYLE="font-size: 10pt; width: 1%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; font-size: 10pt; text-align: center; width: 39%"><B>Additional Expected Steps for Regulatory Approval</B></TD></TR>

<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt; width: 20%"><B>Depth electrode chronic stimulation devices</B></TD>
    <TD STYLE="font-size: 10pt; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 39%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 6.45pt 0pt 4.9pt; text-align: justify">No design freeze.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 6.45pt 0pt 4.9pt; text-align: justify">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 6.45pt 0pt 4.9pt; text-align: justify">No pre-clinical testing,
        or clinical testing has been conducted to date</P></TD>
    <TD STYLE="font-size: 10pt; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 39%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 4.5pt 0pt 2.35pt; text-align: justify">This device is in early
        development, and we do not expect to begin conducting bench top nor pre-clinical testing until the fourth calendar quarter of 2019.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 4.5pt 0pt 2.35pt; text-align: justify">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 4.5pt 0pt 2.35pt; text-align: justify">Following a design freeze,
        we will be required to conduct additional pre-clinical testing, which may include additional benchtop or animal testing for safety
        and performance. Additionally, FDA-approved human clinical studies will most likely be required.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 4.5pt 0pt 2.35pt; text-align: justify">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 4.5pt 0pt 2.35pt; text-align: justify">No FDA feedback has been
        sought or received by us to date on the clinical process that will be required for chronic stimulation, but we expect regulatory
        clearance/approval for chronic stimulation may require a more robust clinical process, which could range from 510(k) clearance
        with human clinical data to a PMA. Because we have not yet met with the FDA, we cannot yet determine what clinical data and testing
        we will need to complete or what the testing will need to demonstrate. However, we believe, based on the experience of competitors
        for similar technology, that we will need to conduct clinical trials, which we estimate will require approximately $1,000,000,
        as well as demonstrate biocompatibility, which we estimate will require $100,000 to complete, and demonstrate sterilization validation
        and adoption, which we estimate will require $25,000 to complete.</P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Mayo Clinic Studies</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our cortical technology for the diagnosis
of epilepsy has been tested by doctors at Mayo Clinic in multiple pre-clinical tests conducted from 2012 to 2017. In pre-clinical
models, doctors examined the biological impact on mammalian brains. Polyimide substrate electrodes (NeuroOne technology) were implanted
on the pig&rsquo;s brain for one week alongside standard competitive electrodes. The tissue underneath the two types of electrodes
was removed, fixed, stained, and examined for immunological responses. The results of a histological (evaluation of brain tissue
under a microscope) analysis showed reduced immunological reaction to prolonged polyimide substrate implants (NeuroOne technology)
compared to standard silicone substrate clinical electrodes. Electrophysiological recordings showed data obtained from polyimide
electrodes which showed the feasibility of high fidelity multi-scale electrophysiology while also displaying easier deployment
of polyimide electrodes (NeuroOne technology) through minimally invasive burr holes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Additionally, doctors implanted our polyimide
thin film electrodes on five human patients who were undergoing surgery to remove brain tissue for drug resistant epilepsy. Electrophysiological
recordings from the polyimide thin film technology displayed in each of these patients demonstrated micro-seizure activity due
to the high fidelity multi-scale electrophysiology.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Conclusions reached by the physicians at
Mayo Clinic were that thin, flexible polyimide electrodes (NeuroOne technology) provided recordings similar to standard clinical
electrodes with reduced immunological response. In addition, the flexibility of polyimide electrodes may reduce pain and swelling
associated with implantation of the device, and the single wire exiting the skull may reduce infection risk. The ability to record
micro-seizure and single neuron brain activity may also provide additional useful clinical data. Combined, these properties suggest
that the replacement of our current competitive silicone electrodes with polyimide substrate electrodes (NeuroOne technology) for
recording brain activity for epilepsy could provide enhanced clinical value with reduced cost, reduced infection risk, and improved
patient comfort.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition, our thin film cortical implant
technology has been tested by researchers at the University of Wisconsin-Madison in multiple pre-clinical animal studies conducted
from 2006 to 2016, which included mice, rats and primates. In these studies, our technology was able to record brain activity from
different areas of the brain, was implanted in a minimally invasive fashion, electrically provided brain stimulation and tissue
ablation, and had increased flexibility compared to existing commercially available technology, which allowed the grids to conform
more easily to the brain surface (and may have reduced pain and swelling, compared to less flexible devices).</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Sales and Marketing</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Based on the size and maturity of the U.S.
market, our initial commercial focus, if our technology is approved for commercialization for the diagnosis of epilepsy in the
United States, will be to invest in developing a direct sales force and infrastructure to support the launch of the product in
the United States and target what we estimate to be approximately 188 Level 4 epilepsy centers along with their respective epilepsy
teams comprised of neurologists, neurosurgeons and technicians in the United States who are clinically active. To prepare for future potential commercialization, the Company hired Scott Heuler as Vice-President of
Sales.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In parallel, we have evaluated the opportunity
to commercialize our products in select European markets and have concluded that while there is a market for our technology in
Europe, the regulatory changes in the European Union will require a lengthy and costly approval pathway. At this time, we will
utilize our resources to remain focused on the opportunity in the United States but will reexamine international opportunities
at a later time. If our technology is approved for commercialization for the diagnosis of epilepsy in the United States, we will
look to educate neurologists, neurosurgeons and primary care physicians on the advantages to existing epilepsy approaches through
a variety of targeted marketing tools and social media.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Reimbursement</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Coverage in the United States</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Reimbursement from private third-party
healthcare payors and, to a lesser extent, Medicare will be an important element of our success. Although CMS and third-party payors
have adopted coverage policies for our targeted indications, there is no guarantee this will continue at the same levels or at
all in the future. Current Procedural Terminology, or CPT, is a medical code set that is used to report medical, surgical and diagnostic
procedures and services to entities such as physicians, health insurance companies and accreditation organizations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Applicable diagnostic CPT codes for mapping
(diagnosing) the brain for diagnostic procedures are as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">61531 Subdural implantation of strip electrodes through one or more burr or trephine (saw) hole(s)
for long-term seizure monitoring;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">61533 Craniotomy with elevation of bone flap: for subdural implantation of an electrode array,
for long term seizure monitoring;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">61535 Craniotomy with elevation of bone flap; for removal of epidural or subdural electrode array,
without excision of cerebral tissue (separate procedure); and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">61760 Stereotactic implantation of depth electrodes into the cerebrum for long term seizure monitoring.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Regarding ICD-10 codes, the International
Classification of Diseases, Tenth Edition (ICD-10) is a clinical cataloging system that went into effect for the U.S. healthcare
industry on October 1, 2015, after a series of lengthy delays. Accounting for modern advances in clinical treatment and medical
devices, ICD-10 codes offer many more classification options compared to those found in its predecessor, ICD-9. Within the healthcare
industry, providers, coders, IT professionals, insurance carriers, government agencies and others use ICD codes to properly note
diseases on health records, to track epidemiological trends and to assist in medical reimbursement decisions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">ICD-10 codes for epilepsy are as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">G40.0 Localization-related (focal) (partial) idiopathic epilepsy and epileptic syndromes with seizures
of localized onset;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">G40.1 Localization-related (focal) (partial) symptomatic epilepsy and epileptic syndromes with
simple partial seizures;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">G40.2 Localization-related (focal) (partial) symptomatic epilepsy and epileptic syndromes with
complex partial seizures;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">G40.3 Generalized idiopathic epilepsy and epileptic syndromes;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">G40.A Absence epileptic syndrome;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">G40.4 Other generalized epilepsy and epileptic syndromes;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">G40.50 Epileptic seizures related to external causes, not intractable;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">G40.80 Other epilepsy; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">G40.82 Epileptic spasms.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We believe that many of the indications
we are pursuing with our technologies are currently reimbursed on a widespread basis by Medicare, Medicaid and private insurance
companies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Medicare, Medicaid, health maintenance
organizations and other third-party payors are increasingly attempting to contain healthcare costs by limiting both coverage and
the level of reimbursement of new medical devices, and, as a result, their coverage policies may be restrictive, or they may not
cover or provide adequate payment for our products. In order to obtain reimbursement arrangements, we may have to agree to a net
sales price lower than the net sales price we might charge in other sales channels. Our revenue may be limited by the continuing
efforts of government and third-party payors to contain or reduce the costs of healthcare through various increasingly sophisticated
means, such as requiring prospective reimbursement and second opinions, purchasing in groups, or redesigning benefits. Our future
dependence on the commercial success of our technologies makes us particularly susceptible to any cost containment or reduction
efforts. Accordingly, unless government and other third-party payors provide adequate coverage and reimbursement for our products
and the related insertion and removal procedures, our financial performance may be limited.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Coverage Outside the United
States</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If we seek to commercialize in countries
outside the United States, coverage for epilepsy surgical procedures are available from certain governmental authorities, private
health insurance plans, and labor unions. Coverage systems in international markets vary significantly by country and, within some
countries, by region. If we seek to commercialize our technology, if approved, outside the United States, coverage approvals must
be obtained on a country-by-country, region-by-region or, in some instances, a case-by case basis. Based on our ongoing evaluation,
certain countries reimburse more highly than others.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We evaluated international opportunities
to market our technology under development. While we believe there is a market for our technology in Europe and other foreign jurisdictions,
we have determined not to seek to commercialize in any foreign jurisdictions due to time intensive approval processes, the lack
of certainty regarding approval, significant cost and the stringency of the regulatory approval process in Europe in particular,
among other factors.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Manufacturing, Supply and Quality Assurance</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We currently outsource the supply and manufacture
of all components of our prototypes of our technology under development. We plan to continue with an outsourced manufacturing arrangement
for the foreseeable future. Our third-party manufacturers are recognized in their field for their competency to manufacture the
respective portions of our system and have quality systems established that meet FDA requirements. We believe the manufacturers
we currently utilize have sufficient capacity to meet our launch requirements if our technology under development is approved in
the future and are able to scale up their capacity relatively quickly with minimal capital investment. We believe that, as we increase
our demand in the future, our per-unit costs will decrease materially. We have also identified capable second source manufacturers
and suppliers in the event of disruption from any of our primary vendors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our suppliers meet the latest ISO 13485
certification, which includes design control requirements. As a medical device developer, the facilities of our sterilization and
other critical suppliers are subject to periodic inspection by the FDA and corresponding state and foreign agencies. We believe
that our quality systems and those of our suppliers are robust and achieve high product quality. We plan to audit our suppliers
periodically to ensure conformity with the specifications, policies and procedures for our devices.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Research and Development</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our research and development team, which
includes our Chief Technology Officer and Chief Development Officer who are full-time employees, and two third party consultants
who perform research and development activities for us, is focused on the development of thin film cortical grid and strip electrodes
and depth electrodes for recording, ablation and chronic stimulation for brain related disorders as well as stimulation for spinal
cord stimulation for back related pain.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our research and development expenses were
$0.7 million for the year ended December 31, 2017, $0.7 million for the nine months ended September 30, 2018 and $0.4 million for
the three months ended March 31, 2019.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Competition</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In the market for Epilepsy diagnosis, our
cortical strip, sheet and depth electrode technology will likely compete with Integra Life Science&rsquo;s Integra Epilepsy Strip,
Grid and depth electrodes, which provide a similar function to our diagnostic technologies under development. These products are
well established in the marketplace and Integra has greater resources than us, which could allow them to innovate faster. Ad-Tech
Medical Instrument Corporation&rsquo;s Epilepsy/LTM (subdural grid, strip and depth) electrodes, which have become the market leaders
for diagnostic mapping in epilepsy, and PMT&rsquo;s Cortac Strips and grid electrodes and Depthalon depth electrodes
are used for recording brain activity similar to other competitive technologies. In addition, Dixie Medical has launched a product
line of depth electrodes and CorTec has launched a cortical electrode product line called AirRay. Today&rsquo;s success rates for
seizure free post-operative conditions remain at 50%, which has limited patients&rsquo; willingness to undergo the currently highly
invasive surgical procedure. We will also compete against other companies in early stages of development of thin film technologies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In the neuro-ablation market, we expect
to compete with Medtronic&rsquo;s Visualase guided-laser ablation technology and Monteris Medical&rsquo;s NeuroBlate technology,
which use MRI guided laser surgical ablation for use to ablate, necrotize or coagulate soft tissue through interstitial irradiation
or thermal therapy in medicine and surgery in the discipline of neurosurgery with 1064 nm lasers. Their website claims it is used
for ablation in the brain for soft tissue and tumors. We believe there are other laser-based systems in development that will compete
with these technologies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In the neurostimulation market, we expect
to compete with NeuroPace&rsquo;s RNS system approved for epilepsy, Medtronic&rsquo;s Activa system approved for Parkinson&rsquo;s
disease, Boston Scientific Vercise (indicated for Parkinson&rsquo;s, dystonia and essential tremors), Abbott/St. Jude Medical&rsquo;s
Infinity DBS system (approved for Parkinson&rsquo;s disease and essential tremors), Liva Nova/Cyberonic&rsquo;s VNS therapy intended
for patients suffering with epilepsy. We believe there are additional companies pursuing thin film electrode technology for use
in the brain although none are expected to be commercially available in 2019. Although we will face potential competition from
many different sources, we believe that our technology, knowledge, experience and scientific resources will provide us with competitive
advantages. We expect the key competitive factors affecting the success of our cortical strip and sheet electrodes under development,
if successfully developed and approved, are likely to be: hi-fidelity recording that allows for detection of pre-seizure activity,
ability to place the devices minimally invasively, deliverability of cortical grid, strip and depth electrode technology, ability
to offer grid, strip and depth electrodes in various electrode shapes and sizes, potential reduction in infections and ability
to record brain activity both on the surface using cortical grid and strip technology and deeper into the brain using depth electrodes
concurrently.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Many of the companies against which we
may compete in the future have significantly greater financial resources and expertise in research and development, manufacturing,
preclinical testing, conducting clinical trials, obtaining regulatory approvals and marketing approved products than we do. Mergers
and acquisitions in the pharmaceutical, biotechnology and diagnostic industries may result in even more resources being concentrated
among a smaller number of our competitors. Smaller or early stage companies may also prove to be significant competitors, particularly
through collaborative arrangements with large and established companies. These competitors also compete with us in recruiting and
retaining qualified scientific and management personnel and establishing clinical trial sites and subject registration for clinical
trials, as well as in acquiring technologies complementary to, or necessary for, our development.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">WARF License</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have an Exclusive Start-Up Company License
Agreement with WARF, pursuant to which WARF has granted us the WARF License, to make, use and sell, in the United States only,
products that employ certain licensed patents for a neural probe array or thin-film micro electrode array and method. In exchange
for the WARF License, we have agreed to pay WARF $55,000 (representing a license fee) upon the earliest to occur of the date we
cumulatively raise at least $3.0 million in financing, which threshold was recently met, the date of a change of control, or our
revenue reaching a specified threshold amount, and to pay $65,000 (representing reimbursement for costs incurred by WARF in maintaining
the licensed patents) upon the earliest to occur of the date that we cumulatively raise at least $5 million in financing, the date
of a change of control, or our revenue reaching a specified threshold amount, which amount was paid on February 1, 2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The initial $55,000 payment was due on
May 3, 2018 and was paid April 22, 2018. We have also agreed to pay WARF a royalty equal to a single-digit percentage of our product
sales pursuant to the WARF License, with a minimum annual royalty payment of $50,000 for 2019, $100,000 for 2020 and $150,000 for
2021 and each calendar year thereafter that the WARF License is in effect. If we or any of our sublicenses contest the validity
of any licensed patent, the royalty rate will be doubled during the pendency of such contest and, if the contested patent is found
to be valid and would be infringed by us if not for the WARF License, the royalty rate will be tripled for the remaining term of
the WARF License.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have agreed to diligently develop, manufacture,
market and sell products under the WARF License in the United States during the term of the agreement and, specifically, that we
would submit a business plan to WARF by February 1, 2018, which we submitted on January 18, 2018, and would file an application
for 510(k) marketing clearance with the FDA by February 1, 2019, which we submitted on January 28, 2019. WARF may terminate this
license in the event that we fail to meet these milestones on 30 days&rsquo; written notice, if we default on the payments of amounts
due to WARF or fail to timely submit development reports, actively pursue our development plan or breach any other covenant in
the WARF License and fail to remedy such default in 90 days or in the event of certain bankruptcy events involving us. WARF may
also terminate the WARF License (i) on 90 days&rsquo; notice if we fail to have commercial sales of one or more FDA-approved products
under the WARF License by September 30, 2019 or (ii) if, after royalties earned on sales begin to be paid, such earned royalties
cease for more than four calendar quarters. The WARF License otherwise expires by its terms on the date that no valid claims on
the patents licensed thereunder remain. We expect the latest expiration of a licensed patent to occur in 2030.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition, WARF reserves the right to
grant non-profit research institutions and government agencies non-exclusive licenses to practice and use the inventions of the
licensed patents for non-commercial research purposes, and we grant WARF a non-exclusive, sub licensable, royalty-free right and
license for non-commercial research purposes to use improvements to the licensed patents. In the event that we discontinue use
or commercialization of the licensed patents or improvements thereon, we must grant WARF an option to obtain a non-exclusive, sub-licensable
royalty-bearing license to use the improvements for commercial purposes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">See &ldquo;Risk Factors&rdquo;&mdash; We
depend on intellectual property licensed from WARF for our technology under development, and the termination of this license would
harm our business&rdquo; for additional information regarding the WARF License and our past breach thereof.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Mayo Foundation for Medical Education and Research License
and Development Agreement</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have entered into the Mayo Development
Agreement with Mayo to license worldwide (i) certain know how for the development and commercialization of products, methods and
processes related to flexible circuit thin film technology for the recording of tissue and (ii) the products developed therefrom,
and to partner with Mayo to assist the Company in the investigation, research application, development and improvement of such
technology. Mayo has agreed to assist us by providing access to certain individuals at Mayo, or the Mayo Principal Investigators,
in developing our cortical thin film flexible circuit technology, including prototype development, animal testing, protocol development
for human and animal use, abstract development and presentation and access to and license of any intellectual property that the
Mayo Principal Investigators develop relating to the procedure.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On May 25, 2017, prior to the closing of
the Acquisition, NeuroOne, Inc. issued Mayo 50,556 shares of common stock of NeuroOne, Inc. (the &ldquo;NeuroOne Shares&rdquo;),
pursuant to a subscription agreement, which shares were converted into 859,976 shares of the Company&rsquo;s Common Stock at the
closing of the Acquisition.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Whether or not any such technology, product,
method, process, device or delivery system is developed, we agreed, in consideration for Mayo&rsquo;s efforts under the Mayo Development
Agreement, to pay Mayo a cash payment of approximately $92,000 on the earlier of September 30, 2017 or the date we raise a minimum
amount of financing. We did not make this payment by September 30, 2017 and breached this provision of the Mayo Development Agreement.
Mayo granted us an extension of this deadline to December 31, 2017, and we made this payment within such extended deadline period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Finally, we have agreed to pay Mayo a royalty
equal to a single-digit percentage of our product sales pursuant to the Mayo Development Agreement. Mayo may purchase any developed
products licensed under the Mayo Development Agreement at the best price offered by us to the end user in the prior year. The Mayo
Development Agreement generally will expire in October 2034, unless the Mayo know-how and improvements under the Mayo Development
Agreement remain in use, and the Mayo Development Agreement may be terminated by Mayo for cause or under certain circumstances.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For additional information regarding the
Mayo Development Agreement and our past breach thereof, see &ldquo;Risk Factors&mdash;We depend on our partnership with Mayo Foundation
for Medical Education and Research to license certain know how for the development and commercialization of our technology. Termination
of this partnership would harm our business, and even if this partnership continues, it may not be successful.&rdquo;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Intellectual Property</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Protection of our intellectual property
is a strategic priority for our business. We rely on a combination of patents, trademarks, copyrights, trade secrets as well as
nondisclosure and assignment of invention agreements, material transfer agreements, confidentiality agreements and other measures
to protect our intellectual property and other proprietary rights.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Patents</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of July 1, 2019, our patent estate
consists of three issued United States patents licensed from WARF covering a neural probe array and thin-film micro electrode array
and method and two pending U. S. patent applications filed by us and published on October 11, 2018 covering our applications and
additional devices used during the diagnostic and therapeutic ablation and stimulation procedures. In addition, we filed a provisional
patent in May 2019 to include coatings for application on our thin film electrode technology. The licensed issued patents expire
between 2025 and 2030, subject to any patent extensions that may be available for such patents. If a patent or patents are issued
on our pending patent application, the resulting patent is projected to expire in 2038.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our patent application may not result in
an issued patent, and any patents that have been issued or may be issued in the future may not protect the commercially important
aspects of our technology. Furthermore, the validity and enforceability of our issued patents may be challenged by third parties
and our patents could be invalidated or modified by the issuing governmental authority. Third parties may independently develop
technology that is not covered by our patents that is similar to, or competes with, our technology. In addition, our intellectual
property may be infringed or misappropriated by third parties, particularly in foreign countries where the laws and governmental
authorities may not protect our proprietary rights as effectively as those in the United States.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The medical device industry in general,
and the recording, ablation and neurostimulation sector of this industry in particular, are characterized by the existence of a
large number of patents and frequent litigation based on assertions of patent infringement. We are aware of numerous patents issued
to third parties that may relate to the technology used in our business, including the design and manufacture of electrodes and
pulse generators, as well as methods for device placement. Each of these patents contains multiple claims, any one of which may
be independently asserted against us. The owners of these patents may assert that the manufacture, use, sale or offer for sale
of our cortical strip and sheet electrodes infringe one or more claims of their patents. Furthermore, there may be additional patents
issued to third parties of which we are presently unaware that may relate to aspects of our technology that such third parties
could assert against us and materially and adversely affect our business. In addition, because patent applications can take many
years to issue, there may be patent applications that are currently pending and unknown to us, which may later result in issued
patents that third parties could assert against us and materially and adversely affect our business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Any adverse determination in litigations,
post grant trial proceedings, including interference proceedings, at the Patent Office relating to intellectual property to which
we are or may become a party could subject us to significant liabilities to third parties or require us to seek licenses from third
parties, and result in the cancellation and/or invalidation of our intellectual property. Furthermore, if a court finds that we
have willfully infringed a third party&rsquo;s intellectual property, we could be required to pay treble damages and/or attorney
fees for the prevailing party, in addition to other penalties. Although intellectual property disputes in the medical device area
are often settled through licensing or similar arrangements, costs associated with such arrangements can be substantial and often
require ongoing royalty payments. We may be unable to obtain necessary licenses on satisfactory terms, if at all. If we do not
obtain necessary licenses, we may not be able to redesign our products to avoid infringement; if we are able to redesign our products
to avoid infringement, we may not receive FDA approval in a timely manner. Adverse determinations in a judicial or administrative
proceeding or failure to obtain necessary licenses could prevent us from manufacturing and selling our products, which could have
a significant adverse impact on our business.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Trademarks</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have one pending U.S.
trademark application for the &ldquo;NeuroOne<SUP>TM</SUP>&rdquo; trademark. We were issued a notice of allowance from the
U.S. Patent and Trademark Office in December 2017, and on June 11, 2019, we received an approval of our extension
request.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Trade Secrets</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We also rely on trade secrets, technical
know-how and continuing innovation to develop and maintain our competitive position. We seek to protect such intellectual property
and proprietary information by generally requiring our employees, consultants, contractors, scientific collaborators and other
advisors to execute non-disclosure and assignment of invention agreements upon the commencement of their employment or engagement
as the case may be. Our agreements with our employees prohibit them from providing us with any intellectual property or proprietary
information of third parties. We also generally require confidentiality agreements or material transfer agreements with third parties
that receive or have access to our confidential information, data or other materials. Notwithstanding the foregoing, there can
be no assurance that our employees and third parties that have access to our confidential proprietary information will abide by
the terms of their agreements. Despite the measures that we take to protect our intellectual property and confidential information,
unauthorized third parties may copy aspects of our products or obtain and use our proprietary information.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Government Regulation</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our cortical strip, grid and depth electrodes
are a medical device subject to extensive and ongoing regulation by the FDA, the U.S. CMS, the European Commission, and regulatory
bodies in other countries. Regulations cover virtually every critical aspect of a medical device company&rsquo;s business operations,
including research activities, product development, quality and risk management, contracting, reimbursement, medical communications,
and sales and marketing. In the United States, the Federal Food, Drug and Cosmetic Act, or FDCA, and the implementing regulations
of the FDA govern product design and development, pre-clinical and clinical testing, premarket clearance or approval, product manufacturing,
quality systems, import and export, product labeling, product storage, recalls and field safety corrective actions, advertising
and promotion, product sales and distribution, and post-market clinical surveillance. Our business is subject to federal, state,
local, and foreign regulations, such as ISO 13485, ISO 14971, FDA&rsquo;s QSR contained in 21 CFR
Part 820, and the European Commission&rsquo;s Directive 93/42/EEC concerning medical devices and its amendments.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Regulatory Framework in the
United States</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">Device classification</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The FDA characterizes medical devices into
one of three classes. Devices that are considered by the FDA to pose lower risk are classified as Class I or II. Class I devices
are subject to controls for labeling, pre-market notification and adherence to the FDA&rsquo;s QSR. This pertains to manufacturers&rsquo;
methods and documentation of the design, testing, production, control quality assurance, labeling, packaging, sterilization, storage
and shipping of products, but are usually exempt from premarket notification requirements. Class II devices are subject to the
same general controls but may be subject to special controls such as performance standards, post-market surveillance, FDA guidelines,
or particularized labeling, and may also require clinical testing prior to clearance or approval. Class III devices are those for
which insufficient information exists to assure safety and effectiveness solely through general or special controls, including
devices that support or sustain human life, are of substantial importance in preventing impairment of human health, or which present
a potential, unreasonable risk of illness or injury.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Some Class I and Class II devices are exempted
by regulation from the pre-market notification requirement under Section 510(k) of the FDCA, also referred to as a 510(k) clearance,
and the requirement of compliance with substantially all of the QSR. However, a pre-market approval, or PMA application, is required
for devices deemed by the FDA to pose the greatest risk, such as life-sustaining, life-supporting or certain implantable devices,
or those that are &ldquo;not substantially equivalent&rdquo; either to a device previously cleared through the 510(k) process or
to a &ldquo;preamendment&rdquo; Class III device in commercial distribution before May 28, 1976 when PMA applications were not
required. The PMA approval process is more comprehensive than the 510(k) clearance process and typically takes several years to
complete. Based on FDA definitions, we believe our diagnostic strip, grid and depth electrode technology will be categorized by
the FDA as a Class II device that does not require clinical testing and can be filed as a 510(k), similar to existing competitive
technology. The Company expects that indications for treating epilepsy, Parkinson&rsquo;s and other patients suffering from motor
related neurological deficiencies via a permanent implant for chronic treatment will require a PMA process to commercially distribute
in the United States.</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">The 510(k) clearance process</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under the 510(k) clearance process, the
manufacturer must submit to the FDA a premarket notification, demonstrating that the device is &ldquo;substantially equivalent&rdquo;
to a legally marketed predicate device. A predicate device is a legally marketed device that is not subject to a PMA, i.e., a device
that was legally marketed prior to May 28, 1976 (pre-amendments device) and for which a PMA is not required, a device that has
been reclassified from Class III to Class II or I, or a device that was previously found substantially equivalent through the 510(k)
process. To be &ldquo;substantially equivalent,&rdquo; the proposed device must have the same intended use as the predicate device,
and either have the same technological characteristics as the predicate device or have different technological characteristics
and not raise different questions of safety or effectiveness than the predicate device. Clinical data is sometimes required to
support substantial equivalence.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">After a 510(k) premarket notification is
submitted, the FDA determines whether to accept it for substantive review. If it lacks necessary information for substantive review,
the FDA will refuse to accept the 510(k) notification. If it is accepted for filing, the FDA begins a substantive review. By statute,
the FDA is required to complete its review of a 510(k) notification within 90 days of receiving the 510(k) notification. As a practical
matter, clearance often takes longer, and clearance is never assured. Although many 510(k) premarket notifications are cleared
without clinical data, the FDA may require further information, including clinical data, to make a determination regarding substantial
equivalence, which may significantly prolong the review process. If the FDA agrees that the device is substantially equivalent,
it will grant clearance to commercially market the device.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If the FDA determines that the device is
not &ldquo;substantially equivalent&rdquo; to a predicate device, or if the device is automatically classified into Class III,
the device sponsor must then fulfill the more rigorous premarketing requirements of the PMA approval process, or seek reclassification
of the device through the de novo process. The de novo classification process is an alternate pathway to classify medical devices
that are automatically classified into Class III but which are low to moderate risk. A manufacturer can submit a petition for direct
de novo review if the manufacturer is unable to identify an appropriate predicate device and the new device or new use of the device
presents a moderate or low risk. De novo classification may also be available after receipt of a &ldquo;not substantially equivalent&rdquo;
letter following submission of a 510(k) to FDA.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">After a device receives 510(k) clearance,
any modification that could significantly affect its safety or effectiveness, or that would constitute a new or major change in
its intended use, will require a new 510(k) clearance or, depending on the modification, could require a PMA application. The FDA
requires each manufacturer to determine whether the proposed change requires a new submission in the first instance, but the FDA
can review any such decision and disagree with a manufacturer&rsquo;s determination. Many minor modifications are accomplished
by a letter-to-file in which the manufacture documents the change in an internal letter-to-file. The letter-to-file is in lieu
of submitting a new 510(k) to obtain clearance for such change. The FDA can always review these letters to file in an inspection.
If the FDA disagrees with a manufacturer&rsquo;s determination regarding whether a new premarket submission is required for the
modification of an existing 510(k)-cleared device, the FDA can require the manufacturer to cease marketing and/or recall the modified
device until 510(k) clearance or approval of a PMA application is obtained. In addition, in these circumstances, the FDA can impose
significant regulatory fines or penalties for failure to submit the requisite application(s).</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">The PMA approval process</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Following receipt of a PMA application,
the FDA conducts an administrative review to determine whether the application is sufficiently complete to permit a substantive
review. If it is not, the agency will refuse to file the PMA. If it is, the FDA will accept the application for filing and begin
the review. The FDA has 180 days to review a filed PMA application, although the review of an application more often occurs over
a significantly longer period of time. During this review period, the FDA may request additional information or clarification of
information already provided, and the FDA may issue a major deficiency letter to the applicant, requesting the applicant&rsquo;s
response to deficiencies communicated by the FDA.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Before approving or denying a PMA, an FDA
advisory committee may review the PMA at a public meeting and provide the FDA with the committee&rsquo;s recommendation on whether
the FDA should approve the submission, approve it with specific conditions, or not approve it. The FDA is not bound by the recommendations
of an advisory committee, but it considers such recommendations carefully when making decisions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Prior to approval of a PMA, the FDA may
conduct inspections of the clinical trial data and clinical trial sites, as well as inspections of the manufacturing facility and
processes. Overall, the FDA review of a PMA application generally takes between one and three years, but may take significantly
longer. The FDA can delay, limit or deny approval of a PMA application for many reasons, including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">the device may not be safe, effective, reliable or accurate to the FDA&rsquo;s satisfaction;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">the data from pre-clinical studies and clinical trials may be insufficient to support approval;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">the manufacturing process or facilities may not meet applicable requirements; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">changes in FDA approval policies or adoption of new regulations may require additional data.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If an FDA evaluation of a PMA application
is favorable, the FDA will either issue an approval letter, or approvable letter, which usually contains a number of conditions
that must be met in order to secure final approval of the PMA. When and if those conditions have been fulfilled to the satisfaction
of the FDA, the agency will issue a PMA approval letter authorizing commercial marketing of a device, subject to the conditions
of approval and the limitations established in the approval letter. If the FDA&rsquo;s evaluation of a PMA application or manufacturing
facilities is not favorable, the FDA will deny approval of the PMA or issue a not approvable letter. The FDA also may determine
that additional tests or clinical trials are necessary, in which case the PMA approval may be delayed for several months or years
while the trials are conducted and data is submitted in an amendment to the PMA. The PMA process can be expensive, uncertain and
lengthy and a number of devices for which FDA approval has been sought by other companies have never been approved by the FDA for
marketing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">New PMA applications or PMA supplements
may be required for modifications to the manufacturing process, labeling, device specifications, materials or design of a device
that has been approved through the PMA process. PMA supplements often require submission of the same type of information as an
initial PMA application, except that the supplement is limited to information needed to support any changes from the device covered
by the approved PMA application and may or may not require as extensive technical or clinical data or the convening of an advisory
panel.</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">Clinical Trials</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Clinical trials are typically required
to support a PMA application and are sometimes required for a 510(k) clearance. These trials generally require submission of an
application for an IDE, to the FDA. The IDE application must be supported by appropriate data, such as animal and laboratory testing
results, showing that it is safe to test the device in humans and that the testing protocol is scientifically sound. The IDE application
must be approved in advance by the FDA for a specified number of patients, unless the product is deemed a non-significant risk
device and eligible for abbreviated IDE requirements. Generally, clinical trials for a significant risk device may begin once the
IDE application is approved by the FDA and the study protocol and informed consent are approved by appropriate institutional review
boards at the clinical trial sites. The FDA&rsquo;s approval of an IDE allows clinical testing to go forward, but it does not bind
the FDA to accept the results of the trial as sufficient to prove the product&rsquo;s safety and efficacy, even if the trial meets
its intended success criteria. All clinical trials must be conducted in accordance with the FDA&rsquo;s IDE regulations that govern
investigational device labeling, prohibit promotion, and specify an array of recordkeeping, reporting and monitoring responsibilities
of study sponsors and study investigators. Clinical trials must further comply with the FDA&rsquo;s regulations for institutional
review board approval and for informed consent and other human subject protections. Required records and reports are subject to
inspection by the FDA. The results of clinical testing may be unfavorable or, even if the intended safety and efficacy success
criteria are achieved, may not be considered sufficient for the FDA to grant approval or clearance of a product. Clinical trials
must be entered into the clinical trials registry at clinicaltrials.gov.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The commencement or completion of any clinical
trial may be delayed or halted, or be inadequate to support approval of a PMA application, for numerous reasons, including, but
not limited to, the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">the FDA or other regulatory authorities do not approve a clinical trial protocol or a clinical
trial, or place a clinical trial on hold;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">patients do not enroll in clinical trials at the rate expected;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">patients, sponsor (NeuroOne) or study sites do not comply with trial protocols;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">patient follow-up is not at the rate expected;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">patients experience adverse side effects;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">patients die during a clinical trial, even though their death may not be related to the products
that are part of our trial;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">institutional review boards and third-party clinical investigators may delay or reject the trial
protocol;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">third-party clinical investigators decline to participate in a trial or do not perform a trial
on the anticipated schedule or consistent with the clinical trial protocol, good clinical practices or other FDA requirements;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">the sponsor (NeuroOne) or third-party organizations do not perform data collection, monitoring
and analysis in a timely or accurate manner or consistent with the clinical trial protocol or investigational or statistical plans;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">third-party clinical investigators have significant financial interests related to the sponsor
(NeuroOne) or the study that the FDA deems to make the study results unreliable, or the company or investigators fail to disclose
such interests;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">regulatory inspections of our clinical trials or manufacturing facilities, which may, among other
things, require us to undertake corrective action or suspend or terminate our clinical trials;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">changes in governmental regulations or administrative actions;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">the interim or final results of the clinical trial are inconclusive or unfavorable as to safety
or efficacy; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">the FDA concludes that our trial design is inadequate to demonstrate safety and efficacy.</TD></TR></TABLE>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">International Regulation</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">International sales of medical devices
are subject to local government regulations, which may vary substantially from country to country. The time required to obtain
approval in another country may be longer or shorter than that required for FDA approval, and the requirements may differ. There
is a trend towards harmonization of quality system standards among the European Union, United States, Canada and various other
industrialized countries.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The primary regulatory body in Europe is
that of the European Union, the European Commission, which includes most of the major countries in Europe. Other countries, such
as Switzerland, have voluntarily adopted laws and regulations that mirror those of the European Union with respect to medical devices.
The European Union has adopted numerous directives and standards regulating the design, manufacture, clinical trials, labeling
and adverse event reporting for medical devices. Devices that comply with the requirements of these relevant directives will be
entitled to bear the CE conformity marking, indicating that the device conforms to the essential requirements of the applicable
directives and, accordingly, can be commercially distributed throughout Europe. The method of assessing conformity varies depending
on the class of the product, but normally involves a combination of self-assessment by the manufacturer and a third party assessment
by a &ldquo;Notified Body.&rdquo; This third-party assessment may consist of an audit of the manufacturer&rsquo;s quality system
and specific testing of the manufacturer&rsquo;s product. An assessment by a Notified Body of one country within the European Union
is required in order for a manufacturer to commercially distribute the product throughout the European Union. Additional local
requirements may apply on a country-by-country basis. Outside of the European Union, regulatory approval would need to be sought
on a country-by-country basis in order for us to market our products.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Medical devices in Europe are classified
into four primary categories. They are as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">Non-invasive devices;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">Invasive medical devices;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">Active medical devices; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">Special Rules (including contraceptive, disinfectant, and radiological diagnostic medical devices).</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Devices are further segmented into the
classes noted below. In vitro diagnostic devices have their own classification scheme and while active implantable devices do not
follow the same classification system as provided by the Medical Devices Directive, they are subject to similar requirements as
Class III devices:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">Class I &ndash; Provided non-sterile or do not have a measuring function (low risk);</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">Class I &ndash; Provided sterile and/or have a measuring function (low/medium risk);</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">Class IIa (medium risk);</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">Class IIb (medium/high risk); and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">Class III (high risk).</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">After a review of our technology, an international
regulatory consultant advised us that our strip, grid and depth electrode diagnostic technology is likely a Class III device (since
it comes into contact with the central nervous system) which will require a lengthy approval process as a design dossier including
clinical data will be required for approval.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Other Regulatory Requirements</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Even after a device receives clearance
or approval and is placed in commercial distribution, numerous regulatory requirements apply. These include:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">establishment registration and device listing;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">QSR, which requires manufacturers, including third party manufacturers, to follow stringent design,
testing, risk management, production, control, supplier/contractor selection, complaint handling, documentation and other quality
assurance procedures during all aspects of the manufacturing process;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">labeling regulations that prohibit the promotion of products for uncleared, unapproved or &ldquo;off-label&rdquo;
uses, and impose other restrictions on labeling, advertising and promotion;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">MDR regulations, which require that manufacturers report to the FDA if their device may have caused
or contributed to a death or serious injury or malfunctioned in a way that would likely cause or contribute to a death or serious
injury if the malfunction were to recur;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">voluntary and mandatory device recalls to address problems when a device is defective and could
be a risk to health; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">corrections and removals reporting regulations, which require that manufacturers report to the
FDA field corrections and product recalls or removals if undertaken to reduce a risk to health posed by the device or to remedy
a violation of the FDCA that may present a risk to health.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Also, the FDA may require us to conduct
post-market surveillance studies or establish and maintain a system for tracking our products through the chain of distribution
to the patient level. The FDA enforces regulatory requirements by conducting periodic, unannounced inspections and market surveillance.
Inspections may include the manufacturing facilities of our subcontractors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Failure to comply with applicable regulatory
requirements can result in enforcement actions by the FDA and other regulatory agencies. These may include any of the following
sanctions or consequences:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">warning letters or untitled letters that require corrective action;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">fines and civil penalties;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">unanticipated expenditures;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">delays in approving or refusal to approve future products;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">FDA refusal to issue certificates to foreign governments needed to export products for sale in
other countries;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">suspension or withdrawal of FDA clearance or approval;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">product recall or seizure; interruption of production;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">operating restrictions;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">injunctions; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">criminal prosecution.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our contract manufacturers, specification
developers and some suppliers of components or device accessories, also are required to manufacture our products in compliance
with current good manufacturing practice requirements set forth in the QSR. The QSR requires a quality system for the design, manufacture,
packaging, labeling, storage, installation and servicing of marketed devices, and it includes extensive requirements with respect
to quality management and organization, device design, buildings, equipment, purchase and handling of components or services, production
and process controls, packaging and labeling controls, device evaluation, distribution, installation, complaint handling, servicing,
and record keeping. The FDA evaluates compliance with the QSR through periodic unannounced inspections that may include the manufacturing
facilities of our subcontractors. If the FDA believes that any of our contract manufacturers or regulated suppliers are not in
compliance with these requirements, it can shut down such manufacturing operations, require recall of our products, refuse to approve
new marketing applications, institute legal proceedings to detain or seize products, enjoin future violations or assess civil and
criminal penalties against us or our officers or other employees.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">HIPAA and Similar Foreign and State Laws and Regulations Affecting the Transmission,
Security and Privacy of Health Information</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We may also be subject to data privacy
and security regulation by both the federal government and the states in which we conduct our business. HIPAA, as amended by the
Health Information Technology for Economic and Clinical Health Act, or HITECH, and their respective implementing regulations, imposes
specified requirements relating to the privacy, security and transmission of individually identifiable health information. Among
other things, HITECH makes HIPAA&rsquo;s security standards directly applicable to business associates, defined as service providers
of covered entities that create, receive, maintain or transmit protected health information in connection with providing a service
for or on behalf of a covered entity. HITECH also created four new tiers of civil monetary penalties and gave state attorneys general
new authority to file civil actions for damages or injunctions in federal courts to enforce the federal HIPAA laws and seek attorneys&rsquo;
fees and costs associated with pursuing federal civil actions. In addition, many state laws govern the privacy and security of
health information in certain circumstances, many of which differ from HIPAA and each other in significant ways and may not have
the same effect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Foreign data privacy regulations, such
as the EU Data Protection Directive (Directive 95/46/EC), the country-specific regulations that implement Directive 95/46/EC, and
the EU General Data Protection Regulation also govern the processing of personally identifiable data, and may be stricter than
U.S. laws.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Fraud and Abuse Laws</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition to FDA restrictions, there
are numerous U.S. federal and state laws pertaining to healthcare fraud and abuse, including anti-kickback laws and physician self-referral
laws. Our relationships with healthcare providers and other third parties are subject to scrutiny under these laws. Violations
of these laws are punishable by criminal and civil sanctions, including, in some instances, imprisonment and exclusion from participation
in federal and state healthcare programs, including the Medicare, Medicaid and Veterans Administration health programs.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Federal Anti-Kickback and Self-Referral
Laws</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Anti-Kickback Statute prohibits
persons from knowingly and willfully soliciting, receiving, offering or providing remuneration (including any kickback, bribe or
rebate), directly or indirectly, overtly or covertly, to induce either the referral of an individual, or the furnishing, recommending,
or arranging of a good or service, for which payment may be made under a federal healthcare program such as Medicare and Medicaid
or other federal healthcare programs. The term &ldquo;remuneration&rdquo; has been broadly interpreted to include anything of value,
including such items as gifts, discounts, the furnishing of supplies or equipment, credit arrangements, waiver of payments and
providing anything at less than its fair market value. Although there are a number of statutory exceptions and regulatory safe
harbors protecting some common activities from prosecution, the exceptions and safe harbors are drawn narrowly. Practices that
involve remuneration that may be alleged to be intended to induce prescribing, purchases or recommendations may be subject to scrutiny
if they do not qualify for an exception or safe harbor. Failure to meet all of the requirements of a particular applicable statutory
exception or regulatory safe harbor does not make the conduct per se illegal under the Anti-Kickback Statute. Instead, the legality
of the arrangement will be evaluated on a case-by-case basis based on a review of all its relevant facts and circumstances. Several
courts have interpreted the statute&rsquo;s intent requirement to mean that if any one purpose of an arrangement involving remuneration
is to induce referrals of (or purchases, or recommendations related to) federal healthcare covered business, the Anti-Kickback
Statute has been implicated and potentially violated.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The penalties for violating the
Anti-Kickback Statute include imprisonment for up to five years, fines of up to $25,000 per violation and possible exclusion
from federal healthcare programs such as Medicare and Medicaid. Many states have adopted prohibitions similar to the Anti-Kickback Statute, some of which do not have the same exceptions and apply to the referral of patients for healthcare
services reimbursed by any source, not only by the Medicare and Medicaid programs. Further, the Anti-Kickback Statute was
amended by the ACA. Specifically, as noted above, under the Anti-Kickback Statute, the government must prove the defendant
acted &ldquo;knowingly&rdquo; to prove a violation occurred. The ACA added a provision to clarify that with respect to
violations of the Anti-Kickback Statute, &ldquo;a person need not have actual knowledge&rdquo; of the statute or specific
intent to commit a violation of the statute. This change effectively overturns case law interpretations that set a higher
standard under which prosecutors had to prove the specific intent to violate the law. In addition, the ACA codified case law
that a claim including items or services resulting from a violation of the Anti-Kickback Statute constitutes a false or
fraudulent claim for purposes of the federal civil False Claims Act (the &ldquo;False Claims Act&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We plan to provide the initial training
to providers and patients necessary for appropriate use of our technology either through our own educators or by contracting with
outside educators that have completed an appropriate training course. Outside educators are reimbursed for their services at fair
market value.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Noncompliance with the Anti-Kickback
Statute could result in our exclusion from Medicare, Medicaid or other governmental programs, restrictions on our ability to operate
in certain jurisdictions, and civil and criminal penalties.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The federal Physician Self-Referral Prohibition,
commonly known as the &ldquo;Stark Law,&rdquo; prohibits a physician from ordering &ldquo;designated health services,&rdquo; including
durable medical equipment, for Medicare and Medicaid patients from entities with which the physician (or an immediate family member)
has a &ldquo;financial relationship.&rdquo; Financial relationships include both compensation arrangements and investment and ownership
interests. Violation of the Stark Law could result in denial of payment, disgorgement of reimbursements received under a noncompliant
arrangement, civil penalties, and exclusion from Medicare, Medicaid or other governmental programs. We believe that we have structured
our provider arrangements to comply with current Stark Law requirements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Nevertheless, a determination of liability
under such laws could result in fines and penalties and restrictions on our ability to operate in these jurisdictions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Additionally, as some of these laws are
still evolving, we lack definitive guidance as to the application of certain key aspects of these laws as they relate to our arrangements
with providers with respect to patient training. We cannot predict the final form that these regulations will take or the effect
that the final regulations will have on us. As a result, our provider and training arrangements may ultimately be found to be not
in compliance with applicable federal law.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">False Claims Act</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The False Claims Act provides,
in part, that the federal government may bring a lawsuit against any person whom it believes has knowingly presented, or caused
to be presented, a false or fraudulent request for payment from the federal government, or who has made a false statement or used
a false record to get a claim approved. In addition, amendments in 1986 to the False Claims Act have made it easier for
private parties to bring &ldquo;qui tam&rdquo; whistleblower lawsuits against companies under the False Claims Act. Penalties
include fines ranging from $5,500 to $11,000 for each false claim, plus three times the amount of damages that the federal government
sustained because of the act of that person. Qui tam actions have increased significantly in recent years, causing greater numbers
of healthcare companies to have to defend a false claim action, pay fines or be excluded from Medicare, Medicaid or other federal
or state healthcare programs as a result of an investigation arising out of such action.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">There are other federal anti-fraud laws
that prohibit, among other actions, knowingly and willfully executing, or attempting to execute, a scheme to defraud any healthcare
benefit program, including private third-party payors, knowingly and willfully embezzling or stealing from a healthcare benefit
program, willfully obstructing a criminal investigation of a healthcare offense, and knowingly and willfully falsifying, concealing
or covering up a material fact or making any materially false, fictitious or fraudulent statement in connection with the delivery
of or payment for healthcare benefits, items or services.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Additionally, HIPAA established two federal
crimes related to making false statements in relation to healthcare matters. The healthcare fraud statute prohibits knowingly
and willfully executing a scheme to defraud any healthcare benefit program, including private payors. A violation of this statute
is a felony and may result in fines, imprisonment or exclusion from government sponsored programs. The false statements statute
prohibits knowingly and willfully falsifying, concealing or covering up a material fact or making any materially false, fictitious
or fraudulent statement in connection with the delivery of or payment for healthcare benefits, items or services. A violation
of this statute is a felony and may result in fines or imprisonment.&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="margin-top: 0; text-align: center; margin-bottom: 0">&nbsp;&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Civil Monetary Penalties Law</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition to the Anti-Kickback Statute
and the False Claims Act, the federal government has the authority to seek civil monetary penalties, or CMPs, assessments, and
exclusion against an individual or entity based on a wide variety of prohibited conduct. For example, the Civil Monetary Penalties
Law authorizes the imposition of substantial CMPs against an entity that engages in activities including, but not limited to: (1)
knowingly presenting or causing to be presented, a claim for services not provided as claimed or which is otherwise false or fraudulent
in any way; (2) knowingly giving or causing to be given false or misleading information reasonably expected to influence the decision
to discharge a patient; (3) offering or giving remuneration to any beneficiary of a federal health care program likely to influence
the receipt of reimbursable items or services; (4) arranging for reimbursable services with an entity which is excluded from participation
from a federal health care program; (5) knowingly or willfully soliciting or receiving remuneration for a referral of a federal
health care program beneficiary; or (6) using a payment intended for a federal health care program beneficiary for another use.
The government is authorized to seek different amounts of CMPs and assessments based on underlying violation. For false or fraudulent
claims, the government may seek a penalty of up to $10,000 for each item or service improperly claimed, and an assessment of up
to three times the amount improperly claimed. For kickback violations, the government may seek a penalty of up to $50,000 for each
improper act and damages of up to three times the amount of remuneration at issue.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">State Fraud and Abuse Provisions</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Many states have also adopted some form
of anti-kickback and anti-referral laws and a false claims act. We believe that we are in conformance to such laws. Nevertheless,
a determination of liability under such laws could result in fines and penalties and restrictions on our ability to operate in
these jurisdictions.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Physician Payment Sunshine
Act</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Transparency laws regarding payments or
other items of value provided to healthcare providers and teaching hospitals may also impact our business practices. The federal
Physician Payment Sunshine Act requires most medical device manufacturers to report annually to the Secretary of Human Health Services
financial arrangements, payments, or other transfers of value made by that entity to physicians and teaching hospitals. The payment
information is made publicly available in a searchable format on a CMS website. Over the next several years, we will need to dedicate
significant resources to establish and maintain systems and processes in order to comply with these regulations. Failure to comply
with the reporting requirements can result in significant civil monetary penalties. Similar laws have been enacted or are under
consideration in foreign jurisdictions.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">FCPA</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The FCPA prohibits U.S. corporations and
their representatives from offering, promising, authorizing or making corrupt payments, gifts or transfers to any foreign government
official, government staff member, political party or political candidate in an attempt to obtain or retain business abroad. The
FCPA also obligates companies whose securities are listed in the United States to comply with accounting provisions requiring the
company to maintain books and records that accurately and fairly reflect all transactions of the corporation, including international
subsidiaries, and to devise and maintain an adequate system of internal accounting controls for international operations. Activities
that violate the FCPA, even if they occur wholly outside the United States, can result in criminal and civil fines, imprisonment,
disgorgement, oversight, and debarment from government contracts.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Employees</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of July 1, 2019, we had six employees,
all of whom are full-time, and all of whom are located in the United States, and we also retained the services of approximately
11 regular consultants. None of our employees are represented by a labor union or covered by a collective bargaining agreement.
We consider our relationship with our employees to be good.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Corporate Information</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our principal executive offices are located at c/o David Rosa,
10901 Red Circle Drive, Suite 150, Minnetonka, Minnesota 55343, and our telephone number is 952-426-1383. Our website address
is www.neurooneinc.com. Information on our website is not part of this prospectus.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><A NAME="a_009"></A>DESCRIPTION OF PROPERTY</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On November 13, 2018, we entered into a
sublease agreement to sublease office space at 10901 Red Circle Drive, Suite 150, Minnetonka, Minnesota 55343, from December 1,
2018 through October 31, 2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><A NAME="a_010"></A>LEGAL PROCEEDINGS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">From time to time, we are subject to litigation
and claims arising in the ordinary course of business. In May 2017, NeuroOne, Inc. received a letter from PMT, the former employer
of Mark Christianson and Wade Fredrickson. PMT claimed that these officers had breached their restrictive covenant obligations
with PMT by virtue of their work for NeuroOne, Inc. and such officer&rsquo;s prior work during employment with the prior employer,
that these officers had breached their confidentiality and non-disclosure obligations to PMT and federal and state law by misappropriating
confidential and trade secret information, and that the Company is responsible for tortious interference with the contracts. The
letter demanded that Mr. Fredrickson (who resigned from the Company in June 2017), Mr. Christianson and NeuroOne, Inc. cease and
desist all competitive activities, that Mr. Fredrickson step down from his position and that Mr. Christianson and NeuroOne, Inc.
provide the former employer access to NeuroOne, Inc.&rsquo;s systems to demonstrate that it is not using trade secrets or proprietary
information nor competing with the former employer.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On March 29, 2018, we were served with a complaint filed by PMT adding the Company, NeuroOne, Inc. and
Mark Christianson to its existing lawsuit against Wade Fredrickson. In the lawsuit, PMT claims that Mr. Fredrickson and Mr. Christianson
breached their non-competition, non-solicitation and non-disclosure obligations, breached their fiduciary duty obligations, were
unjustly enriched, engaged in unfair competition, engaged in a civil conspiracy, tortiously interfered with PMT&rsquo;s contracts
and prospective economic advantage, and breached a covenant of good faith and fair dealing. Against Mr. Fredrickson, PMT also alleges
that he intentionally or negligently spoliated evidence, made negligent or fraudulent misrepresentations, misappropriated trade
secrets in violation of Minnesota law, and committed the tort of conversion and statutory civil theft. Against the Company and
NeuroOne, Inc., PMT alleges that the Company and NeuroOne, Inc. were unjustly enriched and engaged in unfair competition. PMT asks
the Fourth Judicial District Court of the State of Minnesota (the &ldquo;Court&rdquo;) to impose a constructive trust over the
shares held by Mr. Fredrickson and Mr. Christianson and to award compensatory damages, equitable relief, punitive damages, attorneys&rsquo;
fees, costs and interest.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On April 18, 2018, Mr. Christianson, the
Company and NeuroOne, Inc. filed a motion for dismissal, which was heard by the Court on October 11, 2018. The motion for dismissal
states that: the contract claims against Mr. Christianson fail because his agreement was not supported by consideration; the Minnesota
Uniform Trade Secrets Act preempts plaintiff&rsquo;s claims for unfair competition, civil conspiracy and unjust enrichment; plaintiff
fails to state a claim regarding alleged breach of the duties of loyalty and good faith/fair dealing; plaintiff cannot legally
obtain a constructive trust; plaintiff has insufficiently pled its tortious interference claims; and Plaintiff has not stated
a claim for unfair competition. On January 7, 2019, the judge granted the motion for dismissal with respect to PMT&rsquo;s claim
for breach of the duty of good faith and fair dealing, and denied the motion for dismissal with respect to the other claims presented.
On June 28, 2019, the Company presented to the special master evidence of what it believed to reflect significant litigation misconduct
by PMT relating to a manufactured non-compete agreement for Wade Fredrickson that it had attempted to pass off as a business
record of PMT. Based on the evidence presented, the special master ruled that PMT had waived the attorney client privilege with
respect to certain communications with respect to the Fredrickson non-compete with both its former and current litigation counsel
and authorized a deposition of the former litigation counsel concerning these communications. On August 30, 2019 the Hennepin
County District Court will hear dispositive motions in this case. The Company, NeuroOne, Inc. and Mr. Christianson (who has not
worked for PMT since February 2012) intend to continue to defend themselves vigorously.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The outcome and potential loss related
to this matter is unknown as of the filing of this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><A NAME="a_011"></A>MANAGEMENT&rsquo;S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>You should read the following discussion
and analysis of financial condition and results of operations of NeuroOne Medical Technologies Corporation together with our financial
statements and the related notes included elsewhere in this prospectus. Some of the information contained in this discussion and
analysis or set forth elsewhere in this prospectus, including information with respect to our plans and strategy for our business,
includes forward-looking statements that involve risks and uncertainties. You should review the &ldquo;Risk Factors&rdquo; section
of this prospectus for a discussion of important factors that could cause actual results to differ materially from the results
described in or implied by the forward-looking statements contained in the following discussion and analysis. References in this
discussion to &ldquo;series&rdquo; or &ldquo;notes&rdquo; refer to all of our outstanding notes as of the relevant date of the
item being discussed. References in this discussion to &ldquo;convertible promissory notes&rdquo; refer to all of our outstanding
convertible promissory notes as of the relevant date of the item being discussed.</I></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Overview</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We were originally incorporated in the
State of Nevada on August 20, 2009 as Original Source Entertainment, Inc. (&ldquo;OSE&rdquo;). OSE was originally formed to license
songs to the television and movie industry. From our inception and prior to the Acquisition, as described more fully below, our
operations have been primarily limited to organizational, start-up, and capital formation activities. Upon completion of the Acquisition,
as more fully described below, our operations have focused on the development and commercialization of thin film electrode technology
for cEEG and sEEG recording, brain stimulation and ablation solutions for patients suffering from epilepsy, Parkinson&rsquo;s disease,
dystonia, essential tremors and other related brain related disorders. Additionally, we are investigating the potential applications
of our technology associated with artificial intelligence. We are based in Minnetonka, Minnesota.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">To date, our primary activities have been
limited to, and our limited resources have been dedicated to, performing business and financial planning, raising capital, recruiting
personnel, negotiating with business partners and the licensors of our intellectual property and conducting research and development
activities. Our cortical strip, grid electrode and depth electrode technology is still under development, we do not yet have regulatory
approval in any jurisdiction to sell any products and we have not generated any revenue.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have incurred losses since inception.
As of March 31, 2019, we had an accumulated deficit of $14.0 million, primarily as a result of expenses incurred in connection
with our research and development programs, from general and administrative expenses associated with our operations and interest
expense related to our debt. We expect to continue to incur significant expenses and increasing operating costs and net losses
for the foreseeable future.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Acquisition was accounted for as a
capital transaction, or reverse recapitalization. As a result, the financial information contained in this prospectus reflects
solely the operations of our wholly-owned subsidiary, NeuroOne, Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We do not expect to generate revenue from
product sales unless and until we obtain marketing authorization to sell our cortical strip, grid electrode and depth electrode
technology from applicable regulatory authorities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our source of cash to date has been proceeds
from the issuances of notes with warrants and common stock with warrants and unsecured loans. See &ldquo;&mdash;Liquidity and Capital
Resources&mdash;Historical Capital Resources&rdquo; below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">At March 31, 2019, we had $2.3 million
in cash deposits. Our existing cash and cash equivalents will not be sufficient to fund our operating expenses throughout our fiscal
year ending September 30, 2019. We need to obtain substantial additional funding in connection with our continuing operations through
public or private equity or debt financings or other sources, which may include collaborations with third parties. However, we
may be unable to raise additional funds when needed on favorable terms or at all. Our failure to raise such capital as and when
needed would have a negative impact on our financial condition and our ability to develop and commercialize our cortical strip,
grid electrode and depth electrode technology and future products and our ability to pursue our business strategy. See &ldquo;&mdash;Liquidity
and Capital Resources&mdash;Funding Requirements and Outlook&rdquo; below.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Acquisition</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On July 20, 2017, we entered into the Merger
Agreement to acquire NeuroOne, Inc. The transactions contemplated by the Merger Agreement were consummated on July 20, 2017 and,
pursuant to the terms of the Merger Agreement, (i) all outstanding NeuroOne Shares were exchanged for shares of Common Stock, based
on the exchange ratio of 17.0103706 shares of Common Stock, for every one NeuroOne Share (the &ldquo;Exchange Ratio&rdquo;), which
totaled 6,291,994 shares of Common Stock, for all of the then-outstanding NeuroOne Shares, (ii) all NeuroOne Options were replaced
with options (&ldquo;Company Options&rdquo;) based on the Exchange Ratio, with corresponding adjustments to their respective exercise
prices, (iii) all NeuroOne warrants were replaced with warrants to purchase Common Stock (&ldquo;Company Warrants&rdquo;) and (iv)
we assumed the outstanding convertible promissory notes of NeuroOne, Inc. Accordingly, we acquired 100% of NeuroOne, Inc. in exchange
for the issuance of shares of our Common Stock and NeuroOne, Inc. became our wholly-owned subsidiary. Our sole business is the
business of NeuroOne, Inc. Our management&rsquo;s discussion and analysis below is based on the financial results of NeuroOne,
Inc. Except as otherwise indicated herein, all share and per share information in this &ldquo;Management&rsquo;s Discussion and
Analysis of Financial Condition and Results of Operations&rdquo; section gives retroactive effect to the exchange of NeuroOne Shares,
NeuroOne Options and NeuroOne warrants for shares of Common Stock, Company Options and Company Warrants, respectively, in the Acquisition,
as well as the corresponding exercise price adjustments for such Company Options.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Financial Overview</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Revenue</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">To date, we have not generated any revenue.
We do not expect to generate revenue unless or until we develop, obtain regulatory approval for and commercialize our cortical
strip, grid electrode and depth electrode technology. If we fail to complete the development of our cortical strip, grid electrode
and depth electrode technology, or any other product candidate we may pursue in the future, in a timely manner, or fail to obtain
regulatory approval, we may never be able to generate any revenue.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">General and Administrative</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">General and administrative expenses consist
primarily of personnel-related costs including stock-based compensation for personnel in functions not directly associated with
research and development activities. Other significant costs include legal fees relating to corporate matters, intellectual property
costs, professional fees for consultants assisting with regulatory, clinical, product development, financial matters and product
costs. We anticipate that our general and administrative expenses will significantly increase in the future to support our continued
research and development activities, potential commercialization of our cortical strip, grid electrode and depth electrode technology,
if approved, and the increased costs of operating as a public company. These increases will include increased costs related to
the hiring of additional personnel and fees for legal and professional services, as well as other public-company related costs.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Research and Development</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Research and development expenses consist
of expenses incurred in performing research and development activities in developing our cortical strip, grid electrode and depth
electrode technology. Research and development expenses include compensation and benefits for research and development employees
including stock-based compensation, overhead expenses, cost of laboratory supplies, clinical trial and related clinical manufacturing
expenses, costs related to regulatory operations, fees paid to consultants and other outside expenses. Research and development
costs are expensed as incurred and costs incurred by third parties are expensed as the contracted work is performed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We expect our research and development
expenses to significantly increase over the next several years as we develop our cortical strip, grid electrode and depth electrode
technology and conduct preclinical testing and clinical trials and will depend on the duration, costs and timing to complete our
preclinical programs and clinical trials.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Interest Expense</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Interest expense primarily consists of
amortized discount costs and interest costs related to our Series 1 Notes (as defined below), Series 2 Notes (as defined below)
and Series 3 Notes (as defined below) while outstanding. The Series 1 Notes, Series 2 Notes and Series 3 Notes bear interest at
a fixed rate of 8% per annum while outstanding.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Net change in fair value for
the warrant liability and premium conversion derivatives</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The net change in fair value for the warrant
liability and premium conversion derivatives include the change in the fair value of the warrant liability and the premium conversion
derivatives during the particular period while the warrant liability and the premium conversion derivatives are outstanding.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Loss on note extinguishments,
net</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Loss on notes extinguishments, net includes
the gain or loss associated with debt instrument modifications accounted for as note extinguishments.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Results of Operations</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Comparison of the Nine Month Period Ended September 30,
2018 and 2017</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table sets forth our results
of operations for the nine month periods ended September 30, 2018 and 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="10" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">For the nine months ended<BR> September&nbsp;30,</TD><TD STYLE="padding-bottom: 1.5pt; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2017</TD><TD STYLE="padding-bottom: 1.5pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Period to<BR> Period<BR> Change</TD><TD STYLE="padding-bottom: 1.5pt; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center">(unaudited)</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">Operating expenses:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 64%; font-size: 10pt; text-align: left; text-indent: -10pt; padding-left: 10pt">General and administrative</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 9%; font-size: 10pt; text-align: right">2,676,872</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 9%; font-size: 10pt; text-align: right">1,798,131</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 9%; font-size: 10pt; text-align: right">878,741</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1.5pt; text-indent: -10pt; padding-left: 10pt">Research and development</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">715,086</TD><TD STYLE="padding-bottom: 1.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">500,408</TD><TD STYLE="padding-bottom: 1.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">214,678</TD><TD STYLE="padding-bottom: 1.5pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1.5pt; text-indent: -10pt; padding-left: 10pt">Total operating expenses</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">3,391,958</TD><TD STYLE="padding-bottom: 1.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">2,298,539</TD><TD STYLE="padding-bottom: 1.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">1,093,419</TD><TD STYLE="padding-bottom: 1.5pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: -10pt; padding-left: 10pt">Loss from operations</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(3,391,958</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(2,298,539</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(1,093,419</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: -10pt; padding-left: 10pt">Interest expense</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(763,065</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(1,057,024</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">293,959</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: -10pt; padding-left: 10pt">Net change in fair value for the warrant liability and premium conversion derivatives</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">336,596</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(77,505</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">414,101</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1.5pt; text-indent: -10pt; padding-left: 10pt">Loss on note extinguishments</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">(1,314,487</TD><TD STYLE="padding-bottom: 1.5pt; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">(1,314,487</TD><TD STYLE="padding-bottom: 1.5pt; font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 4pt; text-indent: -10pt; padding-left: 10pt">Net loss</TD><TD STYLE="font-size: 10pt; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-size: 10pt; text-align: right">(5,132,914</TD><TD STYLE="padding-bottom: 4pt; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-size: 10pt; text-align: right">(3,433,068</TD><TD STYLE="padding-bottom: 4pt; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-size: 10pt; text-align: right">(1,699,846</TD><TD STYLE="padding-bottom: 4pt; font-size: 10pt; text-align: left">)</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">General and administrative expenses</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">General and administrative expenses were
$2.7 million for the nine month period ended September 30, 2018, compared to $1.8 million for the nine month period ended September
30, 2017. The $0.9 million increase was primarily due to an increase in public company costs and salary related expenses to support
the increased level of commercialization and development activities. The increase in spending was primarily attributable to stock-based
compensation of $0.5 million, corporate governance related to board of director and other policy and procedures implementation
costs of $0.2 million, legal, accounting and other corporate related service costs of $0.3 million, offset in part by a $0.1 million
reduction in salary related expenses. Legal and accounting expenses during the nine month period ended September 30, 2018, were
largely incurred in connection with financing matters and securities matters, and costs are expected to be similar for future periods
as we continue our financing activities.</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">Research and development expenses</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Research and development expenses were
$0.7 million for the nine month period ended September 30, 2018, compared to $0.5 million for the nine month period ended September
30, 2017. The increase was primarily due to an increase in salary-related expenses and development materials and supplies to support
the increased level of development activities.</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">Interest expense</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Interest expense for the nine month period
ended September 30, 2018 and 2017 was $0.8 million and $1.1 million, respectively. Interest expense primarily consists of non-cash
interest expense, inclusive of the amortization of debt discounts. The $0.3 million decrease in interest expense was primarily
due to the lower level of outstanding debt discounts and related amortization in 2018 given the debt modifications that occurred
in the fourth quarter of 2017 and first quarter of 2018 as well as the extinguishment and conversion of the Series 1 Notes and
Series 2 Notes on July 2, 2018.</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">Net change in fair value for the warrant liability and
premium conversion derivatives</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The net change in fair value for the warrant
liability and premium conversion derivatives for the nine month periods ended September 30, 2018 and 2017 was a benefit of $0.3
million and an expense of $0.1 million, respectively. The change was largely due to the impact of the July 2, 2018 extinguishment
and conversion of the Series 1 Notes and Series 2 Notes which resulted in the elimination of the associated premium conversion
derivatives.</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">Loss on note extinguishments, net</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Non-cash loss on note extinguishments,
net for the nine month periods ended September 30, 2018 and 2017 was $1.3 million and zero, respectively. The Series 1 Notes and
Series 2 Notes were extinguished and converted on July 2, 2018 which contributed to $1.2 million of the increase. The balance of
the increase was due to the modification of the Series 2 Notes in March 2018 which was accounted for as a note extinguishment.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Comparison of the Three Months
Ended March 31, 2019 and 2018</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table sets forth the results
of operations for the three-months ended March 31, 2019 and 2018, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="10" STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>For the three months ended</B><BR> <B>March&nbsp;31,</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(unaudited)</B></P></TD><TD STYLE="padding-bottom: 1.5pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</TD><TD STYLE="padding-bottom: 1.5pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Period to</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Period</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Change</B></P></TD><TD STYLE="padding-bottom: 1.5pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">Operating expenses:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 64%; font-size: 10pt; text-align: left; text-indent: -10pt; padding-left: 10pt">General and administrative</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 9%; font-size: 10pt; text-align: right">1,084,789</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 9%; font-size: 10pt; text-align: right">992,435</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 9%; font-size: 10pt; text-align: right">92,354</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1.5pt; text-indent: -10pt; padding-left: 10pt">Research and development</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">436,311</TD><TD STYLE="padding-bottom: 1.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">105,045</TD><TD STYLE="padding-bottom: 1.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">331,266</TD><TD STYLE="padding-bottom: 1.5pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1.5pt; text-indent: -10pt; padding-left: 10pt">Total operating expenses</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">1,521,100</TD><TD STYLE="padding-bottom: 1.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">1,097,480</TD><TD STYLE="padding-bottom: 1.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">423,620</TD><TD STYLE="padding-bottom: 1.5pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: -10pt; padding-left: 10pt">Loss from operations</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(1,521,100</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(1,097,480</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(423,620</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: -10pt; padding-left: 10pt">Interest expense</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(20,534</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(193,034</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">172,500</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: -10pt; padding-left: 10pt">Net change in fair value for the warrant liability and premium conversion derivatives</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(116,809</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">119,960</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(236,769</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1.5pt; text-indent: -10pt; padding-left: 10pt">Loss on note extinguishments</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">(553,447</TD><TD STYLE="padding-bottom: 1.5pt; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">(186,220</TD><TD STYLE="padding-bottom: 1.5pt; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">(367,227</TD><TD STYLE="padding-bottom: 1.5pt; font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 4pt; text-indent: -10pt; padding-left: 10pt">Net loss</TD><TD STYLE="font-size: 10pt; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-size: 10pt; text-align: right">(2,211,890</TD><TD STYLE="padding-bottom: 4pt; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-size: 10pt; text-align: right">(1,356,774</TD><TD STYLE="padding-bottom: 4pt; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-size: 10pt; text-align: right">(855,116</TD><TD STYLE="padding-bottom: 4pt; font-size: 10pt; text-align: left">)</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><I>&nbsp;</I></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">General and administrative expenses</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">General and administrative
expenses were $1.1 million for the three months ended March 31, 2019, compared to $1.0 million for the three months ended March
31, 2018. The increase was primarily due to payroll costs associated with new employee hires related to the business development
function and due to an increase in legal costs, accounting expenses and board of director fees primarily related to increased public
company related costs, offset in part by a decrease in stock-based compensation in the current quarter when compared to the prior
year period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">Research and development expenses</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Research and development expenses were
$0.4 million for the three months ended March 31, 2019, compared to $0.1 million for the three months ended March 31, 2018. The
increase in the current quarter over the comparable prior year period was attributed to an increase in supporting development activities,
which primarily included salary-related expenses and other costs related to consulting services, materials and supplies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">Interest expense</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Interest expense was $21,000 for the three
months ended March&nbsp;31, 2019, compared to $0.2 million for the three months ended March 31, 2018. The decrease was primarily
due to less non-cash interest expense related to the Series 3 Notes in comparison to interest expense of $54,000 and amortization
of debt issuance costs of $0.1 million related to the Series 1 Notes, Series 2 Notes and Series 3 Notes that were outstanding during
the three months ended March 31, 2018.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">Net change in fair value for the warrant liability and
premium conversion derivatives</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">The net change in fair
value for the warrant liability and premium conversion derivatives for the three months ended March 31, 2019 and 2018 was an expense
of $0.1 million and a benefit of $(0.1) million, respectively. The change is due primarily to fluctuations in our common stock
fair value and the number of potential shares of common stock issuable upon conversion of the underlying Series 1 Notes, Series
2 Notes and Series 3 Notes that were outstanding during the relevant period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">Loss on note extinguishments, net</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">Non-cash loss on note
extinguishments for the three months ended March 31, 2019 was $0.6 million compared to $0.2 million for three months ended March
31, 2018, resulting in an increase of $0.4 million period over period stemming from modifications to and conversions of the notes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">During the three months
ended March 31, 2019, the Series 3 Notes were converted on February 28, 2019 and the conversion was accounted for as a note extinguishment
given the bifurcated embedded premium debt conversion feature. During the three months ended March 31, 2018, the Series 2 Notes
were amended in March 2018. The amendment for the Series 2 Notes resulted in additional warrant coverage and new embedded conversion
features. As a result of the modifications made to the Series 2 Notes, we accounted for the amendments as a note extinguishment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Comparison of the Six Months Ended March 31, 2019 and 2018</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="10" STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>For the six months ended<BR> March&nbsp;31,</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(unaudited)</B></P></TD><TD STYLE="padding-bottom: 1.5pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</TD><TD STYLE="padding-bottom: 1.5pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Period to</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Period</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Change</B></P></TD><TD STYLE="padding-bottom: 1.5pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">Operating expenses:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 64%; font-size: 10pt; text-align: left; text-indent: -10pt; padding-left: 10pt">General and administrative</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 9%; font-size: 10pt; text-align: right">1,951,468</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 9%; font-size: 10pt; text-align: right">1,531,294</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 9%; font-size: 10pt; text-align: right">420,174</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1.5pt; text-indent: -10pt; padding-left: 10pt">Research and development</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">645,479</TD><TD STYLE="padding-bottom: 1.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">339,970</TD><TD STYLE="padding-bottom: 1.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">305,509</TD><TD STYLE="padding-bottom: 1.5pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1.5pt; text-indent: -10pt; padding-left: 10pt">Total operating expenses</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">2,596,947</TD><TD STYLE="padding-bottom: 1.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">1,871,264</TD><TD STYLE="padding-bottom: 1.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">725,683</TD><TD STYLE="padding-bottom: 1.5pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: -10pt; padding-left: 10pt">Loss from operations</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(2,596,947</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(1,871,264</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(725,683</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: -10pt; padding-left: 10pt">Interest expense</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(284,557</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(531,147</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">246,590</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: -10pt; padding-left: 10pt">Net change in fair value for the warrant liability and premium conversion derivatives</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(129,763</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(42,587</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(87,176</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1.5pt; text-indent: -10pt; padding-left: 10pt">Loss on note extinguishments, net</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">(553,447</TD><TD STYLE="padding-bottom: 1.5pt; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">(537,134</TD><TD STYLE="padding-bottom: 1.5pt; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">(16,313</TD><TD STYLE="padding-bottom: 1.5pt; font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 4pt; text-indent: -10pt; padding-left: 10pt">Net loss</TD><TD STYLE="font-size: 10pt; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-size: 10pt; text-align: right">(3,564,714</TD><TD STYLE="padding-bottom: 4pt; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-size: 10pt; text-align: right">(2,982,132</TD><TD STYLE="padding-bottom: 4pt; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-size: 10pt; text-align: right">(582,582</TD><TD STYLE="padding-bottom: 4pt; font-size: 10pt; text-align: left">)</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>General and administrative expenses</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">General and administrative
expenses were $2.0 million for the six months ended March 31, 2019, compared to $1.5 million for the six months ended March 31,
2018. The increase was primarily due to payroll costs associated with new employee hires related to the business development function
and due to an increase in legal costs, accounting expenses and board of director fees primarily related to increased public company
related costs. These expense increases were&nbsp;offset in part by a decrease in stock-based compensation during the current six
month period ended March 31, 2019 when compared to the prior year period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Research and development expenses</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">Research and development
expenses were $0.6 million for the six months ended March 31, 2019, compared to $0.3 million for the six months ended March 31,
2018. The increase during the six month period ended March 31, 2019 over the comparable prior year period was attributed to an
increase in supporting development activities, which primarily included salary-related expenses and other costs related to consulting
services, materials and supplies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0"><I>Interest expense</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">Interest expense was
$0.3 million for the six months ended March 31, 2019 compared to $0.5 million for the six months ended March 31, 2018. The decrease
was primarily due to less non-cash interest expense of $51,000 and amortization of debt discount costs of $0.2 million related
to the Series 3 Notes in comparison to interest expense of $0.1 million and amortization of debt issuance costs of $0.4 million
related to the Series 1 Notes, Series 2 Notes and Series 3 Notes that were outstanding during the three months ended March 31,
2018.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Net change in fair value for the warrant
liability and premium conversion derivatives</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">The net change in fair
value for the warrant liability and premium conversion derivatives for the six months ended March 31, 2019 and 2018 was $0.1 million
and $43,000, respectively. The change is due primarily to fluctuations in our common stock fair value and the number of potential
shares of common stock issuable upon conversion of the underlying Series 1 Notes, Series 2 Notes and Series 3 Notes that were outstanding
during the relevant period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Loss on note extinguishments, net</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">Non-cash loss on note
extinguishments, net for the six months ended March 31, 2019 was $0.6 million as compared to $0.5 million during the six month
period ended March 31, 2018, resulting in a slight increase period over period stemming from modifications to and conversions of
the notes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">During the six month period
ended March 31, 2019, the Series 3 Notes were converted on February 28, 2019 and the conversion was accounted for as a note extinguishment
given the bifurcated embedded premium debt conversion feature. During the six month period ended March 31, 2018, the Series 1
Notes and Series 2 Notes were amended in November 2017 and the Series 3 Notes were amended in December 2017. The amendment for
the Series 1 Notes extended the maturity date by approximately eight months and revised certain warrant and other provisions.
The amendment for the Series 2 Notes added additional warrant coverage and extended the maturity date by approximately five months.
The amendment for the Series 3 Notes accelerated the maturity date from October 2022 to December 2018 and revised certain formulaic
provisions contained in the underlying embedded conversion features. Lastly, the Series 2 Notes were amended again in March 2018
whereby new warrants and embedded conversion features were added. As a result of the modifications made to the Series 1 Notes,
Series 2 Notes and Series 3 Notes as discussed in this paragraph, the amendments were accounted for as note extinguishments.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">&nbsp;</P>

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<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Liquidity and Capital Resources</B></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Historical Capital Resources</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of March 31, 2019, our principal source
of liquidity consisted of cash deposits of $2.3 million. We have not generated any revenue, and we anticipate that we will continue
to incur losses for the foreseeable future. We anticipate that our expenses will increase substantially as we develop our cortical
strip, grid electrode and depth electrode technology and pursue pre-clinical testing and clinical trials, seek regulatory approvals,
contract to manufacture any products, establish our own sales, marketing and distribution infrastructure to commercialize our cortical
strip, grid electrode and depth electrode technology under development, if approved, hire additional staff, add operational, financial
and management systems and continue to operate as a public company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our source of cash to date has been proceeds
from the issuances of notes with warrants, common stock with warrants and unsecured loans, the terms of which are further described
below. See &ldquo;&mdash;Funding Requirements and Outlook&rdquo; below for the outstanding balances on our convertible notes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><U>Private Placements</U></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">2019 Private Placement</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In connection with the 2019 Private Placement,
between December 28, 2018 and July 1, 2019, the Company entered into subscription agreements (&ldquo;2019 Purchase Agreements&rdquo;)
with accredited investors (the &ldquo;2019 Purchasers&rdquo;), pursuant to which the Company agreed to issue and sell to accredited
investors up to a maximum of 4,000,000 units (the &ldquo;2019 Maximum Offering&rdquo;) at a price of $2.50 per Unit for total gross
proceeds to the Company of up to $10,000,000. Each unit consisted of one share of our Common Stock and (ii) a warrant to purchase
one share of Common Stock at an initial exercise price of $3.00 per share. The Company has issued an aggregate of 2,338,179 units,
for total gross proceeds to the Company of approximately $5,845,448 in connection with all closings of the 2019 Private Placement
to date.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">Under the 2019 Purchase
Agreements, the Company agreed to use the net proceeds from the 2019 Private Placement to pay the outstanding principal and accrued
interest on its convertible promissory notes if such notes did not convert prior to maturity, to pay the principal on its unsecured
term loans, for research and development, clinical studies, legal fees and sales and marketing expenses, as well as working capital
and general corporate purposes. The Company granted the 2019 Purchasers indemnification rights with respect to its representations,
warranties and agreements under the 2019 Purchase Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In connection with the 2019 Private Placement,
the Company entered into registration rights agreements with each of the 2019 Purchasers, pursuant to which the Company agreed
to file a registration statement with the SEC within 75 days of the final closing of the 2019 Private Placement covering the resale
of the shares of Common Stock sold in the 2019 Private Placement and the shares of Common Stock issuable upon exercise of the warrants.
This prospectus forms a part of the registration statement the Company agreed to file pursuant to the registration rights agreement.
Each registration rights agreement includes customary indemnification rights in connection with the registration statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The warrants are exercisable beginning
on the date of issuance and will expire on December 28, 2023, five years from the date of the first closing of the 2019 Private
Placement. Prior to expiration, subject to the terms and conditions set forth in the warrants, the holders of such warrants may
exercise the warrants for shares of Common Stock by providing notice to the Company and paying the exercise price per share for
each share so exercised.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In connection with the 2019 Private Placement, Paulson received a cash commission equal to 12% of the
gross proceeds from the sale of the units to certain investors (&ldquo;Paulson Investors&rdquo;), and HRA Capital received a cash
commission equal to 8% of the gross proceeds from the sale of the units to certain investors (&ldquo;HRA Investors&rdquo;). In
addition, the Company issued 5-year warrants to Paulson to purchase an amount of Common Stock equal to 10% of the shares of Common
Stock sold in the 2019 Private Placement to Paulson Investors at an exercise price of $2.75 per share, and the Company issued 5-year
warrants to Corinthian, an affiliate of HRA, and its designees, to purchase an amount of Common Stock equal to 8% of the shares
of Common Stock sold in the 2019 Private Placement to HRA Investors at an exercise price of $3.00 per share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">On July 1, 2019, the Board terminated the
2019 Private Placement.</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">2018 Private Placement</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">From July 9, 2018 through November 30,
2018, in connection with the 2018 Private Placement, the Company entered into Purchase Agreements with accredited investors, pursuant
to which the Company, agreed to issue and sell units, each consisting of (i) one share of our Common Stock and (ii) a warrant to
purchase 1 share of Common Stock at an initial exercise price of $3.00 per share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In the 2018 Private Placement, the Company
sold an aggregate of 615,200 units to the Purchasers, for total gross proceeds to the Company of approximately $1,538,000, inclusive
of the advances received in June 2018 in the amount of $188,000, before deducting offering expenses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In connection with the 2018 Private Placement,
the Company entered into registration rights agreements with each of the Purchasers, pursuant to which the Company agreed
to file a registration statement with the SEC within 75 days of the final closing of the 2018 Private Placement covering the resale
of the shares of Common Stock sold in the 2018 Private Placement and the shares of Common Stock issuable upon exercise of the warrants.
The warrants are exercisable beginning on the date of issuance and will expire on July 9, 2023, five years from the date of the
first closing. Prior to expiration, subject to the terms and conditions set forth in the warrants, the Purchasers may
exercise the warrants for shares of Common Stock by providing notice to the Company and paying the exercise price per share for
each share so exercised. The registration statement was filed, and became effective on February 28, 2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in; text-align: justify">In connection with the 2018 Private Placement,
the Company agreed to pay certain brokers a cash commission equal to 10% of the gross proceeds from the sale of the Units to certain
investors. In addition to the brokers&rsquo; commission, the Company agreed to issue 5 year warrants to the brokers to purchase
an amount of Common Stock equal to 10% of the total amount of shares sold in the 2018 Private Placement at an exercise price of
$3.45 per share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Pursuant to the Company&rsquo;s engagement
letter with HRA Capital (acting through the registered broker-dealer, Corinthian), as amended in February 2019, the Company agreed
to pay HRA Capital a cash fee equal to 8% of the gross proceeds received by the Company from certain investors in the 2018 Private
Placement and to issue warrants exercisable to purchase shares of Common Stock (or common stock equivalents) in an amount equal
to 8% of the shares of Common Stock purchased by such investors in the 2018 Private Placement. Such warrants were issued on July
1, 2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On December 12, 2018, the Board terminated
the 2018 Private Placement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><U>Series 3 Notes and Warrants</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">From October 2017 to May 2018, the Company
issued the Series 3 Notes in an aggregate principal amount of $1.5 million that bear interest
at a fixed rate of 8% per annum and warrants to purchase shares of the Company&rsquo;s capital stock. The Company initially entered
into a subscription agreement with certain accredited investors and closed an initial private placement of the Series 3 Notes
in October 2017. In December 2017, the Company and holders of a majority in aggregate principal amount of the Series 3 Notes entered
into an amended and restated subscription agreement to amend the terms of the Series 3 Notes and warrants. In December 2018, the
Company and the holders of a majority in aggregate principal amount of the Series 3 Notes agreed to further amend the Series 3
Notes to extend the maturity date from December 31, 2018 to June 30, 2019 under what was classified as a troubled debt restructuring.
The amendment was accounted for as a troubled debt restructuring given the Company&rsquo;s financial condition and given the concession
granted by the lenders with regards to pushing out the maturity date to June 30, 2019 with no corresponding compensation paid
for the extension. The Series 3 Notes, as amended, require us to repay the principal and accrued and unpaid interest thereon at
June 30, 2019. If the Company consummated an equity round of financing resulting in more than $3 million in gross proceeds before
June 30, 2019 (the &ldquo;Series 3 Qualified Financing&rdquo;), the outstanding principal and accrued and unpaid interest on the
Series 3 Notes would automatically convert into the securities issued by us in the Series 3 Qualified Financing equal to the outstanding
principal and accrued interest on the Series 3 Notes divided by 80% of the price per share of the securities issued by us in the
Series 3 Qualified Financing. If a Change of Control (as defined below) occurred prior to the earlier of a Series 3 Qualified
Financing or June 30, 2019, the Series 3 Notes would, at the election of the holders of a majority of the outstanding principal
amount of the Series 3 Notes, either become payable on demand as of the closing date of the Change of Control or become convertible
into shares of Common Stock immediately prior to the Change of Control at a price per share equal to the lesser of (i) the per
share value of the Common Stock as determined by our Board as if in connection with the granting of stock-based compensation or
in a private sale to a third party in an arms-length transaction or (ii) at the per share consideration to be paid in the Change
of Control (the date of any such conversion of the Series 3 Notes in connection with a Change of Control or Series 3 Qualified
Financing, is referred to herein as the &ldquo;Series 3 Conversion Date&rdquo;). Change of Control means a merger or consolidation
with another entity in which our stockholders do not own more than 50% of the outstanding voting power of the surviving entity
or the disposition of all or substantially all of our assets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Prior to the December 2017 amendment, if
the Company raised more than $3,000,000 in an equity financing before October 4, 2022, the outstanding principal and accrued and
unpaid interest on the Series 3 Notes would have automatically converted into the securities issued by the Company in such financing
based on the greater number of such securities resulting from either (i) the outstanding principal and accrued interest on the
Series 3 Notes divided by $2.25 or (ii) the outstanding principal and accrued interest on the Series 3 Notes multiplied by 1.25,
divided by the price paid per security in such financing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Each warrant originally issued to the holders
of Series 3 Notes grants the holders the option to purchase shares of our capital stock equal to the number of shares of capital
stock of the Company received by the holder upon conversion of the Series 3 Notes at a per share exercise price equal to (i) the
actual per share price of the securities issued in the Series 3 Qualified Financing if the Series 3 Notes convert in connection
with such a qualified financing or (ii) the price at which the Series 3 Notes converted if they converted in connection with a
Change of Control. The warrants are exercisable commencing on the Series 3 Conversion Date and expiring on the five year anniversary
of that date. The exercise price and number of the shares of our capital stock issuable upon exercising the warrants will be subject
to adjustment in the event of any stock dividends and splits, reverse stock split, recapitalization, reorganization, business combination
or similar transaction, as described therein.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On February 28, 2019, the Company completed an equity round of financing resulting in more than $3 million
in gross proceeds when it closed on the sale of Units in connection with the 2019 Private Placement. Following such financing,
the outstanding principal and interest of the Series 3 Notes of $1.7 million was automatically converted in accordance with the
terms of the Series 3 Notes into 839,179 Units, consisting of 839,179 shares of Common Stock and 839,179 warrants at an exercise
price equal to $3.00 per share. Additionally, the previously issued warrants became immediately exercisable for 839,179 shares
of Common Stock, at an exercise price equal to $2.50 per share, and will expire on February 28, 2024. The exercise price and number
of the shares of our Common Stock issuable upon exercise of the warrants will be subject to adjustment in the event of any stock
dividends and splits, reverse stock split, recapitalization, reorganization, business combination or similar transaction. As of
July 1, 2019, no principal remained outstanding on the Series 3 Notes. The shares of Common Stock offered pursuant to the registration
statement of which this prospectus is a part includes the shares of Common Stock issued upon conversion of the Series 3 Notes and
shares of Common Stock issuable upon exercise of the warrants issued in connection with the Series 3 Notes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><U>Series 2 Notes and Warrants</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In August 2017, the Company entered into
a subscription agreement and issued interest free promissory notes in an aggregate principal amount of $253,000 to certain accredited
investors. In November 2017, the Company and each subscriber amended the notes to extend the maturity date from February 18, 2018
to July 31, 2018 and to increase warrant coverage. In March 2018, the Company and each subscriber entered into a written consent
to again amend and restate the Series 2 Notes and to amend the subscription agreement
to replace the form of warrant agreement annexed to the subscription agreement and to provide for the issuance of an additional
warrant. In March 2018, the Company issued and delivered the Series 2 Notes and warrants to the subscribers. Effective as of July
2, 2018, the Company amended the Series 2 Notes by entering into debt conversion agreements with each subscriber to (i) convert
the outstanding principal and accrued and unpaid interest under the Series 2 Notes into shares of Common Stock based on the outstanding
balance divided by $1.80 per share (the &ldquo;Series 2 Conversion Shares&rdquo;); (ii) cancel and extinguish the Series 2 Notes;
and (iii) amend and restate the warrants to make them immediately exercisable upon conversion, at a per share exercise price equal
to $1.80 per share. As consideration for the early conversion of the Series 2 Notes, the Company issued each subscriber a new warrant,
exercisable for up to the number of shares of Common Stock equal to the number of Series 2 Conversion Shares received by such subscriber;
at a per share exercise price of $1.80 per share. The new warrants were exercisable commencing on July 2, 2018 and expire on November
21, 2021. The original warrants became immediately exercisable upon the July 2, 2018 conversion date, at a per share exercise price
equal to $1.80 per share and will expire on November 21, 2021.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The exercise price and number of the shares
issuable upon exercising all warrants are subject to adjustment in the event of any stock dividends and splits, reverse stock split,
recapitalization, reorganization or similar transaction, as described therein. The Series 2 Notes were converted into 144,053 shares
of Common Stock and warrants exercisable for 477,856 shares of Common Stock were issued as a result of the Series 2 Notes conversion
and extinguishment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><U>Series 1 Notes and Warrants</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">From November 2016 to June 2017, the Company
issued the Series 1 Notes in an aggregate principal amount of $1.6 million that bear interest at a fixed rate of 8% per
annum and warrants to purchase shares of the Company&rsquo;s capital stock. In June 2017 and November 2017, the terms of the Series 1 Notes and warrants were amended.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Effective as of July 2, 2018, the Company
amended the Series 1 Notes by entering into debt conversion agreements with each Series 1 Note subscriber to (i) convert the outstanding
principal and accrued and unpaid interest under the Series 1 Notes into shares of the Company&rsquo;s Common Stock based on the
outstanding balance divided by $1.80 per share (the &ldquo;Series 1 Conversion Shares&rdquo;); (ii) cancel and extinguish the Series
1 Notes; and (iii) amend and restate the warrants to make them immediately exercisable upon conversion, at a per share exercise
price equal to $1.80 per share. As consideration for the early conversion of the Series 1 Notes, the Company issued each subscriber
a new warrants, exercisable for up to the number of shares of Common Stock equal to the number of Series 1 Conversion Shares received
by such subscriber; at a per share exercise price of $1.80 per share. The warrants are exercisable commencing on July 2, 2018,
and expire on November 21, 2021. The warrants became immediately exercisable upon the July 2, 2018 conversion date, at a per share
exercise price equal to $1.80 per share, and will expire on November 21, 2021.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The exercise price and number of the shares
issuable upon exercising the warrants are subject to adjustment in the event of any stock dividends and splits, reverse stock split,
recapitalization, reorganization or similar transaction, as described therein. The Series 1 Notes were converted into 1,002,258
shares of Common Stock and warrants exercisable for 2,004,516 shares of Common Stock were issued on July 2, 2018 as a result of
the Series 1 Notes conversion and extinguishment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Series 1 Notes, prior to the July 2,
2018 conversion and extinguishment, required us to repay the principal and accrued and unpaid interest thereon at the earlier of
July 31, 2018, or the consummation of the next equity or equity-linked round of financing resulting in more than $3 million in
gross proceeds.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><U>Unsecured Loans</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In December 2018, we received cash gross
proceeds from an unsecured loan represented by a promissory note in the amount of $100,000 from a stockholder owning over 5% of
the Company&rsquo;s Common Stock. The loan was interest free and required that we repay the principal in full on the earlier of
the closing of an equity round of financing of the Company resulting in more than $5 million in gross proceeds or December 12,
2019. In November 2018, we received cash gross proceeds from unsecured loans represented by two promissory notes in the amounts
of $45,000 and $100,000 from stockholders owning over 5% of the Company&rsquo;s Common Stock. The loans were interest free and
required that we repay the principal in full on the earlier of the closing of an equity round of financing of the Company resulting
in more than $5 million in gross proceeds or November 14, 2019. In May 2018, we received cash gross proceeds from unsecured loans
represented by promissory notes in the amount of $168,000, of which $84,000 was from a stockholder owning over 5% of the Company&rsquo;s
Common Stock. The loans were interest free and required that we repay the principal in full on the earlier of the closing of an
equity round of financing of the Company resulting in more than $5 million in gross proceeds or May 17, 2019. In March 2018, we
also received cash gross proceeds in the amount of $115,000 represented by a promissory note from a stockholder owning over 5%
of the Company&rsquo;s Common Stock. The loan was also interest free and required that we repay the principal in full on the earlier
of the closing of an equity round of financing of the Company resulting in more than $3 million in gross proceeds or March 20,
2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of June 3, 2019, the Company had repaid
all of the promissory notes in full.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Funding Requirements and Outlook</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have no current source of revenue to
sustain our present activities, and we do not expect to generate revenue until, and unless, the FDA or other regulatory authorities
approve our cortical strip, grid electrode and depth electrode technology under development and we successfully commercialize our
cortical strip, grid electrode and depth electrode technology. Until such time, if ever, as we can generate substantial product
revenue, we expect to finance our cash needs through a combination of equity and debt financings as well as collaborations, strategic
alliances and licensing arrangements. We do not have any committed external source of funds. To the extent that we raise additional
capital through the sale of equity or convertible debt securities, the ownership interest of our stockholders will be diluted,
and the terms of these securities may include liquidation or other preferences that adversely affect your rights as a common stockholder.
Debt financing, if available, may involve agreements that include covenants limiting or restricting our ability to take specific
actions, such as incurring additional debt, making capital expenditures or declaring dividends. If we raise additional funds through
collaborations, strategic alliances or licensing arrangements with third-party partners, we may have to relinquish valuable rights
to our technologies, future revenue streams or grant licenses on terms that may not be favorable to us. If we are unable to raise
additional funds through equity or debt financings or through collaborations, strategic alliances or licensing arrangements when
needed, we may be required to delay, limit, reduce or terminate our product development, future commercialization efforts, or grant
rights to develop and market our cortical strip, grid electrode and depth electrode technology that we would otherwise prefer to
develop and market ourselves.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our independent registered public accounting
firm included an explanatory paragraph in its report on our financial statements as of and for the nine months ended September
30, 2018 and for the year ended December 31, 2017, noting the existence of substantial doubt about our ability to continue as a
going concern. This uncertainty arose from management&rsquo;s review of our results of operations and financial condition and its
conclusion that, based on our operating plans, we did not have sufficient existing working capital to fund our operating expenses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have agreements with WARF and Mayo that
require us to make certain milestone and royalty payments.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under the WARF License, we have agreed
to pay WARF $55,000 (representing a license fee) upon the earliest to occur of the date we cumulatively raise at least $3 million
in financing, which threshold was met, the date of a change of control, or our revenue reaching a specified threshold amount, and
to pay $65,000 (representing reimbursement for costs incurred by WARF in maintaining the licensed patents) upon the earliest to
occur of the date we cumulatively raise at least $5 million in financing, the date of a change of control, or our revenue reaching
a specified threshold amount. The initial $55,000 payment was paid in April 2018. The $65,000 reimbursement milestone was paid
in February 2019<B>.</B> We have also agreed to pay WARF a royalty equal to a single-digit percentage of our product sales pursuant
to the WARF License, with a minimum annual royalty payment of $50,000 for 2019, $100,000 for 2020 and $150,000 for 2021 and each
calendar year thereafter that the WARF License is in effect. If we or any of our sublicenses contest the validity of any licensed
patent, the royalty rate will be doubled during the pendency of such contest and, if the contested patent is found to be valid
and would be infringed by us if not for the WARF License, the royalty rate will be tripled for the remaining term of the WARF License.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under the Mayo Development Agreement, we
have agreed to pay Mayo a royalty equal to a single-digit percentage of our product sales pursuant to the Mayo Development Agreement.
Nothing further is due until we start selling our products.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">See &ldquo;Business&mdash;WARF License,&rdquo;
&ldquo;Business&mdash;Mayo Foundation for Medical Education and Research License and Development Agreement,&rdquo; &ldquo;Risk
Factors&mdash;Risks Relating to Our Business&mdash;We depend on intellectual property licensed from WARF for our technology under
development, and the termination of this license would harm our business&rdquo; and &ldquo;Risk Factors&mdash;We depend on our
partnership with Mayo to license certain know how for the development and commercialization of our technology.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our existing cash and cash equivalents
will not be sufficient to fund our operating expenses throughout our fiscal year ending September 30, 2019. To continue to fund
operations, we will need to secure additional funding. We may obtain additional financing in the future through the issuance of
our Common Stock and securities convertible into our Common Stock, through other equity or debt financings or through collaborations
or partnerships with other companies. We may not be able to raise additional capital on terms acceptable to us, or at all, and
any failure to raise capital when needed could compromise our ability to execute on our business plan, and we may be forced to
liquidate our assets. In such a scenario, the values we receive for our assets in liquidation or dissolution could be significantly
lower than the values reflected in our financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The development of our cortical strip,
grid electrode and depth electrode technology is subject to numerous uncertainties, and we have based these estimates on assumptions
that may prove to be substantially different than we currently anticipate and could use our cash resources sooner than we expect.
Additionally, the process of developing medical devices is costly, and the timing of progress in pre-clinical tests and clinical
trials is uncertain. Our ability to successfully transition to profitability will be dependent upon achieving FDA approval and
then a level of product sales adequate to support our cost structure. We cannot assure you that we will ever be profitable or generate
positive cash flow from operating activities.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Cash Flows for the Nine Months
Ended September 30, 2018 and 2017</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following is a summary of cash flows
for each of the periods set forth below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-size: 10pt; font-weight: bold; text-align: center">For the Nine Months Ended</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">September 30,</TD><TD STYLE="padding-bottom: 1.5pt; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2017</TD><TD STYLE="padding-bottom: 1.5pt; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center">(unaudited)</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; font-size: 10pt; text-align: left">Net cash used in operating activities</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 9%; font-size: 10pt; text-align: right">(2,229,207</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">)</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 9%; font-size: 10pt; text-align: right">(1,509,669</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Net cash used in investing activities</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(55,000</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1.5pt">Net cash provided by financing activities</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">2,271,000</TD><TD STYLE="padding-bottom: 1.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">1,057,481</TD><TD STYLE="padding-bottom: 1.5pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 4pt">Net decrease in cash</TD><TD STYLE="font-size: 10pt; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-size: 10pt; text-align: right">(13,207</TD><TD STYLE="padding-bottom: 4pt; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-size: 10pt; text-align: right">(452,188</TD><TD STYLE="padding-bottom: 4pt; font-size: 10pt; text-align: left">)</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">Net cash used in operating activities</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Net cash used in operating activities was
$2.2 million for the nine months ended September 30, 2018, which consisted of a net loss of $5.1 million partially offset primarily
by non-cash interest, stock-based compensation for non-employee services, note discount amortization, revaluation of premium debt
conversion derivatives and warrant liabilities and note extinguishments, totaling $2.2 million in the aggregate, and a net increase
in accounts payable and accrued expenses of $0.7 million. Net cash used in operating activities over the next year are expected
to increase as payments are made related to accrued legal services incurred through September 30, 2018.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Net cash used in operating activities was
$1.5 million for the nine months ended September 30, 2017, which consisted of a net loss of $3.4 million partially offset primarily
by non-cash interest, stock-based compensation, discount amortization, warrant issuance costs and revaluation of premium debt conversion
derivatives on the Series 1 Notes and Series 2 Notes totaling $1.2 million in the aggregate, an increase in accrued expenses of
$0.6 million, and a decrease in prepaid expenses of $46,677.</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">Net cash used by investing activities</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Net cash used by investing activities was
$55,000 for the nine months ended September 30, 2018 and consisted of the payment owed under the terms of the 2017 WARF Agreement
for the purchase of a patent license for research and development. There was no cash used for investing activities during the nine
months ended September 30, 2017.</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">Net cash provided by financing activities</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Net cash provided by financing activities
was $2.3 million for the nine months ended September 30, 2018, which consisted of net proceeds received from the 2018 Private Placement
totaling $1.1 million, the issuance of the Series 3 Notes and warrants of $0.9 million and issuance of unsecured loans in the amount
of $0.3 million during the nine month period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Net cash provided by financing activities
was $1.1 million for the nine months ended September 30, 2017, which consisted of $1.1 million in net proceeds received upon the
issuance of the Series 1 Notes and warrants and Series 2 Notes and warrants which was partially offset by a $50,000 repayment of
a short-term unsecured loan.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Cash Flows for the Six Months
Ended March 31, 2019 and 2018</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left">The following is a
summary of cash flows for each of the periods set forth below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-size: 10pt; font-weight: bold; text-align: center">For&nbsp;the&nbsp;Six Months Ended</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">March 31,</TD><TD STYLE="padding-bottom: 1.5pt; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</TD><TD STYLE="padding-bottom: 1.5pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; font-size: 10pt; text-align: left">Net cash used in operating activities</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 9%; font-size: 10pt; text-align: right">(2,576,280</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">)</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 9%; font-size: 10pt; text-align: right">(1,189,673</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Net cash used by investing activities</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(65,000</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(91,709</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1.5pt">Net cash provided by financing activities</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">4,933,419</TD><TD STYLE="padding-bottom: 1.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">1,236,551</TD><TD STYLE="padding-bottom: 1.5pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 4pt">Net increase (decrease) in cash</TD><TD STYLE="font-size: 10pt; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-size: 10pt; text-align: right">2,292,139</TD><TD STYLE="padding-bottom: 4pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-size: 10pt; text-align: right">(44,831</TD><TD STYLE="padding-bottom: 4pt; font-size: 10pt; text-align: left">)</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Net cash used in operating activities</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">Net cash used in operating
activities was $2.6 million for the six months ended March 31, 2019, which consisted of a net loss of $3.6 million partially offset
by non-cash interest, note discount amortization, revaluation of premium debt conversion derivatives and warrant liabilities, non-cash
note extinguishment, amortization related to intangible assets and stock-based compensation, totaling approximately $1.2 million
in the aggregate. Net loss was also adjusted by a net change of $0.2 million in our net operating assets and liabilities. The change
in operating assets and liabilities was primarily attributable to a net decrease in accounts payable and accrued expenses, offset
in part by an increase in our prepaid expenses, associated with fluctuations in our operating activities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">Net cash
used in operating activities was $1.2 million for the six months ended March 31, 2018, which consisted of a net loss of $3.0 million
partially offset primarily by non-cash interest, stock-based compensation for non-employee services, note discount amortization,
revaluation of premium debt conversion derivative and warrant liabilities and short-term notes extinguishment, totaling $1.4 million
in the aggregate, and an increase in accrued expenses of $0.4 million.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0"><I>Net cash used by investing activities
</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">Net cash used by investing
activities was $0.1 million for the six months ended March 31, 2019 and consisted of the payment owed under the terms of the WARF
License related to research and development.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">Net cash used by investing
activities was $0.1 million for the six months ended March 31, 2018 and consisted of the payment owed under the terms of the Mayo
Development Agreement for the purchase of a patent license for research and development.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0"><I>Net cash provided by financing activities</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">Net cash provided by
financing activities was $4.9 million for the six months ended March 31, 2019 which consisted primarily of net proceeds received
upon the issuance of the Units in the 2019 and 2018 Private Placements in the amount of approximately $4.6 million. Additionally,
cash provided by financing activities also included proceeds from stock option and warrant exercises in the aggregate of $0.4 million,
offset in part by net repayments over proceeds relating to our unsecured loans in the amount of $54,000 during the six month period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">Net cash provided by
financing activities was $1.2 million for the six months ended March 31, 2018 which largely consisted of $1.1 million in net proceeds
received upon the issuance of the Series 3 Notes and warrants during the quarter and $0.1 million in net proceeds received upon
the issuance of unsecured non-interest bearing notes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Critical Accounting Policies and Significant Judgments
and Estimates</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Critical Accounting Policies</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our management&rsquo;s discussion and analysis
of our financial condition and results of operations is based on our consolidated financial statements, which have been prepared
in accordance with accounting principles generally accepted in the United States of America, or GAAP. The preparation of these
consolidated financial statements requires us to make estimates, judgments and assumptions that affect the reported amounts of
assets and liabilities, disclosure of contingent assets and liabilities as of the dates of the balance sheets and the reported
amounts of revenue and expenses during the reporting periods. In accordance with GAAP, we base our estimates on historical experience
and on various other assumptions that we believe are reasonable under the circumstances at the time such estimates are made. Actual
results may differ materially from our estimates and judgments under different assumptions or conditions. We periodically review
our estimates in light of changes in circumstances, facts and experience. The effects of material revisions in estimates are reflected
in our consolidated financial statements prospectively from the date of the change in estimate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">While our significant accounting policies
are more fully described in the notes to our consolidated financial statements appearing elsewhere in this prospectus, we believe
the following are the critical accounting policies used in the preparation of our consolidated financial statements that require
significant estimates and judgments.</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">Fair Value of Financial Instruments</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We account for fair value measurements
of assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring or nonrecurring
basis adhering to the Financial Accounting Standards Board (FASB) fair value hierarchy that prioritizes the inputs to valuation
techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for
identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable
inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities
accessible to the Company at the measurement date.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">Level 2 Inputs: Other than quoted prices included in Level 1 inputs that are observable for the
asset or liability, either directly or indirectly, for substantially the full term of the asset or liability.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the
extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity
for the asset or liability at measurement date.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of March 31, 2019, September 30, 2018
and December 31, 2017, the fair values of cash, accounts payable, accrued expenses and the unsecured loans approximated their carrying
values because of the short-term nature of these assets or liabilities. The estimated fair value of the notes was based on amortized
cost which was deemed to approximate fair value. The fair value of the warrant liability and the premium conversion derivatives
associated with the convertible promissory notes was based on both the estimated fair value of our Common Stock of $2.29, $2.30
and $2.52 as of February 28, 2019, September 30, 2018 and December 31, 2017, respectively, and cash flow models discounted at current
implied market rates evidenced in recent arms-length transactions representing expected returns by market participants for similar
instruments which were based on Level 3 inputs.</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">Intellectual Property</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We entered into two licensing agreements
with major research institutions, which allow for access to certain patented technology and know-how. Milestone payments under
those agreements are capitalized and amortized to general and administrative expense over the expected useful life of the acquired
technology.</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">Impairment of Long-Lived Assets</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We evaluate long-lived assets, which consist
entirely of licensed intellectual property for impairment whenever events or changes in circumstances indicate that the carrying
value of these assets may not be recoverable. We assess the recoverability of long-lived assets by determining whether or not the
carrying value of such assets will be recovered through undiscounted expected future cash flows. If the asset is considered to
be impaired, the amount of any impairment is measured as the difference between the carrying value and the fair value of the impaired
asset. Through March 31, 2019, no milestones triggering possible impairment of our long-lived assets have occurred.</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">Debt Issuance Costs</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Debt issuance costs are recorded as a reduction
of the notes. Amortization of debt issuance costs is calculated using the straight-line method over the term of the notes, which
approximates the effective interest method, and is recorded in interest expense in the statements of operations.</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">Research and Development Costs</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Research and development costs are charged
to expense as incurred. Research and development expenses may be comprised of costs incurred in performing research and development
activities, including clinical trial costs, manufacturing costs for both clinical and pre-clinical materials as well as other contracted
services, license fees, and other external costs. Nonrefundable advance payments for goods and services that will be used in future
research and development activities are expensed when the activity is performed or when the goods have been received, rather than
when payment is made, in accordance with ASC 730, <I>Research and Development</I>.</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">Warrant Liability</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We issued warrants to purchase equity securities
in connection with the issuance of convertible promissory notes. We account for these warrants as a liability at fair value when
the number of shares is not fixed and determinable and when warrant pricing protections in future equity financings are not available
to other common stockholders. Additionally, issuance costs associated with the warrant liability are expensed as incurred and reflected
as interest expense in the accompanying consolidated statements of operations. We adjust the liability for changes in fair value
until the earlier of the exercise or expiration of the warrants, amendment of warrant terms that no longer require liability treatment,
or until such time, if any, as the number of shares to be exercised becomes fixed, at which point the warrants will be classified
in stockholders&rsquo; (deficit) equity provided that there are sufficient authorized and unissued shares of common stock to settle
the warrants and redeem any other contracts that may require settlement in shares of common stock. Any change in fair value of
the warrant liability while outstanding is recognized in the consolidated statements of operations.</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">Premium Debt Conversion Derivatives</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We evaluate all conversion and redemption
features contained in a debt instrument to determine if there are any embedded derivatives that require separation from the host
debt instrument. An embedded derivative that requires separation is bifurcated from its host debt instrument and a corresponding
discount to the host debt instrument is recorded. The discount is amortized and recorded to interest expense over the term of the
host debt instrument using the straight-line method which approximates the effective interest method. The separated embedded derivatives
are accounted for separately on a fair value basis. We record the fair value changes of separated embedded derivatives in the consolidated
statements of operations at each reporting period while outstanding.</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">Income Taxes</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Income taxes are accounted for under the
asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to
differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax base and
operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected
to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Deferred
tax assets are reduced by a valuation allowance if it is more likely than not that some portion of all of the deferred tax asset
will not be realized.</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">Net Earnings or Loss Per Share</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Basic earnings or loss per share of common
stock is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Diluted earnings or loss per share of common
stock is computed similarly to basic earnings or loss per share except the weighted average shares outstanding are increased to
include additional shares from the assumed exercise of any common stock equivalents, if dilutive. Our stock options, warrants and
convertible promissory notes are considered common stock equivalents for this purpose. Diluted earnings is computed utilizing the
treasury method for the stock options and warrants. Diluted earnings with respect to the convertible promissory notes utilizing
the if-converted method was not applicable during the periods presented as no conditions required for conversion had occurred during
these periods. No incremental common stock equivalents were included in calculating diluted loss per share because such inclusion
would be anti-dilutive given the net loss reported for the periods presented.</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">Common Stock Valuation Methodology</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">Prior to the Acquisition</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Prior to the Acquisition on July 20, 2017,
NeuroOne, Inc. was a private company with no active public market for its common stock. Therefore, at the time of grant, NeuroOne,
Inc. determined the fair value of its common stock using a contemporaneous valuation performed in accordance with the guidance
outlined in the <I>American Institute of Certified Public Accountants Practice Aid, Valuation of Privately-Held Company Equity
Securities Issued as Compensation</I>, also known as the Practice Aid. We performed these contemporaneous valuations on an as-needed
basis. In conducting the contemporaneous valuations, NeuroOne, Inc. considered all objective and subjective factors that it believed
to be relevant for each valuation conducted, including its best estimate of our business condition, prospects and operating performance
at each valuation date. Within this contemporaneous valuation performed by us, a range of factors, assumptions and methodologies
were used. These significant factors included:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">our recent securities transactions;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">our stage of development and business strategy;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">the likelihood of a liquidity event such as an initial public offering, a merger or the sale of
our company;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">our financial condition and operating results, including our projected results; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">the financial condition and operating results of comparable publicly owned companies</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The fair value of NeuroOne, Inc.&rsquo;s
common stock prior to the Acquisition was determined during a period when there was limited data with regard to value indication
other than convertible notes issued between November 2016 and June 2017. At the time, such convertible notes contained a $1.80
conversion cap, which was treated as an estimated price of preferred stock into which the notes would convert. A transaction backsolve
was performed that equated the $1.5 million investment in the convertible notes with the resulting equity allocation to the hypothetical
converted shares and warrants expected to be issued upon conversion. The resulting equity value was then used to infer the value
of common stock within the same option-pricing framework. This scenario implicitly assumed 100% likelihood of a stock financing.
In order to account for the possibility of dissolution, the transaction backsolve was used along with a dissolution scenario within
a hybrid Probability Weighted Expected Return Method (&ldquo;PWERM&rdquo;). The scenarios were weighted 50/50, and a Discount For
Lack of Marketability (&ldquo;DLOM&rdquo;) applied, to determine the valuation conclusion.</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">Following the Acquisition</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For valuations following the Acquisition,
management estimated our enterprise value on a continuing operations basis, using the market approach, with certain adjustments
relating to the thinly traded status of the Company. The traded price of the Company was deemed not to be an entirely reliable
indication of fair market value given the lack of trading liquidity. Therefore, in addition to applying partial weighting to the
traded price, we relied on forward revenue multiples from guideline public companies (&ldquo;GPC&rdquo;) for calendar year 2019
and 2020. The resulting equity value from the GPC method was allocated to Common Stock using the option pricing method, and a DLOM
was applied. Based on the above methodology and weightings, we derived a valuation conclusion of $2.38, $2.30 and $2.52 per share
as of March 31, 2019, September 30, 2018 and December 31, 2017, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The significant factors contributing to
the increase in the fair value of our Common Stock following the Acquisition included the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">The successful completion of the reverse merger;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">Access to new capital as a public company;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">Improved revenue projections;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">Improved general economic conditions;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">Additional issuance of convertible notes; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">Important developments relating to achievement of our business objectives</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">There are significant judgments and estimates
inherent in the determination of fair value of our Common Stock, including the contemporaneous valuations. These judgments and
estimates include assumptions regarding our future operating performance, and the determination of the appropriate valuation methods.
If we had made different assumptions, our stock-based compensation expense, net loss and net loss per common share could have been
significantly different.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The fair value of our Common Stock is used
as an input into the fair value determination of the warrants, stock option or other equity awards that we have issued during the
year or are outstanding liabilities at our reporting date.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Recent Accounting Pronouncements</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">See Note 3 &mdash; &ldquo;Summary of Significant
Accounting Policies&rdquo; included in the financial statements in this prospectus regarding the impact of certain recent accounting
pronouncements on our financial statements.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Off-Balance Sheet Arrangements</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">None.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><A NAME="a_012"></A>MARKET FOR AND DIVIDENDS
ON REGISTRANT&rsquo;S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our Common Stock has been quoted on the
OTCQB under the symbol &ldquo;NMTC&rdquo; since December 19, 2017. Prior to that date, our Common Stock had been quoted on the
OTC Pink from November 2012. Trading in stocks quoted on the OTCQB is often thin and is characterized by wide fluctuations in trading
prices due to many factors that may be unrelated or have little to do with a company&rsquo;s operations or business prospects.
We cannot assure you that there will be a market for our Common Stock in the future.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table presents the range of high and low closing bid information for our common equity for
each full quarterly period within the six months ended March 31, 2019, each full quarterly period within the nine months ended
September 30, 2018 (the &ldquo;Transition Period&rdquo;) and the years ended December 31, 2017 and 2016, as quoted by the OTC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">There is no established public trading
market for our Common Stock. The over-the-counter market quotations below reflect inter-dealer prices, without retail mark-up,
mark-down or commission and may not necessarily represent actual transactions. Prior to August 1, 2017, only one market maker was
quoting the bid price information for our Common Stock and only one bid price was available.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">High</TD><TD STYLE="padding-bottom: 1.5pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Low</TD><TD STYLE="padding-bottom: 1.5pt; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">Subsequent Interim Periods</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; font-size: 10pt">First Quarter Ended December 31, 2018</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 9%; font-size: 10pt; text-align: right">7.79</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 9%; font-size: 10pt; text-align: right">4.60</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">Second Quarter Ended March 31, 2019</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">4.74</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">3.10</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">Transition Period Ended September 30, 2018</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">First Quarter</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">4.22</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">3.50</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Second Quarter</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">6.00</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">3.55</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Third Quarter</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">10.00</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">3.00</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt">Fiscal Year Ended December 31, 2017</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">First Quarter</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">1.50</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">1.50</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Second Quarter</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">1.50</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">1.50</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Third Quarter</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">4.15</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">1.50</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Fourth Quarter</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">3.50</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">2.02</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt">Fiscal Year Ended December 31, 2016</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">First Quarter</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">1.50</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">1.50</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Second Quarter</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">1.50</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">1.50</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Third Quarter</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">1.50</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">1.50</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Fourth Quarter</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">1.50</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">1.50</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Holders</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of July 1, 2019, there were 159 holders
of record of our Common Stock.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Dividends</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have not declared or paid any cash dividends
on our Common Stock and presently intend to retain our future earnings, if any, to fund the development and growth of our business
and, therefore, do not anticipate paying any cash dividends in the foreseeable future.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><A NAME="a_013"></A>CHANGES IN AND DISAGREEMENTS
WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">None beyond what has previously been reported.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><A NAME="a_014"></A>DIRECTORS AND EXECUTIVE
OFFICERS</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Directors and Executive Officers</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Board is divided into three classes.
Members of each class serve staggered three-year terms. The following table provides information as to each person who is, as of
the filing hereof, a director and/or executive officer of the Company:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;&nbsp;</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: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 30%; border-bottom: black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Name</B></FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 58%; border-bottom: black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Position(s)</B></FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 10%; border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Age</B></FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">David Rosa</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Class II Director, Chief Executive Officer, and President</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">55</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mark Christianson</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Vice President, Business Development and Marketing</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">52</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Thomas Bachinski</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chief Development Officer</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">58</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Scott Heuler</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Vice President, Sales</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">55</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Steve Mertens</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chief Technology Officer</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">56</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Paul Buckman</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Class I Director and Chairman of the Board</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">63</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Suraj Kalia</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Class III Director</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">47</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Jeffrey Mathiesen</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Class III Director</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">58</FONT></TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">No Family Relationships</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">There is no family relationship between
any director and executive officer or among any directors or executive officers.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Business Experience and Background of Directors and Executive
Officers</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">David Rosa</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Mr. Rosa has served as the Chief Executive
Officer, President and a director of the Company since July 2017 and as Chief Executive Officer and a director of our wholly-owned
subsidiary, NeuroOne, Inc., since October 2016. From November 2009 to November 2015, Mr. Rosa served as the chief executive officer
and president of Sunshine Heart, Inc., a publicly-held early-stage medical device company. From 2008 to November 2009, Mr. Rosa
served as chief executive officer of Milksmart, Inc., a company that specializes in medical devices for animals. From 2004 to 2008,
Mr. Rosa served as the vice president of global marketing for cardiac surgery and cardiology at St. Jude Medical. Currently, he
serves as a director on the board of directors of Biotricity Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Mr. Rosa&rsquo;s qualifications to serve
on the Board include his senior leadership experience in the medical device industry. In addition, his day-to-day leadership of
the Company gives him critical insights into the Company&rsquo;s operations, strategy and competition, and he facilitates the Board&rsquo;s
ability to perform its oversight function. Throughout his career at the Company and his former positions, he has demonstrated strong
technical, strategic, and operational expertise, and he possesses in-depth knowledge of the medical device industry on a global
basis.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Mark Christianson</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Mr. Christianson has served as Vice President
of Business Development and Marketing of the Company since July 2017 and of our wholly-owned subsidiary, NeuroOne, Inc., since
December 2016. From May 2013 to December 2016 Mr. Christianson served as North American sales manager for Cortec Corporation. From
February 2012 to May 2013 Mr. Christianson held the position of business development executive for Robert Half International. From
May 2009 to February 2012 Mr. Christianson held the position of regional sales manager for PMT. Mr. Christianson studied
accounting at Augsburg College in Minneapolis. Mr. Christianson brings 15 years of high performing sales, sales management, and
project management experience to the team. In addition, he also has contributed to the development and corporate strategy of the
Company given his experience in the neurological field and his close relationships with key epilepsy opinion leaders.</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Thomas Bachinski</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Mr. Bachinski has served as Chief Development
Officer of the Company since July 2017 and of our wholly-owned subsidiary, NeuroOne, Inc., since January 2017. From July 2015 to
January 2017, Mr. Bachinski served as the vice president of research and development/engineering at Caerus Corporation, a privately
held medical device company developing products for both the human medical and animal veterinarian industries. In December 2014,
Mr. Bachinski founded FutureWorks Innovative Engineering where technology commercialization strategies are developed and executed
for a variety of clients across the medical device industry. Prior to FutureWorks, Mr. Bachinski was vice president of research
and development and director of the advanced concept development group at Empi, Inc., developing and commercializing a portfolio
of neuro-stimulation devices and technologies. He holds a Master&rsquo;s degree in Engineering and an MBA. We believe that Mr.
Bachinski&rsquo;s extensive engineering background and accomplishments in technology commercialization in the neurological market
space will bring key engineering solutions and insight into our future product portfolio under development and future commercialization
efforts, if approved.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>



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<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Scott Heuler</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Mr. Heuler has served as Vice President
of Sales of the Company since January 2019. From January 2005 through December 2018, Mr. Heuler served as the Area Vice President
of Sales-U.S. for the Intervention Cardiology Division of Boston Scientific Corporation. From January 2017 through December 2018,
Mr. Heuler also managed sales for Boston Scientific Corporation&rsquo;s Structural Heart Division. Prior to this, Mr. Heuler held
various senior sales and marketing roles with Guidant Corporation and U.S Surgical Corporation. He holds a BS in Marketing and
Finance from the University of Central Florida.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Steve Mertens</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Mr. Mertens has served as Chief Technology
Officer of the Company since April 2019. From September 2018 through April 2019, Mr. Mertens was a consultant at Steve Mertens
Consulting, L.L.C., of which he was the principal and owner. From November 2012 through September 2018, Mr. Mertens served as the
Senior Vice President of Research and Development and Operations at Nuvaira Inc., a privately held lung denervation company developing
minimally invasive product for obstructive lung diseases. Prior to Nuvaira<B>,</B> Mr. Mertens served as a Senior Vice President
of Research and Development for Boston Scientific Corporation, guiding a wide range of technologies through product development
for the cardiology, electrophysiology and peripheral vascular markets. He holds a bachelor&rsquo;s degree in engineering and a
Master&rsquo;s degree in business administration. Currently, he serves as chairman of the board of directors of the University
Enterprise Laboratories.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Paul Buckman</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Mr. Buckman has served as Chairman of the
Board of the Company since August 2017 and as Chairman of the Board of our wholly-owned subsidiary, NeuroOne, Inc., since October
2016. Mr. Buckman is currently the General Manager of Structural Heart for LivaNova PLC. Prior to joining LivaNova, Mr. Buckman
served as chief executive officer of Conventus Orthopaedics, a Minnesota-based company specializing in peri-articular bone fracture
fixation, from September 2013 until March of 2017. Mr. Buckman was chief executive officer of Sentreheart, Inc., a medical technology
company focused on closure of various anatomic structures, from February 2012 to September 2013. Previously, Mr. Buckman served
as chief executive officer and chairman of Pathway Medical Technologies, Inc., a medical device company focused on treatment of
peripheral arterial disease, from September 2008 to February 2012; as chief executive officer of Devax, Inc., a developer and manufacturer
of drug eluting stents, from December 2006 to September 2008; as president of the cardiology division of St. Jude Medical, Inc.,
a publicly traded diversified medical products company, from August 2004 to December 2006; and as chairman of the board of directors
and chief executive officer of ev3, LLC, a Minnesota-based medical device company focused on endovascular therapies that Mr. Buckman
founded and developed into an $80 million business, from January 2001 to January 2004. Mr. Buckman has worked in the medical device
industry for over 30 years, including 10 years at Scimed Life Systems, Inc. and Boston Scientific Corporation, a publicly traded
medical device manufacturer, where he held several executive positions before becoming president of the cardiology division of
Boston Scientific in January 2000. Mr. Buckman also currently serves as a director for Ablative Solutions, Inc., ActivOrtho, Aortica,
Inc., DyaMX, Inc., and as chairman of Miromatrix, Inc. He previously served as a director of Conventus Orthopaedics, Caisson Interventional
LLC, Velocimed, Inc., where he was a co-founder, EndiCor, Inc., Microvena, Inc., Sunshine Heart, Inc., a publicly-held early-stage
medical device company, NexGen Medical, and Micro Therapeutics, Inc. Mr. Buckman received a Master&rsquo;s degree in Business Administration
and Finance and a B.A. degree in Business Administration from Western Michigan University.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We believe that Mr. Buckman&rsquo;s strong
executive experience in medical device companies provides the Company with valuable guidance on product development and operational
matters.</P>



<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Suraj Kalia</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Mr. Kalia has served as a member of our
Board since August 2017 and as a director of our wholly-owned subsidiary, NeuroOne, Inc., since March 2017. He currently serves
as a managing director and senior research analyst at Northland Capital Markets, where he covers the medical technology sector,
after rejoining the firm in August 2012. His previous positions include managing director and senior medical device analyst at
Rodman &amp; Renshaw Capital Group, senior vice president at Madison Williams and Company LLC, senior research analyst at Piper
Jaffray Companies, and project manager at Entegris, Inc. as part of the Business Development &amp; Engineering groups.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Mr. Kalia has served as a member of the
Advisory Board of Levitronix, LLC from 2009 until its acquisition by Thoratec Corporation in 2011. He has more than 18 years of
experience working in the financial and health care industries. Mr. Kalia has also served as an Adjunct Professor of Finance and
taught MBA level courses on Investment Theory and Mergers &amp; Acquisitions at University of St. Thomas.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Mr. Kalia holds the Chartered Financial
Analyst (CFA) designation. He received a Master&rsquo;s of Business Administration degree in Finance from the University of St.
Thomas in Minneapolis, a Bachelor&rsquo;s degree in Chemical Engineering from the Indian Institute of Technology in Bombay, India
and a Master&rsquo;s degree in Chemical Engineering from Stevens Institute of Technology in Hoboken, N.J.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We believe that Mr. Kalia&rsquo;s extensive
background in the financial and medtech industry bring important practical experience from a financial and strategic perspective.
In addition, his engineering background enables him to provide key insights with respect to the Company&rsquo;s product development
strategy.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Jeffrey Mathiesen</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Mr. Mathiesen has served as a member of
the Board of the Company since August 2017 and as a director of our wholly-owned subsidiary, NeuroOne, Inc., since April 2017.
He has served as chief financial officer of Teewinot Life Sciences, a privately held biopharmaceutical company focused on the biosynthetic
production of pure pharmaceutical grade cannabinoids since March 2019. Previously he served as the chief financial officer of Gemphire
Therapeutics Inc., a publicly-held clinical-stage biopharmaceutical company developing therapies for patients with cardiometabolic
disorders, from September 2015 to September 2018. From August 2015 to September 2015 he was a consultant to Gemphire. Prior to
joining Gemphire, Mr. Mathiesen served as chief financial officer of Sunshine Heart, Inc., a publicly-held early-stage medical
device company, from March 2011 to January 2015. From December 2005 to April 2010, Mr. Mathiesen served as vice president and chief
financial officer of Zareba Systems, Inc., a manufacturer and marketer of medical products, perimeter fencing and security systems,
which was purchased by Woodstream Corporation in April 2010. Mr. Mathiesen has held executive positions with publicly traded companies
dating back to 1993, including vice president and chief financial officer positions. Mr. Mathiesen also serves as a director, audit
committee chairman and nominating and governance committee member of Sun BioPharma, Inc., a publicly traded clinical stage biopharmaceutical
company that develops therapies for pancreatic diseases and as a director and audit committee chairman of eNeura, Inc., a privately-held
medical technology company providing therapy for both acute treatment and prevention of migraine. Mr. Mathiesen received a B.S.
in Accounting from the University of South Dakota and is also a Certified Public Accountant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We believe that Mr. Mathiesen brings financial
insight and leadership and a wealth of experience in capital markets to the Board, as well as knowledge of public company accounting
and financial reporting requirements and familiarity with the life sciences industry.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Board and Committee Information</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are committed to good corporate governance
practices. These practices provide an important framework within which our Board and management pursue our strategic objectives
for the benefit of our stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Board Leadership Structure</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our Board is currently chaired by Paul
Buckman, who has authority, among other things, to call and preside over meetings of our Board, to set meeting agendas and to determine
materials to be distributed to the Board and, accordingly, has substantial ability to shape the work of the Board. The positions
of our chairman of the Board and Chief Executive Officer are presently separated. Separating these positions allows our Chief Executive
Officer, Mr. Rosa, to focus on our day-to-day business, while allowing Mr. Buckman to lead the Board.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Role of the Board in Risk Oversight</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our Board does not have a standing risk
management committee, but rather administers this oversight function directly through their Board as a whole. The Board&rsquo;s
risk oversight is administered primarily through the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">review and approval of an annual business plan;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">review of a summary of risks and opportunities at meetings of the Board;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">review of business developments, business plan implementation and financial results;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">oversight of internal controls over financial reporting; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">review of employee compensation and its relationship to our business plans.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Director Independence</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are not currently listed on a national
securities exchange or in an inter-dealer quotation system that has requirements that a majority of our Board be independent. However,
our Board has undertaken a review of the independence of the directors and considered whether any director has a material relationship
with us that could compromise his ability to exercise independent judgment in carrying out his or her responsibilities applying
Nasdaq independence standards. As a result of this review, our Board has determined that, Messrs. Buckman, Kalia and Mathiesen,
representing three of our four directors, are &ldquo;independent directors.&rdquo; Mr. Rosa is not considered independent due to
his service as an executive officer of the Company. Prior to the Acquisition, Mr. Samad was Original Source Entertainment&rsquo;s
sole executive officer and director and was not considered independent.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Structure and Operation of the Board</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Because our Common Stock is quoted on the
OTCQB Marketplace, the Company is not subject to the listing requirements of any securities exchange regarding committee matters.
We do not have standing compensation or nominating committees of our Board. However, the full Board performs all of the functions
of a standing compensation committee and nominating committee.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Nomination of Directors</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our Board does not currently have a standing
nominating committee, and thus we do not have a nominating committee charter. Due to our small size and limited operations to date,
the Board determined that it was appropriate for the entire Board to act as the nominating committee. The full Board currently
has the responsibility of selecting individuals to be nominated for election to the Board. Board candidates are identified by existing
directors or members of management. The Board considers the needs for the Board as a whole when identifying and evaluating nominees
and, among other things, considers diversity in background, age, experience, qualifications, attributes and skills in identifying
nominees, although it does not have a formal policy regarding the consideration of diversity. In 2018, the Board did not employ
a search firm or pay fees to other third parties in connection with identifying or evaluating Board nominee candidates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in; text-align: justify">The Board will consider director candidates
recommended by stockholders so long as such recommendations are sent on a timely basis and are otherwise in accordance with the
Company&rsquo;s Certificate of Incorporation, our Bylaws and applicable law. Any such candidates will be evaluated on the same
basis as other candidates being evaluated by the Board. Information with respect to such candidates should be sent to our principal
executive offices, at 10901 Red Circle Drive, Suite 150, Minnetonka, MN 55343.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Compensation Committee Related Function</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our Board does not currently have a standing
compensation committee, and thus we do not have a compensation committee charter. The Company&rsquo;s executive compensation program
is administered by the independent directors, who determine the compensation of the Chief Executive Officer and, considering the
recommendations of the Chief Executive Officer, other executive officers of the Company. In reviewing the compensation of our executive
officers, the independent directors consider published compensation surveys and current market conditions.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Audit Committee Matters</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Audit Committee of our Board
(the &ldquo;Audit Committee&rdquo;) reviews with management and the Company&rsquo;s independent registered public
accounting firm the Company&rsquo;s financial statements, the accounting principles applied in their preparation, the scope
of the audit, any comments made by the independent registered public accounting firm upon the financial condition of the
Company and its accounting controls and procedures and such other matters as the Audit Committee deems appropriate. The Audit
Committee&rsquo;s charter is available on our website, <I>www.neurooneinc.com</I>, under Investors &mdash; Corporate
Governance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Audit Committee currently consists
of three directors: Mr. Mathiesen (chair), Mr. Buckman and Mr. Kalia. The Board has determined that each of Mr. Buckman, Mr. Kalia
and Mr. Mathiesen is &ldquo;independent&rdquo; under Nasdaq independence standards. Additionally, the Board has determined that
each of Mr. Mathiesen and Mr. Buckman qualifies as an &ldquo;audit committee financial expert&rdquo; as that term is defined in
rules promulgated by the SEC. The designation of an &ldquo;audit committee financial expert&rdquo; does not impose upon such persons
any duties, obligations or liabilities that are greater than those generally imposed on each of them as a member of the Audit Committee
and the Board, and such designation does not affect the duties, obligations or liabilities of any other member of the Audit Committee
or the Board.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The functions of the Audit Committee include:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">Selecting our independent registered public accounting firm;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">Reviewing the results and scope of the audit and other services provided by our independent
                                                                   registered public accounting firm; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">Reviewing and evaluating our audit and control functions.</TD></TR></TABLE>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Code of Business Conduct and Ethics</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our Board has adopted a code of business
conduct and ethics that applies to all of our employees, officers and directors, including our Chief Executive Officer and other
executive officers. We intend to disclose future amendments to certain provisions of our code of business conduct and ethics, or
waivers of these provisions in public filings.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Corporate Governance Guidelines</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our Board has adopted Corporate Governance
Guidelines that set forth expectations for directors, director independence standards, Board structure and functions and other
policies for the governance of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Involvement in Certain Legal Proceedings</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">To our knowledge, our directors and executive
officers have not been involved in any of the following events during the past ten years:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">any bankruptcy petition filed by or against such person or any business of which such person was
a general partner or executive officer either at the time of the bankruptcy or within two years prior to that time;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">any conviction in a criminal proceeding or being subject to a pending criminal proceeding (excluding
traffic violations and other minor offenses);</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">being subject to any order, judgment, or decree, not subsequently reversed, suspended or vacated,
of any court of competent jurisdiction, permanently or temporarily enjoining him from or otherwise limiting his involvement in
any type of business, securities or banking activities or to be associated with any person practicing in banking or securities
activities;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">being found by a court of competent jurisdiction in a civil action, the SEC or the Commodity Futures
Trading Commission to have violated a Federal or state securities or commodities law, and the judgment has not been reversed, suspended,
or vacated;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">being subject of, or a party to, any Federal or state judicial or administrative order, judgment
decree, or finding, not subsequently reversed, suspended or vacated, relating to an alleged violation of any Federal or state securities
or commodities law or regulation, any law or regulation respecting financial institutions or insurance companies, or any law or
regulation prohibiting mail or wire fraud or fraud in connection with any business entity; or</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">being subject of or party to any sanction or order, not subsequently reversed, suspended, or vacated,
of any self-regulatory organization, any registered entity or any equivalent exchange, association, entity or organization that
has disciplinary authority over its members or persons associated with a member.</TD></TR></TABLE>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Advisory Boards</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company has established two advisory
boards: a Physician Advisory Board, and an Artificial Intelligence Advisory Board. These advisory boards do not have decision-making
authority but solely provide advice to management.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company&rsquo;s Physician Advisory
Board has five members, including one Ph.D and four medical doctors. Company management generally meets with individuals on the
Physician Advisory Board on a weekly basis, and such members advise the Company on medical and scientific matters as they relate
to the Company&rsquo;s business. Three members are affiliated with the Mayo Clinic or the Cleveland Clinic, and do not receive
any additional compensation for their services. The other two members, Dr. Justin Williams and Dr. Greg Esper, entered into consulting
agreements with NeuroOne, Inc. (prior to the Acquisition) pursuant to which the NeuroOne agreed to grant each of them stock options,
in addition to certain benefits and reimbursement of certain business expenses. In April 2017 and June 2017, the Company granted
Dr. Williams and Dr. Esper, respectively, stock options exercisable for 2,500 shares of NeuroOne stock (42,525 shares of Company
Common Stock after conversion pursuant to the Exchange Ratio). These consulting agreements have expired, and Dr. Williams and Dr.
Esper have not received any additional compensation from the Company. The Company has not been party to any agreements with the
other three members.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Artificial Intelligence Advisory Board
was formed in September 2018, and is comprised of Kip Ludwig, PhD (chair), and six additional members. Members of the Artificial
Intelligence Advisory Board will provide guidance to management of the Company on potential applications in translational neuroscience
settings, including artificial intelligence and neuromodulation for medical applications. The Company anticipates that this advisory
board will begin holding meetings in early 2019. Between September 2018 and November 2018, the Company entered into scientific
advisory board and consulting services agreements with these members. Under these agreements, each member agreed to serve on the
Artificial Intelligence Advisory Board through January 1, 2022, and the Company agreed to grant each member options to purchase
25,000 shares of Common Stock, which will vest monthly in 36 equal increments beginning on January 1, 2019. If a member leaves
the Artificial Intelligence Advisory Board prior to the three year anniversary of the date of their agreement, any remaining unvested
options will be forfeited. When the stock options are granted, vested options will be exercisable at a per share exercise price
equal to the fair value of the Common Stock on the date of grant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="a_015"></A>EXECUTIVE COMPENSATION</B></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Summary Compensation Table</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table shows the compensation
earned or received during the nine months ended September 30, 2018 and the fiscal years ended December 31, 2017 and 2016 by each
of our named executive officers (as determined pursuant to the SEC&rsquo;s disclosure requirements for executive compensation in
Item 402 of Regulation S-K), as well as Mr. Samad, who served as the Chief Executive Officer of OSE from March 6, 2014 until his
resignation from such position upon the closing of the Acquisition. Compensation paid to Messrs. Rosa, Bachinski and Christianson
prior to the consummation of the Acquisition was paid by our accounting predecessor in the Acquisition, NeuroOne.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: black 1.5pt solid; padding-left: 5pt; text-indent: -5pt; white-space: nowrap"><FONT STYLE="font-size: 10pt"><B>Name
    and Principal Position</B></FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center; white-space: nowrap"><FONT STYLE="font-size: 10pt"><B>Salary<BR>
    ($)</B></FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; white-space: nowrap"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; white-space: nowrap"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center; white-space: nowrap"><FONT STYLE="font-size: 10pt"><B>Non-Equity<BR>
    Incentive Plan<BR>
    Compensation<BR>
    ($)<SUP>(1)</SUP></B></FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; white-space: nowrap"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; white-space: nowrap"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center; white-space: nowrap"><FONT STYLE="font-size: 10pt"><B>Stock<BR>
    Awards<BR>
    ($)</B></FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; white-space: nowrap"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; white-space: nowrap"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center; white-space: nowrap"><FONT STYLE="font-size: 10pt"><B>All
    Other<BR>
    Compensation<BR>
    ($)</B></FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; white-space: nowrap"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; white-space: nowrap"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center; white-space: nowrap"><FONT STYLE="font-size: 10pt"><B>Total<BR>
    ($)</B></FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; white-space: nowrap"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 30%; padding-left: 5pt; text-indent: -5pt; white-space: nowrap"><FONT STYLE="font-size: 10pt">Dave Rosa,</FONT></TD>
    <TD STYLE="width: 1%; white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 9%; text-align: center; white-space: nowrap"><FONT STYLE="font-size: 10pt">2018 TP<SUP>(2)</SUP></FONT></TD>
    <TD STYLE="width: 1%; white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 9%; text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">287,640</FONT></TD>
    <TD STYLE="width: 1%; white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 9%; text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">129,438</FONT></TD>
    <TD STYLE="width: 1%; white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 9%; text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">&mdash;</FONT></TD>
    <TD STYLE="width: 1%; white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 9%; text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">&mdash;</FONT></TD>
    <TD STYLE="width: 1%; white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 9%; text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">417,078</FONT></TD>
    <TD STYLE="width: 1%; white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 9pt; text-indent: -5pt; white-space: nowrap"><FONT STYLE="font-size: 10pt"><I>Chief Executive Officer
    and President</I></FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; white-space: nowrap"><FONT STYLE="font-size: 10pt">2017</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">356,667</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">131,600</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">1,400</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt"><SUP>(3)</SUP></FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">6,098</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt"><SUP>(4)</SUP></FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">495,765</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 5pt; text-indent: -5pt; white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; white-space: nowrap"><FONT STYLE="font-size: 10pt">2016</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">75,000</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">&mdash;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">&mdash;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">2,898</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt"><SUP>(5)</SUP></FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">77,898</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="padding-left: 5pt; text-indent: -5pt; white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 5pt; text-indent: -5pt; white-space: nowrap"><FONT STYLE="font-size: 10pt">Amer Samad,</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; white-space: nowrap"><FONT STYLE="font-size: 10pt">2017</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">&mdash;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">&mdash;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">&mdash;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">&mdash;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">&mdash;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 9pt; text-indent: -5pt; white-space: nowrap"><FONT STYLE="font-size: 10pt"><I>Former Chief Executive
    Officer<SUP>(6)</SUP></I></FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; white-space: nowrap"><FONT STYLE="font-size: 10pt">2016</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">&mdash;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">&mdash;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">&mdash;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">&mdash;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">&mdash;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="padding-left: 5pt; text-indent: -5pt; white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 5pt; text-indent: -5pt; white-space: nowrap"><FONT STYLE="font-size: 10pt">Thomas Bachinski,</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; white-space: nowrap"><FONT STYLE="font-size: 10pt">2018 TP<SUP>(2)</SUP></FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">176,715</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">34,525</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">&mdash;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">&mdash;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">211,240</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 9pt; text-indent: -5pt; white-space: nowrap"><FONT STYLE="font-size: 10pt"><I>Chief Development Officer</I></FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; white-space: nowrap"><FONT STYLE="font-size: 10pt">2017</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">211,750</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">56,595</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">7,220</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt"><SUP>(7)</SUP></FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">798</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt"><SUP>(8)</SUP></FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">276,363</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 5pt; text-indent: -5pt; white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; white-space: nowrap"><FONT STYLE="font-size: 10pt">2016</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">&mdash;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">&mdash;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">&mdash;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">&mdash;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">&mdash;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="padding-left: 5pt; text-indent: -5pt; white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 5pt; text-indent: -5pt; white-space: nowrap"><FONT STYLE="font-size: 10pt">Mark Christianson,</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; white-space: nowrap"><FONT STYLE="font-size: 10pt">2018 TP<SUP>(2)</SUP></FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">153,000</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">36,675</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">&mdash;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">4,500</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt"><SUP>(9)</SUP></FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">194,175</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 9pt; text-indent: -5pt; white-space: nowrap"><FONT STYLE="font-size: 10pt"><I>Vice President, Business
    Development </I></FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; white-space: nowrap"><FONT STYLE="font-size: 10pt">2017</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">200,000</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">37,500</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">2,510</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt"><SUP>(3)</SUP></FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">6,498</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt"><SUP>(10)</SUP></FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">246,508</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 9pt; text-indent: -5pt; white-space: nowrap"><FONT STYLE="font-size: 10pt"><I>and Marketing</I></FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; white-space: nowrap"><FONT STYLE="font-size: 10pt">2016</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">16,667</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">&mdash;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">&mdash;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">830</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt"><SUP>(11)</SUP></FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; white-space: nowrap"><FONT STYLE="font-size: 10pt">17,497</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(1)</TD><TD STYLE="text-align: justify">Bonuses for the calendar year 2018 were determined by the Board on January 29, 2019. The Board
determined the bonus pool based on twelve months ended December 31, 2018 performance. The amounts earned for the year ended December
31, 2018 were prorated for the nine months ended September 30, 2018 transition period and are reflected in the Non-Equity Incentive
Plan Compensation column.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(2)</TD><TD STYLE="text-align: justify">In September 2018, we changed our fiscal year end from December 31 to September 30. The 2018 TP
salary amounts reflect the compensation earned from January 1, 2018 to September 30, 2018.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(3)</TD><TD STYLE="text-align: justify">In October 2016, NeuroOne issued founders&rsquo; shares to seven individuals, including Mr. Rosa
and Mr. Christianson. Such individuals did not pay the purchase price for the shares. The purchase price owed by the seven individuals
for the founders&rsquo; shares under their respective subscription agreements totaling $9,050 was recorded as share subscription
receivable in 2016. The receivable was forgiven by NeuroOne prior to the Acquisition in June 2017.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(4)</TD><TD STYLE="text-align: justify">Represents an $800 per month car allowance that Mr. Rosa received from January 2017 until August
4, 2017, the effective date of his amended employment agreement, and a $498 life insurance premium paid in 2017.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(5)</TD><TD STYLE="text-align: justify">Represents an $800 per month car allowance commencing in October 2016 and a $498 life insurance
premium paid in 2016.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(6)</TD><TD STYLE="text-align: justify">Mr. Samad was OSE&rsquo;s sole executive officer and director prior to the Acquisition and did
not receive any compensation for his services rendered to OSE in 2017 or 2016.</TD></TR>                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        <TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>(7)</TD><TD STYLE="text-align: justify">Pursuant to his offer letter with NeuroOne, Inc., Mr. Bachinski was granted a restricted
                           stock award under the 2016 Plan for 12,666 NeuroOne Shares (215,453 shares, as converted based on the Exchange Ratio), which
                           was subject to certain performance vesting conditions related to product development and was fully vested in 2017. The amount
                           reported reflects the grant date fair value of such restricted stock award. For a description of the assumptions used to
                           determine the compensation cost of the award, see the notes to our financial statements included elsewhere in this
                           prospectus.</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in"></P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(8)</TD><TD STYLE="text-align: justify">Represents life insurance premium paid in 2017.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(9)</TD><TD STYLE="text-align: justify">Represents a $500 per month car allowance.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(10)</TD><TD STYLE="text-align: justify">Represents a $500 per month car allowance and a $498 life insurance premium paid in 2017.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(11)</TD><TD STYLE="text-align: justify">Represents a $500 per month car allowance, which was received for December 2016, and a $330 life
insurance premium paid in 2016.</TD></TR></TABLE>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Narrative to Summary Compensation Table</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our Board sets the annual compensation
for our named executive officers. As we are a development-stage company with only five employees and commenced our operational
efforts in 2016, we have not hired a compensation consultant and do not currently target a specific competitive position or a specific
mix of compensation among base salary, bonus or long-term incentives. Except for car allowances provided to Mr. Rosa and Mr. Christianson
and payment of a portion of the premiums for life, medical and disability insurance for all employees, NeuroOne, Inc. did not,
and we do not, provide perquisites or personal benefits to our named executive officers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In October 2016, NeuroOne entered into
an employment agreement with Mr. Rosa that governed the terms of his employment with us through August 3, 2017. Pursuant to the
agreement, Mr. Rosa was entitled to an annual base salary of $300,000 per year, and was eligible to earn an annual performance
bonus of up to 40% of his base salary, as determined by our Board. Mr. Rosa was also entitled to an equity award equal to 14% of
the fully diluted equity of NeuroOne.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Following the Acquisition, in August 2017,
the Company entered into a new employment agreement with Mr. Rosa (the &ldquo;Amended Employment Agreement&rdquo;) that established
his base salary of at least $376,000, which shall be reviewed by the Board at least annually, and an annual performance bonus of
up to 50% of his base salary, as determined by the Board. Mr. Bachinski&rsquo;s and Mr. Christianson&rsquo;s 2017 base salaries
of $231,000 and $200,000, respectively, and annual performance bonuses of up to 25% of base salary were established in offer letters
negotiated in connection with their hiring. Taking into account his contributions to the Company, Mr. Bachinski&rsquo;s annual
performance bonus target was increased from his offer letter to 35% of base salary for 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In connection with the Acquisition, the
named executive officers of NeuroOne were appointed as officers of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For fiscal 2017, the Board approved payment
of Mr. Rosa&rsquo;s bonus at 70% of target and authorized Mr. Rosa, in his discretion, to approve and pay bonuses to Mr. Bachinski
and Mr. Christianson of up to 70% of target. In approving discretionary bonus payments, the Board considered the achievement of
various corporate objectives related to company financing goals, regulatory submission preparation, research and development, adhering
to budget and establishing an advisory board.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For the calendar year ended 2018, our Board
approved a 2% cost of living increase in the base salaries of our officers and made no adjustment to the officers&rsquo; annual
performance bonus targets. In March 2018, the Board calendar year set various corporate objectives relating to company financing
goals, regulatory submissions, hiring additional staff and certain research and development milestones through December 31, 2018
that it would consider in approving bonus payments for the 2018 calendar year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In January 2019, the Board approved the
a bonus payment to Mr. Rosa of $172,584 and the payment to the other senior officers of a bonus pool of up to 90% of the annual
bonus set forth in each officer&rsquo;s offer letter with the Company, with such exact amount to be determined by Mr. Rosa (the
&ldquo;2018 Performance Bonuses&rdquo;). In approving the 2018 Performance Bonuses, the Board considered the achievement of various
corporate objectives related to company financing goals, regulatory submission preparation and research and development.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Employment Agreements</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have an employment agreement with our
Chief Executive Officer, Mr. Rosa. We have entered into offer letters with each of our other executive officers, as described above.
Each of our named executive officers has also executed our standard form of proprietary information, inventions assignment and
non-competition agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Mr. Rosa&rsquo;s Amended Employment Agreement
was effective on August 4, 2017, continues through the third anniversary and automatically renews for an additional one-year period
at the end of the initial term and each anniversary thereafter, provided that Mr. Rosa notifies the Board of such renewal at least
30 days prior to the expiration of the initial term or any renewal terms and the Board does not notify Mr. Rosa of its intention
not to renew the Amended Employment Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Amended Employment Agreement also entitles
Mr. Rosa to, among other benefits, the following compensation: (i) an opportunity to participate in any stock option, performance
share, performance unit or other equity based long-term incentive compensation plan commensurate with the terms and conditions
applicable to other senior executive officers; and (ii) participation in welfare benefit plans, practices, policies and programs
provided by the Company and its affiliated companies (including, without limitation, medical, prescription, dental, disability,
employee life, group life, accidental death and travel accident insurance plans and programs) to the extent available generally
or to our other senior executive officers. Mr. Rosa is entitled to receive a target award value, determined in accordance with
the policies and practices generally available to other senior executive officers, for an annual cash bonus and if determined by
the Board or a committee of the Board, a long-term incentive bonus. Mr. Rosa is entitled to retain all shares of Common Stock he
held as of the commencement date. Mr. Rosa is also additionally entitled to certain severance benefits.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Pursuant to the Amended Employment Agreement,
regardless of the manner in which Mr. Rosa&rsquo;s service terminates, Mr. Rosa is entitled to receive amounts earned during his
term of service, including salary and other benefits.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company is permitted to terminate Mr.
Rosa&rsquo;s employment for the following reasons: (i) death or disability, (ii) Termination for Cause (as defined below) or (iii)
for any other reason or no reason.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Mr. Rosa is permitted Termination for Good
Reason (as defined below) of his employment. In addition, he may terminate his employment upon written notice to the Company 30
days prior to the effective date of such termination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In the event of Mr. Rosa&rsquo;s death
during the employment period or a termination due to his disability, his beneficiaries or legal representatives shall be provided
the sum of (i) any annual base salary earned, but unpaid, for services rendered to the Company on or prior to the date on which
the employment period ends and (ii) certain other benefits provided for in the employment agreement (the <B><I>&ldquo;</I></B>Unconditional
Entitlements<B><I>&rdquo;</I></B>).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In the event of Mr. Rosa&rsquo;s Termination
for Cause by the Company or the termination of Mr. Rosa&rsquo;s employment as a result of his resignation other than a Termination
for Good Reason, Mr. Rosa shall be provided the Unconditional Entitlements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In the event of a Termination for Good
Reason by Mr. Rosa or the exercise by the Company of its termination rights to terminate Mr. Rosa other than by Termination for
Cause, death or disability, Mr. Rosa shall be provided the Unconditional Entitlements and, subject to such officer signing and
delivering to the Company and not revoking a general release of claims in favor of the Company and certain related parties, the
Company shall provide Mr. Rosa a severance amount equal to the aggregate annual base salary he would have earned from the day after
his termination date through the end of the employment period and a prorated portion of his cash bonus for the year in which the
termination date occurs, provided, however, in no event would the severance amount be less than 12 months or more than 18 months
of his annual base salary, continued health insurance coverage for 12 months following his termination date, provided that such
coverage shall cease if Mr. Rosa becomes eligible to receive health insurance coverage from another employer group health plan,
vesting of all stock options in accordance with the stock option award documents, subject to the same conditions that would be
applicable to Mr. Rosa if he remained employed through the end of the employment period and continued vesting of equity awards
in accordance with the terms of the award agreements, provided, however, Mr. Rosa would have 90 days from the termination date
to exercise any vested options (the <B><I>&ldquo;</I></B>Conditional Benefits<B><I>&rdquo;</I></B>).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In the event of a change in control during
the employment period or within two years after a change in control, if the Company terminates Mr. Rosa other than due to Mr. Rosa&rsquo;s
death or disability or a Termination for Cause, or Mr. Rosa effects a Termination for Good Reason, the Company will pay to Mr.
Rosa, in a lump sum in cash within 30 days after the termination date, the aggregate of: (i) the Unconditional Entitlements; and
(ii) the amount equal to the product of 1.5 times the sum of (y) Mr. Rosa&rsquo;s annual base salary, and (z) the greater of the
target bonus for the then current fiscal year under the Plans or any successor annual bonus plan and the average annual bonus paid
to or for the benefit of Mr. Rosa for the prior three full years (or any shorter period during which Mr. Rosa had been employed
by the Company). In addition, the Company shall provide Mr. Rosa the Conditional Benefits minus Mr. Rosa&rsquo;s severance amount.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under the Amended Employment Agreement,
&ldquo;Termination for Cause&rdquo; means a termination of Mr. Rosa&rsquo;s employment by the Company due to (A) an act or acts
of dishonesty undertaken by Mr. Rosa and intended to result in substantial gain or personal enrichment to Mr. Rosa at the expense
of the Company, (B) unlawful conduct or gross misconduct that is willful and deliberate on Mr. Rosa&rsquo;s part and that, in either
event, is materially injurious to the Company, (C) the conviction of Mr. Rosa of, or Mr. Rosa&rsquo;s entry of a no contest or
nolo contendere plea to, a felony, (D) breach by Mr. Rosa of his fiduciary obligations as an officer or director of the Company,
(E) a persistent failure by Mr. Rosa to perform his duties and responsibilities of his employment under the Amended Employment
Agreement, which failure is not remedied by Mr. Rosa within 30 days after his receipt of written notice from the Company of such
failure, provided, however, the Company is not obligated to provide written notice and opportunity to cure if the action or conduct
is not reasonably susceptible to cure; or (F) material breach of any terms and conditions of the Amended Employment Agreement,
any contract or agreement between Mr. Rosa and the Company, or of any Company policy, or of any statutory duty he owes to the Company,
which breach has not been cured by Mr. Rosa within ten days after written notice thereof to Mr. Rosa from the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under the Amended Employment Agreement,
&ldquo;Termination for Good Reason&rdquo; means a termination of Mr. Rosa&rsquo;s employment by Mr. Rosa within 30 days of the
Company&rsquo;s failure to cure, in accordance with the procedures set forth below, any of the following events: (A) a reduction
in his annual base salary as in effect immediately prior to such reduction by more than 10% without his written consent, unless
such reduction is made pursuant to an across the board reduction applicable to all senior executives of the Company; (B) a material
reduction in his duties, position and responsibilities as in effect immediately prior to such reduction without his written consent;
provided, however, that a mere change in title or reporting relationship following a Change in Control by itself will not constitute
&ldquo;Good Reason&rdquo; for Executive&rsquo;s resignation, and further provided that the acquisition of the Company and subsequent
conversion of the Company to a division or unit of the acquiring entity will not by itself result in a &ldquo;reduction&rdquo;
of duties, position or responsibility; or (C) a material breach of any material provision of the Amended Employment Agreement by
the Company. A termination by Mr. Rosa shall not be treated as a Termination for Good Reason if Mr. Rosa consented in writing to
the occurrence of the event giving rise to the claim of Termination for Good Reason or unless Mr. Rosa shall have delivered a written
notice to the Board within 45 days of Mr. Rosa&rsquo;s having actual knowledge of the occurrence of one of such events stating
that Mr. Rosa intends to terminate his employment by Termination for Good Reason and specifying the factual basis for such termination,
and such event, if capable of being cured, shall not have been cured within 21 days of the receipt of such notice.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Outstanding Equity Awards at Fiscal Year-End</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">None of our named executive officers held
any stock that has not vested, unexercised stock options or other equity incentive plan awards as of September 30, 2018.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">2016 Equity Incentive Plan</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In October 2016 NeuroOne, Inc.&rsquo;s
board of directors adopted and its stockholders approved the 2016 Equity Incentive Plan (the &ldquo;2016 Plan&rdquo;). In connection
with the Acquisition, we assumed the 2016 Plan. As of September 30, 2018, there were outstanding options to purchase a total of
365,716 shares of Common Stock issued and outstanding under the 2016 Plan and 215,453 restricted shares of Common Stock granted
under the 2016 Plan. We anticipate that no additional awards will be granted under the 2016 Plan, and all awards will be granted
under the 2017 Equity Incentive Plan (the &ldquo;2017 Plan&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Description of the 2016 Plan</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The 2016 Plan authorizes the Board to provide
incentive compensation in the form of stock options, stock appreciation rights (&ldquo;SARs&rdquo;) and restricted stock and restricted
stock units (&ldquo;RSUs&rdquo;). Under the 2016 Plan, the Board is authorized to issue up to 992,266 shares of Common Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Board, or a duly authorized committee
thereof, has the authority to administer the 2016 Plan. The Board may also delegate to one or more of its officers the authority
to (i) designate officers and employees to be recipients of certain stock awards, and (ii) determine the number of shares of Common
Stock to be subject to such stock awards. Subject to the terms of the 2016 Plan, the Board or the authorized committee, referred
to therein as the plan administrator, determines recipients, dates of grant, the numbers and types or combination of types of stock
awards to be granted and the terms and conditions of the stock awards, including the vesting schedule applicable to a stock award.
Subject to the limitations set forth below, the plan administrator also determines the exercise price, strike price or purchase
price of awards granted and the types of consideration to be paid for the award.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The plan administrator has the authority
to modify outstanding awards under the 2016 Plan. Subject to the terms of the 2016 Plan, the plan administrator has the authority
to reduce the exercise, purchase or strike price of any outstanding stock award, cancel any outstanding stock award in exchange
for new stock awards, cash or other consideration, or take any other action that is treated as a repricing under generally accepted
accounting principles, with the consent of any adversely affected participant and subject to the requirements of Section 409A of
the Code.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Stock Options and SARs</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The plan administrator determines the term
of stock options and SARs granted under the 2016 Plan, up to a maximum of 10 years. Unless the terms of the participant&rsquo;s
award agreement provides otherwise, if a participant&rsquo;s service relationship with the Company, or any of its affiliates, ceases
for any reason other than disability, death or cause, the participant may generally exercise any vested options or SARs for a period
of three months following the cessation of service. The term may be extended in the event that exercise of the option following
such a termination of service is prohibited by applicable securities laws. If a participant&rsquo;s service relationship with the
Company or any of its affiliates ceases due to disability or death, or a participant dies within a certain period following cessation
of service, the participant or a beneficiary may generally exercise his or her options for a period of 12 months in the event of
disability and 18 months in the event of death. In the event of a termination for cause, options and SARs generally terminate upon
the termination date of the individual. In no event may an option or SAR be exercised beyond the expiration of its term.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Acceptable consideration for the purchase
of Common Stock issued upon the exercise of a stock option is determined by the plan administrator and may include (1) cash, check,
bank draft or money order, (2) the tender of shares of Common Stock previously owned by the optionholder, (3) a net exercise of
the option if it is a non-qualified stock option, or NSO, (4) a deferred payment or similar arrangement with the optionholder,
and (5) other legal consideration approved by the plan administrator.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Unless the plan administrator provides
otherwise, options and SARs generally are not transferable except by will, the laws of descent and distribution, or pursuant to
a domestic relations order. A Participant may designate a beneficiary, however, who may exercise the option or SAR following the
participant&rsquo;s death. The Board may also permit transfer of options to a trust provided certain conditions are met.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The aggregate fair market value, determined
at the time of grant, of the Common Stock with respect to Incentive Stock Options, or ISOs, that are exercisable for the first
time by an optionholder during any calendar year under all of the Company&rsquo;s stock plans may not exceed $100,000. Options
or portions thereof that exceed such limit are generally treated as NSOs. No ISO may be granted to any person who, at the time
of the grant, owns or is deemed to own stock possessing more than 10% of the Company&rsquo;s total combined voting power or that
of any of the Company&rsquo;s affiliates unless (i) the option exercise price is at least 110% of the fair market value of the
stock subject to the option on the date of grant, and (ii) the term of the ISO does not exceed five years from the date of grant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Restricted Stock Awards and
Restricted Stock Unit Awards</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The plan administrator determines the terms
of a restricted stock award or restricted stock unit award as set forth in the applicable award agreement. Shares of Common Stock
that are subject to a restricted stock award may be (i) held in a book entry from until restrictions lapse or (ii) evidenced by
a certificate which shall be held in such form and manner as determined by the Board. Shares of Common Stock awarded under a restricted
stock award may be subject to forfeiture in accordance with a vesting schedule. If a participant&rsquo;s employment is terminated,
the Company may receive through a forfeiture condition or repurchase right, any or all of the shares of Common Stock of the restricted
stock award. Upon the grant of restricted stock unit award, the Board may impose such restrictions and conditions to vesting as
it deems appropriate. A restricted stock unit award may be settled in shares of Common Stock, their cash equivalent, any combination
or such other form of consideration. Upon a participant&rsquo;s termination of employment, any unvested portion of the restricted
stock unit award is forfeited. Dividends and dividend equivalents may be provided under a restricted stock award or restricted
stock unit award, as applicable.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Changes in Capital Structure</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In the event that there is a specified
type of change in the Company&rsquo;s capital structure, such as a stock split or recapitalization, appropriate adjustments will
be made to (1) the class and maximum number of shares reserved for issuance under the 2016 Plan, (2) the class and maximum number
of shares that may be issued upon the exercise of ISOs and (3) the class and number of shares and exercise price, strike price,
or purchase price, if applicable, of all outstanding stock awards.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Other Corporate Transactions</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In the event of certain specified significant
corporate transactions, the plan administrator has the discretion to take any of the following actions with respect to stock awards:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">arrange for the assumption, continuation or substitution of stock awards outstanding under the
2016 Plan by a surviving or acquiring entity or parent company;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">arrange for the reacquisition or repurchase rights held by the Company to the surviving or acquiring
entity or parent company;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">accelerate the vesting of the stock award and provide for its termination prior to the effective
time of the corporate transaction;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">terminate unexercised stock awards held by participants no longer employed by the Company and that
have not been assumed, continued or substituted; or</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">make a payment equal to the excess of (i) the value of the property the participant would have
received upon exercise of the stock award over (ii) the exercise price applicable to the stock award.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company&rsquo;s plan administrator
is not obligated to treat all stock awards, even those that are of the same type, in the same manner.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under the 2016 Plan, a corporate transaction
is generally the consummation of (1) a sale or other disposition of all or substantially all of the Company&rsquo;s consolidated
assets, (2) a sale or other disposition of at least 90% of the Company&rsquo;s outstanding securities, (3) a merger, consolidation
or similar transaction following which the Company is not the surviving corporation, or (4) a merger, consolidation or similar
transaction following which the Company is the surviving corporation but the shares of Common Stock outstanding immediately prior
to such transaction are converted or exchanged into other property by virtue of the transaction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The plan administrator may provide, in
an individual award agreement or in any other written agreement between a participant and the Company that the stock award will
be subject to additional acceleration of vesting and exercisability in the event of a change of control transaction. Under the
2016 Plan, a change of control is generally (1) the acquisition by a person or entity of more than 50% of the Company&rsquo;s combined
voting power other than by merger, consolidation or similar transaction; (2) a consummated merger, consolidation or similar transaction
immediately after which the Company&rsquo;s stockholders cease to own more than 50% of the combined voting power of the surviving
entity; or (3) a consummated sale, lease or license or other disposition of all or substantially of the Company&rsquo;s consolidated
assets.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">The 2017 Plan</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In April 2017, the board of directors of
OSE adopted and the stockholders approved the 2017 Plan. The 2017 Plan is designed to provide a vehicle under which a variety of
stock-based and other awards can be granted to the Company&rsquo;s employees, consultants and directors, which will align the interests
of award recipients with those of our stockholders, reinforce key goals and objectives that help drive stockholder value, and attract,
motivate and retain experienced and highly qualified individuals who will contribute to the Company&rsquo;s financial success.
The Board believes that the 2017 Plan will serve a critical role in attracting and retaining high caliber employees, consultants
and directors essential to our success and in motivating these individuals to strive to meet our goals.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Shares Available Under the
Plan</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The 2017 Plan authorizes the compensation
committee or Board to provide incentive compensation in the form of stock options, SARs, restricted stock and stock units, performance
shares and units and other stock-based awards. Under the 2017 Plan, the Board is authorized to issue up to 1,300,000 shares, subject
to adjustment as provided below. On January 1, 2019, 498,848 shares were added to 2017 Plan as a result of the evergreen provision.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of March 31, 2019, 1,881,896 shares
remained available for grant under the 2017 Plan.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Section 162(m) Tax Considerations</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Section 162(m) of the Internal Revenue
Code generally denies a corporate tax deduction for annual compensation exceeding $1 million paid to the principal executive officer,
the principal financial officer or to any of the three other most highly compensated officers of a publicly held corporation. Accordingly,
to the extent compensation income recognized by any such individual during a year as a result of an award made under the 2017 Plan
(either alone or when added to other compensation paid to any of such individual during such year) exceeds $1 million, then the
amount in excess of $1 million will not be deductible by us, subject to certain exceptions.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Description of the 2017 Plan</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Authorized Shares. </I>The maximum number
of shares of Common Stock that may be issued under the 2017 Plan is 1,300,000 shares. In addition, the number of shares of Common
Stock reserved for issuance under our 2017 Plan automatically increases on January 1<SUP>st</SUP> of each calendar year, starting
on January 1, 2018 through January 1, 2027, to an amount equal to 13% of the total number of fully-diluted shares of our Common
Stock as of December 31 of the preceding calendar year, or a lesser number of shares determined by our Board.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Shares subject to awards granted under
the 2017 Plan that expire or terminate without being exercised in full, or that are paid out in cash rather than in shares, do
not reduce the number of shares available for issuance under the 2017 Plan. Additionally, shares become available for future grant
under the 2017 Plan if they were issued under stock awards under the 2017 Plan and if we repurchase them or they are forfeited.
This includes shares used to pay the exercise price of a stock award or to satisfy the tax withholding obligations related to a
stock award.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Plan Administration.</I> Our Board,
or a duly authorized committee of our Board, will administer the 2017 Plan. Our Board may also delegate to one or more of our officers
the authority to (1) designate employees (other than officers) to receive specified stock awards and (2) determine the number of
shares subject to such stock awards. Under the 2017 Plan, our Board has the authority to determine and amend the terms of awards
and underlying agreements, including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">recipients;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">when and how the stock awards will be granted;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


<!-- Field: Page; Sequence: 114 -->
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">the provisions of each stock award (which need not be identical);</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">the number of shares subject to each stock award; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">the vesting schedule applicable to the awards, together with any vesting acceleration.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under the 2017 Plan, the Board also generally
has the authority to effect, with the consent of any adversely affected participant:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">the reduction of the exercise, purchase, or strike price of any outstanding award;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">the cancellation of any outstanding award and the grant in substitution therefore of other awards,
cash, or other consideration; or</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">any other action that is treated as a repricing under generally accepted accounting principles.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Further, under the 2017 Plan, the Board
has the authority to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">construe and interpret the 2017 Plan and award agreements;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">settle all controversies regarding the 2017 Plan and award agreements;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">suspend or terminate the 2017 Plan at any time;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">amend the 2017 Plan as deemed necessary or advisable;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">approve form award agreements; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">adopt rules, procedures and subplans related to the operation and administration of the 2017 Plan
as are necessary and appropriate under local laws and regulations to permit participation in the 2017 Plan by employees, directors
or consultants who are foreign nationals or are employed outside of the United States.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Stock Options.</I> Incentive stock options
and nonstatutory stock options are granted under stock option agreements adopted by the plan administrator. The plan administrator
determines the exercise price for stock options, within the terms and conditions of the 2017 Plan, provided that the exercise price
of a stock option generally cannot be less than 100% of the fair market value of the Common Stock on the date of grant. Options
granted under the 2017 Plan vest at the rate specified in the stock option agreement as determined by the plan administrator. The
exercise price of a stock option may be paid as follows: (i) by cash, check, bank draft or money order, (ii) pursuant to a program
developed under Regulation T that prior to the issuance of shares of Common Stock, results in either the receipt of cash by the
Company or receipt of irrevocable instructions to a broker selling such Common Stock to pay the aggregate exercise price, (iii)
by delivery of share of Common Stock, (iv) if the stock option is a nonstatutory stock option, by net exercise or (iv) any other
form of legal consideration acceptable to the Board and specified in the award agreement. Unless the terms of the participant&rsquo;s
award agreement provides otherwise, if a participant&rsquo;s service relationship with the Company, or any of its affiliates, ceases
for any reason other than disability, death or cause, the participant may generally exercise any vested stock options for a period
of three months following the cessation of service. The term may be extended in the event that exercise of the stock option following
such a termination of service is prohibited by applicable securities laws. If a participant&rsquo;s service relationship with the
Company or any of its affiliates ceases due to disability or death, or a participant dies within a certain period following cessation
of service, the participant or a beneficiary may generally exercise his or her options for a period of 12 months in the event of
disability and 18 months in the event of death. In the event of a termination for cause, stock options generally terminate upon
the termination date of the individual. In no event may a stock option be exercised beyond the expiration of its term.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The aggregate fair market value, determined
at the time of grant, of the Common Stock with respect to incentive stock options that are exercisable for the first time by a
participant during any calendar year under all of the Company&rsquo;s stock plans may not exceed $100,000. No incentive stock option
may be granted to any person who, at the time of the grant, owns or is deemed to own stock possessing more than 10% of the Company&rsquo;s
total combined voting power or that of any of the Company&rsquo;s affiliates unless (i) the option exercise price is at least 110%
of the fair market value of the Common Stock subject to the option on the date of grant, and (ii) the term of the incentive stock
does not exceed five years from the date of grant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Restricted Stock Unit Awards. </I>RSUs
are granted under restricted stock unit award agreements adopted by the plan administrator. RSUs may be granted in consideration
for any form of legal consideration that may be acceptable to our Board and permissible under applicable law. An RSU may be settled
by cash, delivery of stock, a combination of cash and stock as deemed appropriate by the plan administrator, or in any other form
of consideration set forth in the RSU agreement. The Board may impose restrictions or conditions to the vesting of RSUs as it deems
appropriate. Additionally, dividend equivalents may be credited in respect of shares covered by an RSU. Except as otherwise provided
in the applicable award agreement, RSUs that have not vested will be forfeited once the participant&rsquo;s continuous service
ends for any reason.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Restricted Stock Awards.</I> Restricted
stock awards are granted under restricted stock award agreements adopted by the plan administrator. Shares of Common Stock that
are subject to a restricted stock award may be (i) held in a book entry from until restrictions lapse or (ii) evidenced by a certificate
which shall be held in such form and manner as determined by the Board. A restricted stock award may be awarded in consideration
for cash, check, bank draft or money order, past services to us, or any other form of legal consideration that may be acceptable
to our Board and permissible under applicable law. The plan administrator determines the terms and conditions of restricted stock
awards, including vesting and forfeiture terms. If a participant&rsquo;s service relationship with us ends for any reason, we may
receive any or all of the shares of Common Stock held by the participant that have not vested as of the date the participant terminates
service with us through a forfeiture condition or a repurchase right. Additionally, dividend may be credited in respect of shares
covered by a restricted stock award.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Stock Appreciation Rights.</I> SARs
are granted under stock appreciation grant agreements adopted by the plan administrator. The plan administrator determines the
purchase price or strike price for a stock appreciation right, which generally cannot be less than 100% of the fair market value
of our Common Stock on the date of grant. A stock appreciation right granted under the 2017 Plan vests at the rate specified in
the stock appreciation right agreement as determined by the plan administrator. A participant may exercise a stock appreciation
right by notifying the Company. Upon exercise, a participant will receive the excess of (i) the aggregate fair market value of
the number of shares of Common Stock over (ii) the aggregate exercise price of such number of shares of Common Stock. Such amounts
will be paid in shares of Common Stock, cash, any combination of both or such other form of consideration as determined by the
Board. Unless the terms of the participant&rsquo;s award agreement provides otherwise, if a participant&rsquo;s service relationship
with the Company, or any of its affiliates, ceases for any reason other than disability, death or cause, the participant may generally
exercise any vested stock appreciate right for a period of three months following the cessation of service. The term may be extended
in the event that exercise of the stock appreciate right following such a termination of service is prohibited by applicable securities
laws. If a participant&rsquo;s service relationship with the Company or any of its affiliates ceases due to disability or death,
or a participant dies within a certain period following cessation of service, the participant or a beneficiary may generally exercise
his or her rights for a period of 12 months in the event of disability and 18 months in the event of death. In the event of a termination
for cause, stock appreciate rights generally terminate upon the termination date of the individual. In no event may a stock appreciation
right be exercised beyond the expiration of its term.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Performance Awards.</I> The 2017 Plan
permits the grant of performance-based stock and cash awards that may qualify as performance-based compensation that may not be
subject to the $1,000,000 limitation on the income tax deductibility imposed by Section 162(m) of the Code. Our compensation committee
may structure awards so that the stock or cash will be issued or paid only following the achievement of certain pre-established
performance goals during a designated performance period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The performance criteria that may be selected
include one or more of the following: (i) earnings (including earnings per share and net earnings); (ii) earnings before interest,
taxes and depreciation; (iii) earnings before interest, taxes, depreciation and amortization; (iv) earnings before interest, taxes,
depreciation, amortization and legal settlements; (v) earnings before interest, taxes, depreciation, amortization, legal settlements
and other income (expense); (vi) earnings before interest, taxes, depreciation, amortization, legal settlements, other income (expense)
and stock-based compensation; (vii) earnings before interest, taxes, depreciation, amortization, legal settlements, other income
(expense), stock-based compensation and changes in deferred revenue; (viii) earnings before interest, taxes, depreciation, amortization,
legal settlements, other income (expense), stock-based compensation, other non-cash expenses and changes in deferred revenue; (ix)
total stockholder return; (x) return on equity or average stockholder&rsquo;s equity; (xi) return on assets, investment, or capital
employed; (xii) stock price; (xiii) margin (including gross margin); (xiv) income (before or after taxes); (xv) operating income;
(xvi) operating income after taxes; (xvii) pre-tax profit; (xviii) operating cash flow; (xix) sales or revenue targets; (xx) increases
in revenue or product revenue; (xxi) expenses and cost reduction goals; (xxii) improvement in or attainment of working capital
levels; (xxiii) economic value added (or an equivalent metric); (xxiv) market share; (xxv) cash flow; (xxvi) cash flow per share;
(xxvii) cash balance; (xxviii) cash burn; (xxix) cash collections; (xxx) share price performance; (xxxi) debt reduction; (xxxii)
implementation or completion of projects or processes (including, without limitation, clinical trial initiation, new and supplemental
indications for existing products, and product supply); (xxxiii) stockholders&rsquo; equity; (xxxiv) capital expenditures; (xxxv)
debt levels; (xxxvi) operating profit or net operating profit; (xxxvii) workforce diversity; (xxxviii) growth of net income or
operating income; (xxxix) billings; (xl) bookings; (xli) employee retention; (xlii) initiation of phases of clinical trials and/or
studies by specific dates; (xliii) acquisition of new customers, including institutional accounts; (xliv) customer retention and/or
repeat order rate; (xlv) number of institutional customer accounts; (xlvi) budget management; (xlvii) improvements in sample and
test processing times; (xlviii) regulatory milestones; (xlix) progress of internal research or clinical programs; (l) progress
of partnered programs; (li) partner satisfaction; (lii) milestones related to samples received and/or tests run; (liii) expansion
of sales in additional geographies or markets; (liv) research progress, including the development of programs; (lv) patient samples
processed and billed; (lvi) sample processing operating metrics (including, without limitation, failure rate maximums and reduction
of repeat rates); (lvii) strategic partnerships or transactions (including in-licensing and out-licensing of intellectual property);
and (lviii) and to the extent that an award is not intended to constitute &ldquo;qualified performance-based compensation&rdquo;
under Section 162(m) of the Code, other measures of performance selected by the Board.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The performance goals may be based on company-wide
performance or performance of one or more business units, divisions, affiliates, or business segments, and may be either absolute
or relative to the performance of one or more comparable companies or the performance of one or more relevant indices. Unless specified
otherwise by the Board or committee (as applicable) (i) in the award agreement at the time the award is granted or (ii) in such
other document setting forth the performance goals at the time the performance goals are established, the Board or committee (as
applicable) will appropriately make adjustments in the method of calculating the attainment of performance goals for a performance
period as follows: (1) to exclude restructuring and/or other nonrecurring charges; (2) to exclude exchange rate effects; (3) to
exclude the effects of changes to generally accepted accounting principles; (4) to exclude the effects of any statutory adjustments
to corporate tax rates; (5) to exclude the effects of any &ldquo;extraordinary items&rdquo; as determined under generally accepted
accounting principles; (6) to exclude the dilutive effects of acquisitions or joint ventures; (7) to assume that any business divested
by the Company achieved performance objectives at targeted levels during the balance of a performance period following such divestiture;
(8) to exclude the effect of any change in the outstanding shares of Common Stock of the Company by reason of any stock dividend
or split, stock repurchase, reorganization, recapitalization, merger, consolidation, spin-off, combination or exchange of shares
or other similar corporate change, or any distributions to common stockholders other than regular cash dividends; (9) to exclude
the effects of stock based compensation and the award of bonuses under the Company&rsquo;s bonus plans; (10) to exclude costs incurred
in connection with potential acquisitions or divestitures that are required to be expensed under generally accepted accounting
principles; (11) to exclude the goodwill and intangible asset impairment charges that are required to be recorded under generally
accepted accounting principles; (12) to exclude the effect of any other unusual, non-recurring gain or loss or other extraordinary
item; and (13) to exclude the effects of the timing of acceptance for review and/or approval of submissions to any regulatory body.
In addition, subject to certain limitations, the Board or committee (as applicable) retains the discretion to reduce or eliminate
the compensation or economic benefit due on attainment of performance goals and to define the manner of calculating the performance
criteria it selects to use for such performance period. Partial achievement of the specified criteria may result in the payment
or vesting corresponding to the degree of achievement as specified in the award agreement or the written terms of a performance
cash award.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Other Stock Awards.</I> The plan administrator
may grant other awards based in whole or in part by reference to our Common Stock. The plan administrator will set the number of
shares under the stock award and all other terms and conditions of such awards.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Changes to Capital Structure.</I> In
the event there is a specified type of change in our capital structure, such as a stock split, reverse stock split, or recapitalization,
appropriate adjustments will be made to (1) the class and maximum number of shares reserved for issuance under the 2017 Plan, (2)
the class and maximum number of shares that may be issued on the exercise of incentive stock options, (3) the class and maximum
number of shares subject to stock awards that can be granted to a person in a calendar year (as established under the 2017 Plan
under Section 162(m) of the Code), and (4) the class and number of shares and exercise price, strike price, or purchase price,
if applicable, of all outstanding stock awards.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Corporate Transactions.</I> The 2017
Plan provides that in the event of certain specified significant corporate transactions, including: (1) a sale of all or substantially
all of our assets, (2) the sale or disposition of more than 90% of our outstanding securities, (3) the consummation of a merger
or consolidation where we do not survive the transaction, and (4) the consummation of a merger or consolidation where we do survive
the transaction but the shares of our Common Stock outstanding before such transaction are converted or exchanged into other property
by virtue of the transaction, unless otherwise provided in an award agreement or other written agreement between us and the award
holder, the plan administrator may take one or more of the following actions with respect to such stock awards:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">arrange for the assumption, continuation, or substitution of a stock award by a successor corporation;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">arrange for the assignment of any reacquisition or repurchase rights held by us to a successor
corporation;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">accelerate the vesting, in whole or in part, of the stock award and provide for its termination
before the transaction;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">arrange for the lapse, in whole or in part, of any reacquisition or repurchase rights held by us;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">cancel or arrange for the cancellation of the stock award before the transaction in exchange for
a cash payment, or no payment, as determined by the Board; or</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">make a payment, in the form determined by our Board, equal to the excess, if any, of the value
of the property the participant would have received on exercise of the awards before the transaction over any exercise price payable
by the participant in connection with the exercise.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The plan administrator is not obligated
to treat all stock awards or portions of stock awards, even those that are of the same type, in the same manner and is not obligated
to treat all participants in the same manner.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In the event of a change in control, awards
granted under the 2017 Plan will not receive automatic acceleration of vesting and exercisability, although this treatment may
be provided for in an award agreement. Under the 2017 Plan, a change in control is defined to include (1) the acquisition by any
person or company of more than 50% of the combined voting power of our then outstanding stock, (2) a merger, consolidation, or
similar transaction in which our stockholders immediately before the transaction do not own, directly or indirectly, more than
50% of the combined voting power of the surviving entity (or the parent of the surviving entity), (3) a sale, lease, exclusive
license, or other disposition of all or substantially all of our assets other than to an entity more than 50% of the combined voting
power of which is owned by our stockholders, and (4) an unapproved change in the majority of the Board.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Transferability.</I> A participant may
not transfer stock awards under the 2017 Plan other than by will, the laws of descent and distribution, or as otherwise provided
under the 2017 Plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Plan Amendment or Termination</I>. Our
Board has the authority to amend, suspend, or terminate the 2017 Plan, provided that such action does not materially impair the
existing rights of any participant without such participant&rsquo;s written consent. Certain material amendments also require the
approval of our stockholders. No incentive stock options may be granted after the tenth anniversary of the date our Board adopted
the 2017 Plan. No stock awards may be granted under the 2017 Plan while it is suspended or after it is terminated.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Non-Employee Director Compensation</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On March 29, 2018, our Board approved a
Non-Employee Director Compensation Policy effective as of January 1, 2018 whereby our non-employee directors will receive a mix
of cash and share-based compensation intended to encourage non-employee directors to continue to serve on our Board, further align
the interests of the directors and stockholders, and attract new non-employee directors with outstanding qualifications. Directors
who are employees or officers of the Company do not receive any additional compensation for Board service.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Pursuant to this policy, each of our non-employee
directors will receive an annual retainer of $50,000, except that our non-executive chairman will receive an annual retainer of
$100,000. Additionally, the chairman and members of our Audit Committee will receive an additional annual payment of $12,500 and
$5,000, respectively, and the chairmen and members of each of our Compensation and Nominating and Corporate Governance Committees,
if any are formed in the future, will receive an additional annual payment of $10,000 and $4,000, respectively. Such annual cash
retainers will be earned beginning on the effective date of the policy but shall not be payable until the last day of the fiscal
quarter in which the Company consummates an equity financing wherein it receives at least $3.0 million in gross cash proceeds.
On the date of each annual stockholder meeting of the Company commencing with the 2019 annual meeting of stockholders, each director
shall receive an annual equity award with an aggregate grant date fair value on the date of grant of $50,000, one third of which
will be in the form of an option and two thirds of which will be in the form of a restricted stock unit award, each of which will
vest in a series of 12 equal monthly installments subject to the director&rsquo;s continued service. Newly appointed directors,
on the date of their appointment, will receive a pro rata equity award, reflecting a reduction for each month prior to the date
of grant that has elapsed since the preceding annual stockholder meeting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table provides compensation
information for the Transition Period for each non-employee member of our Board.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1.5pt solid">Name</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Fees Earned or Paid in Cash</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>($)(1)</B></P></TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Total</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>($)(1)</B></P></TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">Paul Buckman</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">78,750</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">78,750</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Suraj Kalia</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">41,250</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">41,250</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Jeff Mathiesen</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">46,875</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">46,875</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>






<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(1)</TD><TD STYLE="text-align: justify">These amounts reflect the pro-rated amount earned for the nine months ended September 30, 2018
in which each director provided service. The amounts will not be paid until the last day of the fiscal quarter in which the Company
consummates an equity financing wherein it receives at least $3.0 million in gross cash proceeds.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of September 30, 2018, each of the non-employee
directors had 34,020 shares underlying outstanding stock options.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As a named executive officer of the Company,
compensation paid to Mr. Rosa for the Transition Period is fully reflected under &ldquo;Executive Compensation&mdash;Summary Compensation
Table.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><A NAME="a_016"></A>SECURITY OWNERSHIP
OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table sets forth the beneficial
ownership of our Common Stock as of July 1, 2019 for:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">each person, or group of affiliated persons, who is known by us to beneficially own more than 5%
of our Common Stock;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">each of our named executive officers;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">each of our directors; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">all of our current executive officers and directors as a group.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The table lists applicable percentage ownership
based on 13,463,765 shares of Common Stock outstanding as of July 1, 2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have determined beneficial ownership
in accordance with the rules of the SEC. These rules generally attribute beneficial ownership of securities to persons who possess
sole or shared voting power or investment power with respect to those securities. Unless otherwise indicated, the persons or entities
identified in this table have sole voting and investment power with respect to all shares shown as beneficially owned by them,
subject to applicable community property laws. In addition, the rules include shares of our Common Stock issuable pursuant to the
exercise of stock options and warrants that are either immediately exercisable or exercisable within 60 days of July 1, 2019.
These shares are deemed to be outstanding and beneficially owned by the person holding those options for the purpose of computing
the percentage ownership of that person, but they are not treated as outstanding for the purpose of computing the percentage ownership
of any other person.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Except as otherwise noted below, the address
for persons listed in the table is c/o NeuroOne Medical Technologies Corporation, c/o David Rosa, 10901 Red Circle Drive, Suite
150, Minnetonka, Minnesota 55343.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: black 1.5pt solid"><FONT STYLE="font-size: 10pt"><B>Name and address of beneficial owner</B></FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Number of shares</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>of Common Stock beneficially owned</B></P></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Percentage of Common Stock beneficially owned <SUP>(1)</SUP></B></FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="width: 76%"><FONT STYLE="font-size: 10pt"><B>Greater than 5% Stockholders:</B></FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Wade Fredrickson<SUP></SUP></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">4825 Suburban Drive</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Shorewood, Minnesota 55331</P></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">2,613,460</FONT></TD>
    <TD STYLE="white-space: nowrap"><SUP>(2)</SUP></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">19.4</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">%</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-size: 10pt">Lifestyle Healthcare LLC<SUP></SUP><BR>
4524 Westway Avenue<BR>
Dallas, TX 75205</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">1,058,435</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt"><SUP>(3)</SUP></FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">7.8</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">%</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Mohammad Jainal Bhuiyan<BR>
        10605 SW 44<SUP>th</SUP> CT</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Davie, FL 33328</P></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right">883,629</TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt"><SUP>(4)</SUP></FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">6.4</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">%</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt"><B>Directors and Executive Officers:</B></FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-size: 10pt">David Rosa</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">793,822</FONT></TD>
    <TD STYLE="white-space: nowrap"></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">5.9</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">%</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">Paul Buckman</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right">84,458</TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt"><SUP>(5)</SUP></FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">*</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-size: 10pt">Suraj Kalia</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right">84,458</TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt"><SUP>(5)</SUP></FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">*</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">Jeffrey Mathiesen</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right">84,458</TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt"><SUP>(5)</SUP></FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">*</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-size: 10pt">Thomas Bachinski</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">215,453</FONT></TD>
    <TD STYLE="white-space: nowrap"></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">1.6</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">%</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">Mark Christianson</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">1,423,206</FONT></TD>
    <TD STYLE="white-space: nowrap"></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">10.6</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">%</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-size: 10pt"><B>All Directors and Officers as a Group (8 persons)</B></FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">2,743,307</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt"><SUP>(6)</SUP></FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">19.9</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">%</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0px"></TD>
    <TD STYLE="width: 48px; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Based
    on 13,463,765 shares of Common Stock outstanding as of July 1, 2019.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify; text-indent: -36pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0px"></TD>
    <TD STYLE="width: 48px; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Based on Schedule 13D/A filed by Mr. Fredrickson on March 5, 2018. Mr. Fredrickson is our former Vice President of Therapy and Product Development.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify; text-indent: -36pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0px"></TD>
    <TD STYLE="width: 48px; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Includes
    193,044 shares of Common Stock issuable upon exercise of outstanding warrants. Nickolay Kukekov has voting and dispositive
    power over the shares.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0px"></TD>
    <TD STYLE="width: 48px; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(4)</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Includes
    383,113 shares of Common Stock issuable upon exercise of outstanding warrants and 42,525 shares of Common Stock issuable
    upon exercise of outstanding options.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify; text-indent: -36pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0px"></TD>
    <TD STYLE="width: 48px; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(5)</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consists
    of (i) 79,625 shares of Common Stock issuable upon exercise of outstanding options, (ii) 2,499 shares of Common Stock
    underlying options exercisable within 60 days of July 1, 2019 and (iii) 2,334 restricted stock units that vest within
    60 days of July 1, 2019.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify; text-indent: -36pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0px"></TD>
    <TD STYLE="width: 48px; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(6)</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Includes
    7,002 restricted stock units that vest within 60 days of July 1, 2019 and 303,824 shares of Common Stock underlying
    outstanding     options and options exercisable within 60 days of July 1, 2019.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left">*</TD><TD STYLE="text-align: justify">Less than 1%</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><A NAME="a_017"></A>CERTAIN RELATIONSHIPS
AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Certain Relationships and Related Transactions</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in; text-align: justify">There have been no transactions since January
1, 2017 to which NeuroOne, Inc. or the Company has been a participant in which the amount involved exceeded or will exceed the
lesser of $120,000 or 1% of the average of the Company&rsquo;s total assets at year end for the last two completed fiscal years,
and in which any of our directors, executive officers or holders of more than five percent of our capital stock, or any members
of their immediate family, had or will have a direct or indirect material interest, other than compensation arrangements which
are described under &ldquo;Executive Compensation&rdquo; and as described below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in; text-align: justify"><B>Original Source Entertainment, Inc.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in; text-align: justify">Prior to the 2017 Acquisition, OSE&rsquo;s
administrative functions were operated from the offices of Mr. Samad (the majority owner of OSE), and OSE did not pay Mr. Samad
for the use of such space. Also, prior to the Acquisition, for the year ended December 31, 2017, OSE received an advance of
$11,572 from a related party.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in; text-align: justify"><B>The Acquisition</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in; text-align: justify">Pursuant to the Merger Agreement for the Acquisition whereby NeuroOne, Inc. became a wholly-owned subsidiary of the Company, each holder of NeuroOne Shares outstanding
immediately prior to the closing received shares of Common Stock in exchange therefore based on the Exchange Ratio, with all fractional
shares rounded down to the nearest whole share. Accordingly, we issued 793,822, 1,423,206 and 2,840,731 shares of Common Stock
to our officers, Messrs. Rosa, Christianson and Fredrickson, respectively, and options to purchase 34,020 shares of Common Stock
to each of Messrs. Buckman, Kalia and Mathiesen, members of our Board, and 859,976 shares of Common Stock to Mayo, previously a
holder of over 5% of our outstanding Common Stock. The Merger Agreement also provided that Mr. Rosa be appointed as a director
of the Company upon the closing of the Acquisition. Further, pursuant to the Merger Agreement, Mr. Samad (the majority owner
of OSE) tendered for cancellation 3,500,000 shares of Origin Source Entertainment, Inc. held by him as part of the conditions to
closing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in; text-align: justify"><B>Private Placements</B></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Series 1 Note Issuance</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Between November 2016 and June 2017, NeuroOne,
Inc. issued the Series 1 Notes and warrants to investors in a private placement, including, in June 2017, a Series 1 Note for $50,000
and a warrant to <FONT STYLE="background-color: white">Sean Wambold</FONT>, the founder and former sole owner of the LLC. The Company
did not make any payments of principal or interest on the Series 1 Notes following issuance. In June 2017 and November 2017, the
terms of the Series 1 Notes and warrants were amended. In July 2018, the Series 1 Notes were converted as described below.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Series 2 Note Issuance</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In August 2017, the Company issued the Series 2 Notes to two investors in a private placement, including
a Series 2 Note for $103,000 to Mohammad Jainal Bhuiyan, a greater than 5% stockholder and a registered representative with Corinthian,
a registered broker-dealer that has acted as a placement agent for private placements by the Company and NeuroOne, Inc. The Company
did not make any payments of principal on the Series 2 Notes following issuance. In November 2017, the Company and each holder
of the Series 2 Notes amended the notes, and in March 2018, the Company and the holders of the Series 2 Notes converted the Series
2 Notes from interest free promissory notes into convertible promissory notes with an interest rate of 8% per year and issued warrants
to the holders. In July 2018, the Series 2 Notes were converted as described below.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Series 3 Note Issuance</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Between September 2017 and June 2018, the Company issued the Series 3 Notes and warrants to several investors
in a private placement, including (i) in October 2017, a Series 3 Note for $50,000 and a warrant to Sean Wambold, the founder and
former sole owner of the LLC and (ii) in February 2018, a Series 3 Note for $125,000 and a warrant to Lifestyle Healthcare LLC,
a holder of over 5% of our outstanding Common Stock. Additionally, the manager of Lifestyle Healthcare LLC is a registered representative
with Corinthian, a registered broker-dealer that has acted as a placement agent in private placements by the Company and NeuroOne,
Inc. The Company did not make any payments of principal or interest on the Series 3 Notes. In February 2019, the Series 3 Notes
were converted as described below. For a more detailed description of our Series 3 Notes, see &ldquo;Management&rsquo;s Discussion
and Analysis of Financial Condition and Results of Operations-Liquidity and Capital Resources &ndash; Historical Capital Resources.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in; text-align: justify"><B><I>Conversion of Series 1 Notes and Series
2 Notes</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in; text-align: justify">On July 2, 2018,
holders of the Series 1 Notes and Series 2 Notes agreed to convert the outstanding principal and interest on the Series 1
Notes and Series 2 Notes into shares of our Common Stock, at a conversation rate of $1.80 per share; and to amend and restate
the Series 1 Warrants and Series 2 Warrants to make them immediately exercisable. As consideration for the early conversion
of the Series 1 Notes and Series 2 Notes, the Company issued each holder a new warrant. Mr. Wambold, the founder and sole
owner of our predecessor, the LLC, agreed to convert $54,277 of outstanding principal and interest on his Series 1 Notes into
30,154 shares of Common Stock and warrants immediately exercisable for 125,482 shares of Common Stock with an exercise
price of $1.80 per share. Mr. Bhuiyan agreed to convert $105,563 of outstanding principal and interest on his Series 2 Notes
into 58,646 shares of Common Stock and warrants immediately exercisable for 194,542 shares of Common Stock with an exercise
price of $1.80 per share, making him a holder of over 5% of our outstanding Common Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in; text-align: justify">As of July 1, 2019, no principal remains
outstanding on the Series 1 Notes and Series 2 Notes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in; text-align: justify"><B><I>Conversion of Series 3 Notes</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in; text-align: justify">On February 28, 2019, the Company completed
an equity round of financing resulting in more than $3 million in gross proceeds when it closed on the sale of units, each consisting
of one share of Common Stock and warrants exercisable for one share of Common Stock in connection with the Company&rsquo;s ongoing
private placement. Following such financing, the outstanding principal and interest of the Series 3 Notes of $1,678,361 was automatically
converted in accordance with the terms of the Series 3 Notes into 839,179 units, consisting of 839,179 shares of Common Stock and
839,179 warrants at an exercise price equal to $3.00 per share. Additionally, the previously issued warrants became immediately
exercisable for 839,179 shares of Common Stock, at an exercise price equal to $2.50 per share, and will expire on February 28,
2024. The exercise price and number of the shares of our Common Stock issuable upon exercise of the warrants will be subject to
adjustment in the event of any stock dividends and splits, reverse stock split, recapitalization, reorganization, business combination
or similar transaction. As of July 1, 2019, no principal remains outstanding on the Series 3 Notes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in; text-align: justify">Mr. Wambold&rsquo;s Series 3 Notes converted into 27,822 shares of Common Stock, and the warrants became
immediately exercisable for 27,822 shares of Common Stock with an exercise price of $3.00 per share, and Lifestyle Healthcare LLC&rsquo;s
Series 3 Notes converted into 67,722 shares of Common Stock, and the warrants became immediately exercisable for 67,622 shares
of Common Stock with an exercise price of $3.00 per share.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">2018 Private Placement</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Between July 2018 and November 2018, the
Company issued and sold units to investors consisting of Common Stock and warrants for $2.50 per unit, including (i) in July 2018,
the sale of 37,600 Units for $94,000 to each of Lifestyle Healthcare LLC and Mohammad Jainal Bhuiyan and (ii) in September, the
sale of 40,000 Units for $100,000 and 20,000 Units for $50,000 to Faisal Siddiqui and Lifestyle Healthcare LLC, respectively, each
holders of over 5% of our Common Stock at the time of issuance.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">2019 Private Placement</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Between December 2018 and July 2019, the Company issued and sold units to certain Selling Stockholders
consisting of shares of our Common Stock and warrants for $2.50 per unit, including in March 2019, the sale of 60,000 units for
$150,000, and, in June 2019, the sale of 40,000 units for $100,000 to Mohammad Jainal Bhuiyan, a holder of over 5% of our Common
Stock at the time of issuance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><B>Mayo Development Agreement</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in; text-align: justify">Pursuant to the Mayo Development Agreement,
we have agreed to license worldwide (i) certain know how for the development and commercialization of products, methods and processes
related to flexible circuit thin film technology for the recording of tissue and (ii) the products developed therefrom, and to
partner with Mayo to assist the Company in the investigation, research application, development and improvement of such technology.
Mayo has agreed to assist us by providing access to the Mayo Principal Investigators in developing a minimally invasive device/delivery
system and procedure for a minimally invasive approach for the implantation of our cortical thin film flexible circuit technology
developed by the Company, including prototype development, animal testing, protocol development for human and animal use, abstract
development and presentation and access to and license of any intellectual property that the Mayo Principal Investigators develop
relating to the procedure.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in; text-align: justify">Whether or not any such technology, product,
method, process, device or delivery system is developed, we agreed, in consideration for Mayo&rsquo;s efforts under the Mayo Development
Agreement, to pay Mayo a cash payment of approximately $92,000 on the earlier of September 30, 2017 or the date we raise a minimum
amount of financing. We did not make this payment by September 30, 2017 and breached this provision of the Mayo Development Agreement.
Mayo granted us an extension of this deadline to December 31, 2017, and we made this payment within such extended deadline.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in; text-align: justify">On May 25, 2017, NeuroOne issued Mayo 50,556
NeuroOne Shares (859,976 shares, as converted based on the Exchange Ratio) pursuant to a subscription agreement, pursuant to which
Mayo is a holder of over 5% of our outstanding Common Stock. Finally, we have agreed to pay Mayo a royalty equal to a single-digit
percentage of our product sales pursuant to the Mayo Development Agreement. Mayo may purchase any developed products licensed under
the Mayo Development Agreement at the best price offered by us to the end user in the prior year. The Mayo Development Agreement
will expire on May 25, 2037 and may be terminated by Mayo for cause or under certain circumstances.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in; text-align: justify"><B>HRA Capital</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in; text-align: justify">HRA Capital&rsquo;s affiliate, Corinthian, has acted as a placement agent for private placements by us
and NeuroOne, Inc. HRA Capital is affiliated with Chromium 24 LLC, which was previously a greater than 5% beneficial owner, and
Lifestyle Healthcare LLC, a current greater than 5% beneficial owner. Pursuant to the engagement letter with HRA Capital, NeuroOne,
Inc. paid the placement agent a cash fee of $113,610 and agreed to issue to the placement agent a warrant to purchase shares of
Common Stock (or common stock equivalents) in an amount equal to 8% of the shares purchased by certain investors in a bridge private
placement transaction. Additionally, the Company agreed to pay HRA Capital 10% of the gross proceeds (the &ldquo;HRA Fee&rdquo;)
received by the Company in subsequent private placement transactions from investors with whom HRA Capital or Corinthian had material
contact with for purposes of the engagement letter (the &ldquo;Prospects&rdquo;), provided such compensation would only be paid
in connection with private placement transactions that closed within 12 months of the expiration of the engagement letter (the
&ldquo;Tail Period&rdquo;). The Company agreed to issue to HRA Capital warrants to purchase shares of Common Stock (or common stock
equivalents) in an amount equal to 10% of the shares purchased by Prospects during the Tail Period (&ldquo;HRA Warrants&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in; text-align: justify">In February 2019, the Company and HRA Capital
agreed (i) to extend the Tail Period until June 30, 2019, (ii) to modify the HRA Fee so that HRA Capital is entitled to receive
a cash fee equal to 8% of the gross proceeds received by the Company from Prospects in all subsequent private placement transactions
and (iii) to modify the HRA Warrants so that they are exercisable to purchase shares of Common Stock (or common stock equivalents)
in an amount equal to 8% of the shares of Common Stock purchased by Prospects in subsequent private placements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in; text-align: justify">The HRA Warrants were
issued on July 1, 2019. The Company issued Corinthian and its designees warrants exercisable for (i) 17,760 shares of Common Stock
in connection with the 2019 Private Placement, (ii) 36,096 shares of Common Stock in connection with the 2018 Private Placement
and (iii) <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">135,512 shares of Common Stock in connection
with the Notes transactions. Upon issuance, the HRA Warrants became immediately exercisable and expire on July 1, 2024.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in; text-align: justify"><B>Lock-Up Agreement</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in; text-align: justify">On March 1, 2018, Wade Fredrickson, a greater than 5% stockholder of the Company, entered into a lock-up
agreement, which was amended in July 2018, with the Company in which he agreed, subject to certain exceptions, not to offer, sell,
transfer or otherwise dispose of the Company&rsquo;s securities for a period of 18 months following the effective date of the agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in; text-align: justify"><B>Indemnification Agreements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in; text-align: justify">Our certificate of incorporation contains
provisions limiting the liability of directors, and our bylaws provides that we indemnify each of our directors to the fullest
extent permitted under Delaware law. Our certificate of incorporation and bylaws also provide our Board with discretion to indemnify
our officers and employees when determined appropriate by the Board. In addition, we have entered into an indemnification agreement
with our directors and our executive officers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><A NAME="a_018"></A>ADDITIONAL INFORMATION</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Federal securities laws require us to file information with the SEC concerning our business and operations.
Accordingly, we file proxy statements and annual, quarterly, and special reports, and other information with the Commission.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The SEC maintains a web site (http://www.sec.gov)
at which you can read or download our reports and other information.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have filed with the SEC a registration
statement on Form S-1 under the Securities Act with respect to the securities being offered hereby. As permitted by the rules and
regulations of the SEC, this prospectus does not contain all the information set forth in the registration statement and the exhibits
and schedules thereto. For further information with respect to the Company and the securities offered hereby, reference is made
to the registration statement, and such exhibits and schedules which may be accessed at the SEC&rsquo;s web site.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><A NAME="a_019"></A>DISCLOSURE OF COMMISSION
POSITION ON INDEMNIFICATION FOR SECURITIES ACT LIABILITIES</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company is incorporated under the laws
of the State of Delaware. Section 145 of the Delaware General Corporation Law provides that a Delaware corporation may indemnify
any persons who were, are, or are threatened to be made, parties to any threatened, pending or completed action, suit or proceeding,
whether civil, criminal, administrative or investigative (other than an action by or in the right of such corporation), by reason
of the fact that such person is or was an officer, director, employee or agent of such corporation, or is or was serving at the
request of such corporation as an officer, director, employee or agent of another corporation or enterprise. The indemnity may
include expenses (including attorneys&rsquo; fees), judgments, fines and amounts paid in settlement actually and reasonably incurred
by such person in connection with such action, suit or proceeding, provided that such person acted in good faith and in a manner
he or she reasonably believed to be in or not opposed to the corporation&rsquo;s best interests and, with respect to any criminal
action or proceeding, had no reasonable cause to believe that his or her conduct was illegal. A Delaware corporation may indemnify
any persons who were, are, or are threatened to be made, a party to any threatened, pending or completed action or suit by or in
the right of the corporation by reason of the fact that such person is or was a director, officer, employee or agent of such corporation,
or is or was serving at the request of such corporation as a director, officer, employee or agent of another corporation or enterprise.
The indemnity may include expenses (including attorneys&rsquo; fees) actually and reasonably incurred by such person in connection
with the defense or settlement of such action or suit provided such person acted in good faith and in a manner he or she reasonably
believed to be in or not opposed to the corporation&rsquo;s best interests except that no indemnification is permitted without
judicial approval if the officer or director is adjudged to be liable to the corporation. Where an officer or director is successful
on the merits or otherwise in the defense of any action referred to above, the corporation must indemnify him or her against the
expenses (including attorneys&rsquo; fees) actually and reasonably incurred.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company&rsquo;s certificate of incorporation
provides for the indemnification of its directors to the fullest extent permitted under the Delaware General Corporation Law. The
Company&rsquo;s bylaws provide for the indemnification of its directors and officers to the fullest extent permitted under the
Delaware General Corporation Law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Section 102(b)(7) of the Delaware General
Corporation Law permits a corporation to provide in its certificate of incorporation that a director of the corporation shall not
be personally liable to the corporation or its stockholders for monetary damages for breach of fiduciary duties as a director,
except for liability for any:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">transaction from which the director derives an improper personal benefit;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">act or omission not in good faith or that involves intentional misconduct or a knowing violation
of law;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">unlawful payment of dividends or redemption of shares; or</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">breach of a director&rsquo;s duty of loyalty to the corporation or its stockholders.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company&rsquo;s certificate of incorporation
includes such a provision. Under the Company&rsquo;s bylaws, expenses incurred by any director or officers in defending any such
action, suit or proceeding in advance of its final disposition shall be paid by the Company upon delivery to it of an undertaking,
by or on behalf of such director or officer, to repay all amounts so advanced if it shall ultimately be determined that such director
or officer is not entitled to be indemnified by the Company, as long as such undertaking remains required by the Delaware General
Corporation Law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Section 174 of the Delaware General Corporation
Law provides, among other things, that a director who willfully or negligently approves of an unlawful payment of dividends or
an unlawful stock purchase or redemption, may be held liable for such actions. A director who was either absent when the unlawful
actions were approved or dissented at the time may avoid liability by causing his or her dissent to such actions to be entered
in the books containing minutes of the meetings of the board of directors at the time such action occurred or immediately after
such absent director receives notice of the unlawful acts.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As permitted by the Delaware General Corporation
Law, we have entered into indemnity agreements with each of our directors and executive officers, that require us to indemnify
such persons against any and all expenses (including reasonable attorneys&rsquo; fees), witness fees, damages, judgments, fines,
settlements and other amounts incurred (including expenses of a derivative action) in connection with any action, suit or proceeding,
whether actual or threatened, to which any such person may be made a party by reason of the fact that such person is or was a director,
an officer or an employee of the Company or any of its affiliated enterprises, provided that such person acted in good faith and
in a manner such person reasonably believed to be in or not opposed to our best interests and, with respect to any criminal proceeding,
had no reasonable cause to believe his or her conduct was unlawful. The indemnification agreements also set forth certain procedures
that will apply in the event of a claim for indemnification thereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">There is at present no pending litigation
or proceeding involving any of the Registrant&rsquo;s directors or executive officers as to which indemnification is required
or permitted, and the Company is not aware of any threatened litigation or proceeding that may result in a claim for indemnification,
other than the letter received by the Company in May 2017 from the former employer of Mark Christianson and Wade <FONT STYLE="font-size: 10pt">Fredrickson
claiming, among other things, certain breaches of non-competition obligations and confidentiality and non-disclosure obligations
to such prior employer and federal and state law by virtue of such officers&rsquo; work for the Company. See &ldquo;We may be
subject to damages resulting from claims that we, or our employees, have wrongfully used or disclosed alleged trade secrets of
our competitors or are in breach of non-competition or non-solicitation agreements with our competitors&rdquo; under the &ldquo;Risk
Factors&rdquo; section in this prospectus.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company has an insurance policy that
covers its officers and directors with respect to certain liabilities, including liabilities arising under the Securities Act or
otherwise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Insofar as indemnification for liabilities
arising under the Securities Act may be permitted to directors, officers or persons controlling us pursuant to the foregoing provisions,
we have been informed that, in the opinion of the SEC, such indemnification is against public policy as expressed in the Securities
Act and is therefore unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment
by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful
defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities
being registered, we will, unless in the opinion of our counsel the matter has been settled by controlling precedent, submit to
a court of appropriate jurisdiction the question whether such indemnification by us is against public policy as expressed hereby
in the Securities Act and we will be governed by the final adjudication of such issue.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><A NAME="a_020"></A>LEGAL MATTERS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The validity of the securities offered
hereby have been passed upon for us by Honigman LLP, Kalamazoo, Michigan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><A NAME="a_021"></A>EXPERTS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The consolidated financial statements of
NeuroOne Medical Technologies Corporation as of September 30, 2018 and December 31, 2017, and for the nine month transition period
ended September 30, 2018 and for the year ended December 31, 2017 included in this Prospectus and in the Registration Statement
have been so included in reliance on the report of BDO USA, LLP, an independent registered public accounting firm (the report on
the consolidated financial statements contains an explanatory paragraph regarding the Company&rsquo;s ability to continue as a
going concern) appearing elsewhere herein and in the Registration Statement, given on the authority of said firm as experts in
auditing and accounting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>


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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;&nbsp;</B>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><B><A NAME="a_022"></A>NeuroOne Medical Technologies
Corporation </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><B>INDEX TO FINANCIAL
STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">Audited Consolidated Financial Statements</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="width: 92%"><A HREF="#f_001">Report of Independent Registered Public Accounting Firm</A></TD>
    <TD STYLE="width: 8%; text-align: center">F-2</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD><A HREF="#f_002">Consolidated Balance Sheets</A></TD>
    <TD STYLE="text-align: center">F-3</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><A HREF="#f_003">Consolidated Statements of Operations</A></TD>
    <TD STYLE="text-align: center">F-4</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD><A HREF="#f_004">Consolidated Statements of Changes in Stockholders&rsquo; Deficit</A></TD>
    <TD STYLE="text-align: center">F-5</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><A HREF="#f_005">Consolidated Statements of Cash Flows</A></TD>
    <TD STYLE="text-align: center">F-6</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD><A HREF="#f_006">Notes to Consolidated Financial Statements</A></TD>
    <TD STYLE="text-align: center">F-7</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">Unaudited Consolidated Financial Statements</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 92%"><A HREF="#fq_001"> Balance Sheets</A></TD>
    <TD STYLE="text-align: center; width: 8%">F-32</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><A HREF="#fq_002"> Statements of Operations</A></TD>
    <TD STYLE="text-align: center">F-33</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><A HREF="#fq_003"> Statements of Changes in Stockholders&rsquo; Equity (Deficit)</A></TD>
    <TD STYLE="text-align: center">F-34</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><A HREF="#fq_004">Consolidated Statements of Cash Flows</A></TD>
    <TD STYLE="text-align: center">F-35</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><A HREF="#fq_005">Notes to Consolidated Financial Statements</A></TD>
    <TD STYLE="text-align: center">F-36</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><B>&nbsp;</B></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><A NAME="f_001"></A>Report of Independent Registered Public Accounting Firm</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Stockholders and Board of Directors<BR>
NeuroOne Medical Technologies Corporation</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Minnetonka, Minnesota</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Opinion on the Consolidated Financial
Statements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have audited the accompanying
consolidated balance sheets of NeuroOne Medical Technologies Corporation (the &ldquo;Company&rdquo;) as of September 30, 2018
and December 31, 2017, the related consolidated statements of operations, changes in stockholders&rsquo; deficit, and cash
flows for the nine month transition period ended September 30, 2018 and for the year ended December 31, 2017, and the related
notes (collectively referred to as the &ldquo;consolidated financial statements&rdquo;). In our opinion, the consolidated
financial statements present fairly, in all material respects, the financial position of the Company at September 30, 2018
and December 31, 2017, and the results of their operations and their cash flows for the nine month transition period ended
September 30, 2018 and for the year ended December 31, 2017, in conformity with accounting principles generally accepted in
the United States of America.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; text-indent: -45pt"><B>Going Concern
Uncertainty</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The accompanying consolidated financial
statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the consolidated
financial statements, the Company has suffered recurring losses from operations and negative cash flows from operations that raise
substantial doubt about its ability to continue as a going concern. Management&rsquo;s plans in regard to these matters are also
described in Note 2 to the consolidated financial statements. The 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; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Basis for Opinion</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">These consolidated financial statements
are the responsibility of the Company&rsquo;s management. Our responsibility is to express an opinion on the Company&rsquo;s consolidated
financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight
Board (United States) (&ldquo;PCAOB&rdquo;) and are required to be independent with respect to the Company in accordance with the
U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We conducted our audits in accordance with
the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether
the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required
to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are
required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion
on the effectiveness of the Company&rsquo;s internal control over financial reporting. Accordingly, we express no such opinion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our audits included performing procedures
to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing
procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and
disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant
estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe
that our audits provide a reasonable basis for our opinion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">/s/ BDO USA, LLP</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have served as the Company&rsquo;s auditor
since 2016.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; text-indent: -45pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; text-indent: -45pt">Minneapolis,
Minnesota</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">December 12, 2018</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="f_002"></A>NeuroOne Medical Technologies Corporation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Consolidated Balance Sheets</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">September&nbsp;30,</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">December&nbsp;31,</TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2017</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold">Assets</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>Current assets:</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; padding-left: 10pt">Cash</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">13,260</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">26,467</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 10pt">Prepaid expenses</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">5,378</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">7,146</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Total current assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">18,638</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">33,613</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 10pt">Intangible assets, net</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">200,081</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">216,372</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Total assets</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">218,719</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">249,985</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left">Liabilities and Stockholders&rsquo; Deficit</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Current liabilities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 10pt">Accounts Payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">221,235</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 10pt">Accrued expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,591,022</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,021,617</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 10pt">Short-term promissory notes and unsecured loans</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">283,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">253,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 10pt">Convertible promissory notes, net and accrued interest</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,393,804</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,168,340</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 10pt">Premium conversion derivatives</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">308,395</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">462,174</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Total current liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,797,456</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,905,131</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 10pt">Warrant liability</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">817,155</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">1,381,465</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Total liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,614,611</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,286,596</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Commitments and contingencies (Note 4)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Stockholders&rsquo; deficit:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -10pt; padding-left: 20pt">Preferred stock, $0.001 par value; 10,000,000 shares authorized as of
    September 30, 2018 and December 31, 2017; no shares issued or outstanding as of September 30, 2018 and December 31, 2017.</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -10pt; padding-left: 20pt">Common stock, $0.001 par value; 100,000,000 shares authorized as of September 30, 2018 and December 31, 2017; 9,656,505 and 7,864,994 shares issued and outstanding as of September 30, 2018 and December 31, 2017, respectively.</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9,657</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,865</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 10pt">Additional paid&ndash;in capital</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,052,161</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">280,320</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 10pt">Accumulated deficit</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(10,457,710</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(5,324,796</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Total stockholders&rsquo; deficit</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(4,395,892</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(5,036,611</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Total liabilities and stockholders&rsquo; deficit</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">218,719</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">249,985</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">See accompanying notes to consolidated financial statements</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="f_003"></A>NeuroOne Medical Technologies Corporation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Consolidated Statements of Operations</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">For the nine months ended<BR>
 September&nbsp;30,</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Year ended<BR>
 December&nbsp;31,</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2017</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2017</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: right">(unaudited)</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>Operating expenses:</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 64%; text-align: left; padding-left: 10pt">General and administrative</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">2,676,872</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">1,798,131</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">2,336,988</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 10pt">Research and development</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">715,086</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">500,408</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">735,333</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Total operating expenses</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">3,391,958</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">2,298,539</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">3,072,321</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Loss from operations</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3,391,958</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,298,539</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3,072,321</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Interest expense</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(763,065</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,057,024</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,395,138</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Net change in fair value for the warrant liability and premium conversion derivatives</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">336,596</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(77,505</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(240,053</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Loss on note extinguishments, net</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(1,314,487</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(350,914</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Net loss</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(5,132,914</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(3,433,068</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(5,058,426</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Net loss per share:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt; padding-left: 10pt">Basic and diluted</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(0.61</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(0.55</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(0.77</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Number of shares used in per share calculations:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt; padding-left: 10pt">Basic and diluted</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">8,420,529</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">6,217,076</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">6,610,072</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">See accompanying notes to consolidated financial statements</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B><A NAME="f_004"></A>NeuroOne Medical Technologies Corporation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Consolidated Statements of Changes in
Stockholders&rsquo; Deficit</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Additional</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Total</TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Common&nbsp;Stock</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Paid&ndash;In</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Accumulated</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Stockholders&rsquo;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Shares</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Amount</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Capital</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Deficit</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Deficit</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 40%; text-indent: -10pt; padding-left: 10pt">Balance at December 31, 2016</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">5,216,565</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">31</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">119</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(266,370</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(266,220</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Issuance of stock in connection with intellectual license agreement</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">859,976</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">860</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">22,555</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">23,415</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Issuance of restricted stock award</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">215,453</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">215</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,005</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,220</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Transfer of shares in connection with merger</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,573,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,573</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,573</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Par value change in connection with merger</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,186</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(5,186</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Stock-based compensation</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">69,574</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">69,574</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -10pt; padding-left: 10pt">Issuance of warrants</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">61,496</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">61,496</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Issuance of additional warrants in connection with short-term notes modification</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">117,280</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">117,280</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Forgiveness of subscription receivable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9,050</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9,050</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -10pt; padding-left: 10pt">Net loss</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(5,058,426</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(5,058,426</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -10pt; padding-left: 10pt">Balance at December&nbsp;31,&nbsp;2017</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,864,994</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,865</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">280,320</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(5,324,796</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(5,036,611</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -10pt; padding-left: 10pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Issuance of common stock upon short term notes and convertible notes extinguishments</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,146,311</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,147</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,348,790</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,349,937</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Issuance of warrants and reclassification of warrant liability in connection with short-term notes and
convertible notes extinguishments</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,008,796</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,008,796</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Issuance of common stock under 2018 private placement</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">445,200</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">445</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">824,449</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">824,894</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Issuance of warrants under 2018 private placement</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">288,106</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">288,106</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Issuance costs related to 2018 private placement</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(173,067</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(173,067</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 0.125in">Issuance of common stock for consulting services</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">200,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">200</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">469,300</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">469,500</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0in">Stock-based compensation</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,467</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,467</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -10pt; padding-left: 10pt">Net loss</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(5,132,914</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(5,132,914</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 4pt; text-indent: -10pt; padding-left: 10pt">Balance at September 30,&nbsp;2018</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">9,656,505</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">9,657</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">6,052,161</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(10,457,710</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(4,395,892</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">See accompanying notes to consolidated financial statements</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B><A NAME="f_005"></A>NeuroOne Medical Technologies Corporation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Consolidated Statements of Cash Flows</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Nine Months Ended<BR> September 30,</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Year ended<BR>
 December&nbsp;31,</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt; text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1.5pt solid; text-align: center">2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt; text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2017</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt; text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2017</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: right">(unaudited)</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold">Operating activities</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 64%; text-align: left; text-indent: -10pt; padding-left: 10pt">Net loss</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(5,132,914</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(3,433,068</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(5,058,426</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Adjustments to reconcile net loss to net cash used in operating activities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -10pt; padding-left: 20pt">Amortization</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16,291</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13,368</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">17,633</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 20pt">Stock-based compensation</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">486,120</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">76,794</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">76,794</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -10pt; padding-left: 20pt">Forgiveness of subscription</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9,051</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9,050</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 20pt">Non-cash interest on convertible promissory notes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">152,045</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">76,359</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">115,867</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 20pt">Non-cash discount amortization on convertible and short-term promissory notes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">611,020</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">943,427</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,242,031</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 20pt">Note issuance costs attributed to warrant liability and to convertible promissory note modification</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">38,119</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">38,119</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 20pt">Revaluation of premium conversion derivatives</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(371,831</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">90,212</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(17,962</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 20pt">Revaluation of warrant liability</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">35,235</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(12,707</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">258,015</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 20pt">Loss on note extinguishments, net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,314,487</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">350,914</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 20pt">Change in assets and liabilities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 30pt">Prepaid expenses and other assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,768</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">46,677</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">46,677</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 30pt">Accounts payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">221,235</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -10pt; padding-left: 30pt">Accrued expenses</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">437,337</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">642,099</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">813,215</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -10pt; padding-left: 0.25in">Net cash used in operating activities</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(2,229,207</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(1,509,669</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(2,108,073</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; text-indent: -10pt; padding-left: 10pt">Investing activities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -10pt; padding-left: 10pt">Purchase of intangible assets</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(55,000</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(91,709</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -10pt; padding-left: 0.25in">Net cash used in investing activities</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(55,000</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(91,709</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; text-indent: -10pt; padding-left: 10pt">Financing activities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Proceeds from issuance of convertible promissory notes and short-term notes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">432,849</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">675,705</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,004,134</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Proceeds from issuance of warrants associated with convertible promissory notes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">442,151</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">440,919</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">777,490</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Proceeds from issuance of warrants associated with short-term notes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">61,496</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">61,496</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Proceeds from issuance of common stock in connection with private placement</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">824,894</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Proceeds from issuance of warrants in connection with private placement</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">288,106</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Proceeds (repayment)&nbsp;&nbsp;from unsecured loans</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">283,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(50,000</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(50,000</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Issuance costs related to short-term note</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3,030</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3,030</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Issuance costs related to convertible promissory notes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(35,689</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(45,468</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -10pt; padding-left: 10pt">Issuance costs related to warrants</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(31,920</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(40,590</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -10pt; padding-left: 0.25in">Net cash provided by financing activities</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">2,271,000</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">1,057,481</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">1,704,032</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Net decrease in cash</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(13,207</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(452,188</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(495,750</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt; text-indent: -10pt; padding-left: 10pt">Cash at beginning of period</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">26,467</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">522,217</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">522,217</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 4pt; text-indent: -10pt; padding-left: 10pt">Cash at end of period</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">13,260</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">70,029</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">26,467</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-style: italic; text-align: left; text-indent: -10pt; padding-left: 10pt">Supplemental non-cash financing and investing transactions:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt; text-indent: -10pt; padding-left: 10pt">Bifurcation of premium conversion derivatives related to convertible promissory notes</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">168,384</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">213,961</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">342,486</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt; text-indent: -10pt; padding-left: 10pt">Conversion of short-term notes and convertible promissory notes into common stock</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">2,063,361</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt; text-indent: -10pt; padding-left: 10pt">Issuance of additional warrants in connection with short-term notes and convertible promissory notes modifications</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right"><P STYLE="margin: 0pt 0">829,378</P> </TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">117,280</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt; text-indent: -10pt; padding-left: 10pt">Purchased intangible assets in accrued liabilities</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">30,000</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt; text-indent: -10pt; padding-left: 10pt">Common stock issued for the purchase of intangible assets</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">23,115</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">23,415</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt; text-indent: -10pt; padding-left: 10pt">Accrued issuance costs related to private placement</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">173,067</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt; text-indent: -10pt; padding-left: 10pt">Accrued issuance costs attributed to short-term promissory notes and convertible promissory notes</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">2,850</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">42,811</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">57,037</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt; text-indent: -10pt; padding-left: 10pt">Accrued issuance costs attributed to warrant liability</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">38,119</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">38,119</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">See accompanying notes to consolidated financial statements</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="margin-top: 0; text-align: center; margin-bottom: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B><A NAME="f_006"></A>NeuroOne Medical Technologies Corporation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Notes to Consolidated Financial Statements</B></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>NOTE 1 - Organization and Nature of Operations</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">NeuroOne Medical Technologies Corporation
(the &ldquo;Company&rdquo;), a Delaware Corporation, was originally incorporated as Original Source Entertainment, Inc. under the
laws of the State of Nevada on August 20, 2009. Prior to the closing of the Acquisition (as defined below), the Company completed
a series of steps contemplated by a Plan of Conversion pursuant to which the Company, among other things, changed its name to NeuroOne
Medical Technologies Corporation, increased its authorized number of shares of common stock from 45,000,000 to 100,000,000, increased
its authorized number of shares of preferred stock from 5,000,000 to 10,000,000 and reincorporated in Delaware. On July 20, 2017,
the Company, through a wholly owned acquisition subsidiary, acquired 100% of the outstanding capital stock of NeuroOne, Inc. (&ldquo;NeuroOne&rdquo;)
in a reverse triangular merger and reorganization pursuant to Section 368(a) of the Internal Revenue Code (the &ldquo;Acquisition&rdquo;).
The Acquisition was accounted for as a capital transaction, or reverse recapitalization. NeuroOne was the accounting acquirer in
this transaction. As such, the historical financial statements reflect the operations of NeuroOne for all periods presented prior
to the date of Acquisition. NeuroOne was formed on October 7, 2016. The accompanying consolidated financial statements subsequent
to the Acquisition include those of the Company, as well as those of its wholly owned subsidiary NeuroOne.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Subsequent to the Acquisition, the Company&rsquo;s
operating activities became the same as those of NeuroOne, an early-stage medical technology company developing comprehensive neuromodulation
cEEG and sEEG monitoring, ablation, and brain stimulation solutions to diagnose and treat patients with epilepsy, Parkinson&rsquo;s
disease, essential tremors, and other brain related disorders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">To date, the Company has recorded no product
sales and has a limited expense history. The Company is currently raising capital to fund the development of its proprietary technology
and is seeking regulatory clearances required to initiate commercial activities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company is based in Minnetonka, Minnesota
effective December 1, 2018. The Company was previously based in Eden Prairie, Minnesota.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Acquisition of NeuroOne, Inc.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Acquisition was consummated on July
20, 2017 (the &ldquo;Closing&rdquo;) and, pursuant to the terms of the merger agreement, (i) all outstanding shares of common stock
of NeuroOne, par value $0.0001 per share (the &ldquo;NeuroOne Shares&rdquo;), were exchanged for shares of the Company&rsquo;s
common stock, par value $0.001 per share (the &ldquo;Company Shares&rdquo;), based on the exchange ratio of 17.0103706 Company
Shares for every one NeuroOne Share (the &ldquo;Exchange Ratio&rdquo;), resulting in the Company issuing, on July 20, 2017, an
aggregate of 6,291,994 Company Shares for all of the then-outstanding NeuroOne Shares, (ii) all outstanding options of NeuroOne
were replaced with options to purchase Company Shares based on the Exchange Ratio, with corresponding adjustments to their respective
exercise prices, pursuant to which the Company reserved 992,265 Company Shares for issuance upon the exercise of options, (iii)
all warrants of NeuroOne were replaced with warrants to purchase Company Shares and (iv) the Company assumed the outstanding convertible
promissory notes of NeuroOne. NeuroOne options had been issued pursuant to the NeuroOne 2016 Equity Incentive Plan. Pursuant to
the merger agreement, the Company assumed the NeuroOne 2016 Equity Incentive Plan upon the Closing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Pursuant to the Acquisition, the Company
acquired 100% of NeuroOne Shares in exchange for the issuance of Company Shares and NeuroOne became the Company&rsquo;s wholly-owned
subsidiary. Also at the Closing, Mr. Samad (the majority owner of the Company prior to the Acquisition) tendered for cancellation
3,500,000 Company Shares held by him as part of the conditions to Closing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">All issued and outstanding common stock
share amounts, options for common stock and per share amounts contained in the consolidated financial statements were retroactively
adjusted to reflect the Exchange Ratio for all periods presented.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>NOTE 2 - Going Concern</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B></B>The accompanying consolidated
financial statements have been prepared on the basis that the Company will continue as a going concern. The Company has incurred
losses and negative cash flows from operations since inception and had an accumulated deficit of $10,457,710 as of September 30,
2018. In the event the Company is unable to complete an equity round of financing resulting in more than $3 million in gross proceeds
by December 31, 2018, the 2017 Convertible Notes and accrued interest thereon will become due. The Company does not have adequate
liquidity to fund the repayment of the 2017 Convertible Notes if they become due on December 31, 2018 or to fund its operations
throughout fiscal 2019 without raising additional funds. These factors raise substantial doubt about the Company&rsquo;s ability
to continue as a going concern. The consolidated financial statements do not include any adjustments that might result from the
outcome of this condition. If the Company is not able to raise additional working capital, it will have a material adverse effect
on the operations of the Company and the development of its technology.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Through September 30, 2018, since inception,
the Company has completed unsecured loan financings for gross proceeds of $283,000, a $253,000 short-term promissory note financing
(which notes were amended and restated to become convertible promissory notes as described below), a $1,625,120 convertible promissory
note financing and a second $1,540,000 convertible note promissory financing. In addition, the Company entered into a private placement
transaction in July 2018 whereby $1,113,000 in gross proceeds were raised out of a planned $10.0 million maximum subscription amount
(assuming the over-allotment option is not exercised) through September 30, 2018. The Company does not have adequate liquidity
to fund its operations throughout fiscal 2019 without raising additional funds. Management intends to seek additional debt and/or
equity financing to fund operations. However, if the Company is unable to raise additional funds, or the Company&rsquo;s anticipated
operating results are not achieved, management believes planned expenditures may need to be reduced in order to extend the time
period that existing resources can fund the Company&rsquo;s operations. If management is unable to obtain the necessary capital,
it may have to cease operations.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>NOTE 3 - Summary of Significant
Accounting Policies</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Basis of Presentation and Change in Fiscal Year</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The accompanying consolidated financial
statements have been prepared in accordance with accounting standards generally accepted in the United States of America, In September
2018, the Board of Directors of the Company, pursuant to the bylaws and based upon the recommendation of its Audit Committee, approved
a change in the Company&rsquo;s fiscal year end from December 31 to September 30. The Company&rsquo;s fiscal year now begins on
October 1 and ends on September 30 of each year, starting on October 1, 2018. The required transition period of January 1, 2018
to September 30, 2018 is included in the consolidated financial statements. For comparative purposes, the unaudited consolidated
statements of operations and consolidated statements of cash flows for the nine months ended September 30, 2017 are also presented.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Management&rsquo;s Use of Estimates</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The preparation of financial statements
in conformity with accounting principles generally accepted in the United States of America requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities
at the date of the financial statements and the reported amounts of expenses during the reporting period. Actual results could
differ from those estimates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Concentration of Credit Risk</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Financial instruments that potentially
subject the Company to a concentration of credit risk consist of cash. The Company&rsquo;s cash is held by one financial institution
in the United States. Amounts on deposit may at times exceed federally insured limits. Management believes that the financial institution
is financially sound, and accordingly, minimal credit risk exists with respect to the financial institution. As of September 30,
2018, the Company did not have any deposits in excess of federally insured amounts.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Common Stock Valuation</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Due to the limited market liquidity for
the Company&rsquo;s common stock, the Company utilized methodologies in accordance with the framework of the American Institute
of Certified Public Accountants&rsquo; Technical Practice Aid, Valuation of Privately-Held Company Equity Securities Issued as
Compensation&nbsp;(the &ldquo;Practice Aid&rdquo;), to estimate the fair value of its common stock. The valuation methodology
includes estimates and assumptions that require the Company&rsquo;s judgment. These estimates and assumptions include a number
of objective and subjective factors, including external market conditions affecting the biotechnology industry sector, and the
likelihood of achieving a liquidity event, such as an offering or sale. Significant changes to the key assumptions used in the
valuations may result in different fair values of common stock at each valuation date. Following is a summary of underlying assumptions
used:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I></I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I></I></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Prior to the Acquisition</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Prior to the Acquisition on July 20, 2017,
NeuroOne was a private company with no active public market for its common stock. Therefore, at the time, NeuroOne determined the
fair value of its common stock using a contemporaneous valuation performed in accordance with the Practice Aid. Within this contemporaneous
valuation performed by NeuroOne included the following significant factors:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font-size: 10pt; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px; font: 10pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="font: 10pt Calibri, Helvetica, Sans-Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">recent securities transactions;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font-size: 10pt; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px; font: 10pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="font: 10pt Calibri, Helvetica, Sans-Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">stage of development and business strategy;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font-size: 10pt; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px; font: 10pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="font: 10pt Calibri, Helvetica, Sans-Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the likelihood of a liquidity event such as an initial public offering, a merger or the sale of our company;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font-size: 10pt; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px; font: 10pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="font: 10pt Calibri, Helvetica, Sans-Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">financial condition and operating results, including our projected results; and</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font-size: 10pt; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px; font: 10pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="font: 10pt Calibri, Helvetica, Sans-Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">financial condition and operating results of comparable publicly owned companies</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The fair value of NeuroOne&rsquo;s common
stock prior to the Acquisition was determined during a period when there was limited data with regard to value indication other
than convertible notes issued between November 2016 and June 2017. At the time, such convertible notes contained a $1.80 conversion
cap, which was treated as an estimated price of preferred stock into which the notes would convert. A transaction backsolve was
performed that equated the $1.5 million investment in the convertible notes with the resulting equity allocation to the hypothetical
converted shares and warrants expected to be issued upon conversion. The resulting equity value was then used to infer the value
of common stock within the same option-pricing framework. This scenario implicitly assumed 100% likelihood of a stock financing.
In order to account for the possibility of dissolution, the transaction backsolve was used along with a dissolution scenario within
a hybrid Probability Weighted Expected Return Method (&ldquo;PWERM&rdquo;). The scenarios were weighted 50/50, and a Discount For
Lack of Marketability (&ldquo;DLOM&rdquo;) applied, to determine the valuation conclusion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Following the Acquisition</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For valuations following the Acquisition,
including the valuation of common stock on December 31, 2017, the Company estimated our enterprise value on a continuing operations
basis, using the market approach, with certain adjustments relating to the thinly traded status of the Company. The traded price
of the Company was deemed not to be an entirely reliable indication of fair market value given the lack of trading liquidity. Therefore,
in addition to applying partial weighting to the traded price, the Company relied on forward revenue multiples from guideline public
companies (&ldquo;GPC&rdquo;) for calendar year 2019 and 2020. The resulting equity value from the GPC method was allocated to
common stock using the option pricing method, and a DLOM was applied. Based on the above methodology and weightings, the Company
derived a valuation conclusion of $2.30 and $2.52 per share as of September 30, 2018 and December 31, 2017, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The significant factors contributing to
the increase in the fair value the Company&rsquo;s common stock following the Acquisition included the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font-size: 10pt; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px; font: 10pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="font: 10pt Calibri, Helvetica, Sans-Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The successful completion of the reverse merger;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font-size: 10pt; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px; font: 10pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="font: 10pt Calibri, Helvetica, Sans-Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Access to new capital as a public company;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font-size: 10pt; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px; font: 10pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="font: 10pt Calibri, Helvetica, Sans-Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Improved revenue projections;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font-size: 10pt; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px; font: 10pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="font: 10pt Calibri, Helvetica, Sans-Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Improved general economic conditions;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font-size: 10pt; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px; font: 10pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="font: 10pt Calibri, Helvetica, Sans-Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Additional issuance of convertible notes; and</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font-size: 10pt; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px; font: 10pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="font: 10pt Calibri, Helvetica, Sans-Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Important developments relating to achievement of our business objectives</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">The fair value the Company&rsquo;s
common stock is used as an input into the fair value determination of the warrants, stock option or other equity awards that the
Company has issued or are outstanding liabilities at the reporting date.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I></I></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Fair Value of Financial Instruments</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company&rsquo;s accounting for fair
value measurements of assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring
or nonrecurring basis adheres to the Financial Accounting Standards Board (FASB) fair value hierarchy that prioritizes the inputs
to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active
markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant
unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 41pt; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">Level 1 Inputs: Unadjusted quoted prices in active
markets for identical assets or liabilities accessible to the Company at the measurement date.</TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 41pt; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">Level 2 Inputs: Other than quoted prices included in
Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term
of the asset or liability.</TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 41pt; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">Level 3 Inputs: Unobservable inputs for the asset or
liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in
which there is little, if any, market activity for the asset or liability at measurement date.</TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 5pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of September 30, 2018 and December 31,
2017, the fair values of cash, accounts payable, accrued expenses and the unsecured loans approximated their carrying
values because of the short-term nature of these assets or liabilities. The estimated fair value of the short-term and convertible
promissory notes of the Company was based on amortized cost which was deemed to approximate fair value. The fair value of the warrant
liability and the premium conversion derivatives associated with the convertible promissory notes of the Company were based on both
the estimated fair value of our common stock of $2.30 and $2.52 as of September 30, 2018 and December 31, 2017, respectively, and
cash flow models discounted at current implied market rates evidenced in recent arms-length transactions representing expected
returns by market participants for similar instruments and are based on Level&nbsp;3 inputs. There were no transfers between fair
value hierarchy levels during the nine month transition period ended September 30, 2018 or for the year ended December 31, 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The fair value of financial instruments measured on a recurring
basis is as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="14" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">As of September&nbsp;30,&nbsp;2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1.5pt solid">Description</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Total</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Level&nbsp;1</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Level&nbsp;2</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Level&nbsp;3</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>Liabilities:</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; text-align: left">Warrant liability</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">817,155</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">&mdash;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">&mdash;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">817,155</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Premium conversion derivatives</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">308,395</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">308,395</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt; padding-left: 10pt">Total liabilities at fair value</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">1,125,550</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">1,125,550</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="14" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">As of December&nbsp;31,&nbsp;2017</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1.5pt solid">Description</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Total</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Level&nbsp;1</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Level&nbsp;2</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Level&nbsp;3</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>Liabilities:</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; text-align: left">Warrant liability</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">1,381,465</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">&mdash;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">&mdash;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">1,381,465</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Premium conversion derivatives</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">462,174</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">462,174</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt; padding-left: 10pt">Total liabilities at fair value</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">1,843,639</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">1,843,639</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 5pt"></P>

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    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->10<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table provides a roll-forward
of the warrant liability and premium debt conversion derivatives measured at fair value on a recurring basis using unobservable
level&nbsp;3 inputs for the nine month transition period ended September 30, 2018 and for the year ended December 31, 2017:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2017</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold">Warrant liability</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%">Balance as of beginning of period</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">1,381,465</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">345,960</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Value assigned to warrants in connection with convertible promissory and short-term notes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">579,873</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">777,490</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><P STYLE="margin: 0pt 0">Reclassification to equity</P>


</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,179,418</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Change in fair value of warrant liability</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">35,235</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">258,015</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 4pt; padding-left: 10pt">Balance as of end of period</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">817,155</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">1,381,465</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2017</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold">Premium debt conversion derivatives</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%">Balance as of beginning of period</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">462,174</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">137,650</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.125in">Value assigned to the underlying derivatives in connection with convertible promissory and short-term notes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">218,052</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">342,486</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Change in fair value of premium debt conversion derivatives</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(371,831</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(17,962</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 4pt; padding-left: 10pt">Balance as of end of period</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">308,395</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">462,174</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Intellectual Property </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company has entered into two licensing
agreements with major research institutions, which allows for access to certain patented technology and know-how. Payments under
those agreements are capitalized and amortized to general and administrative expense over the expected useful life of the acquired
technology.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Impairment of Long-Lived Assets </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company evaluates its long-lived assets,
which consists entirely of licensed intellectual property for impairment whenever events or changes in circumstances indicate that
the carrying value of these assets may not be recoverable. The Company assesses the recoverability of long-lived assets by determining
whether or not the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the asset
is considered to be impaired, the amount of any impairment is measured as the difference between the carrying value and the fair
value of the impaired asset. Through September 30, 2018, no milestones triggering possible impairment of the Company&rsquo;s long-lived assets have occurred.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Debt Issuance Costs</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Debt issuance costs are recorded as a reduction
of the convertible promissory notes and short-term notes when applicable. Amortization of debt issuance costs is calculated using
the straight-line method over the term of the convertible promissory notes, which approximates the effective interest method, and
is recorded in interest expense in the accompanying consolidated statements of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Research and Development Costs</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Research and development costs are charged
to expense as incurred. Research and development expenses may comprise of costs incurred in performing research and development
activities, including clinical trial costs, manufacturing costs for both clinical and pre-clinical materials as well as other contracted
services, license fees, and other external costs. Nonrefundable advance payments for goods and services that will be used in future
research and development activities are expensed when the activity is performed or when the goods have been received, rather than
when payment is made, in accordance with ASC 730, <I>Research and Development</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Warrant Liability</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company issued warrants to purchase
equity securities in connection with the issuance of convertible promissory notes (See Note 7&ndash; Short-Term Promissory Notes
and Unsecured Loans and Note 8 &ndash; Convertible Promissory Notes and Warrant Agreements). The Company accounts for these warrants
as a liability at fair value when the number of shares is not fixed and determinable in cases where warrant pricing protections
in future equity financings are not available to other common stockholders. Additionally, issuance costs associated with the warrant
liability are expensed as incurred and reflected as interest expense in the accompanying consolidated statements of operations.
The Company adjusts the liability for changes in fair value until the earlier of the exercise or expiration of the warrants for
any period when pricing protections in future equity financings remain in place, or until such time, if any, as the number of shares
to be exercised becomes fixed, at which point the warrants will be classified in stockholders&rsquo; (deficit) equity provided
that there are sufficient authorized and unissued shares of common stock to settle the warrants and redeem any other contracts
that may require settlement in shares of common stock. Any future change in fair value of the warrant liability, when outstanding,
is recognized in the consolidated statements of operations.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Premium Debt Conversion Derivatives</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company evaluates all conversion and
redemption features contained in a debt instrument to determine if there are any embedded derivatives that require separation from
the host debt instrument. An embedded derivative that requires separation is bifurcated from its host debt instrument and a corresponding
discount to the host debt instrument is recorded. The discount is amortized and recorded to interest expense over the term of the
host debt instrument using the straight-line method which approximates the effective interest method.&nbsp; The separated embedded
derivatives are accounted for separately on a fair value basis. The Company records the fair value changes of separated embedded
derivatives at each reporting period in the consolidated statements of operations (See Note 7&ndash; Short-Term Promissory Notes
and Unsecured Loans and Note 8 &ndash; Convertible Promissory Notes and Warrant Agreements). The Company determined that the redemption
features under the convertible promissory notes qualified as embedded derivatives and therefore separated from the debt host with
regard to the convertible promissory notes.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Income Taxes</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For the Company, income taxes are accounted
for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable
to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax base
and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected
to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Deferred
tax assets are reduced by a valuation allowance if it is more likely than not that some portion of all of the deferred tax asset
will not be realized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On December 22, 2017, the Tax Cuts and
Jobs Act of 2017 was signed into law making significant changes to the U.S. tax code. Changes affecting the Company&rsquo;s consolidated
financial statements include, but are not limited to, a U.S federal corporate tax rate decrease from 35% to 21% effective for tax
years beginning after December 31, 2017. The Company has adjusted the disclosure amounts related to deferred tax assets and the
valuation allowance recorded to reflect the new federal corporate tax rates.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Net Loss Per Share</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For the Company, basic loss per share of
common stock is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;&nbsp;<B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Diluted earnings or loss per share of common
stock is computed similarly to basic earnings or loss per share except the weighted average shares outstanding are increased to
include additional shares from the assumed exercise of any common stock equivalents, if dilutive. The Company&rsquo;s convertible
promissory notes, warrants and stock options are considered common stock equivalents for this purpose. Diluted earnings is computed
utilizing the treasury method for the warrants and stock options. Diluted earnings with respect to the convertible promissory notes
utilizing the if-converted method was not applicable during the nine month transition period ended September 30, 2018 or for the
year ended December 31, 2017 as no conditions required for conversion had occurred during these periods. No incremental common
stock equivalents were included in calculating diluted loss per share because such inclusion would be anti-dilutive given the net
loss reported for the nine month transition period ended September 30, 2018 and for the year ended December&nbsp;31, 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following potential common shares were
not considered in the computation of diluted net loss per share as their effect would have been anti-dilutive for the nine month
transition period ended September 30, 2018 and for the year ended December 31, 2017:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; white-space: nowrap">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2017</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; white-space: nowrap">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%">Warrants</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">2,927,572</TD><TD STYLE="width: 1%; text-align: left; white-space: nowrap">(1)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">189,750</TD><TD STYLE="width: 1%; text-align: left; white-space: nowrap">(1)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Stock options</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">368,216</TD><TD STYLE="text-align: left; white-space: nowrap">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">365,716</TD><TD STYLE="text-align: left; white-space: nowrap">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left">(1)</TD><TD STYLE="text-align: justify">There are additional potential warrants to be included
which will be known, if and when a qualified financing event greater than $3 million occurs in the future related to the 2017
Convertible Notes.</TD>
</TR></TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Recent Accounting Pronouncements</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In May 2017, the FASB issued Accounting
Standards Update (ASU) 2017-09, <I>Compensation - Stock Compensation (Topic 718):&nbsp;Scope of Modification Accounting (ASU 2016-09)</I>,&nbsp;which
provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification
accounting in Topic 718. This pronouncement is effective for annual reporting periods beginning after December 15, 2017. The Company
has adopted this standard for the nine month transition period ended September 30, 2018. The adoption of this standard did not
have any impact on the Company&rsquo;s consolidated financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In July 2017, the FASB issued ASU No. 2017-11,
<I>Earnings Per Share, Distinguishing Liabilities from Equity and Derivatives and Hedging</I>, which changes the accounting and
earnings per share for certain instruments with down round features. The amendments in this ASU should be applied using a cumulative-effect
adjustment as of the beginning of the fiscal year or retrospective adjustment to each period presented and is effective for annual
periods beginning after December&nbsp;15, 2018 for public business entities, including interim periods within those fiscal years.
Early adoption is permitted. The Company is currently evaluating the requirements of this new guidance and has not yet determined
its impact on the Company&rsquo;s consolidated financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In June 2018, the FASB issued ASU 2018-07,
<I>Compensation - Stock Compensation (Topic 718):&nbsp;Improvements to Nonemployee Share-Based Payment Accounting</I> (ASU 2018-07),&nbsp;which
expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees.
An entity should generally apply the requirements of Topic 718 to nonemployee awards except in circumstances where there is specific
guidance on inputs to an option pricing model and the attribution of cost. ASU 2018-07 specifies that Topic 718 applies to all
share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor&rsquo;s own
operations by issuing share-based payment awards. The guidance also clarifies that Topic 718 does not apply to share-based payments
used to effectively provide (1) financing to the issuer or (2) awards granted in conjunction with selling goods or services to
customers as part of a contract accounted for under ASC 606<I>, Revenue from Contracts with Customers </I>(ASC 606)<I>.</I> This
guidance is effective for annual reporting periods beginning after December 15, 2018, with early adoption permitted, but no earlier
than an entity&rsquo;s adoption date of ASC 606. The Company is currently evaluating the impact of the new guidance on its consolidated
financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In August 2018, the FASB issued ASU 2018-13,&nbsp;<I>Fair
Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement (ASU 2018-13).</I>&nbsp;The
new guidance modifies the disclosure requirements in Topic 820 as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">Removals: the amount of and reasons for transfers between
Level 1 and Level 2 of the fair value hierarchy; the policy for timing of transfers between levels; and the valuation processes
for Level 3 fair value measurements.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">Modifications: for investments in certain entities
that calculate net asset value, an entity is required to disclose the timing of liquidation of an investee&rsquo;s assets and
the date when restrictions from redemption might lapse only if the investee has communicated the timing to the entity or announced
the timing publicly; and the amendments clarify that the measurement uncertainty disclosure is to communicate information about
the uncertainty in measurement as of the reporting date.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">Additions: the changes in unrealized gains and losses
for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting
period; and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">This
guidance is effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December
15, 2019. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable
inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should all be
applied prospectively for only the most recent interim or annual period presented in the initial year of adoption. All other amendments
should be applied retrospectively to all periods presented upon their effective date. Early adoption is permitted. An entity is
permitted to early adopt any removed or modified disclosures upon issuance of ASU 2018-13 and delay adoption of the additional
disclosures until their effective date. </FONT>The Company is currently evaluating the impact of the new guidance on its financial
statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>NOTE 4 - Commitments and
Contingencies</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>WARF License Agreement</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On October 1, 2014, NeuroOne LLC (the &ldquo;LLC&rdquo;),
NeuroOne&rsquo;s predecessor which was merged with and into NeuroOne on October 27, 2016 (the &ldquo;Merger&rdquo;), entered into
an exclusive start-up company license agreement with the Wisconsin Alumni Research Foundation (&ldquo;WARF&rdquo;) for WARF&rsquo;s
neural probe array and thin film micro electrode technology (the &ldquo;2014 WARF Agreement&rdquo;). The license agreement required
the LLC to make $110,000 in milestone payments depending on achievement of certain development and approval milestones or within
twelve months of signing the 2014 WARF Agreement. Additionally, if the LLC was successful in obtaining regulatory approval, the
LLC was to pay royalties to WARF on a percentage of net sales of products of the licensed technology. Under the terms of the 2014
WARF Agreement, amounts that remained unpaid more than 30 days after they were due, accrued interest at 1 percent per month. Milestone
payments due in 2015 were not made to WARF. From October 27, 2016 until the 2014 WARF Agreement was amended as described below,
the LLC was in default under the 2014 WARF Agreement. In addition, the LLC was not able to transfer the rights and obligations
under the 2014 WARF Agreement to NeuroOne at the time of the Merger without the consent of WARF, which was received when the 2014
WARF Agreement was amended in February 2017 as described below. In connection with the Merger and in accordance with ASC 805-50,
NeuroOne estimated the fair value of consideration payable to WARF and recorded an intangible asset of $120,000 with a corresponding
accrued expense.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">This agreement was subsequently amended
in February 2017 (as so amended, the &ldquo;2017 WARF Agreement&rdquo;) whereby WARF consented to the transfer of the rights and
obligations under the license agreement from the LLC to NeuroOne (which are now the Company&rsquo;s rights and obligations, following
the Acquisition). In the 2017 WARF Agreement, the Company agreed to pay WARF $55,000 (representing a license fee) upon the earliest
to occur of the date the Company cumulatively raises at least $3 million in financing, the date of a change of control, or the
Company&rsquo;s revenue reaching a specified threshold amount. The Company met the milestone payment requirement with regard to
the $55,000 license fee which was paid in April 2018. In addition, the Company agreed to pay $65,000 (representing reimbursement
for costs incurred by WARF in maintaining the licensed patents) upon the earliest to occur of the date the Company cumulatively
raises at least $5 million in financing, the date of a change of control, or the Company&rsquo;s revenue reaching a specified threshold
amount. As of September 30, 2018, the Company has not met the requirements for the $65,000 milestone payment and this amount remains
in accrued expenses.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company is also obligated to pay royalties
to WARF based on a percentage of net sales of products of licensed technology with minimum royalties of $50,000 and $100,000 for
calendar years 2019 and 2020, respectively, and $150,000 per year beginning in 2021 through the duration of the 2017 WARF Agreement.
Subject to earlier termination, the WARF License otherwise expires by its terms on the date that no valid claims on the patents
licensed thereunder remain. The Company expects the latest expiration of a licensed patent to occur in 2030. The 2017 WARF Agreement
is also subject to certain cancellation provisions with 90 days&rsquo; notice should the Company elect not to continue to use the
licensed technology.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company has agreed to diligently develop,
manufacture, market and sell products under the WARF License in the United States during the term of the agreement and, specifically,
that the Company would submit a business plan to WARF by February 1, 2018, which the Company submitted on January 18, 2018, and
file an application for 510(k) marketing clearance with the FDA by February 1, 2019. WARF may terminate the 2017 WARF Agreement
in the event that the Company fails to meet these milestones on 30 days&rsquo; written notice, if the Company defaults on the payments
of amounts due to WARF or fails to timely submit development reports, actively pursue the development plan or breaches any other
covenant in the 2017 WARF Agreement and fails to remedy such default in 90 days or in the event of certain bankruptcy events involving
the Company. WARF may also terminate this license (i) on 90 days&rsquo; notice if the Company fails to have commercial sales of
one or more FDA-approved products under the 2017 WARF Agreement by March 31, 2019 or (ii) if, after royalties earned on sales begin
to be paid, such earned royalties cease for more than four calendar quarters.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Mayo Agreement</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On October 3, 2014, the LLC entered into
an exclusive license and development agreement with the Mayo Foundation for Medical Education and Research (&ldquo;Mayo&rdquo;)
related to certain intellectual property and development services for thin film micro electrode technology (&ldquo;2014 Mayo Agreement&rdquo;).
The LLC was to make milestone payments depending on achievement of certain development and approval milestones and sales targets,
none of which were met as of December 31, 2015. Additionally, if the LLC was successful in obtaining regulatory approval, the LLC
was to pay royalties to Mayo based on a percentage of net sales of products of the licensed technology through the term of the
2014 Mayo Agreement, set to expire May 25, 2037. Also, the LLC was obligated to issue common stock to Mayo if certain events occurred.
Upon the LLC&rsquo;s merger with NeuroOne on October 27, 2016, the rights under the 2014 Mayo Agreement transferred to NeuroOne,
and certain milestones were attained. Therefore, NeuroOne recorded liabilities of $300 related to shares of common stock expected
to be issued to Mayo and $91,709 for the intellectual property to be paid in cash. Under the terms of the 2014 Mayo Agreement,
amounts that remained unpaid accrued interest at 2 percent above the prime rate. Milestone payments due in 2016 were not made to
Mayo. As such, prior to the amendment of the 2014 Mayo Agreement in May 2017, NeuroOne was in default under the 2014 Mayo Agreement.
Mayo and NeuroOne amended and restated the 2014 Mayo Agreement in May 2017 (as so amended and restated, the &ldquo;2017 Mayo Agreement&rdquo;).
Pursuant to the 2017 Mayo Agreement, NeuroOne issued 859,976 shares of common stock (as converted based on the Exchange Ratio)
to Mayo to settle the amount of common stock NeuroOne was previously obligated to issue under the 2014 Mayo Agreement and as provided
by the terms of the 2017 Mayo Agreement. NeuroOne recorded an additional $23,115 to intangible assets related to the fair value
of the 2017 stock issuance to Mayo. As a part of the 2017 Mayo Agreement, as amended in November 2017, the $91,709 milestone payment
was paid in December 2017.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Legal</B>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">From time to time, the Company is subject
to litigation and claims arising in the ordinary course of business.&nbsp; In May 2017, NeuroOne received a letter from PMT, the
former employer of Mark Christianson and Wade Fredrickson.&nbsp; PMT claimed that these officers had breached their restrictive
covenant obligations with PMT by virtue of their work for NeuroOne and such officer&rsquo;s prior work during employment with the
prior employer, that these officers had breached their confidentiality and non-disclosure obligations to PMT and federal and state
law by misappropriating confidential and trade secret information, and that the Company is responsible for tortious interference
with the contracts.&nbsp; The letter demanded that Mr. Fredrickson (who resigned from the Company in June 2017), Mr. Christianson
and NeuroOne cease and desist all competitive activities, that Mr. Fredrickson step down from his position and that Mr. Christianson
and NeuroOne provide the former employer access to NeuroOne&rsquo;s systems to demonstrate that it is not using trade secrets or
proprietary information nor competing with the former employer.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On March 29, 2018, the Company was served
with a complaint filed by PMT adding the Company, NeuroOne and Mr. Christianson to its existing lawsuit against Mr. Fredrickson.&nbsp;
In the lawsuit, PMT claims that Mr. Fredrickson and Mr. Christianson breached their non-competition, non-solicitation and non-disclosure
obligations, breached their fiduciary duty obligations, were unjustly enriched, engaged in unfair competition, engaged in a civil
conspiracy, tortiously interfered with PMT&rsquo;s contracts and prospective economic advantage, and breached a covenant of good
faith and fair dealing.&nbsp; Against Mr. Fredrickson, PMT also alleges that he intentionally or negligently spoliated evidence,
made negligent or fraudulent misrepresentations, misappropriated trade secrets in violation of Minnesota law, and committed the
tort of conversion and statutory civil theft.&nbsp; Against the Company and NeuroOne, PMT alleges that the Company and NeuroOne
were unjustly enriched and engaged in unfair competition.&nbsp; PMT asked the Court to impose a constructive trust over the shares
held by Mr. Fredrickson and Mr. Christianson and to award compensatory damages, equitable relief, punitive damages, attorneys&rsquo;
fees, costs and interest.&nbsp; The Company, NeuroOne and Mr. Christianson (who has not worked for PMT since 2012) intend to defend
themselves vigorously.&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On April 18, 2018, Mr. Christianson, the
Company and NeuroOne, Inc. filed a motion for dismissal, which was heard by the Court on October 11, 2018. The Company expects
a ruling on the motion within 90 days of that date. The motion for dismissal states that: the contract claims against Mr. Christianson
fail because his agreement was not supported by consideration; the Minnesota Uniform Trade Secrets Act preempts plaintiff&rsquo;s
claims for unfair competition, civil conspiracy and unjust enrichment; plaintiff fails to state a claim regarding alleged breach
of the duties of loyalty and good faith/fair dealing; plaintiff cannot legally obtain a constructive trust; plaintiff has insufficiently
pled its tortious interference claims; and Plaintiff has not stated a claim for unfair competition.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The outcome and potential loss related
to this matter is unknown as of September 30, 2018 and as of the issuance of these &nbsp;financial statements.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>NOTE 5 - Intangibles</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Intangible assets rollforward is as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Useful Life</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: justify">Net Intangibles, December 31, 2016</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 11%; text-align: center">12-13 years</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">180,890</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">License agreement amendment</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">53,115</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; padding-bottom: 1.5pt">Less: amortization</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: justify; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(17,633</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">Net Intangibles, December 31, 2017</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">216,372</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; padding-bottom: 1.5pt">Less: amortization</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: justify; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(16,291</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-bottom: 4pt">Net Intangibles, September 30, 2018</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="text-align: justify; padding-bottom: 4pt">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">200,081</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company anticipates amortization expense
of approximately $21,000 per year for fiscal year 2019 through 2023 based upon the two current license agreements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>NOTE 6 - Accrued Expenses</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Accrued expenses consisted of the following
at September 30, 2018 and December 31, 2017:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2017</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">Accrued&nbsp;license fees</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">65,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">120,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Legal costs</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">833,470</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">553,037</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Accrued issuance costs</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">204,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">28,083</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Accrued payroll</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">276,639</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">223,195</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Advances</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">50,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt">Other</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">211,913</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">47,302</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 4pt">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">1,591,022</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">1,021,617</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>NOTE 7 - Short-Term Promissory
Notes and Unsecured Loans</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">As of<BR> September&nbsp;30,<BR> 2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">As of<BR> December&nbsp;31,<BR> 2017</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left; text-indent: -9pt; padding-left: 9pt">Short-term promissory notes</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">&mdash;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">253,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9pt">Unsecured loans</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">283,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Short-Term Promissory Notes</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company issued short-term unsecured
and interest-free promissory notes (the &ldquo;Short-Term Notes&rdquo;) for aggregate gross proceeds of $253,000 in August 2017
which included free standing equity warrants. The Short-Term Notes were subsequently amended in November 2017 and March 2018 to
become convertible, extend the maturity date and include additional warrant coverage, new interest payment provisions and new conversion
features described more fully below. Effective July 2, 2018, the Company entered into debt conversion agreements (the &ldquo;Short-Term
Note Conversion Agreements&rdquo;) with each Short-Term Note subscriber to (i) convert the outstanding principal and accrued and
unpaid interest (the &ldquo;Outstanding Balance&rdquo;) under the Short-Term Notes into shares of the Company&rsquo;s common stock
based on the Outstanding Balance divided by $1.80 per share (the &ldquo;Short-Term Note Conversion Shares&rdquo;); (ii) cancel
and extinguish the Short-Term Notes; and (iii) amend and restate the Replacement Warrants and Additional Warrants, as described
more fully below, to make them immediately exercisable upon the conversion, at a per share exercise price equal to $1.80 per share.
As consideration for the early conversion of the Short-Term Notes, the Company issued each subscriber a new warrant (the &ldquo;Short-Term
Note Payment Warrants&rdquo;), exercisable for up to the number of shares of common stock equal to the number of Short-Term Note
Conversion Shares received by such subscriber; at a per share exercise price of $1.80 per share. The Short-Term Note Payment Warrants
became exercisable commencing on July 2, 2018, and expire on November 21, 2021.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Pursuant to the Short-Term
Note Conversion Agreements, $259,297 of the outstanding principal and interest of the Short-Term Notes was converted into
144,053 shares of common stock with an additional 477,856 shares issuable upon
exercise of the Replacement Warrants, Additional Warrants and Short-Term Payment Warrants. The conversion of the Short Term
Notes was accounted for as an extinguishment. The difference in the carrying value of the Short-Term Notes coupled with the
fair value of the underlying Replacement Warrants and Additional Warrants on the date of extinguishment relative to the
higher fair value of the underlying common stock and collective Replacement Warrants, Additional Warrants and new Short-Term
Payment Warrants issued was $148,787. The $148,787 differential was recorded as a loss on note extinguishments in the
accompanying consolidated statements of operations during the nine month transition period ended September 30, 2018.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Replacement Warrants, Additional Warrants and Short-Term
Note Payment Warrants were deemed to be free-standing equity instruments upon execution of the July 2, 2018 Short-Term Note Conversion
Agreements. All of the warrant terms became fixed and have identical provisions. Due to the previously granted warrants now having
fixed terms, the warrant liability value of $148,053 was reclassified to equity. The warrants associated with the Short-Term Notes
became immediately exercisable on July 2, 2018 and expire November 21, 2021. The Black-Scholes model was used to determine the
July 2, 2018 fair value of the warrants associated with the Short-Term Warrants. Input assumptions used were as follows: a risk-free
interest rate of 2.65 percent; expected volatility of 49.8% percent; expected life of 3.39 years; and expected dividend yield of
0 percent. The underlying stock price used in the analysis was on a non-marketable basis and was according to the market approach,
considering both the traded price and forward multiples from guideline public companies, using allocation and marketability-discount
methodologies.&nbsp;</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Activity Prior to the July 2, 2018 Cancellation,
Extinguishment and Conversion of the Short-Term Notes </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In August 2017, the Company&rsquo;s Board
of Directors (the &ldquo;Board&rdquo;) authorized, and the Company issued the Short-Term Notes for aggregate gross proceeds of
$253,000 prior to issuance costs of $3,030 which were discounted from the Short-Term Notes and were amortized ratably to interest
expense over the original term of the Short-Term Notes up though November 2017. For the year ended December 31, 2017, discount
amortization charged to interest expense related to the issuance costs was $1,748 through the November 30, 2017 amendment date
as discussed further below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On November 30, 2017, the Short-Term Notes
were amended to extend the maturity date from February 18, 2018 to July 31, 2018 and to increase warrant coverage to 189,750 common
stock purchase warrants (as amended, the &ldquo;Original Warrants&rdquo;). The Original Warrants had a term of 5 years and an exercise
price of $1.80 and would have been immediately exercisable upon maturity of the Short-Term Notes prior to the November 30, 2017
amendment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The November 30, 2017 amendment resulted
in a substantial modification to the Short-Term Notes and was accounted for under the provisions of extinguishment accounting.
A loss on note extinguishments in the accompanying statements of operations for the year ended December&nbsp;31, 2017 was recorded
in the amount of $144,577, which represented the difference between the face value of the Short-Term Notes over the combined carrying
values of the Short-Term Notes and warrants on the date of the amendment. The fair value increase of the Short-Term Notes and the
warrants as amended over its adjusted carrying value at the time of the amendment was $117,280 which was recorded as additional
paid-in capital.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Prior to the November 30, 2017 amendment,
the holders were to receive 126,500 common stock purchase warrants upon maturity. A portion of the proceeds from the Short-Term
Notes upon issuance was allocated to the original warrants based on their relative fair value to the underlying Short-Term Notes
in the amount of $61,496 and was recorded in additional paid-in capital in the accompanying consolidated balance sheets and was
discounted from the Short-Term Notes and was being amortized to interest expense ratably over the term of the Short-Term Notes
which amounted to $35,479 during the year ended December 31, 2017. The fair value of the warrants was based on the Black-Scholes
method with the following assumptions: a risk-free interest rate of 2.1 percent; expected volatility of 47.8 percent; expected
life of 5.7 years; and expected dividend yield of 0 percent. The underlying stock price used in the analysis was on a non-marketable
basis and was according to the market approach, considering both the traded price and forward multiples from guideline public companies,
using allocation and marketability-discount methodologies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Short-Term Notes were subsequently
amended and restated on March 12, 2018 (the &ldquo;Amended and Restated Short-Term Notes&rdquo;). The Amended and Restated Short-Term
Notes became convertible promissory notes that had interest assessed at a fixed rate of 8% per annum and would have required the
Company to repay the principal and accrued and unpaid interest thereon on the maturity date of July 31, 2018 (the &ldquo;Short-Term
Note Maturity Date&rdquo;). Pursuant to the terms of each Amended and Restated Short-Term Note and a consent signed by the Company
and each holder, the Original Warrants under the Short-Term Notes were modified whereby each subscriber received a replacement
warrant (the &ldquo;Replacement Warrants&rdquo;) upon the issuance of the Amended and Restated Short-Term Note, in lieu of the
Original Warrant. In addition, each holder was issued an additional warrant (the &ldquo;Additional Warrants&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Replacement Warrants</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Each Replacement Warrant issued on March
12, 2018 granted the holder the option to purchase up to the number of shares of capital stock of the Company equal to the New
Round Stock issued or issuable upon the conversion of the Amended and Restated Short-Term Note held by such holder at a per share
exercise price equal to either (i) the actual per share price of New Round Stock if the Amended and Restated Short-Term Notes converted
in connection with a Short-Term Note Qualified Financing or (ii) the price at which the Amended and Restated Short-Term Notes converted
in connection with a change of control transaction. The Replacement Warrants were exercisable commencing on the Conversion Date
and would have expired on November 21, 2021. The exercise price and number of the shares issuable upon exercising the Replacement
Warrants were subject to adjustment in the event of any stock dividends and splits, reverse stock split, recapitalization, reorganization
or similar transaction, as described therein.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Replacement Warrants were deemed to
be free-standing instruments and were accounted for as a liability given the variable number of shares issuable in connection with
a possible change of control conversion event. The Company recorded an initial liability of $137,722 upon issuance with an offset
to extinguishment loss described further below. The fair value changes of the warrant liability associated with the Amended and
Restated Short-Term Notes were recorded at each reporting date in the consolidated statements of operations which amounted to an
expense of $10,330 for the nine month transition period ended September 30, 2018. A Monte Carlo simulation model was used to estimate
the aggregate fair value of the Replacement Warrants immediately prior to the July 2, 2018 Short-Term Note Conversion Agreement
amendment. Input assumptions used were as follows: a risk-free interest rate of 2.65 percent; expected volatility of 50 percent;
expected life of 3.39 years; and expected dividend yield of 0 percent. The underlying stock price used in the analysis was on a
non-marketable basis and was according to the market approach, considering both the traded price and forward multiples from guideline
public companies, using allocation and marketability-discount methodologies.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Additional Warrants</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Each Additional Warrant issued on March
12, 2018 granted the holder the option to purchase up to the number of shares of capital stock of the Company equal to the product
obtained by multiplying (i) the outstanding principal amount of the Amended and Restated Short-Term Note held by such holder and
(ii) 0.75; at a per share exercise price of $1.80. The Additional Warrants were exercisable commencing on the Conversion Date and
would have expired on November 21, 2021. The exercise price and number of the shares issuable upon exercising the Additional Warrants
were subject to adjustment in the event of any stock dividends and splits, reverse stock split, recapitalization, reorganization
or similar transaction, as described therein.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Additional Warrants were deemed to
be free-standing instruments and were accounted for as equity as there were no variable terms. 189,750 shares of common stock were
issuable upon exercise of the Additional Warrants as of the March 12, 2018 amendment date with terms that largely paralleled the
provisions of the Original Warrants except that the Additional Warrants were exercisable on the Conversion Date as opposed to the
Short-Term Note Maturity Date and the expiration date was moved up to November 21, 2021 from July 31, 2023. The fair value differential
between the Original Warrants and the Additional Warrants was a reduction of $22,624. The fair value change was recorded as a reduction
to additional paid-in capital in the accompanying condensed balance sheets and was included as part of the extinguishment loss
discussed further below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Premium Conversion Derivative</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Upon the March 2018 amendment, the Amended
and Restated Short-Term Notes contained a 125% conversion premium in the event that a Short Term Note Qualified Financing occurred
at a price under $2.25 per share. The Company determined that the redemption feature under the Short-Term Notes qualified as an
embedded derivative and was reflected as a liability in the amount of $49,668 at the time of the March 12, 2018 amendment with
a corresponding offset to extinguishment loss which is described further below. Subsequent to the amendment, the embedded derivative
was accounted for separately on a fair market value basis. The Company recorded the fair value changes of the premium debt conversion
derivative associated with the Short-Term Notes in the consolidated statements of operations for a benefit of $(49,668) for the
nine month transition period ended September 30, 2018.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Other</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The March 2018 amendment resulted in a
substantial modification to the Short-Term Notes whereby additional conversion features and warrant coverage were added. The Company
recorded the Short-Term Note amendment under the provisions of extinguishment accounting. A loss on note extinguishments in the
accompanying consolidated statements of operations for the nine month transition period ended September 30, 2018 was recorded in
the amount of $186,220, which represented the difference between the carrying value of the Short-Term Notes and Original Warrants
over the combined fair values of the Short-Term Notes, premium conversion derivative, Replacement Warrant and Additional Warrants
on the date of the amendment. The fair value decrease of the Short-Term Notes (inclusive of principal and interest, non-bifurcated
embedded conversion feature and the Additional Warrants) relative to its adjusted carrying value at the time of the amendment was
$1,170 which was recorded as a reduction to additional paid-in capital on the accompanying consolidated balance sheets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Unsecured Loans</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In May 17, 2018, the Company received cash
proceeds of $168,000 from unsecured loans, represented by two promissory notes from existing stockholders of the Company. The loans
are interest free and require that the Company repay the principal in full on the earlier to occur of (i) May 17, 2019 or (ii)
the closing of an equity round of financing of the Company that raises more than $5 million in gross proceeds. The loans include
customary events of default provisions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On March 20, 2018, the Company received
cash proceeds from an unsecured loan, represented by a promissory note, for $115,000 from an existing stockholder. The loan is
interest free and requires that the Company repay the principal in full on the earlier to occur of (i) March 20, 2019 or (ii) the
closing of an equity round of financing of the Company that raises more than $3 million in gross proceeds. The loan includes customary
events of default provisions.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>NOTE 8 - Convertible Promissory
Notes and Warrant Agreements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">As of<BR> September&nbsp;30,<BR> 2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">As of<BR> December&nbsp;31,<BR> 2017</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left; text-indent: -9pt; padding-left: 9pt">2016 convertible promissory notes, net of discounts</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">&mdash;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">1,543,652</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9pt">2017 convertible promissory notes, net of discounts</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,306,776</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">504,465</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Accrued interest</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">87,028</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">120,223</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 9pt; padding-bottom: 4pt">Total</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 4pt double">$</TD><TD STYLE="text-align: right; border-bottom: Black 4pt double">1,393,804</TD><TD STYLE="text-align: left; padding-bottom: 4pt">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 4pt double">$</TD><TD STYLE="text-align: right; border-bottom: Black 4pt double">2,168,340</TD><TD STYLE="text-align: left; padding-bottom: 4pt">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;<B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>2016 Convertible Promissory Notes</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">From November 2016 to June 2017, the Company
issued convertible promissory notes (the &ldquo;Convertible Notes&rdquo;) and common stock purchase warrants (the &ldquo;Warrants&rdquo;)
in an aggregate principal amount of $1,625,120 and entered into subscription agreements with subscribers (the &ldquo;2016 Private
Placement&rdquo;). Effective July 2, 2018, however, the Company entered into debt conversion agreements (the &ldquo;2016 Note Conversion
Agreements&rdquo;) with each Convertible Note subscriber to (i) convert the Outstanding Balance under the Convertible Notes into
shares of the Company&rsquo;s common stock based on the Outstanding Balance divided by $1.80 per share (the &ldquo;2016 Note Conversion
Shares&rdquo;); (ii) cancel and extinguish the Convertible Notes; and (iii) amend and restate the Warrants as defined below to
make them immediately exercisable upon the conversion, at a per share exercise price equal to $1.80 per share. As consideration
for the early conversion of the Convertible Notes, the Company issued each subscriber an additional new warrant (the &ldquo;2016
Note Payment Warrants&rdquo;), exercisable for up to the number of shares of common stock equal to the number of 2016 Note Conversion
Shares received by such subscriber; at a per share exercise price of $1.80 per share. The 2016 Note Payment Warrants became exercisable
commencing on July 2, 2018 and expire on November 21, 2021.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Pursuant to the 2016 Note Conversion Agreements,
$1,804,064 of the outstanding principal and interest of the 2016 Convertible Promissory Notes was converted into 1,002,258 shares
of common stock and an additional 2,004,516 shares of common stock became issuable upon exercise of the Warrants and 2016 Note
Payment Warrants. The conversion of the Convertible Notes was accounted for as an extinguishment. The difference in the carrying
value of the Convertible Notes coupled with the fair value of the underlying Warrants upon conversion relative to the higher fair
value of the underlying common stock and collective Warrants and new 2016 Note Payment Warrants issued was $979,480. The $979,480
differential total, inclusive of the unamortized discount remaining on the Convertible Notes of $11,143 as of July 2, 2018, was
recorded as a loss on note extinguishments in the accompanying consolidated statement of operations during the nine month transition
period ended September 30, 2018.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="margin: 0pt 0; text-align: justify">The Warrants and 2016 Note Payment Warrants were deemed to be free-standing equity instruments upon execution
of the 2016 Note Conversion Agreements. All of the warrant terms became fixed and the terms were identical. <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Due
to the previously granted warrants now having fixed terms, the adjusted warrant liability value of $1,031,366 was reclassified
to equity. The warrants associated with the Convertible Notes became immediately exercisable on July 2, 2018 and expire November
21, 2021. The Black-Scholes model was used to determine the July 2, 2018 fair value of the warrants associated with the Convertible
Notes. Input assumptions used were as follows: a risk-free interest rate of 2.65 percent; expected volatility of 49.8% percent;
expected life of 3.39 years; and expected dividend yield of 0 percent. The underlying stock price used in the analysis was on a
non-marketable basis and was according to the market approach, considering both the traded price and forward multiples from guideline
public companies, using allocation and marketability-discount methodologies. &nbsp;</FONT></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Activity Prior to the July 2, 2018 Cancellation,
Extinguishment and Conversion of the Convertible Notes </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company amended the Convertible Notes
in December 2016 and November 2017 and the Warrants in June 2017 and November 2017 to, among other things, change the terms of
the underlying Warrants that include the removal of down-round pricing protection provisions as described more fully below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Convertible Notes were unsecured. The
Convertible Notes accrued interest at a fixed rate of 8 percent per annum and required the Company to repay the principal and accrued
and unpaid interest thereon at the earlier of July 31, 2018 or the consummation of the next equity or equity-linked round of financing
resulting in more than $3.0 million in gross proceeds (a &ldquo;Qualified Financing&rdquo;). If a Qualified Financing had occurred
before July 31, 2018, the outstanding principal and accrued and unpaid interest on the Convertible Notes would have automatically
converted into the securities issued by the Company in such financing based on the greater number of securities resulting from
either the outstanding principal and accrued interest on the Convertible Notes divided by $1.80, or the outstanding principal and
accrued interest on the Convertible Notes multiplied by 1.25, divided by the price paid per security in the Qualified Financing.
If the Company failed to complete a Qualified Financing by July 31, 2018, the Convertible Notes would have been immediately due
and payable on such date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If a change of control transaction or initial
public offering occurred prior to a Qualified Financing, the Convertible Notes would have, at the election of the holders of a
majority of the outstanding principal of the Convertible Notes, either been payable on demand as of the closing date of such transaction,
or been convertible into shares of common stock immediately prior to such transaction at a price per share equal to the lesser
of the per share value as determined by the Board as if in connection with the granting of stock-based compensation, or in a private
sale to a third party in an arms-length transaction, or at the per share consideration to be paid in such transaction. Change of
control means a merger or consolidation with another entity in which the Company&rsquo;s stockholders do not own more than 50 percent
of the outstanding voting power of the surviving entity or the disposition of all or substantially all of the assets of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Prior to the June 2017 amendment, the Warrants
granted holders the option to purchase either (i) if exercised after conversion of the Convertible Notes, the number of shares
equal to the number of shares received by the holders upon the conversion of the Convertible Notes, or (ii) if exercised prior
to conversion of the Convertible Notes, the number of shares of common stock equal to the outstanding principal and accrued interest
on the Convertible Notes held by such warrant holder divided by $1.80. The Warrants were immediately exercisable on the date of
issuance and would have expired on November 21, 2021. In June 2017, however, the Company amended the terms of the Warrants under
the Convertible Notes to be exercisable only in the event of conversion of the outstanding principal and accrued interest on the
related Convertible Notes. The amount of warrant shares to be issued became contingent and were based on the number of shares of
common stock received by the holder of the Convertible Notes upon conversion of such holder&rsquo;s Convertible Notes, and at an
exercise price equal to the same price per share of the securities issued in the Qualified Financing. The Warrants would have expired
on November 21, 2021 in the event of a Qualified Financing or would have expired unissued if the notes were not converted.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Prior to the July 2018 Convertible Note
extinguishment, the Warrants were deemed to be free-standing instruments and were accounted for as a liability given the variable
number of shares issuable in connection with a possible change of control conversion event. For the December 31, 2017 liability
valuation of the Warrants, a Monte Carlo simulation model was used to estimate the aggregate fair value. Input assumptions used
were as follows: a risk-free interest rate of 2.08 percent; expected volatility of 50 percent; expected life of 3.89 years; and
expected dividend yield of 0 percent. The underlying stock price used in the analysis was on a non-marketable basis and was according
to the market approach, considering both the traded price and forward multiples from guideline public companies, using allocation
and marketability-discount methodologies. &nbsp;The Convertible Note proceeds assigned to the Warrants were zero and $440,919 during
the nine month transition period ended September 30, 2018 and for the year ended December 31, 2017, respectively, which represented
their fair value at issuance, and were discounted from the Convertible Notes and reflected as a warrant liability. The discount
was amortized to interest expense over the original term of the Convertible Notes using the straight-line method which approximated
the effective interest method and was fully amortized by December 31, 2017; the amortization expense recorded was $759,004 during
the year ended December 31, 2017. The Company also recorded the fair value changes of the warrant liability associated with the
Convertible Notes in the consolidated statements of operations which amounted to a benefit of $(14,865) and an expense of $259,352
for the nine month transition period ended September 30, 2018 and for the year ended December 31, 2017, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The November 2017 amendment resulted in
a substantial modification to the original Convertible Notes whereby the maturity date was extended, and the terms associated with
the Warrants were revised. The fair value of the underlying convertible notes was $97,223 lower than the carrying value of the
Convertible Notes on the date of the modification. The $97,223 difference was recorded as a gain on note extinguishments in the
accompanying statements of operations with an offsetting discount to the Convertible Notes. The discount was being amortized over
the amended term of the Convertible Notes. The amortization recorded during the nine month transition period ended September 30,
2018 and the year ended December 31, 2017 was $70,324 and $15,756, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">At the time of their issuance, the Convertible
Notes contained a 125% conversion premium in the event that a Qualified Financing occurs at a price under $2.25 per common share.
The Company determined that the redemption feature under the Convertible Notes qualified as an embedded derivative and was separated
from its debt host. The bifurcation of the embedded derivative from its debt host resulted in a discount to the Convertible Notes
in the amount of zero and $213,961 during the nine month transition period ended September 30, 2018 and the year ended December
31, 2017, respectively. The discount was being amortized to interest expense over the original term of the Convertible Notes using
the straight-line method which approximates the effective interest method and was fully amortized by December 31, 2017; the amortization
expense recorded was $340,551 during the year ended December 31, 2017. The embedded derivative was accounted for separately on
a fair market value basis. The Company recorded the fair value changes of the premium debt conversion derivative associated with
the Convertible Notes in the consolidated statements of operations for a benefit of $(333,183) and $(18,428) for the nine month
transition period ended September 30, 2018 and for the year ended December 31, 2017, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In connection with the Convertible Notes,
the Company incurred issuance costs in the amount of $151,915, which included (i) a placement agent cash fee, which was $113,610
for the Convertible Notes issued through June 19, 2017 (ii) the obligation to issue a warrant to the placement agent (the &ldquo;placement
agent warrant&rdquo;) which would have had an exercise price of $2.00 per share of common stock with a total fair value of $4,855
on date of Convertible Note issuance, and (iii) legal expenses of $33,450. The placement agent warrant was issuable at the time
the private placement transaction was fully subscribed. The placement agent warrant would have been immediately exercisable on
the date of issuance and would have expired five years following the date of issuance. The Company recorded an issuance cost discount
to the Convertible Notes in the amount of zero and $39,781 during the nine month transition period ended September 30, 2018 and
the year ended December 31, 2017, respectively, and was fully amortized by December 31, 2017; the amortization expense recorded
as interest was $74,264 during the year ended December 31, 2017. The balance of the issuance costs in the amount of $38,119 was
attributed to the Warrants and was immediately recorded as interest expense upon issuance during the year ended December 31, 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>2017 Convertible Notes</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On October 4, 2017, the Company initially
entered into a subscription agreement with certain investors (the &ldquo;Subscribers&rdquo;), pursuant to which the Company, in
a private placement (the &ldquo;Private Placement&rdquo;), agreed to issue and sell to the Subscribers 8% convertible promissory
notes (the &ldquo;2017 Convertible Notes&rdquo;) and warrants (the &ldquo;New Warrants&rdquo;) to purchase shares of the Company&rsquo;s
capital stock in the event of a conversion event. The number of shares and pricing per share of the New Warrants are based on the
underlying conversion event and are exercisable for five years commencing on the triggering conversion event. The subscription
agreement, the 2017 Convertible Notes and New Warrants were amended on December 14, 2017 to move up the maturity date of the 2017
Convertible Notes from October 4, 2022 to December 31, 2018, remove subordination provisions and simplify the conversion provision
of the 2017 Convertible Notes in the event of a qualified financing as described more fully below, to modify the exercise price
of the New Warrants and to increase the authorized subscription amount to $1,500,000. In May 2018, the Board approved an increase
in the authorized subscription amount from $1,500,000 to $2,000,000 and extended the offering period from the five month anniversary
of the initial closing to the eight month anniversary of the initial closing. The initial closing of the Private Placement was
consummated on October 4, 2017, and the Company entered into additional subscription agreements and issued 2017 Convertible Notes
in an aggregate principal amount of $1,540,000 to the Subscribers through June 2018 when the Private Placement expired.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The 2017 Convertible Notes bear interest
at a fixed rate of 8% per annum and require the Company to repay the principal and accrued and unpaid interest thereon on December
31, 2018 (the &ldquo;2017 Convertible Notes Maturity Date&rdquo;). If the Company consummates an equity round of financing resulting
in more than $3 million in gross proceeds before December 31, 2018 (the &ldquo;2017 Convertible Notes Qualified Financing&rdquo;),
the outstanding principal and accrued and unpaid interest on the 2017 Convertible Notes shall automatically convert into the securities
issued by the Company in the 2017 Convertible Notes Qualified Financing equal to the outstanding principal and accrued interest
on the 2017 Convertible Notes divided by 80% of the price per share of the securities issued by the Company in the 2017 Convertible
Notes Qualified Financing. The New Warrants also become exercisable upon a 2017 Convertible Notes Qualified Financing for an amount
of shares equal to the number of shares received by the holder in the 2017 Convertible Notes Qualified Financing at the same price
per share of the securities issued in the 2017 Convertible Notes Qualified Financing.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Prior to the December 2017 amendment, if
the Company had raised more than $3,000,000 in an equity financing before October 4, 2022, the outstanding principal and accrued
and unpaid interest on the 2017 Convertible Notes would have automatically converted into the securities issued by the Company
in such financing based on the greater number of such securities resulting from either (i) the outstanding principal and accrued
interest on the 2017 Convertible Notes divided by $2.25 or (ii) the outstanding principal and accrued interest on the 2017 Convertible
Notes multiplied by 1.25, divided by the price paid per security in such financing. The New Warrants would have also become exercisable
in conjunction with the 2017 Convertible Notes Qualified Financing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Lastly, if a change of control transaction
occurs prior to the earlier of a 2017 Convertible Notes Qualified Financing or the 2017 Convertible Notes Maturity Date, the 2017
Convertible Notes would, at the election of the holders of a majority of the outstanding principal of the 2017 Convertible Notes,
either become payable on demand as of the closing date of such transaction, or become convertible into shares of common stock immediately
prior to such transaction at a price per share equal to the lesser of (i) the per share value of the shares of common stock as
determined by the Board as if in connection with the granting of stock based compensation or in a private sale to a third party
in an arms-length transaction or (ii) at the per share consideration to be paid in such transaction. Change of control means a
merger or consolidation with another entity in which the Company&rsquo;s stockholders do not own more than 50% of the outstanding
voting power of the surviving entity or the disposition of all or substantially all of the Company&rsquo;s assets. The New Warrants
also become exercisable upon a change of control transaction for an amount of shares equal to the number of shares received by
the holder upon conversion in connection with such transaction at the same price per share that the 2017 Convertible Notes converted
in the change of control transaction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The December 2017 amendment resulted in
a substantial modification to the original 2017 Convertible Notes. The Company recorded the 2017 Convertible Note amendment under
the provisions of extinguishment accounting. The fair value of the underlying Convertible Notes was $294,615 higher than the carrying
value of the Convertible Notes net of unamortized debt discount on the date of the modification. The $294,615 difference as well
as legal costs associated with the amendment in the amount of $8,945 were recorded as a loss on convertible notes extinguishments
totaling $303,560 in the accompanying statements of operations for the year ended December&nbsp;31, 2017. After the modification,
there remained a debt discount of $27,371 of which $19,510 and $1,286 was amortized during the nine month transition period ended
September 30, 2018 and for the year ended December 31, 2017, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The 2017 Convertible Notes contain a conversion
discount in the event of a 2017 Convertible Notes Qualified Financing to equal the outstanding principal and accrued interest on
the 2017 Convertible Notes divided by 80% of the price per share of the securities issued by the Company in the 2017 Convertible
Notes Qualified Financing. The embedded feature qualified as an embedded derivative and was separated from its debt host. The bifurcation
of the embedded derivative from its debt host resulted in a discount to the 2017 Convertible Notes in the amount of $168,384 and
$128,525 for the convertible debt issued during the nine month transition period ended September 30, 2018 and the year ended December
31, 2017, respectively. The discount is being amortized to interest expense over the term of the 2017 Convertible Notes using the
straight-line method which approximates the effective interest method. The amortization expense was $143,166 and $3,815 for the
nine month transition period ended September 30, 2018 and for the year ended December 31, 2017, respectively. The embedded derivative
is accounted for separately on a fair market value basis. The Company recorded the fair value changes of the premium debt conversion
derivative associated with all of the 2017 Convertible Notes in the consolidated statements of operations which amounted to an
expense of $11,020 and $466 for the nine month transition period ended September 30, 2018 and for the year ended December 31, 2017,
respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The New Warrants were deemed to be free-standing
instruments and were accounted for as a liability given the variable number of shares issuable in connection with a change of control
conversion event. A Monte Carlo simulation model was used to estimate the aggregate fair value of the New Warrants. Input assumptions
used were as follows: a risk-free interest rate of 2.94 percent and 2.22 percent as of September 30, 2018 and December 31, 2017,
respectively; expected volatility of 50 percent as of September 30, 2018 and December 31, 2017; expected life of 5.21 years and
5.38 years as of September 30, 2018 and December 31, 2017, respectively; and expected dividend yield of 0 percent as of September
30, 2018 and December 31, 2017. The underlying stock price used in the analysis was on a non-marketable basis and was according
to the market approach, considering both the traded price and forward multiples from guideline public companies, using allocation
and marketability-discount methodologies. The 2017 Convertible Note proceeds assigned to the New Warrants were $442,151 and $336,571
during the nine month transition period ended September 30, 2018 and the year ended December 31, 2017, respectively, which represented
their fair value at issuance and were discounted from the 2017 Convertible Notes and reflected as a warrant liability. The discount
is being amortized to interest expense over the term of the 2017 Convertible Notes using the straight-line method which approximates
the effective interest method. The amortization expense was $375,076 and $9,971 for the nine month transition period ended September
30, 2018 and for the year ended December 31, 2017, respectively. The Company also recorded the fair value changes of the warrant
liability associated with all of the 2017 Convertible Notes in the consolidated statements of operations which amounted to an expense
of $39,770 and a benefit of $(1,337) for the nine month transition period ended September 30, 2018 and for the year ended December
31, 2017, respectively.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In connection with the 2017 Convertible
Notes, the Company incurred issuance costs in the amount of $8,133 which consisted of legal costs and was recorded as an issuance
cost discount to the 2017 Convertible Notes, of which $2,944 and $157 was amortized to interest expense during the nine month transition
period ended September 30, 2018 and the year ended December 31, 2017, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>2017 Convertible Note Subscription Agreement</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Pursuant to the subscription agreements
entered into in connection with the Private Placement, the Company is entitled to receive notice in the event a holder elects to
sell or receives a bona fide offer for any portion of the 2017 Convertible Notes or New Warrants, as applicable, and the right
to purchase the 2017 Convertible Notes and associated New Warrants on the same terms as the proposed sale or bona fide offer, as
applicable, as long as the Company exercises that right within 15 days of receiving written notice. The Company has granted the
subscribers indemnification rights with respect to its representations, warranties, covenants and agreements under the respective
subscription agreements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>NOTE 9 - Stock-Based
Compensation</B></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the nine month transition period
ended September 30, 2018 and for the year ended December 31, 2017, stock-based services expense related to the stock options, restricted
stock awards and stock-based award liabilities was included in general and administrative and research and development costs as
follows in the accompanying statements of operations:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2017</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left; padding-left: 12pt">General and administrative</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">480,653</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">2,065</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 12pt">Research and development</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">5,467</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">74,729</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Total stock-based services expense</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">486,120</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">76,794</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">NeuroOne formally adopted an equity incentive
plan (the &ldquo;2016 Plan&rdquo;) on October 27, 2016 which was subsequently adopted by the Company upon completion of the Acquisition.
In addition, the Company adopted a 2017 Equity Incentive Plan (the &ldquo;2017 Plan&rdquo;) on April 17, 2017. The 2016 and 2017
Plans provide for the issuance of restricted shares and stock options to employees, directors, and consultants of the Company.
The Company reserved 2,292,265 shares of common stock (as adjusted for the exchange ratio in connection with the Acquisition) for
issuance under the 2016 and 2017 Plans on a combined basis. The Company began granting stock options and restricted stock awards
in the second quarter of 2017. During the nine month transition period ended September 30, 2018 and for the year ended December
31, 2017, 2,500 and 365,716 stock options were granted to directors and consultants at a weighted average exercise price of $5.34
and $0.035 per share, respectively. The stock options granted during the nine month transition period ended September 30, 2018
and during the year ended December 31, 2017 had a weighted average grant date fair value of $2.48 and $0.014 per share, respectively,
with the vesting period ranging from several weeks upon grant to two months from grant. The options expire ten years from the date
of grant. In addition, the Company issued 215,453 shares of restricted common stock at a grant date fair value of $0.034 with performance
vesting conditions from the 2016 Plan during the year ended December 31, 2017. There were no restricted common stock awards issued
out of the 2016 Plan or 2017 Plan during the nine month transition period ended September 30, 2018. All performance vesting conditions
for the restricted common stock were met and there were no unvested shares as of September 30, 2018 and December 31, 2017. Compensation
expense associated with restricted common stock was zero and $7,220 for the nine month transition period ended September 30, 2018
and for the year ended December 31, 2017, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table summarizes the Company&rsquo;s stock option
plan activity for the nine month transition period ended September 30, 2018 and for the year ended December&nbsp;31, 2017 as follows:</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Weighted-</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Weighted</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Average</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Average</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Remaining</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Aggregate</TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Number of</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Exercise</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Contractual</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Intrinsic</TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Options</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Price</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Term (years)</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Value(1)</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Outstanding at December 31, 2016</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 52%">Granted</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">365,716</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">0.03</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">&mdash;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">&mdash;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Exercised</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt">Forfeited/Cancelled</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 4pt">Outstanding at December 31, 2017</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">365,716</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4pt; text-align: left">$</TD><TD STYLE="padding-bottom: 4pt; text-align: right">0.03</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; text-align: right">9.3</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">908,920</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Granted</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,500</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">5.34</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Exercised</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt">Forfeited/Cancelled</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 4pt">Outstanding at September 30, 2018</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">368,216</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4pt; text-align: left">$</TD><TD STYLE="padding-bottom: 4pt; text-align: right">0.07</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; text-align: right">8.6</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">820,862</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Vested and exercisable at September&nbsp;30, 2018</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">368,216</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4pt; text-align: left">$</TD><TD STYLE="padding-bottom: 4pt; text-align: right">0.07</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; text-align: right">8.6</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">820,862</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 0; margin-bottom: 0"><DIV STYLE="font-size: 1pt; border-top: Black 1.5pt solid; width: 25%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<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>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left"><SUP>(1)</SUP></TD><TD STYLE="text-align: justify">The aggregate intrinsic value is calculated as the difference
between the exercise price of the underlying options and the estimated fair value of our common stock as of September 30, 2018
and December 31, 2017 of $2.30 and $2.52 per share, respectively.</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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The weighted-average assumptions
used in the Black-Scholes option-pricing model are as follows for the stock options granted during the nine month transition period
ended September 30, 2018 and the year ended December 31, 2017:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2017</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">Expected stock price volatility</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">49.8</TD><TD STYLE="width: 1%; text-align: left">%</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">47.8</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Expected life of options (years)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5.0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5.0</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Expected dividend yield</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Risk free interest rate</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.8</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.9</TD><TD STYLE="text-align: left">%</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the nine month transition period
ended September 30, 2018, 2,500 stock options vested, and the weighted average grant date fair value per option was $2.48. During
the year ended December 31, 2017, 365,716 stock options and 215,453 restricted stock awards vested. The weighted
average grant date fair value per share of common stock issuable upon exercise of options and of restricted stock awards vesting
during the year ended December 31, 2017 was $0.014 and $0.034, respectively. No stock options were forfeited during the nine month
transition period ended September 30, 2018 or during the year ended December 31, 2017. As of September 30, 2018, 1,708,596 shares
were available for future issuance on a combined basis under the 2016 and 2017 Plans.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Other Stock-Based Awards</I></B></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Up to 250,000 shares of common stock were
reserved in February 2018 as a result of a consulting agreement for investor relations services executed in February 2018. Under
the agreement, 200,000 shares of common stock were awarded during the nine month transactional period ended September 30, 2018.
The shares were awarded based on a performance vesting condition that was met in February 2018 and a time-based vesting condition
that was met in both May 2018 and August 2018. The compensation expense related to the vested common shares was included in the
total stock-based services expense referenced above which totaled $469,500. The expense was based on the fair value of the underlying
common stock at the point of vesting which was $2.52 per share for 100,000 shares that vested in February 2018, $2.30 per share
for the 50,000 shares that vested in May 2018, and $2.05 per share for the 50,000 shares that vested in August 2018. The underlying
stock price used in the analysis was on a non-marketable basis and was according to the market approach, considering both the traded
price and forward multiples from guideline public companies, using allocation and marketability-discount methodologies.&nbsp;The
remaining 50,000 shares of the share commitment under the agreement vested in November 2018.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Additionally, the Company recorded stock-based
services expense related to unissued stock options associated with a second consulting agreement whereby the number of option shares
and pricing will not be set until the occurrence of the award date which is defined as the earlier to occur of a public offering,
qualified financing, or December 31, 2018 (as amended from the originally stated June 30, 2018 date). The number of option shares
under the agreement is based on a $3,000 monthly compensation amount divided by the fair value of the underlying common stock on
the award date. The exercise price will also be set at the fair value of the underlying common stock on the award date. The liability
associated with the unissued options was based on an option share equivalent estimate that reflects the portion of the award where
performance vesting conditions have been met as of September 30, 2018 and was based on the fair value of the Company&rsquo;s common
stock on September 30, 2018 as the award date has not occurred. The common stock fair value on September 30, 2018 was $2.30 per
share and was determined based on a non-marketable basis and was according to the market approach, considering both the traded
price and forward multiples from guideline public companies, using allocation and marketability-discount methodologies.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The stock-based services expense associated with the unissued
stock options was $11,153 during the nine month transition period ended September 30, 2018 and is classified in accrued expenses
at September 30, 2018. The liability for the unissued stock options was based on the following weighted-average assumptions using
the Black-Scholes option-pricing model:</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 88%; text-align: left">Expected stock price volatility</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">49.8</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Expected life of options (years)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5.0</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Expected dividend yield</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Risk free interest rate</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.9</TD><TD STYLE="text-align: left">%</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Upon the issuance of all of the unissued
options associated with the stock-based award liabilities, the estimated number of shares available for future issuance as of September
30, 2018 would be reduced from 1,708,596 to 1,698,161 shares as a result of the remaining stock options to be issued upon vesting
under the second consulting agreement. The 250,000 shares of common stock issuable under the February 2018 consulting agreement
are not eligible for issuance under either the 2016 Plan or 2017 Plan because the 2016 Plan and 2017 Plan limit plan participants
to individuals.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>NOTE 10 - Stockholders&rsquo;
Deficit</B></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Private Placement and Corresponding
Issuance of Common Stock and Warrants</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">From July 9, 2018 through September
28, 2018, the Company entered into subscription agreements (each, a &ldquo;Purchase Agreement&rdquo;) with certain accredited investors
(the &ldquo;Purchasers&rdquo;), pursuant to which the Company, in a private placement (the &ldquo;2018 Private Placement&rdquo;),
agreed to issue and sell to the Purchasers units (each, a &ldquo;Unit&rdquo;), each consisting of (i) 1 share (each, a &ldquo;Share&rdquo;)
of the Company&rsquo;s common stock and (ii) a warrant to purchase 1 share of common stock at an initial exercise price of $3.00
per share (the &ldquo;2018 Warrants&rdquo;). The initial closing of the 2018 Private Placement was consummated on July 9, 2018.
As of September 30, 2018, the Company has issued and sold an aggregate of 445,200 Units to the Purchasers, for total gross proceeds
to the Company of approximately $1,113,000 before deducting offering expenses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In connection with the 2018 Private Placement,
the Company has agreed to issue and sell to accredited investors up to a maximum of 4,000,000 Units (the &ldquo;Maximum Offering&rdquo;)
at a price of $2.50 per Unit for total gross proceeds to the Company of up to $10,000,000. If the 2018 Private Placement is over-subscribed,
the Company may, in its discretion sell up to an additional 600,000 Units (the &ldquo;Over-Allotment&rdquo;) to cover such over
subscriptions. If the Company issues the Maximum Offering amount, 4,000,000 shares of Common Stock (4,600,000 shares of Common
Stock if the Over-Allotment is exercised) would be issuable upon exercise of the 2018 Warrants. The Company may conduct any number
of additional closings so long as the final closing occurs on or before January 2, 2019. Under the Purchase Agreement, the Company
has agreed to use the net proceeds from the 2018 Private Placement to pay the outstanding principal and accrued interest on its
2017 Convertible Notes if such notes do not convert prior to maturity, to pay the principal on its unsecured term loans, for research
and development, clinical studies, legal fees and sales and marketing expenses, as well as working capital and general corporate
purposes. The Company has granted the Purchasers indemnification rights with respect to its representations, warranties and agreements
under the Purchase Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The 2018 Warrants are exercisable beginning
on the date of issuance and will expire on July 9, 2023, five years from the date of the first closing. The 2018 Warrants were
accounted for as free standing equity instruments and classified as additional paid-in capital in the accompanying consolidated
balance sheets based on their relative fair value to the underlying common shares issued. The fair value of the 2018 Warrants issued
was $318,759 and was based on the Black-Scholes pricing model. Input assumptions used were as follows: a risk-free interest rate
of 2.82 percent; expected volatility of 49.8 percent; expected life of 4.91 years; and expected dividend yield of 0 percent. The
underlying stock price used in the analysis was on a non-marketable basis and was according to the market approach, considering
both the traded price and forward multiples from guideline public companies, using allocation and marketability-discount methodologies.
&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In connection with the 2018 Private Placement,
the Company recorded issuance costs in the amount of $173,067 as of September 30, 2018. The issuance costs included commissions
to the brokers equal to 10% of the gross proceeds from the sale of the Units that qualify for the commission and amounted to $83,800.
In addition to the brokers&rsquo; commission, the issuance costs included the estimated value of the 5-year warrants to be issued
to the brokers to purchase an amount of Common Stock equal to 10% of the total amount of qualifying Shares sold in the 2018 Private
Placement at an exercise price of $3.45 per share upon the close of the 2018 Private Placement. A liability in the amount of $26,878
was recorded as of September 30, 2018 related to the broker warrants. Lastly, third party legal costs in the amount $62,389 comprised
the balance of the issuance costs incurred as of September 30, 2018.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In connection with the 2018 Private Placement,
the Company entered into registration rights agreements with each of the Purchasers pursuant to which the Company has agreed to
file a registration statement with the SEC covering the resale of the shares of common stock sold in the 2018 Private Placement
and the shares of Common Stock issuable upon exercise of the 2018 Warrants. The Company has agreed to file such registration statement
within 75 days of the final closing of the 2018 Private Placement. Each registration rights agreement includes customary indemnification
rights in connection with the registration statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Warrant Activity and Summary</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table summarizes warrant
activity during the year ended December&nbsp;31, 2017 and the nine month transition period ended September 30, 2018:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"><B>&nbsp;</B></TD><TD STYLE="text-align: center"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><B>&nbsp;</B></TD><TD STYLE="text-align: center"><B>&nbsp;</B></TD><TD STYLE="text-align: center"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><B>Exercise Price</B></TD><TD STYLE="text-align: center"><B>&nbsp;</B></TD><TD STYLE="text-align: center"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><B>Weighted Average</B></TD><TD STYLE="text-align: center"><B>&nbsp;</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="text-align: center; padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><B>Warrants</B></TD><TD STYLE="text-align: center; padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="text-align: center; padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><B>Per<BR>
Warrant</B></TD><TD STYLE="text-align: center; padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="text-align: center; padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><B>Exercise<BR>
Price</B></TD><TD STYLE="text-align: center; padding-bottom: 1.5pt"><B>&nbsp;</B></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Outstanding at January&nbsp;1, 2017</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 62%">Issued</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">189,750</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">1.80</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">1.80</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Exercised</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt">Forfeited</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Outstanding and exercisable at December&nbsp;31, 2017</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">189,750</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1.80</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1.80</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Issued</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,737,822</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">$1.80 - 3.00</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">2.00</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Exercised</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt">Forfeited</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Outstanding and exercisable at September 30, 2018</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">2,927,572</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">$1.80 - 3.00</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">1.98</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table summarizes information
about warrants outstanding at September 30, 2018:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><B>Exercise Price</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><B>Number Outstanding</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD STYLE="text-align: center; border-bottom: Black 1.5pt solid"><B>Weighted Average Remaining Contractual life (Years)</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><B>Number Exercisable at September 30, 2018</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 23%; text-align: right">1.80</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 22%; text-align: right">2,482,372</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 24%; text-align: center; padding-left: 5.4pt">3.1</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 22%; text-align: right">2,482,372</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">$</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">3.00</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">445,200</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt; padding-left: 5.4pt">4.8</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">445,200</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD COLSPAN="2" STYLE="padding-bottom: 4pt; text-align: left">Total</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">2,927,572</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4pt; padding-left: 5.4pt">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">2,927,572</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>The July 2017 Acquisition</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Pursuant to the Acquisition of NeuroOne
on July 20, 2017, the Company acquired 100% of NeuroOne shares in exchange for the issuance of Company shares and NeuroOne became
the Company&rsquo;s wholly-owned subsidiary. Also, at the closing, Mr. Samad (the majority owner of the Company prior to the Acquisition)
tendered for cancellation 3,500,000 Company shares held by him as part of the conditions to closing resulting in a net exchange
of 1,573,000 shares of common stock (see further details in Note 1 &ndash; Organization and Nature of Operations).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">At the time of Acquisition, the Company
had authorized 100,000,000 shares of common stock with a par value of $0.001 and 10,000,000 shares of preferred stock with a par
value of $0.001.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Predecessor NeuroOne, Inc. Activity</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On October 20, 2016, prior to the Merger
with the LLC, NeuroOne issued 5,131,514 shares of common stock (as adjusted for the exchange ratio in connection with the Acquisition)
as founders&rsquo; shares to seven individuals. Three of those investors were officers of NeuroOne. NeuroOne recorded $9,050 of
share subscription receivable for these stock issuances in 2016, which remained outstanding as of December 31, 2016. The shares
were subscribed at value of $0.03 per share based on a valuation prepared by NeuroOne utilizing a weighted average market value
of invested capital methodology. In June 2017, the purchase price owed by the seven individuals for the founders&rsquo; shares
of NeuroOne under their respective subscription agreements totaling $9,050 was forgiven by NeuroOne prior to the Acquisition.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>NOTE 11 - Income Taxes</B></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On December 22, 2017, the Tax Cuts and
Jobs Act (the TCJA), which significantly modified U.S. corporate income tax law, was signed into law by President Trump. The TCJA
contains significant changes to corporate income taxation, including, but not limited to, the reduction of the corporate income
tax rate from a top marginal rate of 35% to a flat rate of 21%, limitation of the tax deduction for interest expense to 30% of
earnings (except for certain small businesses), limitation of the deduction for net operating losses to 80% of current year taxable
income and generally eliminating net operating loss carrybacks, allowing net operating losses to carryforward without expiration,
one-time taxation of offshore earnings at reduced rates regardless of whether they are repatriated, elimination of U.S. tax on
foreign earnings (subject to certain important exceptions), immediate deductions for certain new investments instead of deductions
for depreciation expense over time, and modifying or repealing many business deductions and credits (including changes to the deductibility
of research and experimental expenditures that will be effective in the future).&nbsp;Notwithstanding the reduction in the corporate
income tax rate, the overall impact of the new federal tax law is uncertain, including to what extent various states will conform
to the newly enacted federal tax law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company has recorded the adjustments
in the consolidated financial statements in accordance with the TCJA and related guidance with a reduction of $420,000&nbsp;to
its net gross deferred tax assets in December 2017, the period in which the legislation was enacted. The reduction was fully offset
by an equal reduction in the Company&rsquo;s valuation allowance given the Company&rsquo;s historical net losses, resulting in
no net income tax expense being recorded.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The effective tax rate for
the Company for the nine month transition period ended September 30, 2018 and for the year ended December 31, 2017 was zero percent.
A reconciliation of income tax computed at the statutory federal income tax rate to the provision (benefit) for income taxes included
in the accompanying consolidated statements of operations for the Company is as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; white-space: nowrap">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2017</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; white-space: nowrap">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">Income tax benefit at federal statutory rate</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">(21.0</TD><TD STYLE="width: 1%; text-align: left; white-space: nowrap">)%</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">(34.0</TD><TD STYLE="width: 1%; text-align: left; white-space: nowrap">)%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">State income tax, net of federal benefit</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(7.7</TD><TD STYLE="text-align: left; white-space: nowrap">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(6.5</TD><TD STYLE="text-align: left; white-space: nowrap">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Warrant expense</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9.4</TD><TD STYLE="text-align: left; white-space: nowrap">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10.6</TD><TD STYLE="text-align: left; white-space: nowrap">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Disqualified interest and other</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.0</TD><TD STYLE="text-align: left; white-space: nowrap">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.9</TD><TD STYLE="text-align: left; white-space: nowrap">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Research credits</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1.5</TD><TD STYLE="text-align: left; white-space: nowrap">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1.2</TD><TD STYLE="text-align: left; white-space: nowrap">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">U.S. tax reform</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left; white-space: nowrap">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8.3</TD><TD STYLE="text-align: left; white-space: nowrap">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Valuation allowance</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">19.8</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left; white-space: nowrap">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">21.9</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left; white-space: nowrap">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Effective tax rate</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 4pt; text-align: left; white-space: nowrap">%</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 4pt; text-align: left; white-space: nowrap">%</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Significant components of the Company&rsquo;s
deferred tax assets and liabilities are summarized in the tables below as of September 30, 2018 and December 31, 2017:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2017</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>Deferred tax assets:</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">Federal and state operating loss carryforwards</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">1,837,375</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">871,371</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Acquired intangibles</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,116</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,433</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Accruals</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">73,763</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">64,151</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Convertible notes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><P STYLE="margin: 0pt 0">28,863</P> </TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><P STYLE="margin: 0pt 0">81,904</P>


</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Research and development credit carryforwards</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">140,553</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">63,197</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Stock-based compensation</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">24,598</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">19,821</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 10pt">Total deferred tax assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,115,268</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,105,877</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Valuation allowance</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(2,115,268</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(1,105,877</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Net deferred tax assets</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</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; text-align: justify">The deferred tax asset for the convertible
notes and the valuation allowance at December 31, 2017 were misstated by $452,845 and have both been revised in the preceding
table.&nbsp; The effects of this revision also impacted the effective tax rate reconciliation by increasing the warrant expense
percent by 10.6%, decreasing the U.S. tax reform percent by 3.8% and decreasing the valuation allowance percent by 6.8% for the
year ended December 31, 2017. These immaterial adjustments to the 2017 disclosures had no impact on our net loss or reported net
loss per share for the year ended December 31, 2017.</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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of September 30, 2018 and December 31,
2017, the Company had gross deferred tax assets of approximately $2,115,000 and $1,106,000, respectively. Realization of the deferred
assets is primarily dependent upon future taxable income, if any, the amount and timing of which are uncertain. The Company has
had significant pre-tax losses since its inception. The Company has not yet generated revenues and faces significant challenges
to becoming profitable. Accordingly, the net deferred tax assets have been fully offset by a valuation allowance of approximately
$2,115,000 and $1,106,000 as of September 30, 2018 and December 31, 2017, respectively. U.S. net deferred tax assets will continue
to require a valuation allowance until the Company can demonstrate their realizability through sustained profitability or another
source of income.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of September 30, 2018 and December 31,
2017, the Company&rsquo;s federal net operating loss carryforwards were approximately $6,393,000 and $3,032,000, respectively.
The Company had federal research credit carryforwards as of September 30, 2018 and December&nbsp;31, 2017 of approximately $83,000
and $36,000, respectively. The federal net operating loss incurred prior to January 1, 2018 and tax credit carryforwards will begin
to expire in 2036 if not utilized. Federal net operating losses incurred after December 31, 2017 will not expire. As of September
30, 2018 and December&nbsp;31, 2017, the Company had state net operating loss carryforwards of approximately $6,393,000 and $3,032,000,
respectively. The Company had state research credit carryforwards of approximately $57,000 and $27,000 as of September 30, 2018
and December 31, 2017, respectively. The state net operating loss carryforwards will begin to expire in 2031, if not utilized,
and the state research credit carryforwards will begin to expire in 2032 if not utilized.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Utilization of the net operating loss carryforwards
and credits may be subject to a substantial annual limitation due to the ownership change limitations provided by Section&nbsp;382
of the Internal Revenue Code of 1986, as amended, and similar state provisions. Generally, in addition to certain entity reorganizations,
the limitation applies when one or more &ldquo;5-percent shareholders&rdquo; increase their ownership, in the aggregate, by more
than 50&nbsp;percentage points over a 36-month time period testing period or beginning the day after the most recent ownership
change, if shorter. The annual limitation may result in the expiration of net operating losses and credits before utilization.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In accordance with ASC 740, <I>Income Taxes
</I>(&ldquo;ASC 740&rdquo;), specifically related to uncertain tax positions, a Company is required to use a recognition threshold
and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken
in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination
by taxing authorities. The Company believes its income tax filing positions and deductions will be sustained upon examination,
and accordingly, no reserves or related accruals for interest and penalties have been recorded at September 30, 2018 and December
31, 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In accordance with this guidance, the Company
has adopted a policy under which, if required to be recognized in the future, interest related to the underpayment of income taxes
will be classified as a component of interest expense and any related penalties will be classified in operating expenses in the
statements of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company&rsquo;s corporate returns are
subject to examination for the 2016 and 2017 tax years for federal and subject to examination for the 2016 and 2017 tax years in
one state jurisdiction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>NOTE 12 - Defined Contribution
Plan</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company adopted a 401(k) defined contribution
plan (the &ldquo;401K Plan&rdquo;) on January 1, 2017, which was amended and restated on March 1, 2018 (the &ldquo;Restatement&rdquo;),
for all employees over age 21. Employees can defer up to 100% of their compensation through payroll withholdings into the 401K
Plan subject to federal law limits. The Company began matching in the fourth quarter of 2017 on deferrals at 100% of deferrals
up to 3% of one&rsquo;s contributions and 50% on deferrals over 3%, but not exceeding 5% of one&rsquo;s contributions up through
the Restatement. The Company&rsquo;s matching contributions to employee deferrals became discretionary after the Restatement. The
Company may also make discretionary profit sharing contributions under the 401K Plan in the future, but it has not done so through
September 30, 2018.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Employee contributions and any employer
matching contributions made to satisfy certain non-discrimination tests required by the Internal Revenue Code are 100% vested upon
contribution. Discretionary employer matches to employee deferrals vest over a six year period beginning on the second anniversary
of an employee&rsquo;s date of hire. Discretionary profit sharing contributions vest over a five year period beginning on the first
anniversary of an employee&rsquo;s date of hire. The amount of matching contributions made during the nine month transition period
ended September 30, 2018 and the year ended December 31, 2017 was $7,779 and $27,000, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>NOTE 13 -  Subsequent
Events</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>2018 Private Placement </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Between October 1, 2018 through
November 30, 2018, the Company issued and sold an aggregate of 170,000 additional Units to the Purchasers, for total gross
proceeds to the Company of approximately $425,000 before deducting offering expenses. The additional Units have identical
terms to the 2018 Private Placement disclosed in Note 10 &ndash; Stockholders&rsquo; Deficit.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Unsecured Loans</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In November 2018, the Company received
cash gross proceeds from unsecured loans represented by two promissory notes in the amounts of $45,000 and $100,000 from stockholders
who each owned over 5% of the Company&rsquo;s common stock. The loans are interest free and require that we repay the principal
in full on the earlier of the closing of an equity round of financing of the Company resulting in more than $5 million in gross
proceeds or November 14, 2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Advisory Board Stock Option Grants</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="margin: 0pt 0; text-align: justify">In November 2018 and December 2018 the Board of Directors approved for grant,
to seven scientific advisory board members, a total of 175,000 stock options for the purchase of common stock. The options
when issued will vest monthly over a three year period commencing January 1, 2019.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Office Lease</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company leased a 5,196 square foot facility for use as its
corporate headquarters location in Minnetonka, Minnesota effective December 1, 2018. The lease expires on October 31, 2019 and
the monthly rent is $4,763.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="margin-top: 0; text-align: center; margin-bottom: 0"><B><A NAME="fq_001"></A>NeuroOne Medical Technologies Corporation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Condensed Consolidated Balance Sheets</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="white-space: nowrap">&nbsp;</TD><TD STYLE="font-weight: bold; white-space: nowrap">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; white-space: nowrap">March 31,</TD><TD STYLE="font-weight: bold; white-space: nowrap">&nbsp;</TD><TD STYLE="font-weight: bold; white-space: nowrap">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; white-space: nowrap">September&nbsp;30,</TD><TD STYLE="font-weight: bold; white-space: nowrap">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">(unaudited)</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold">Assets</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>Current assets:</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; padding-left: 10pt">Cash</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">2,305,399</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">13,260</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 10pt">Prepaid expenses</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">79,952</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">5,378</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Total current assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,385,351</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">18,638</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 10pt">Intangible assets, net</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">189,459</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">200,081</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Total assets</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">2,574,810</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">218,719</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left">Liabilities and Stockholders&rsquo; Equity (Deficit)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Current liabilities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 10pt">Accounts payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">687,905</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">221,235</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 10pt">Accrued expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,213,274</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,591,022</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 10pt">Unsecured loans</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">229,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">283,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 10pt">Convertible promissory notes, net and accrued interest</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,393,804</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 10pt">Premium conversion derivatives</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">308,395</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Total current liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,130,179</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,797,456</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 10pt">Warrant liability</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">817,155</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Total liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,130,179</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,614,611</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Commitments and contingencies (Note 4)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Stockholders&rsquo; equity (deficit):</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -10pt; padding-left: 20pt">Preferred stock, $0.001 par value; 10,000,000 shares authorized as of March 31, 2019 and September 30, 2018; no shares issued or outstanding as of March 31, 2019 and September 30, 2018.</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -10pt; padding-left: 20pt">Common stock, $0.001 par value; 100,000,000 shares authorized as of March 31, 2019 and September 30, 2018; 12,944,514 and 9,656,505 shares issued and outstanding as of March 31, 2019 and September 30, 2018, respectively.</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12,945</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9,657</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 10pt">Additional paid&ndash;in capital</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">14,454,110</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,052,161</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 10pt">Accumulated deficit</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(14,022,424</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(10,457,710</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Total stockholders&rsquo; equity (deficit)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">444,631</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(4,395,892</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Total liabilities and stockholders&rsquo; equity (deficit)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">2,574,810</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">218,719</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">See accompanying notes to condensed consolidated financial
statements</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="fq_002"></A>NeuroOne Medical Technologies Corporation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Condensed Consolidated Statements of
Operations</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(unaudited)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center">For the Three Months Ended</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center">For the Six Months Ended</TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">March 31,</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">March&nbsp;31,</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>Operating expenses:</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; text-align: left; padding-left: 10pt">General and administrative</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">1,084,789</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">992,435</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">1,951,468</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">1,531,294</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 10pt">Research and development</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">436,311</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">105,045</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">645,479</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">339,970</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Total operating expenses</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">1,521,100</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">1,097,480</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">2,596,947</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">1,871,264</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Loss from operations</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,521,100</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,097,480</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,596,947</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,871,264</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Interest expense</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(20,534</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(193,034</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(284,557</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(531,147</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.125in">Net change in fair value for the warrant liability and premium conversion derivatives</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(116,809</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">119,960</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(129,763</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(42,587</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Loss on notes extinguishment</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(553,447</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(186,220</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(553,447</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(537,134</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt; padding-left: 0.25in">Net loss</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(2,211,890</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(1,356,774</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(3,564,714</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(2,982,132</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Net loss per share:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt; padding-left: 10pt">Basic and diluted</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(0.20</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(0.17</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(0.34</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(0.38</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Number of shares used in per share calculations:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt; padding-left: 10pt">Basic and diluted</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">10,971,425</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">7,864,994</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">10,360,696</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">7,864,994</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">See accompanying notes to condensed consolidated financial
statements</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="fq_003"></A>NeuroOne Medical Technologies Corporation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Condensed Consolidated Statements of
Changes in Stockholders&rsquo; Equity (Deficit)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(unaudited)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B></B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Additional</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Total</TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Common&nbsp;Stock</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Paid&ndash;In</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Accumulated</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Stockholders&rsquo;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Shares</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Amount</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Capital</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Deficit</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Equity&nbsp;(Deficit)</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 40%; text-indent: -10pt; padding-left: 10pt">Balance at September 30, 2017</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">7,864,994</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">7,865</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">162,741</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(3,699,438</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(3,528,832</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Issuance of additional warrants in connection with short-term notes modification</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">117,280</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">117,280</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Stock value adjustment associated with intellectual license agreement</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">299</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">299</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -10pt; padding-left: 10pt">Net loss</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(1,625,358</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(1,625,358</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -10pt; padding-left: 10pt">Balance at December&nbsp;31,&nbsp;2017</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,864,994</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,865</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">280,320</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(5,324,796</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(5,036,611</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Warrant value adjustment related to short-term note modification</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,170</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,170</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -10pt; padding-left: 10pt">Net loss</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(1,356,774</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(1,356,774</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 4pt; text-indent: -10pt; padding-left: 10pt">Balance at March 31, 2018</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">7,864,994</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">7,865</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">279,150</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(6,681,570</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(6,394,555</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -10pt; padding-left: 10pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -10pt; padding-left: 10pt">Balance at September 30, 2018</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9,656,505</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">9,657</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">6,052,161</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(10,457,710</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(4,395,892</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Issuance of common stock under 2018 and 2019 private placements</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">330,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">330</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">601,319</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">601,649</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Issuance of warrants under 2018 and 2019 private placements</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">223,351</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">223,351</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Issuance costs related to 2018 and 2019 private placements</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(149,316</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(149,316</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9pt">Issuance of common stock for consulting services</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">50,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">50</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">114,950</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">115,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -10pt; padding-left: 10pt">Net loss</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(1,352,824</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(1,352,824</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -10pt; padding-left: 10pt">Balance at December 31,&nbsp;2018</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,036,505</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,037</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,842,465</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(11,810,534</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(4,958,032</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Issuance of common stock under 2019 private placement</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,743,979</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,744</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,164,640</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,166,384</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Issuance of warrants under 2019 private placements</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,193,564</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,193,564</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Issuance costs related to 2019 and 2018 private placements</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(698,777</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(698,777</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Issuance of common stock upon conversion of convertible promissory notes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">839,179</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">839</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,920,881</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,921,720</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Issuance of warrants and reclassification of warrant liability upon conversion of convertible promissory notes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,565,402</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,565,402</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Share&ndash;based compensation&nbsp;&mdash; employee</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">30,085</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">30,085</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Share&ndash;based compensation&nbsp;&mdash; non&ndash;employee</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16,569</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16,569</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -10pt; padding-left: 10pt">Exercise of stock options</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">93,555</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">94</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,179</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,273</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -10pt; padding-left: 10pt">Exercise of warrants</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">231,296</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">231</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">416,102</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">416,333</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -10pt; padding-left: 10pt">Net loss</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(2,211,890</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(2,211,890</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 4pt; text-indent: -10pt; padding-left: 10pt">Balance at March 31, 2019</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">12,944,514</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">12,945</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">14,454,110</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(14,022,424</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">444,631</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">See accompanying notes to condensed consolidated financial
statements&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="fq_004"></A>NeuroOne Medical Technologies Corporation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Condensed Consolidated Statements of
Cash Flows</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(unaudited)</B>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">For the Six Months Ended<BR> March 31,</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold">Operating activities</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left; text-indent: -10pt; padding-left: 10pt">Net loss</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(3,564,714</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(2,982,132</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Adjustments to reconcile net loss to net cash used in operating activities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -10pt; padding-left: 20pt">Amortization</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,622</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9,217</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 20pt">Stock-based services expense</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">189,197</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">254,437</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 20pt">Non-cash interest on convertible notes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">51,333</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">93,623</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 20pt">Non-cash discount amortization on short-term notes and convertible notes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">233,224</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">437,524</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 20pt">Revaluation of premium conversion derivatives</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">111,195</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(104,143</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 20pt">Revaluation of warrant liability</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">18,568</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">146,730</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 20pt">Loss on notes extinguishments</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">553,447</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">537,134</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 20pt">Change in assets and liabilities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 30pt">Prepaid expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(74,574</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -10pt; padding-left: 30pt">Accounts payable and accrued expenses</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(104,578</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">417,937</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -10pt; padding-left: 0.25in">Net cash used in operating activities</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(2,576,280</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(1,189,673</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; text-indent: -10pt; padding-left: 10pt">Investing activities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -10pt; padding-left: 10pt">Purchase of intangible assets</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(65,000</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(91,709</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -10pt; padding-left: 10pt">Net cash used in investing activities</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(65,000</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(91,709</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; text-indent: -10pt; padding-left: 10pt">Financing activities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Proceeds from issuance of convertible promissory notes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">564,565</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Proceeds from issuance of warrants associated with convertible notes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">575,435</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Issuance costs related to convertible notes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(9,779</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Issuance costs related to warrants</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(8,670</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Proceeds from issuance of common stock in connection with private placement</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,768,032</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Proceeds from issuance of warrants in connection with private placement</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,416,915</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Issuance costs in connection with private placement</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(617,134</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -10pt; padding-left: 10pt">Exercise of warrants</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">416,333</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -10pt; padding-left: 10pt">Exercise of stock-options</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,273</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Proceeds from unsecured loans</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">245,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">115,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -10pt; padding-left: 10pt">Repayment of unsecured loans</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(299,000</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -10pt; padding-left: 0.25in">Net cash provided by financing activities</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">4,933,419</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">1,236,551</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Net increase (decrease) in cash</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,292,139</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(44,831</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1.5pt; text-indent: -10pt; padding-left: 10pt">Cash at beginning of period</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">13,260</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">70,029</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 4pt; text-indent: -10pt; padding-left: 10pt">Cash at end of period</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">2,305,399</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">25,198</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-style: italic; text-align: left; text-indent: -10pt; padding-left: 10pt">Supplemental non-cash financing and investing transactions:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt; text-indent: -10pt; padding-left: 10pt">Conversion of convertible promissory notes to equity</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">1,678,361</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt; text-indent: -10pt; padding-left: 10pt">Exercise of premium conversion derivative liability</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">419,590</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt; text-indent: -10pt; padding-left: 10pt">Reclassification of warrant liability to equity</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">835,723</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt; text-indent: -10pt; padding-left: 10pt">Bifurcation of premium conversion derivative related to convertible notes</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">219,825</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt; text-indent: -10pt; padding-left: 10pt">Issuance of warrants in connection with convertible notes</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">117,280</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt; text-indent: -10pt; padding-left: 10pt">Stock value adjustment associated with intellectual license agreement</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">299</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt; text-indent: -10pt; padding-left: 10pt">Change in accounts payable and
    accrued     expenses attributed to private placement and convertible note issuance costs</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">230,959</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">14,226</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt; text-indent: -10pt; padding-left: 10pt">Purchased intangible assets in accrued expenses</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">30,000</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left">See accompanying notes to condensed
consolidated financial statements</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</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; text-align: center"><B><A NAME="fq_005"></A>NeuroOne Medical Technologies Corporation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Notes to Condensed Consolidated Financial
Statements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(unaudited)</B></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; border-top: black 1.5pt solid; border-bottom: black 1.5pt solid"><B>NOTE 1 &ndash; Description of Business and Basis of
Presentation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">NeuroOne Medical Technologies Corporation
(the &ldquo;Company&rdquo;), a Delaware Corporation, is an early-stage medical technology company focused on the development and
commercialization of thin film electrode technology for continuous electroencephalogram (cEEG) and stereoelectroencephalography
(sEEG) recording, brain stimulation and ablation solutions for patients suffering from epilepsy, Parkinson&rsquo;s disease, dystonia,
essential tremors and other related brain related disorders. Additionally, we are investigating the potential applications of
our technology associated with artificial intelligence.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">To date, the Company has recorded no product
sales and has a limited expense history. The Company is a development stage company and its activities to date have included raising
capital to fund the development of its proprietary technology and seeking regulatory clearances required to initiate commercial
activities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company is based in Minnetonka, Minnesota.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Basis of presentation</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The accompanying condensed consolidated
financial statements have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities
and Exchange Commission (the &ldquo;SEC&rdquo;). Certain information and footnote disclosures normally included in financial statements
prepared in accordance with U.S. generally accepted accounting principles (GAAP) have been condensed or omitted pursuant to such
rules and regulations. The condensed consolidated financial statements may not include all disclosures required by U.S. GAAP;
however, the Company believes that the disclosures are adequate to make the information presented not misleading. These unaudited
condensed consolidated financial statements should be read in conjunction with the audited financial statements and the notes
thereto for the nine month transition period ended September 30, 2018 included in the Transition Report on Form 10-KT. The condensed
consolidated balance sheet at September 30, 2018 was derived from the audited financial statements of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In the opinion of management, all adjustments,
consisting of only normal recurring adjustments that are necessary to present fairly the financial position, results of operations,
and cash flows for the interim periods, have been made. The results of operations for the interim periods are not necessarily
indicative of the operating results for the full fiscal year or any future periods.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; border-top: black 1.5pt solid; border-bottom: black 1.5pt solid"><B>NOTE
2 &ndash; Going Concern</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The accompanying condensed consolidated
financial statements have been prepared on the basis that the Company will continue as a going concern. The Company has incurred
losses since inception and had an accumulated deficit of $14,022,424 as of March 31, 2019. The Company does not have adequate
liquidity to fund its operations throughout fiscal 2019 without raising additional funds. These factors raise substantial doubt
about its ability to continue as a going concern. The condensed consolidated financial statements do not include any adjustments
that might result from the outcome of this condition. Management intends to continue to seek additional financing to fund operations.
If the Company is not able to raise additional working capital, it will have a material adverse effect on the operations of the
Company and the development of its technology.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Through March 31, 2019, the Company
has completed a $528,000 unsecured loan financing, a $253,000 short-term promissory note financing (which notes were amended
and restated to become convertible promissory notes), a $1,625,120 convertible promissory note financing of a planned $2.5
million subscription and a second $1,540,000 convertible promissory note financing of a planned $2 million subscription. All
of the convertible notes were ultimately converted into common stock and warrants. In addition, the Company entered into two
private placement transactions of its common stock and warrants beginning in July 2018 and December 2018, whereby $6.3
million in gross proceeds were raised out of a planned $11.8 million maximum offering under the subscription agreements for
both private placements through March 31, 2019. See Note 13 &ndash; Subsequent Events for a description of financings that
have closed after March 31, 2019. The Company does not have adequate liquidity to fund its operations throughout fiscal 2019
without raising additional funds. Management intends to continue to seek additional debt and/or equity financing to fund
operations. However, if the Company is unable to raise additional funds, or the Company&rsquo;s anticipated operating results
are not achieved, management believes planned expenditures may need to be reduced in order to extend the time period that
existing resources can fund the Company&rsquo;s operations. If management is unable to obtain the necessary capital, it may
have to cease operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>NeuroOne Medical Technologies Corporation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Notes to Condensed Consolidated Financial
Statements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(unaudited)</B></P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; border-top: black 1.5pt solid; border-bottom: black 1.5pt solid"><B>NOTE
3 &ndash; Summary of Significant Accounting Policies</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Management&rsquo;s Use of Estimates</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The preparation of condensed consolidated
financial statements in conformity with accounting principles generally accepted in the United States of America requires management
to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the condensed consolidated financial statements and the reported amounts of expenses during the
reporting period. Actual results could differ from those estimates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Concentration of Credit Risk</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Financial instruments that potentially
subject the Company to a concentration of credit risk consist of cash. The Company&rsquo;s cash is held by one financial institution
in the United States. Amounts on deposit may at times exceed federally insured limits. Management believes that the financial
institution is financially sound, and accordingly, minimal credit risk exists with respect to the financial institution. As of
March 31, 2019, the Company did have deposits in excess of federally insured amounts by $2,075,088.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Common Stock Valuation</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Due to the limited market liquidity for
the Company&rsquo;s common stock, the Company utilized methodologies in accordance with the framework of the American Institute
of Certified Public Accountants&rsquo; Technical Practice Aid, Valuation of Privately-Held Company Equity Securities Issued as
Compensation, to estimate the fair value of its common stock. The valuation methodology includes estimates and assumptions that
require the Company&rsquo;s judgment. These estimates and assumptions include a number of objective and subjective factors, including
external market conditions affecting the biotechnology industry sector, and the likelihood of achieving a liquidity event, such
as an offering or sale. Significant changes to the key assumptions used in the valuations may result in different fair values
of common stock at each valuation date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company estimated its enterprise value
on a continuing operations basis, using the market approach, with certain adjustments relating to the thinly traded status of
the Company. The traded price of the Company was deemed not to be an entirely reliable indication of fair market value given the
lack of trading liquidity. Therefore, in addition to applying partial weighting to the traded price, the Company relied on forward
revenue multiples from guideline public companies (&ldquo;GPC&rdquo;) for calendar year 2019 and 2020 and on the sales price of
the Company&rsquo;s common stock in recent private placement transactions (see Note 12 &ndash; Stockholders&rsquo; Equity (Deficit)).
The resulting equity value from the GPC method portion was allocated to common stock using the option pricing method, and a discount
for lack of marketability was applied. Based on the above methodology and weightings, the Company derived a valuation conclusion
of $2.38 and $2.30 per common share as of March 31, 2019 and September 30, 2018, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The fair value the Company&rsquo;s common
stock is used as an input into the fair value determination of the warrants, stock option or other equity awards that the Company
has issued or are outstanding liabilities at the reporting date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Fair Value of Financial Instruments</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company&rsquo;s accounting for fair
value measurements of assets and liabilities that are recognized or disclosed at fair value in the condensed consolidated financial
statements on a recurring or nonrecurring basis adheres to the Financial Accounting Standards Board (FASB) fair value hierarchy
that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted
quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements
involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 41pt; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Level
1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the Company at the measurement
date.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 41pt; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Level
2 Inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly
or indirectly, for substantially the full term of the asset or liability.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 41pt; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Level
3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not
available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the
measurement date.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 41pt; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 41pt; text-align: justify; text-indent: -0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 41pt; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 41pt; text-align: justify; text-indent: -0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NeuroOne Medical Technologies Corporation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Notes to Condensed Consolidated Financial
Statements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(unaudited)</B></P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 41pt; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of March 31, 2019 and September 30,
2018, the fair values of cash, other assets, accounts payable, accrued expenses and the unsecured loans approximated their carrying
values because of the short-term nature of these assets or liabilities. The estimated fair value of the convertible promissory
notes of the Company was based on amortized cost which was deemed to approximate fair value. The fair value of the warrant liability
and the premium conversion derivatives associated with the convertible promissory notes of the Company, while outstanding, were
based on both the estimated fair value of our common stock of $2.29 and $2.30 as of their conversion on February 28, 2019 and
as of September 30, 2018, respectively, and cash flow models discounted at current implied market rates evidenced in recent arms-length
transactions representing expected returns by market participants for similar instruments and are based on Level&nbsp;3 inputs.
There were no transfers between fair value hierarchy levels during the three and six months ended March 31, 2019 and 2018.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The fair value of financial instruments measured on a recurring
basis is as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="14" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">As of March 31,&nbsp;2019</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1.5pt solid">Description</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Total</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Level&nbsp;1</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Level&nbsp;2</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Level&nbsp;3</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>Liabilities:</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; text-align: left">Warrant liability</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">&mdash;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">&mdash;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">&mdash;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">&mdash;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Premium conversion derivatives</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt; padding-left: 10pt">Total liabilities at fair value</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="14" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">As of September 30, 2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1.5pt solid">Description</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Total</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Level&nbsp;1</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Level&nbsp;2</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Level&nbsp;3</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>Liabilities:</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; text-align: left">Warrant liability</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">817,155</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">&mdash;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">&mdash;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">817,155</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Premium conversion derivatives</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">308,395</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">308,395</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt; padding-left: 10pt">Total liabilities at fair value</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">1,125,550</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">1,125,550</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table provides a roll-forward
of the warrant liability and premium debt conversion derivatives measured at fair value on a recurring basis using unobservable
level&nbsp;3 inputs for the six month periods ended March 31, 2019 and 2018:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold">Warrant liability</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%">Balance as of beginning of period &ndash; October 1</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">817,155</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">774,172</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Value assigned to warrants in connection with convertible promissory notes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">713,157</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Change in fair value of warrant liability</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">18,568</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">146,730</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Reclassification to equity upon conversion of convertible promissory notes</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(835,723</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 4pt; padding-left: 10pt">Balance as of end of period &ndash; March 31</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">1,634,059</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold">Premium debt conversion derivatives</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%">Balance as of beginning of period &ndash; October 1</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">308,395</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">441,823</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Value assigned to the underlying derivatives in connection with convertible promissory notes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">269,493</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Change in fair value of premium debt conversion derivatives</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">111,195</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(104,143</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Reclassification to equity upon conversion of convertible promissory notes</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(419,590</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 4pt; padding-left: 10pt">Balance as of end of period &ndash; March 31</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">607,173</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NeuroOne Medical Technologies Corporation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Notes to Condensed Consolidated Financial
Statements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(unaudited)</B></P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Intellectual Property </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company has entered into two licensing
agreements with major research institutions, which allows for access to certain patented technology and know-how. Payments under
those agreements are capitalized and amortized to general and administrative expense over the expected useful life of the acquired
technology.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Impairment of Long-Lived Assets
</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company evaluates its long-lived assets,
which consists entirely of licensed intellectual property for impairment whenever events or changes in circumstances indicate
that the carrying value of these assets may not be recoverable. The Company assesses the recoverability of long-lived assets by
determining whether or not the carrying value of such assets will be recovered through undiscounted expected future cash flows.
If the asset is considered to be impaired, the amount of any impairment is measured as the difference between the carrying value
and the fair value of the impaired asset. Through March 31, 2019, the Company has not impaired any long-lived assets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Debt Issuance Costs</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Debt issuance costs are recorded as a
reduction of the convertible promissory notes when applicable. Amortization of debt issuance costs is calculated using the straight-line
method over the term of the convertible promissory notes, which approximates the effective interest method, and is recorded in
interest expense in the accompanying condensed consolidated statements of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Research and Development Costs</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Research and development costs are charged
to expense as incurred. Research and development expenses may include costs incurred in performing research and development activities,
including clinical trial costs, manufacturing costs for both clinical and pre-clinical materials as well as other contracted services,
license fees, and other external costs. Nonrefundable advance payments for goods and services that will be used in future research
and development activities are expensed when the activity is performed or when the goods have been received, rather than when
payment is made, in accordance with ASC 730, <I>Research and Development</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Warrant Liability</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company issued warrants to purchase
equity securities in connection with the issuance or amendment of the convertible promissory notes. The Company accounts for these
warrants as a liability at fair value when the number of shares is not fixed and determinable. Additionally, issuance costs associated
with the warrant liability are expensed as incurred and reflected as interest expense in the accompanying condensed consolidated
statements of operations. The Company adjusts the liability for changes in fair value until the earlier of the exercise or expiration
of the warrants for any period when pricing protections in future equity financings remain in place, or until such time, if any,
as the number of shares to be exercised becomes fixed, at which point the warrants will be classified in stockholders&rsquo; (deficit)
equity provided that there are sufficient authorized and unissued shares of common stock to settle the warrants and redeem any
other contracts that may require settlement in shares of common stock. Any future change in fair value of the warrant liability,
when outstanding, is recognized in the condensed consolidated statements of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NeuroOne Medical Technologies Corporation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Notes to Condensed Consolidated Financial
Statements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(unaudited)</B></P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Premium Debt Conversion Derivatives</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company evaluates all conversion and
redemption features contained in a debt instrument to determine if there are any embedded derivatives that require separation
from the host debt instrument. An embedded derivative that requires separation is bifurcated from its host debt instrument and
a corresponding discount to the host debt instrument is recorded. The discount is amortized and recorded to interest expense over
the term of the host debt instrument using the straight-line method which approximates the effective interest method.&nbsp; The
separated embedded derivative is accounted for separately on a fair market value basis. The Company records the fair value changes
of a separated embedded derivative at each reporting period in the condensed consolidated statements of operations. The Company
determined that the redemption features under the convertible promissory notes qualified as embedded derivatives and were separated
from their debt hosts.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Income Taxes</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For the Company, income taxes are accounted
for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable
to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax base
and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected
to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Deferred
tax assets are reduced by a valuation allowance if it is more likely than not that some portion or all of the deferred tax asset
will not be realized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Net Loss Per Share</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For the Company, basic loss per share
of common stock is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the
period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Diluted earnings or loss per share of
common stock is computed similarly to basic earnings or loss per share except the weighted average shares outstanding are increased
to include additional shares from the assumed exercise of any common stock equivalents, if dilutive. The Company&rsquo;s convertible
promissory notes, warrants, and stock options while outstanding are considered common stock equivalents for this purpose. Diluted
earnings is computed utilizing the treasury method for the warrants and stock options. Diluted earnings with respect to the convertible
promissory notes utilizing the if-converted method was not applicable during the three month periods ended March 31, 2019 and
2018 as no conditions required for conversion had occurred during these periods. No incremental common stock equivalents were
included in calculating diluted loss per share because such inclusion would be anti-dilutive given the net loss reported for the
three and six month periods ended March 31, 2019 and 2018.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following potential common shares
were not considered in the computation of diluted net loss per share as their effect would have been anti-dilutive for the three
and six month periods ended March 31, 2019 and 2018:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%">Warrants</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">6,448,613</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">189,750</TD><TD STYLE="width: 1%; text-align: left">(1)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Stock options</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">600,209</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">365,716</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(1)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">As
of March 31, 2018, there were additional potential warrants to be included which would be known, if and when a qualified financing
event greater than $3 million or a change of control transaction occurs in the future.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;Recent Accounting Pronouncements</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In February 2016, the FASB issued ASU
2016-02, Leases (Topic 842) and subsequently amended the guidance relating largely to transition considerations under the standard
in January 2017 and July 2018. The objective of this update is to increase transparency and comparability among organizations
by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements.
This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those annual periods.
The Company plans to adopt the standard on October 1, 2019, and will apply the modified retrospective approach to each lease in
existence at the adoption date to the extent a lease is subject to this guidance. As such, the Company would not restate comparative
periods and would recognize any cumulative adjustment to retained earnings on the date of the adoption. The Company also plans
to elect the package of practical expedients provided under the standard. Based on the Company&rsquo;s assessment to date, the
new standard is not expected to have an impact on the Company's consolidated balance sheets, statements of operations or statements
of cash flows. The finalization of our assessment may result in significant changes to our estimates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NeuroOne Medical Technologies Corporation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Notes to Condensed Consolidated Financial
Statements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(unaudited)</B></P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In July 2017, the FASB issued ASU No.
2017-11, <I>Earnings Per Share, Distinguishing Liabilities from Equity and Derivatives and Hedging</I>, which changes the accounting
and earnings per share for certain instruments with down round features. The amendments in this ASU should be applied using a
cumulative-effect adjustment as of the beginning of the fiscal year or retrospective adjustment to each period presented and is
effective for annual periods beginning after December&nbsp;15, 2018 for public business entities, including interim periods within
those fiscal years. Early adoption is permitted. The Company is currently evaluating the requirements of this new guidance and
has not yet determined its impact on the Company&rsquo;s consolidated financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In June 2018, the FASB issued ASU 2018-07,
<I>Compensation - Stock Compensation (Topic 718):&nbsp;Improvements to Nonemployee Share-Based Payment Accounting</I> (ASU 2018-07),&nbsp;which
expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees.
An entity should generally apply the requirements of Topic 718 to nonemployee awards except in circumstances where there is specific
guidance on inputs to an option pricing model and the attribution of cost. ASU 2018-07 specifies that Topic 718 applies to all
share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor&rsquo;s own
operations by issuing share-based payment awards. The guidance also clarifies that Topic 718 does not apply to share-based payments
used to effectively provide (1) financing to the issuer or (2) awards granted in conjunction with selling goods or services to
customers as part of a contract accounted for under ASC 606<I>, Revenue from Contracts with Customers </I>(ASC 606)<I>.</I> This
guidance is effective for annual reporting periods beginning after December 15, 2018, with early adoption permitted, but no earlier
than an entity&rsquo;s adoption date of ASC 606. The Company early adopted ASU 2018-07 effective October 1, 2018. The guidance
did not have an impact to the Company&rsquo;s financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In August 2018, the FASB issued ASU 2018-13,&nbsp;<I>Fair
Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement </I>(ASU
2018-13)<I>.</I>&nbsp;The new guidance modifies the disclosure requirements in Topic 820 as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Removals: the amount
    of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy; the policy for timing of transfers between
    levels; and the valuation processes for Level 3 fair value measurements.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Modifications: for
    investments in certain entities that calculate net asset value, an entity is required to disclose the timing of liquidation
    of an investee&rsquo;s assets and the date when restrictions from redemption might lapse only if the investee has communicated
    the timing to the entity or announced the timing publicly; and the amendments clarify that the measurement uncertainty disclosure
    is to communicate information about the uncertainty in measurement as of the reporting date.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Additions: the changes
    in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements
    held at the end of the reporting period; and the range and weighted average of significant unobservable inputs used to develop
    Level 3 fair value measurements.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">This guidance is effective for all entities
for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The amendments on changes
in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair
value measurements, and the narrative description of measurement uncertainty should all be applied prospectively for only the
most recent interim or annual period presented in the initial year of adoption. All other amendments should be applied retrospectively
to all periods presented upon their effective date. Early adoption is permitted. An entity is permitted to early adopt any removed
or modified disclosures upon issuance of ASU 2018-13 and delay adoption of the additional disclosures until their effective date.
The Company is currently evaluating the impact of the new guidance on its financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NeuroOne Medical Technologies Corporation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Notes to Condensed Consolidated Financial
Statements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(unaudited)</B></P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; border-top: black 1.5pt solid; border-bottom: black 1.5pt solid"><B>NOTE
4 &ndash; Commitments and Contingencies</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Legal</B>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">From time to time, the Company is subject
to litigation and claims arising in the ordinary course of business.&nbsp; In May 2017, NeuroOne received a letter from PMT Corporation
(&ldquo;PMT&rdquo;), the former employer of Mark Christianson and Wade Fredrickson.&nbsp; PMT claimed that these officers had
breached their restrictive covenant obligations with PMT by virtue of their work for NeuroOne and such officer&rsquo;s prior work
during employment with the prior employer, that these officers had breached their confidentiality and non-disclosure obligations
to PMT and federal and state law by misappropriating confidential and trade secret information, and that the Company is responsible
for tortious interference with contracts.&nbsp; The letter demanded that Mr. Fredrickson (who resigned from the Company in June
2017), Mr. Christianson and NeuroOne cease and desist all competitive activities, that Mr. Fredrickson step down from his position
and that Mr. Christianson and NeuroOne provide the former employer access to NeuroOne&rsquo;s systems to demonstrate that it is
not using trade secrets or proprietary information nor competing with the former employer.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On March 29, 2018, the Company was served
with a complaint filed by PMT adding the Company, NeuroOne and Mr. Christianson to its existing lawsuit against Mr. Fredrickson
in the Fourth Judicial District Court of the State of Minnesota. In the lawsuit, PMT claims that Mr. Fredrickson and Mr. Christianson
breached their non-competition, non-solicitation and non-disclosure obligations, breached their fiduciary duty obligations, were
unjustly enriched, engaged in unfair competition, engaged in a civil conspiracy, tortiously interfered with PMT&rsquo;s contracts
and prospective economic advantage, and breached a covenant of good faith and fair dealing.&nbsp; Against Mr. Fredrickson, PMT
also alleges that he intentionally or negligently spoliated evidence, made negligent or fraudulent misrepresentations, misappropriated
trade secrets in violation of Minnesota law, and committed the tort of conversion and statutory civil theft.&nbsp; Against the
Company and NeuroOne, PMT alleges that the Company and NeuroOne were unjustly enriched and engaged in unfair competition.&nbsp;
PMT asked the Court to impose a constructive trust over the shares held by Mr. Fredrickson and Mr. Christianson and to award compensatory
damages, equitable relief, punitive damages, attorneys&rsquo; fees, costs and interest.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On April 18, 2018, Mr. Christianson, the
Company and NeuroOne, Inc. filed a motion for dismissal, which was heard by the Court on October 11, 2018. The motion for dismissal
states that: the contract claims against Mr. Christianson fail because his agreement was not supported by consideration; the Minnesota
Uniform Trade Secrets Act preempts plaintiff&rsquo;s claims for unfair competition, civil conspiracy and unjust enrichment; plaintiff
fails to state a claim regarding alleged breach of the duties of loyalty and good faith/fair dealing; plaintiff cannot legally
obtain a constructive trust; plaintiff has insufficiently pled its tortious interference claims; and Plaintiff has not stated
a claim for unfair competition. On January 7, 2019, the judge granted the motion for dismissal with respect to PMT&rsquo;s claim
for breach of the duty of good faith and fair dealing, and denied the motion for dismissal with respect to the other claims presented.
The Company, NeuroOne, Inc. and Mr. Christianson (who has not worked for PMT since February 2012) intend to continue to defend
themselves vigorously.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The outcome and potential loss related
to this matter is unknown and as of March 31, 2019 and the date of these&nbsp;condensed consolidated financial statements the
Company has not accrued a reserve for this matter.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Facility Lease</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company entered into a non-cancellable
facility lease for its operations and headquarters for an eleven month term beginning on December 1, 2018. The monthly rent under
the lease is $4,763. During the three and six months ended March 31, 2019, rent expense associated with the facility lease amounted
to $14,289 and $19,052, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;<I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; border-top: black 1.5pt solid; border-bottom: black 1.5pt solid"><B>NOTE
5 &ndash; Intangibles</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Intangible assets consisted of the following
at March 31, 2019:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Useful Life</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 77%; text-align: justify">Net Intangibles, September 30, 2018</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: center">12-13 Years</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">200,081</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-bottom: 1.5pt">Less: amortization</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: justify; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(10,622</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; padding-bottom: 4pt">Net Intangibles, March 31, 2019</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="text-align: justify; padding-bottom: 4pt">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">189,459</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Amortization expense was $5,311and $4,952
for the three months ended March 31, 2019 and 2018, respectively, and $10,622 and $9,217 for the six months ended March 31, 2019
and 2018, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NeuroOne Medical Technologies Corporation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Notes to Condensed Consolidated Financial
Statements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(unaudited)</B></P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; border-top: black 1.5pt solid; border-bottom: black 1.5pt solid"><B>NOTE
6 &ndash; Accrued Expenses</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Accrued expenses consisted of the following
at March 31, 2019 and September 30, 2018:&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">March 31,<BR> 2019</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">September&nbsp;30,<BR> 2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">License fees</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">&mdash;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">65,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Legal services</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">456,777</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">833,470</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Accrued issuance costs</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">277,338</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">204,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Accrued payroll</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">321,361</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">276,639</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Advances</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,977</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt">Other</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">154,821</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">211,913</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 4pt">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">1,213,274</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">1,591,022</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; border-top: black 1.5pt solid; border-bottom: black 1.5pt solid"><B>NOTE
7 &ndash; Short-Term Promissory Notes and Unsecured Loan</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Short-Term Promissory Notes</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company issued short-term unsecured
and interest-free promissory notes (the &ldquo;Short-Term Notes&rdquo;) for aggregate gross proceeds of $253,000 in August 2017
which included free standing equity warrants. The Short-Term Notes were subsequently amended in November 2017 to extend the maturity
date and increase the number of shares of Common Stock issuable upon exercise of the related warrants. The Short-Term Notes were
also amended in March 2018 to become convertible, include new interest payment provisions and new conversion features and to provide
for the issuance of a replacement warrant (the &ldquo;Replacement Warrant&rdquo;) and an additional warrant (the &ldquo;Additional
Warrant&rdquo;) described more fully below. During the three and six months ended March 31, 2018, interest on the principal was
$1,124.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Effective July 2, 2018, the Company entered
into debt conversion agreements with each Short-Term Note subscriber to (i) convert the outstanding principal and accrued and
unpaid interest (the &ldquo;Outstanding Balance&rdquo;) under the Short-Term Notes into shares of the Company&rsquo;s common stock
based on the Outstanding Balance divided by $1.80 per share (the &ldquo;Short-Term Note Conversion Shares&rdquo;); (ii) cancel
and extinguish the Short-Term Notes; and (iii) amend and restate the Replacement Warrants and Additional Warrants, as described
more fully below, to make them immediately exercisable upon the conversion, at a per share exercise price equal to $1.80 per share.
As consideration for the early conversion of the Short-Term Notes, the Company issued each subscriber a new warrant (the &ldquo;Short-Term
Note Payment Warrants&rdquo;), exercisable for up to the number of shares of common stock equal to the number of Short-Term Note
Conversion Shares received by such subscriber; at a per share exercise price of $1.80 per share. The Short-Term Note Payment Warrants
became exercisable commencing on July 2, 2018, and expire on November 21, 2021.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Prior to the debt conversion agreements,
the November 2017 amendment resulted in a substantial modification to the original Short-Term Notes whereby additional warrant
coverage was added and the maturity date of the Short-Term Notes was extended. The Company recorded the November 2017 Short-Term
Note amendment under the provisions of extinguishment accounting. A loss on note extinguishments in the accompanying condensed
consolidated statements of operations for the six months ended March 31, 2018 was recorded in the amount of $144,577, which represented
the difference between the face value of the Short-Term Notes over the combined carrying values of the Short-Term Notes and warrants
on the date of the amendment. The fair value increase of the Short-Term Notes and the warrants as amended over its adjusted carrying
value at the time of the amendment was $117,280 which was recorded as additional paid-in capital. During the three and six months
ended March 31, 2018, interest related to amortization of discounts associated with the separation of the equity warrants and
issuance costs amounted to zero and $21,627, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NeuroOne Medical Technologies Corporation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Notes to Condensed Consolidated Financial
Statements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(unaudited)</B></P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The March 2018 amendment also resulted
in a substantial modification to the Short-Term Notes whereby additional conversion features and warrant coverage were added.
The Company recorded the Short-Term Note amendment under the provisions of extinguishment accounting. A loss on Short-Term Notes
extinguishment in the accompanying condensed consolidated statements of operations for the six months ended March 31, 2018 was
recorded in the amount of $186,220, which represented the difference between the carrying value of the Short-Term Notes over the
combined fair values of the Short-Term Notes, premium conversion derivative, Replacement Warrant and Additional Warrants on the
date of the amendment. The fair value decrease of the Short-Term Notes (inclusive of principal and interest, non-bifurcated embedded
conversion feature and the Additional Warrants) relative to its adjusted carrying value at the time of the amendment was $1,170
which was recorded as a reduction to additional paid-in capital on the accompanying condensed balance sheets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The March 2018 amendment of the Short-Term
Notes contained a 125% conversion premium in the event that a Short Term Note Qualified Financing occurred at a price under $2.25
per common share. The Company determined that the redemption feature under the Short-Term Notes qualified as an embedded derivative
and was reflected as a liability in the amount of $49,668 at the time of the March 2018 amendment with a corresponding offset
to extinguishment loss described above. Subsequent to the amendment, the embedded derivative was accounted for separately on a
fair market value basis. The Company recorded the fair value changes of the premium debt conversion derivative associated with
the Short-Term Notes in the condensed consolidated statements of operations for an expense of $43 for the three and six months
ended March 31, 2018.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition, the March 2018 amendment
provided for the issuance of Replacement Warrants that were deemed to be free-standing instruments and were accounted for as a
liability given the variable number of shares issuable in connection with a possible change of control conversion event. The Company
recorded an initial liability of $137,722 upon issuance of the Replacement Warrants with an offset to extinguishment loss as described
above. The fair value changes of the warrant liability associated with the Short-Term Notes are recorded at each reporting date
in the condensed consolidated statements of operations which amounted to a benefit of $(2,370) for the three and six months ended
March 31, 2018. A Monte Carlo simulation model was used to estimate the aggregate fair value of the Replacement Warrants as of
March 31, 2018. Input assumptions used were as follows: a risk-free interest rate of 2.45%; expected volatility of 50%; expected
life of 3.64 years; and expected dividend yield of 0%. The underlying stock price used in the analysis was on a non-marketable
basis and was according to the market approach, considering both the traded price and forward multiples from guideline public
companies, using allocation and marketability-discount methodologies. &nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As noted above, the Short-Term Notes were
converted into shares of common stock and were not outstanding during the three and six month period ended March 31, 2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Unsecured Loans</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In December 2018, the Company received
gross proceeds from an unsecured loan represented by one promissory note in the amount of $100,000 from a stockholder owning over
5% of the Company&rsquo;s common stock. The loan is interest free and requires that the Company repay the principal in full on
the earlier of the closing of an equity round of financing of the Company resulting in more than $5 million in gross proceeds
or December 12, 2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In November 2018, the Company received
cash gross proceeds from unsecured loans represented by two promissory notes in the amounts of $45,000 and $100,000 from a stockholder
owning or affiliated with stockholders owning over 5% of the Company&rsquo;s common stock. The loans are interest free and require
that the Company repay the principal in full on the earlier of the closing of an equity round of financing of the Company resulting
in more than $5 million in gross proceeds or November 14, 2019. In the second quarter of 2019, $100,000 of principal was repaid
to one of the promissory note holders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On May 17, 2018, the Company received
cash proceeds of $168,000 from unsecured loans, represented by two promissory notes from a stockholder owning or affiliated with
stockholders owning over 5% of the Company&rsquo;s common stock. The loans are interest free and require that the Company repay
the principal in full on the earlier to occur of (i) May 17, 2019 or (ii) the closing of an equity round of financing of the Company
that raises more than $5 million in gross proceeds. The loans include customary events of default provisions. In the second quarter
of 2019, $84,000 of principal was repaid to one of the promissory note holders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On March 20, 2018, the Company received
cash proceeds from an unsecured loan, represented by a promissory note, for $115,000 from a stockholder owning over 5% of the
Company&rsquo;s common stock. The loan was interest free and the Company repaid the principal in full in the second quarter of
2019 as required on the earlier to occur of (i) March 20, 2019 or (ii) the closing of an equity round of financing of the Company
that raises more than $3 million in gross proceeds. The loan included customary events of default provisions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NeuroOne Medical Technologies Corporation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Notes to Condensed Consolidated Financial
Statements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(unaudited)</B></P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; border-top: black 1.5pt solid; border-bottom: black 1.5pt solid"><B>NOTE
8 &ndash; Convertible Promissory Notes and Warrant Agreements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">As of March&nbsp;31,<BR> 2019</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">As of<BR> September&nbsp;30,<BR> 2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left; text-indent: -9pt; padding-left: 9pt">2017 convertible promissory notes, net of discounts</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">&mdash;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">1,306,776</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Accrued interest</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">87,028</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 4pt; text-indent: -9pt; padding-left: 0.25in">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">1,393,804</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>2016 Convertible Promissory Notes</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">From November 2016 to June 2017, the Company
issued convertible promissory notes (the &ldquo;Convertible Notes&rdquo;) in an aggregate principal amount of $1,625,120 and common
stock purchase warrants (the &ldquo;Warrants&rdquo;) and entered into subscription agreements with subscribers. The Company amended
the Convertible Notes in December 2016 and November 2017 and the Warrants in June 2017 and November 2017 to, among other things,
change the terms of the underlying Warrants that included the removal of down round pricing protection.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On July 2, 2018, the Company entered into
debt conversion agreements with each Convertible Note subscriber to (i) convert the Outstanding Balance under the Convertible
Notes into shares of the Company&rsquo;s common stock based on the Outstanding Balance divided by $1.80 per share (the &ldquo;2016
Note Conversion Shares&rdquo;); (ii) cancel and extinguish the Convertible Notes; and (iii) amend and restate the Warrants to
make them immediately exercisable upon the conversion, at a per share exercise price equal to $1.80 per share. As consideration
for the early conversion of the Convertible Notes, the Company issued each subscriber an additional new warrant (the &ldquo;2016
Note Payment Warrants&rdquo;), exercisable for up to the number of shares of common stock equal to the number of 2016 Note Conversion
Shares received by such subscriber; at a per share exercise price of $1.80 per share. The 2016 Note Payment Warrants became exercisable
commencing on July 2, 2018 and expire on November&nbsp;21, 2021.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The November 2017 amendment to the notes
resulted in a substantial modification to the original Convertible Notes whereby the maturity date was extended and the terms
associated with the Warrants were revised. The Company recorded the Convertible Note amendment under the provisions of extinguishment
accounting. The fair value of the underlying Convertible Notes was $97,223 lower than the carrying value of the Convertible Notes
on the date of the modification. The $97,223 difference was recorded as a discount to the debt with a gain on convertible note
extinguishments in the accompanying condensed consolidated statements of operations for the six months ended March 31, 2018.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the three and six months ended
March 31, 2018, interest on the principal was $32,502 and $65,005, respectively, and interest related to amortization of discounts
related to the bifurcation of premium derivative liability, separation of warrants, revaluation discounts and issuance costs amounted
to $34,585 and $296,333, respectively. The fair value changes related to the underlying premium conversion derivative amounted
to an expense of $2,666 and a benefit of ($105,976) during the three and six month periods ended March 31, 2018, respectively.
The fair value changes relating to the warrant liability amounted to a benefit of ($130,976) and an expense of $141,083 during
the three and six month periods ended March 31, 2018, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As noted above, the Convertible Notes
were converted into shares of common stock and were not outstanding during the three and six month periods ended March 31, 2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NeuroOne Medical Technologies Corporation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Notes to Condensed Consolidated Financial
Statements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(unaudited)</B></P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>2017 Convertible Notes</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">From October 2017 to May 2018, the Company
issued convertible notes (the &ldquo;2017 Convertible Notes&rdquo;) in an aggregate principal amount of $1,540,000 that bear interest
at a fixed rate of 8% per annum and warrants to purchase shares of the Company&rsquo;s capital stock (the &ldquo;New Warrants&rdquo;).
During the three and six months ended March 31, 2019, interest on the principal was $20,534 and $51,333, respectively, and $20,489
and $27,494 during the three and six months ended March 31, 2018, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company initially entered into a subscription
agreement with certain accredited investors and closed the initial private placement of the 2017 Convertible Notes in October
2017. In December 2017, the Company and holders of a majority in aggregate principal amount of the 2017 Convertible Notes entered
into an amended and restated subscription agreement to amend the terms of the 2017 Convertible Notes and New Warrants. On December
31, 2018, the 2017 Convertible Notes were amended again to extend the maturity date from December 31, 2018 to June 30, 2019. The
amendment was accounted for as a troubled debt restructuring given the Company&rsquo;s financial condition and given the concession
granted by the lenders with regards to pushing out the maturity date to June 30, 2019 with no corresponding compensation paid
for the extension. The future undiscounted cash flows of the 2017 Convertible Notes as amended exceeded their carrying value as
of December 31, 2018. As such, no gain was recognized on December 31, 2018 and no adjustments were made to the 2017 Convertible
Note carrying value.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The 2017 Convertible Notes required the
Company to repay the principal and accrued and unpaid interest thereon on June 30, 2019 (the &ldquo;2017 Convertible Notes Maturity
Date&rdquo;). If the Company consummated an equity round of financing resulting in more than $3 million in gross proceeds before
June 30, 2019 (the &ldquo;2017 Convertible Notes Qualified Financing&rdquo;), the outstanding principal and accrued and unpaid
interest on the 2017 Convertible Notes would have automatically converted into the securities issued by the Company in the 2017
Convertible Notes Qualified Financing equal to the outstanding principal and accrued interest on the 2017 Convertible Notes divided
by 80% of the price per share of the securities issued by the Company in the 2017 Convertible Notes Qualified Financing. The New
Warrants also become exercisable upon a 2017 Convertible Notes Qualified Financing for an amount of shares equal to the number
of shares received by the holder in the 2017 Convertible Notes Qualified Financing at the same price per share of the securities
issued in the 2017 Convertible Notes Qualified Financing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Prior to the December 2017 amendment,
if the Company had raised more than $3,000,000 in an equity financing before October 4, 2022, the outstanding principal and accrued
and unpaid interest on the 2017 Convertible Notes would have automatically converted into the securities issued by the Company
in such financing based on the greater number of such securities resulting from either (i) the outstanding principal and accrued
interest on the 2017 Convertible Notes divided by $2.25 or (ii) the outstanding principal and accrued interest on the 2017 Convertible
Notes multiplied by 1.25, divided by the price paid per security in such financing. The New Warrants would have also become exercisable
in conjunction with the 2017 Convertible Notes Qualified Financing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;Lastly, if a change of control transaction
occurred prior to the earlier of a 2017 Convertible Notes Qualified Financing or the 2017 Convertible Notes Maturity Date, the
2017 Convertible Notes would have, at the election of the holders of a majority of the outstanding principal of the 2017 Convertible
Notes, either become payable on demand as of the closing date of such transaction, or become convertible into shares of common
stock immediately prior to such transaction at a price per share equal to the lesser of (i) the per share value of the common
stock as determined by the Board as if in connection with the granting of stock based compensation or in a private sale to a third
party in an arms-length transaction or (ii) at the per share consideration to be paid in such transaction. Change of control means
a merger or consolidation with another entity in which the Company&rsquo;s stockholders do not own more than 50% of the outstanding
voting power of the surviving entity or the disposition of all or substantially all of the Company&rsquo;s assets. The New Warrants
would have also become exercisable upon a change of control transaction for an amount of shares equal to the number of shares
received by the holder upon conversion in connection with such transaction at the same price per share that the 2017 Convertible
Notes converted in the change of control transaction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The December 2017 amendment resulted in
a substantial modification to the original 2017 Convertible Notes whereby the maturity date was moved up to December 2018 from
October 2022 and the terms associated with the embedded features were revised as described above. The Company recorded the 2017
Convertible Note amendment under the provisions of extinguishment accounting. The fair value of the underlying Convertible Notes
was $294,615 higher than the carrying value of the Convertible Notes net of unamortized debt discount on the date of the modification.
The $294,615 difference as well as legal costs associated with the amendment in the amount of $8,945 were recorded as a loss on
convertible notes extinguishment totaling $303,560 in the accompanying condensed consolidated statements of operations for the
six months ended March 31, 2018. After the modification, there remained a debt discount of $27,371 of which zero and $6,575 was
amortized during the three and six months ended March 31, 2019, respectively, and $6,432 and $7,718 during the three and six months
ended March 31, 2018, respectively.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NeuroOne Medical Technologies Corporation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Notes to Condensed Consolidated Financial
Statements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(unaudited)</B></P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The 2017 Convertible Notes contained a
conversion discount in the event of a 2017 Convertible Notes Qualified Financing to equal the outstanding principal and accrued
interest on the 2017 Convertible Notes divided by 80% of the price per share of the securities issued by the Company in the 2017
Convertible Notes Qualified Financing. The embedded feature qualified as an embedded derivative and was separated from its debt
host. The bifurcation of the embedded derivative from its debt host resulted in a discount to the 2017 Convertible Notes in the
amount of $91,298 and $219,823 for the convertible debt issued during the three and six months ended March 31, 2018, respectively;
there were no issuances of 2017 Convertible Notes during the three and six months ended March 31, 2019. The discount was being
amortized to interest expense over the term of the 2017 Convertible Notes through December 31, 2018 using the straight-line method
which approximates the effective interest method. The amortization expense was zero and $62,158 for the three and six months ended
March 31, 2019, respectively, and $27,021 and $30,836 for the three and six months ended March 31, 2018, respectively. The embedded
derivative is accounted for separately on a fair market value basis. The Company recorded the fair value changes of the premium
debt conversion derivative associated with all of the 2017 Convertible Notes in the condensed consolidated statements of operations
which amounted to an expense of $104,930 and $111,195 for the three and six months ended March 31, 2019, respectively, and $1,323
and $1,790 for the three and six months ended March 31, 2018, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The New Warrants were deemed to be free-standing
instruments and were accounted initially as a liability given the variable number of shares issuable in connection with a change
of control conversion event and ultimately as equity upon conversion of the 2017 Convertible Notes on February 28, 2019 discussed
further below. A Monte Carlo simulation model was used to estimate the aggregate fair value of the New Warrants up to the conversion
date of the 2017 Convertible Notes. Input assumptions used were as follows: risk-free interest rate of 2.52% and 2.94% as of February
28, 2019 and September 30, 2018, respectively; expected volatility of 50% as of February 28, 2019 and September 30, 2018; expected
life of 5.0 and 5.21 years as of February 28, 2019 and September 30, 2018, respectively; and expected dividend yield of 0% as
of February 28, 2019 and September 30, 2018. The underlying stock price used in the analysis was on a non-marketable basis and
was according to the market approach, considering the traded price, forward multiples from guideline public companies and recent
private placement transactions, using allocation and marketability-discount methodologies. The 2017 Convertible Note proceeds
assigned to the New Warrants were $238,864 and $575,435 during the three and six month period ended March 31, 2018, respectively,
and recorded as a warrant liability. There were no proceeds assigned to warrants in connection with issuances of 2017 Convertible
Notes during the three and six month period ended March 31, 2019. The discount was amortized to interest expense over the term
of the 2017 Convertible Notes through December 31, 2018 using the straight-line method which approximated the effective interest
method. The amortization expense was zero and $163,060 for the three and six month periods ended March 31, 2019, respectively,
and $70,505 and $80,477 for the three and six month periods ended March 31, 2018, respectively. The Company also recorded the
fair value changes of the warrant liability associated with&nbsp;all of the 2017 Convertible Notes in the condensed consolidated
statements of operations which amounted to an expense of $11,879 and $18,568 for the three and six months ended March 31, 2019,
respectively, and amounted to an expense of $9,354 and $8,017 for the three and six months ended March 31, 2018, respectively.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In connection with the 2017 Convertible
Notes, the Company incurred original issuance costs in the amount of $8,133 which consisted of legal costs and were recorded as
issuance cost discounts to the 2017 Convertible Notes, of which zero and $1,431 was amortized to interest expense during the three
and six months ended March 31, 2019, respectively, and $376 and $533 was amortized to interest expense during the three and six
months ended March 31, 2018, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On February 28, 2019 following the 2017
Convertible Notes Qualified Financing, the outstanding principal and interest on the 2017 Convertible Notes were converted into
839,179 shares of common stock and 839,179 common stock purchase warrants with an exercise term of approximately 4.8 years and
an exercise price $3.00 per share. The conversion was accounted for as a debt extinguishment given the bifurcation of the embedded
premium debt conversion feature. The fair value of the newly issued common shares and warrants associated with the 2017 Convertible
Notes conversion relative to the carrying value of the debt and fair value of warrant liability and premium derivative liability
on the conversion date was $553,447 and was recorded as a loss on note extinguishments in the accompanying condensed consolidated
statements of operations for the three and six months ended March 31, 2019. In addition, the previously issued New Warrants became
immediately exercisable for 839,179 shares of common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NeuroOne Medical Technologies Corporation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Notes to Condensed Consolidated Financial
Statements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(unaudited)</B></P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; border-top: black 1.5pt solid; border-bottom: black 1.5pt solid"><B>NOTE
9 &ndash; Defined Contribution Plan</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company adopted a 401(k) defined contribution
plan (the &ldquo;401K Plan&rdquo;) on January 1, 2017, which was amended and restated on March 1, 2018 (the &ldquo;Restatement&rdquo;),
for all employees over age 21. Employees can defer up to 100% of their compensation through payroll withholdings into the 401K
Plan subject to federal law limits. The Company began matching in the fourth quarter of 2017 on deferrals at 100% of deferrals
up to 3% of one&rsquo;s contributions and 50% on deferrals over 3%, but not exceeding 5% of one&rsquo;s contributions up through
the Restatement. The Company&rsquo;s matching contributions to employee deferrals became discretionary after the Restatement.
The Company may also make discretionary profit sharing contributions under the 401K Plan in the future, but it has not done so
through March 31, 2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Employee contributions and any employer
matching contributions made to satisfy certain non-discrimination tests required by the Internal Revenue Code are 100% vested
upon contribution. Discretionary employer matches to employee deferrals vest over a six year period beginning on the second anniversary
of an employee&rsquo;s date of hire. Discretionary profit sharing contributions vest over a five year period beginning on the
first anniversary of an employee&rsquo;s date of hire. The amount of matching contributions made during the three and six month
periods ended March 31, 2019 was zero and a benefit reduction of $(4,359), respectively. The amount of matching contributions
made during the three and six month periods ended March 31, 2018 was zero and $27,000, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; border-top: black 1.5pt solid; border-bottom: black 1.5pt solid"><B>NOTE
10 &ndash; Stock-Based Compensation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Share-based compensation expense was included in general and
administrative and research and development expenses as follows in the accompanying condensed consolidated statements of operations:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center">Three Months Ended</TD><TD STYLE="font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: center">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center">Six Months Ended</TD><TD STYLE="font-weight: bold; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: center; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">March&nbsp;31,</TD><TD STYLE="font-weight: bold; text-align: center; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: center; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">March&nbsp;31,</TD><TD STYLE="font-weight: bold; text-align: center; padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt; text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt; text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt; text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt; text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; text-align: justify">General and administrative</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">26,105</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">252,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">141,105</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">252,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-bottom: 1.5pt">Research and development</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">44,112</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">2,437</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">48,092</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">2,437</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; padding-bottom: 4pt">Total share-based compensation</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">70,217</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">254,437</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">189,197</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">254,437</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Stock Options</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the three and six month period
ended March 31, 2019, under the 2017 Equity Incentive Plan (the &ldquo;2017 Plan&rdquo;), the Company granted 150,548 and 325,548
stock options to its employees, consultants and scientific advisory board members where vesting commences upon grant ranging over
a 36 to 48 month period based on a time of service vesting condition. The grant date fair value of grants was $1.11 and $1.12
per share during the three and six month periods ending March 31, 2019, respectively. There were no stock options granted during
the three and six month periods ending March 31, 2018.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NeuroOne Medical Technologies Corporation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Notes to Condensed Consolidated Financial
Statements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(unaudited)</B></P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The weighted-average assumptions used
in the Black-Scholes option-pricing model are as follows for the stock options granted during the three and six month periods
ended March 31, 2019:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Three </B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Months</B></P></TD><TD>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center"><P STYLE="margin-top: 0; margin-bottom: 0">Six</P>
                                                                  <P STYLE="margin-top: 0; margin-bottom: 0">Months</P></TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Ended</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Ended</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">Expected stock price volatility</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">50.7</TD><TD STYLE="width: 1%; text-align: left">%</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">50.2</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Expected life of options (years)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6.0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5.9</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Expected dividend yield</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Risk free interest rate</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.6</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.7</TD><TD STYLE="text-align: left">%</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">See other stock-based awards section below
for stock-based award grants committed, but not formally issued as of March 31, 2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the three and six months ended
March 31, 2019, 39,675 stock options vested and during the three and six months ended March 31, 2018, no stock options vested.
During the three and six months ended March 31, 2019 and 2018, 93,555 and zero stock options were exercised, respectively. No
stock options were forfeited during the three and six months ended March 31, 2019 and 2018.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Evergreen provision</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under the 2017 Plan, the shares reserved
automatically increase on January 1st&nbsp;of each year, for a period of not more than ten years from the date the 2017 Plan is
approved by the stockholders of the Company, commencing on January 1, 2019 and ending on (and including) January 1, 2027,&nbsp;to
an amount equal to 13% of the fully-diluted shares outstanding as of December 31st of the preceding calendar year. Notwithstanding
the foregoing, the Board may act prior to January 1st of a given year to provide that there will be no January 1st increase in
the share reserve for such year or that the increase in the share reserve for such year will be a lesser number of shares of common
stock than would otherwise occur pursuant to the preceding sentence. &ldquo;Fully Diluted Shares&rdquo; as of a date means an
amount equal to the number of shares of common stock (i) outstanding and (ii) issuable upon exercise, conversion or settlement
of outstanding Awards under the 2017 Plan and any other outstanding options, warrants or other securities of the Company that
are (directly or indirectly) convertible or exchangeable into or exercisable for shares of common stock, in each case as of the
close of business of the Company on December 31 of the preceding calendar year. On January 1, 2019, 498,848 shares were added
to 2017 Plan as a result of the evergreen provision.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of March 31, 2019, 1,881,896 shares
were available for future issuance on a combined basis under the 2016 Equity Incentive Plan and 2017 Plan. Unrecognized stock-based
compensation was $319,234 as of March 31, 2019. The unrecognized share-based expense is expected to be recognized over a weighted
average period of 3.2 years.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Other Stock-Based Awards</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">250,000 shares of common stock were reserved
in February 2018 as a result of a consulting agreement for investor relations services executed in February 2018. Under the agreement,
50,000 and 100,000 shares of common stock were awarded during the six month periods ended March 31, 2019 and 2018, respectively,
subject to time-based vesting conditions. The compensation expense related to the vested common shares was included in the total
stock-based services expense referenced above which totaled $115,000 and $252,000 for the six month periods ended March 31, 2019
and 2018, respectively. The expense was based on the fair value of the underlying common stock at the point of vesting which was
$2.30 and $2.52 per share during the six month periods ending March 31, 2019 and 2018, respectively. The underlying stock price
used in the analysis was on a non-marketable basis and was according to the market approach, considering both the traded price
and forward multiples from guideline public companies, using allocation and marketability-discount methodologies.&nbsp;As of November
2018, all shares under the February 2018 share reserve were issued from the Company&rsquo;s authorized but unissued shares, but
were not eligible to be issued under the 2016 Plan or 2017 Plan reserves.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of March 31, 2019, the Company had
formal obligations to issue future common stock options relating to several consulting agreements. The estimated liability associated
with the vested portions of these awards was recorded in accrued expenses in the accompanying condensed consolidated balance sheets
as of March 31, 2019. The corresponding stock-based services expense related to the stock-based award liabilities amounted to
$23,563 and $27,543 during the three and six month periods ended March 31, 2019, respectively, and was included in research and
development expense in the accompanying condensed consolidated statements of operations. The corresponding stock-based services
expense relating to the stock-based award liabilities amounted to $2,437 during the three and six month periods ended March 31,
2018 and was included in research and development expense in the accompanying condensed consolidated statements of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NeuroOne Medical Technologies Corporation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Notes to Condensed Consolidated Financial
Statements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(unaudited)</B></P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The number of option shares and pricing
under the consulting agreement will not be set until the occurrence of the award date which is defined as the earlier to occur
of a public offering, qualified financing, or June 30, 2019. The number of option shares under the agreement is based on a $3,000
monthly compensation amount divided by the fair value of the underlying common stock on the award date. The exercise price will
also be set at the fair value of the underlying common stock on the award date. The liability associated with the unissued options
was based on an option share equivalent estimate that reflects the portion of the award where performance vesting conditions have
been met as of March 31, 2019 and was based on the fair value of the Company&rsquo;s common stock on March 31, 2019 as the award
date has not occurred. The common stock fair value on March 31, 2019 was $2.38 per share and was determined based on a non-marketable
basis and was according to the market approach, considering the traded price, forward multiples from guideline public companies
and recent private placement transactions, using allocation and marketability-discount methodologies.&nbsp;The total accrued liability
for this award at March 31, 2019 was $38,696.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The weighted-average assumptions used
in the Black-Scholes option-pricing model are as follows for the stock- option liability outstanding as of March 31, 2019:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 88%; text-align: left">Expected stock price volatility</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">50.7</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Expected life of options (years)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Expected dividend yield</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Risk free interest rate</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.2</TD><TD STYLE="text-align: left">%</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Upon the issuance of all of the unissued
options associated with the stock-based award liabilities, the estimated number of shares available for future issuance as of
March 31, 2019 would be reduced from 1,881,896 shares to 1,846,602 shares as a result of the potential stock option issuance under
the second consulting agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;&nbsp;&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; border-top: black 1.5pt solid; border-bottom: black 1.5pt solid"><B>NOTE
11 &ndash; Income Taxes</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The effective tax rate for the three and
six months ended March 31, 2019 and 2018 was zero percent. As a result of the analysis of all available evidence as of&nbsp;March
31, 2019&nbsp;and&nbsp;September 30, 2018, the Company recorded a full valuation allowance on its net deferred tax assets. Consequently,
the Company reported&nbsp;no&nbsp;income tax benefit during the&nbsp;three and six months ended&nbsp;March 31, 2019 and 2018.
If the Company&rsquo;s assumptions change and the Company believes that it will be able to realize these deferred tax assets,
the tax benefits relating to any reversal of the valuation allowance on deferred tax assets will be recognized as a reduction
of future income tax expense.&nbsp;&nbsp;If the assumptions do not change, each period the Company could record an additional
valuation allowance on any increases in the deferred tax assets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; border-top: black 1.5pt solid; border-bottom: black 1.5pt solid"><B>NOTE
12 &ndash; Stockholders&rsquo; Equity (Deficit)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>2018 Private Placement</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">From July 9, 2018 through November 30,
2018 (the final closing), the Company entered into subscription agreements (each, a &ldquo;Purchase Agreement&rdquo;) with certain
accredited investors (the &ldquo;Purchasers&rdquo;), pursuant to which the Company, in a private placement (the &ldquo;2018 Private
Placement&rdquo;), agreed to issue and sell to the Purchasers units (each, a &ldquo;Unit&rdquo;), each consisting of (i) 1 share
(each, a &ldquo;Share&rdquo;) of common stock and (ii) a warrant to purchase 1 share of common stock at an initial exercise price
of $3.00 per share (the &ldquo;2018 Warrants&rdquo;). The initial closing of the 2018 Private Placement was consummated on July
9, 2018. As of the termination of the 2018 Private Placement on December 12, 2018, the Company had issued and sold an aggregate
of 615,200 Units at a price of $2.50 per Unit to the Purchasers, for total gross proceeds to the Company of $1,538,000 before
deducting offering expenses (zero and 170,000 Units were sold during the three and six months ended March 31, 2019, respectively).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</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; text-align: center"><B>NeuroOne Medical Technologies Corporation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Notes to Condensed Consolidated Financial
Statements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(unaudited)</B></P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under the Purchase Agreement, the Company
agreed to use the net proceeds from the 2018 Private Placement to pay the outstanding principal and accrued interest on its 2017
Convertible Notes if such notes did not convert prior to maturity, to pay the principal on its unsecured term loans, for research
and development, clinical studies, legal fees and sales and marketing expenses, as well as working capital and general corporate
purposes. The Company granted the Purchasers indemnification rights with respect to its representations, warranties and agreements
under the Purchase Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The 2018 Warrants are exercisable
beginning on the date of issuance and will expire on July 9, 2023, five years from the date of the first closing. The 2018
Warrants were accounted for as free standing equity instruments and classified as additional paid-in capital in the
accompanying condensed consolidated balance sheets based on their relative fair value to the underlying common shares issued.
The relative fair value of the 2018 Warrants issued during the six month period ended March 31, 2019 was $115,674 and was
based on the Black-Scholes pricing model. Input assumptions used were as follows on a weighted average basis: a risk-free
interest rate of 2.9%; expected volatility of 49.8%; expected life of 4.6 years; and expected dividend yield of 0%. The
underlying stock price used in the analysis was on a non-marketable basis and was according to the market approach,
considering both the traded price and forward multiples from guideline public companies, using allocation and
marketability-discount methodologies. &nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In February 2019, the Company amended
its engagement letter with one of its placement agents in the 2018 Private Placement, HRA Capital (&ldquo;HRA&rdquo;), acting
through its affiliate, Corinthian Partners, LLC, each of which are affiliates of one of the Company&rsquo;s greater than 5% stockholders.
Pursuant to the original agreement (prior to the amendment), the Company agreed to pay HRA 10% of the gross proceeds (the &ldquo;HRA
Fee&rdquo;) received by the Company in subsequent private placement transactions from investors with whom HRA or Corinthian Partners,
LLC had material contact with for purposes of the engagement letter (the &ldquo;Prospects&rdquo;), provided such compensation
would only be paid in connection with private placement transactions that closed within 12 months of the expiration of the engagement
letter (the &ldquo;Tail Period&rdquo;). The Company agreed to issue to HRA warrants to purchase shares of Common Stock (or common
stock equivalents) in an amount equal to 10% of the shares purchased by Prospects during the Tail Period (&ldquo;HRA Warrants&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In February 2019, the Company and HRA
agreed (i) to extend the Tail Period until June 30, 2019, (ii) to modify the HRA Fee so that HRA is entitled to receive a cash
fee equal to 8% of the gross proceeds received by the Company from Prospects in all subsequent private placement transactions
and (iii) to modify the HRA Warrants so that they are exercisable to purchase shares of Common Stock (or common stock equivalents)
in an amount equal to 8% of the shares of Common Stock purchased by Prospects in subsequent private placements (collectively,
the &ldquo;HRA Amendments&rdquo;). Upon issuance, the HRA Warrants will be immediately exercisable and expire five years from
the closing of the related transaction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In connection with the 2018 Private Placement,
the Company recorded issuance costs in the amount of a credit of $(24,029) during the three months ended March 31, 2019 stemming
largely from the February 2019 HRA commission structure change, and an expense of $35,665 during the six month period ended March
31, 2019. The issuance costs included commissions to the brokers equal to 8% of the gross proceeds from the sale of the Units
that qualify for the commission which amounted to $17,240. In addition to the brokers&rsquo; commission, the issuance costs included
the estimated value of the 5-year warrants to be issued to the brokers to purchase an amount of common stock equal to 8% of the
total amount of qualifying Shares sold in the 2018 Private Placement at an exercise price of $3.00 per share upon the close of
the 2018 Private Placement. A commission liability increase in the amount of $11,085 was recorded during the six month period
ended March 31, 2019 related to the 40,416 broker warrants issuable upon the close of the 2018 Private Placement. Lastly, third
party legal costs in the amount $7,340 comprised the balance of the issuance costs incurred during the six months ended March
31, 2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In connection with the 2018 Private Placement,
the Company entered into registration rights agreements with each of the Purchasers pursuant to which the Company agreed to file
a registration statement with the SEC covering the resale of the shares of common stock sold in the 2018 Private Placement and
the shares of common stock issuable upon exercise of the 2018 Warrants. The Company agreed to file such registration statement
within 75 days of the final closing of the 2018 Private Placement. Each registration rights agreement included customary indemnification
rights in connection with the registration statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NeuroOne Medical Technologies Corporation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Notes to Condensed Consolidated Financial
Statements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(unaudited)</B></P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>2019 Private Placement</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On December 12, 2018, the Board of Directors
of the Company terminated the 2018 Private Placement. From December 28, 2018 through March 31, 2019, the Company entered into
Subscription Agreements (each, a &ldquo;2019 Purchase Agreement&rdquo;) with certain accredited investors (the &ldquo;New Purchasers&rdquo;),
pursuant to which the Company, in a new private placement (the &ldquo;2019 Private Placement&rdquo;), agreed to issue and sell
Units (the &ldquo;2019 Units&rdquo;), each consisting of (i) 1 share of common stock and (ii) a warrant to purchase 1 share of
common stock at an initial exercise price of $3.00 per share (the &ldquo;2019 Warrants&rdquo;), to the New Purchasers. The initial
closing of the 2019 Private Placement was consummated on December 28, 2018. The Company issued and sold an aggregate of 1,903,979
Units at $2.50 per Unit to the New Purchasers, for total gross proceeds to the Company of approximately $4,759,948 before deducting
offering expenses from December 28, 2018 through March 31, 2019 (1,743,979 and 1,903,979 Units were sold during the three and
six months ended March 31, 2019, respectively).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In connection with the 2019 Private Placement, the Company
has agreed to issue and sell to accredited investors up to a maximum of 4,000,000 2019 Units (the &ldquo;Maximum Offering&rdquo;)
at a price of $2.50 per 2019 Unit for total gross proceeds to the Company of up to $10,000,000. The Maximum Offering may be increased
by the Company in its sole discretion, without notice. If the Company issues the Maximum Offering amount, 4,000,000 shares of
common stock would be issuable upon exercise of the 2019 Warrants. Under the 2019 Purchase Agreement, the Company has agreed to
use the net proceeds from the 2019 Private Placement to pay the outstanding principal and accrued interest on its convertible
promissory notes if such notes do not convert prior to maturity, to pay the principal on its unsecured term loans, for research
and development, clinical studies, legal fees and sales and marketing expenses, as well as working capital and general corporate
purposes. The Company has granted the New Purchasers indemnification rights with respect to its representations, warranties and
agreements under the 2019 Purchase Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The 2019 Warrants are exercisable beginning on the date of issuance and will expire on December 28, 2023,
five years from the date of the first closing of the 2019 Private Placement. Prior to expiration, subject to the terms and conditions
set forth in the 2019 Warrants, the holders may exercise the 2019 Warrants for shares of common stock by providing notice to the
Company and paying the $3.00 per share exercise price for each share so exercised. The relative fair value of the 2019 Warrants
issued during the three and six month period ended March 31, 2019 was $1,193,564 and $1,301,241, respectively, and was based on
the Black-Scholes pricing model. Input assumptions used were on a weighted average basis as follows: a risk-free interest rate
of 2.5%; expected volatility of 50.6%; expected life of 4.8 years; and expected dividend yield of 0%. The underlying stock price
used in the analysis was on a non-marketable basis and was according to the market approach, considering traded price, forward
multiples from guideline public companies and recent private placement transactions, using allocation and marketability-discount
methodologies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In connection with the 2019 Private Placement,
Paulson Investment Company, LLC (&ldquo;Paulson&rdquo;) will receive a cash commission equal to 12% of the gross proceeds from
the sale of the 2019 Units sold by Paulson. In addition to the brokers&rsquo; commission, the Company will issue 5-year warrants
to Paulson to purchase an amount of Common Stock equal to 10% of the total amount of Shares sold in the 2019 Private Placement
at an exercise price of $2.75 per share. HRA will receive a cash commission equal to 8% of the gross proceeds from the sale of
the 2019 Units sold by HRA. In addition to the brokers&rsquo; commission, the Company will issue 5-year warrants to HRA to purchase
an amount of Common Stock equal to 8% of the total amount of Shares sold by HRA in the 2019 Private Placement at an exercise price
of $3.00 per share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The issuance costs incurred during the
three and six month period ending March 31, 2019 under the 2019 Private Placement were $722,806 and $812,428, respectively. Issuance
costs incurred through March 31, 2019 included cash commissions equal to $561,294 and third party legal costs in the amount of
$71,491. In addition, issuance costs included the estimated value of the 5-year warrants in the amount of $179,643 to be issued
to the brokers to purchase an amount of common stock equal to 180,658 shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NeuroOne Medical Technologies Corporation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Notes to Condensed Consolidated Financial
Statements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(unaudited)</B></P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;&nbsp;<B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Warrant Activity and Summary</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table summarizes warrant
activity during the six month period ended March 31, 2019:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Exercise <BR> Price</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Weighted Average</TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Warrants</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Per<BR> Warrant</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Exercise<BR> Price</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 64%; text-align: left">Outstanding and exercisable at September 30, 2018</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">2,927,572</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;1.80 - 3.00</FONT></TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">1.98</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Issued</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,752,337</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">2.50-3.00</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">2.89</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Exercised</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(231,296</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1.80</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1.80</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt">Forfeited</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Outstanding and exercisable at March 31, 2019</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">6,448,613</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">1.80 - $3.00</FONT></TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">2.52</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of March 31, 2019, 221,074 warrants
were committed to be issued in connection with 2018 Private Placement and 2019 Private Placement at an exercise price ranging
from $2.75 to $3.00 per share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; border-top: black 1.5pt solid; border-bottom: black 1.5pt solid"><B>NOTE
13 &ndash; Subsequent Events</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>2019 Private Placement &ndash;
Subsequent Issuances </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company issued 2019 Units for aggregate
gross proceeds of $453,000 from April 5, 2019 through May 3, 2019. &nbsp;See Note 12 &ndash; Stockholders Equity (Deficit)
for more information on the 2019 Units.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Unsecured Loans </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In April 2019 and May 2019, the Company
paid $79,000 and $75,000, respectively, to the holder of its remaining promissory notes. In May 2019, the Company entered into
a letter agreement acknowledging that all of the unsecured loans from such holder were repaid in full, except for $75,000 that
remains outstanding under the December 2018 promissory note. The Letter Agreement also modified the maturity date of the December
promissory note to June 30, 2019. See &ldquo;Note 7 &ndash; Short-Term Promissory Notes and Unsecured Loan &ndash;Unsecured Loans&rdquo; for
a description of the unsecured loans.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">PART II</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">INFORMATION NOT REQUIRED IN PROSPECTUS</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Item 13. Other Expenses of Issuance and Distribution.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table sets forth all
costs and expenses, other than underwriting discounts and commissions, payable by NeuroOne Medical Technologies Corporation
(the &ldquo;Company&rdquo;), or the Registrant, in connection with the sale of the common stock being registered. The selling
stockholders will not bear any portion of such expenses. All amounts shown are estimates except for the SEC registration
fee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: black 1.5pt solid"><FONT STYLE="font-size: 10pt"><B>Nature of Expense</B></FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Amount</B></FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 89%"><FONT STYLE="font-size: 10pt">SEC registration fee</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="width: 8%; text-align: right"><FONT STYLE="font-size: 10pt">3,530</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-size: 10pt">Accounting fees and expenses</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">15,000</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">Legal fees and expenses</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">40,000</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-size: 10pt">Transfer agent&rsquo;s fees and expenses</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">1,000</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">Printing and related fees</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">2,500</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-size: 10pt">Miscellaneous</FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1.5pt solid"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-size: 10pt">10,000</FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 4pt"><FONT STYLE="font-size: 10pt">Total</FONT></TD>
    <TD STYLE="padding-bottom: 4pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 4pt double"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="border-bottom: black 4pt double; text-align: right"><FONT STYLE="font-size: 10pt">72,030</FONT></TD>
    <TD STYLE="padding-bottom: 4pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Item 14. Indemnification of Directors and Officers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company is incorporated under the laws
of the State of Delaware. Section 145 of the Delaware General Corporation Law provides that a Delaware corporation may indemnify
any persons who were, are, or are threatened to be made, parties to any threatened, pending or completed action, suit or proceeding,
whether civil, criminal, administrative or investigative (other than an action by or in the right of such corporation), by reason
of the fact that such person is or was an officer, director, employee or agent of such corporation, or is or was serving at the
request of such corporation as an officer, director, employee or agent of another corporation or enterprise. The indemnity may
include expenses (including attorneys&rsquo; fees), judgments, fines and amounts paid in settlement actually and reasonably incurred
by such person in connection with such action, suit or proceeding, provided that such person acted in good faith and in a manner
he or she reasonably believed to be in or not opposed to the corporation&rsquo;s best interests and, with respect to any criminal
action or proceeding, had no reasonable cause to believe that his or her conduct was illegal. A Delaware corporation may indemnify
any persons who were, are, or are threatened to be made, a party to any threatened, pending or completed action or suit by or in
the right of the corporation by reason of the fact that such person is or was a director, officer, employee or agent of such corporation,
or is or was serving at the request of such corporation as a director, officer, employee or agent of another corporation or enterprise.
The indemnity may include expenses (including attorneys&rsquo; fees) actually and reasonably incurred by such person in connection
with the defense or settlement of such action or suit provided such person acted in good faith and in a manner he or she reasonably
believed to be in or not opposed to the corporation&rsquo;s best interests except that no indemnification is permitted without
judicial approval if the officer or director is adjudged to be liable to the corporation. Where an officer or director is successful
on the merits or otherwise in the defense of any action referred to above, the corporation must indemnify him or her against the
expenses (including attorneys&rsquo; fees) actually and reasonably incurred.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company&rsquo;s certificate of incorporation
provides for the indemnification of its directors to the fullest extent permitted under the Delaware General Corporation Law. The
Company&rsquo;s bylaws provide for the indemnification of its directors and officers to the fullest extent permitted under the
Delaware General Corporation Law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Section 102(b)(7) of the Delaware General
Corporation Law permits a corporation to provide in its certificate of incorporation that a director of the corporation shall not
be personally liable to the corporation or its stockholders for monetary damages for breach of fiduciary duties as a director,
except for liability for any:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">transaction from which the director derives an improper personal benefit;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">act or omission not in good faith or that involves intentional misconduct or a knowing violation
of law;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">unlawful payment of dividends or redemption of shares; or</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">breach of a director&rsquo;s duty of loyalty to the corporation or its stockholders.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company&rsquo;s certificate of incorporation
includes such a provision. Under the Company&rsquo;s bylaws, expenses incurred by any director or officers in defending any such
action, suit or proceeding in advance of its final disposition shall be paid by the Company upon delivery to it of an undertaking,
by or on behalf of such director or officer, to repay all amounts so advanced if it shall ultimately be determined that such director
or officer is not entitled to be indemnified by the Company, as long as such undertaking remains required by the Delaware General
Corporation Law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Section 174 of the Delaware General Corporation
Law provides, among other things, that a director who willfully or negligently approves of an unlawful payment of dividends or
an unlawful stock purchase or redemption, may be held liable for such actions. A director who was either absent when the unlawful
actions were approved or dissented at the time may avoid liability by causing his or her dissent to such actions to be entered
in the books containing minutes of the meetings of the board of directors at the time such action occurred or immediately after
such absent director receives notice of the unlawful acts.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As permitted by the Delaware General Corporation
Law, we have entered into indemnity agreements with each of our directors and executive officers, that require us to indemnify
such persons against any and all expenses (including reasonable attorneys&rsquo; fees), witness fees, damages, judgments, fines,
settlements and other amounts incurred (including expenses of a derivative action) in connection with any action, suit or proceeding,
whether actual or threatened, to which any such person may be made a party by reason of the fact that such person is or was a director,
an officer or an employee of the Company or any of its affiliated enterprises, provided that such person acted in good faith and
in a manner such person reasonably believed to be in or not opposed to our best interests and, with respect to any criminal proceeding,
had no reasonable cause to believe his or her conduct was unlawful. The indemnification agreements also set forth certain procedures
that will apply in the event of a claim for indemnification thereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">There is at present no pending litigation
or proceeding involving any of the Registrant&rsquo;s directors or executive officers as to which indemnification is required or
permitted, and the Company is not aware of any threatened litigation or proceeding that may result in a claim for indemnification,
other than the letter received by the Company in May 2017 from the former employer of Mark Christianson and Wade Fredrickson claiming,
among other things, certain breaches of non-competition obligations and confidentiality and non-disclosure obligations to such
prior employer and federal and state law by virtue of such officers&rsquo; work for the Company. See &ldquo;We may be subject to
damages resulting from claims that we, or our employees, have wrongfully used or disclosed alleged trade secrets of our competitors
or are in breach of non-competition or non-solicitation agreements with our competitors&rdquo; under the &ldquo;Risk Factors&rdquo;
section in the prospectus that is part of this registration statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company has an insurance policy that
covers its officers and directors with respect to certain liabilities, including liabilities arising under the Securities Act or
otherwise.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Item 15. Recent Sales of Unregistered Securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In connection with the 2019
private placement, between December 28, 2018 and July 1,
2019, the Company entered into subscription agreements with accredited investors, pursuant to which the Company  agreed to issue and sell to the purchasers units for $2.50 per unit. Each unit consisted
of (i) one share of Common Stock and (ii) a warrant
to purchase one share of Common Stock at an initial exercise price of $3.00 per share. The warrants are exercisable beginning on
the date of issuance and expire on December 28, 2023. The Company has issued an aggregate of 2,338,179 units, for total gross proceeds
to the Company of approximately $5,845,448 in connection with all closings of the 2019 Private Placement. In connection with the
2019 Private Placement, Paulson  received a cash commission equal to 12% of the
gross proceeds from the sale of the Units to the Paulson Investors, and HRA Capital received
a cash commission equal to 8% of the gross proceeds from the sale of the units to certain investors (the &ldquo;HRA Investors&rdquo;).
All of the shares of Common Stock (i) issued under the 2019 Private Placement and (ii) issuable pursuant to exercise of the warrants
issued under the 2019 Private Placement are being registered under this Registration Statement. For more information, see &ldquo;About
this Offering.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition, pursuant to placement
agent agreements, on July 1, 2019, the Company issued 5-year warrants to Paulson and its affiliates (the &ldquo;Paulson
Parties&rdquo;) to purchase 193,417 shares of Common Stock at an exercise price of $2.75 per share, and the Company issued to
Corinthian Partners, LLC and its designees (the &ldquo;Corinthian Parties&rdquo;) 5-year warrants to purchase 17,760 shares
of Common Stock at an exercise price of $3.00 per share and 5-year warrants to purchase 135,512 shares of Common Stock at an
exercise price of $2.00 per share. All of the shares of Common Stock issuable pursuant to exercise of the warrants issued to
the Corinthian Parties and Paulson Parties are being registered under this Registration Statement. For more information, see
&ldquo;About this Offering.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In connection with the 2018
private placement, between July 9, 2018 and November 30, 2018, the Company entered into subscription agreements with
accredited investors, pursuant to which the Company
agreed to issue and sell to the purchasers units for $2.50 per unit. Each unit consisted of (i) one share of  Common Stock and (ii) a warrant to purchase one share of Common Stock at an initial
exercise price of $3.00 per share. The Company issued an aggregate of 615,200 units, for total gross proceeds to the Company
of approximately $1,538,000 in connection with all closings of the 2018 Private Placement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On February 6, 2018, pursuant to a services
agreement with JLS, the Company agreed to issue to JLS an aggregate of 250,000 shares of Common
Stock for investor relations services. The Company issued to JLS 100,000 shares of Common Stock on April 26, 2018, 50,000 shares
of Common Stock on May 7, 2018, 50,000 shares of Common Stock on August 29, 2018, and 50,000 shares of Common Stock on November
2, 2018. All of the shares of Common Stock issued to JLS pursuant to such services agreement are being registered under this Registration
Statement. For more information, see &ldquo;About this Offering.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">From November 2016 through June 2017, NeuroOne,
Inc. entered into subscription agreements with the subscribers (the &ldquo;Series 1 Subscribers&rdquo;) identified therein (the
&ldquo;Series 1 Subscription Agreements&rdquo;). Pursuant to the terms of the Series 1 Subscription Agreements, NeuroOne, Inc.
issued to the Series 1 Subscribers the Series 1 Notes and warrants. The Company and NeuroOne, Inc. consummated the transactions
contemplated by the Agreement and Plan of Merger and Reorganization on July 20, 2017 and the Company assumed the Series 1 Notes
and warrants on such date. The total amount of Series 1 Notes sold pursuant to the Series 1 Subscription Agreements was $1,625,120.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On August 18, 2017, the Company entered
into subscription agreements with the subscribers (the &ldquo;Series 2 Subscribers&rdquo;, and together with the Series 1 Subscribers,
the &ldquo;Subscribers&rdquo;) identified therein (the &ldquo;Series 2 Subscription Agreements&rdquo;). Pursuant to the terms of
the Series 2 Subscription Agreements, the Company issued to the Series 2 Subscribers the Series 2 Notes (and together with the
Series 1 Notes, the &ldquo;Notes&rdquo;) and warrants. In addition, in March 2018 the Company issued to the Series 2 Subscribers
additional warrants to purchase shares of the Company&rsquo;s capital stock. The total amount of Series 2 Notes sold pursuant to
the Series 2 Subscription Agreements was $253,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Effective as of July 2, 2018, the Company
entered into the Series 1 Notes Debt Conversion Agreement with each Series 1 Subscriber and the Series 2 Notes Debt Conversion
Agreement with each Series 2 Subscriber (the &ldquo;Conversion Agreements&rdquo;) to (i) convert the outstanding principal and
accrued and unpaid interest (the &ldquo;Outstanding Balance&rdquo;) under the Notes into shares of the Company&rsquo;s Common Stock
based on the Outstanding Balance divided by $1.80 per share (the &ldquo;Conversion Shares&rdquo;); (ii) cancel and extinguish the
Notes; and (iii) amend and restate all of the warrants to make them immediately exercisable upon conversion, at a per share exercise
price equal to $1.80 per share. As consideration for the early conversion of the Notes, the Company issued each Subscriber a new
warrant, exercisable for up to the number of shares of Common Stock equal to the number of Conversion Shares received by such Subscriber;
at a per share exercise price of $1.80 per share. The new warrants are exercisable commencing on July 2, 2018, and expire on November
21, 2021.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Pursuant to the Conversion Agreements,
$1,804,064 of the outstanding principal and interest of the Series 1 Notes was converted into 1,002,258 shares of Common Stock
and $259,297 of the outstanding principal and interest of the Series 2 Notes was converted into 144,053 shares of Common Stock.
Additionally, as of July 2, 2018, 2,482,372 shares of Common Stock were issuable upon exercise of the warrants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Between October 2017 and May 2018, the
Company issued the Series 3 Notes in an aggregate principal amount of $1.5 million that bear
interest at a fixed rate of 8% per annum and warrants to purchase shares of the Company&rsquo;s capital stock. On February 28,
2019, the Company completed an equity round of financing resulting in more than $3 million in gross proceeds when it closed on
the sale of units in connection with the 2019 Private Placement. Following such financing, the outstanding principal and interest
of the Series 3 Notes of $1,678,361 was automatically converted in accordance with the terms of the Series 3 Notes into 839,179
shares of Common Stock and 839,179 warrants at an exercise price equal to $3.00 per share. Additionally, the previously issued
warrants became immediately exercisable for 839,179 shares of Common Stock, at an exercise price equal to $2.50 per share, and
will expire on February 28, 2024. The exercise price and number of the shares of our Common Stock issuable upon exercise of the
warrants will be subject to adjustment in the event of any stock dividends and splits, reverse stock split, recapitalization, reorganization,
business combination or similar transaction. All of the shares of Common Stock (i) issued upon the conversion of the Series 3 Notes
and (ii) issuable pursuant to exercise of the warrants issued upon conversion of the Series 3 Notes are being registered under
this Registration Statement. For more information, see &ldquo;About this Offering.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Prior to the Merger, between October 16
and October 20, 2016, NeuroOne, Inc. issued 301,670 NeuroOne Shares of common stock of NeuroOne, Inc. (5,131,514 Company shares
giving effect to the Acquisition) as founders&rsquo; shares in a private placement to seven individuals (who were all accredited
investors), including three officers of the Company. The value applied was $0.03 per NeuroOne Share based on a valuation utilizing
a weighted average market value of invested capital methodology. In June 2017, the purchase price owed by the seven individuals
for the founders&rsquo; shares under their respective subscription agreements totaling $9,050 was forgiven by the Company in its
entirety.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In April 2017, NeuroOne, Inc. issued 12,666
restricted NeuroOne Shares (215,453 Company shares giving effect to the Acquisition), subject to vesting, to one of our executive
officers under the 2016 Plan. Between January 2017 and June 2017, NeuroOne, Inc. granted options to purchase NeuroOne, Inc. common
stock (&ldquo;NeuroOne Options&rdquo;) under the 2016 Plan to purchase an aggregate of 21,500 NeuroOne Shares (365,716 Company
shares giving effect to the Acquisition), each with an exercise price of $0.59 per NeuroOne Share ($0.035 per Company share giving
effect to the Acquisition), to certain of its consultants and directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In May 2017, NeuroOne, Inc. issued to Mayo
50,556 NeuroOne Shares (859,976 Company shares giving effect to the Acquisition) pursuant to a Subscription Agreement, as required
by the terms of the Mayo Development Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">At the closing of the Acquisition, pursuant
to and in connection with the Acquisition, we issued</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">6,291,994 Company Shares to the former stockholders of NeuroOne, Inc.;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">Company Options for the purchase of an aggregate of 365,716 Company shares; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: justify">Company Warrants, which are exercisable for Company Shares following conversion of the Notes on
their terms.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In February 2016, a related party loaned
the Company $5,703. The note was interest free until December 31, 2016 after which time it accrued interest at 6% per annum. The
note was convertible at the option of the holder into shares of Original Source Music, Inc. common stock, and matured on March
31, 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In connection with the foregoing, the Company
relied upon the exemption from registration provided by Section 4(a)(2) under the Securities Act or Regulation D promulgated under
the Securities Act for transactions not involving a public offering.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Item 16. Exhibits and Financial Statement Schedules.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">(a) Exhibits.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A list of exhibits filed with this registration
statement on Form S-1 is set forth on the Exhibit Index and is incorporated herein by reference.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">(b) Financial statement schedule.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">All schedules have been omitted because
either they are not required, are not applicable or the information is otherwise set forth in the financial statements and related
notes thereto.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Item 17. Undertakings.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">(a) The
undersigned registrant hereby undertakes:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(1) To
file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-align: justify; text-indent: -1.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(i)</TD><TD STYLE="text-align: justify">To include any prospectus required by section 10(a)(3) of the Securities Act;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-align: justify; text-indent: -1.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(ii)</TD><TD STYLE="text-align: justify">To reflect in the prospectus any facts or events arising after the effective date of the registration
statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental
change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume
of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation
from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission
pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than a 20% change in the maximum
aggregate offering price set forth in the &ldquo;Calculation of Registration Fee&rdquo; table in the effective registration statement;
and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-align: justify; text-indent: -1.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(iii)</TD><TD STYLE="text-align: justify">To include any material information with respect to the plan of distribution not previously disclosed
in the registration statement or any material change to such information in the registration statement.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(2) That,
for the purposes of determining any liability under the Securities Act, each such post-effective amendment shall be deemed to be
a new registration statement relating to the securities offered therein, and the offering of the securities at that time shall
be deemed to be the initial bona fide offering thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(3) To
remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the
termination of the offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(4) That,
for the purpose of determining liability under the Securities Act to any purchaser, each prospectus filed pursuant to Rule 424(b)
as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than
prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of the
date it is first used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus
that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration
statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior
to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of
the registration statement or made in any such document immediately prior to such date of first use.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">(b) Insofar
as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons
of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the
Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act and is, therefore,
unenforceable. In the event that a claim for indemnification against such liabilities, other than the payment by the registrant
of expenses incurred and paid by a director, officer or controlling person of the registrant in the successful defense of any action,
suit or proceeding, is asserted by such director, officer or controlling person in connection with the securities being registered
hereby, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit
to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in
the Securities Act and will be governed by the final adjudication of such issue.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">EXHIBIT INDEX</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: top; width: 9%; border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Exhibit
    No.</B></FONT></TD>
    <TD STYLE="vertical-align: top; width: 1%; font: 10pt Times New Roman, Times, Serif; white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; width: 90%; border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; white-space: nowrap; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Document</B></FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2.1
    *</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><A HREF="http://www.sec.gov/Archives/edgar/data/1500198/000114420417037533/v468812_ex2-1.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Agreement
    and Plan of Merger and Reorganization by and among NeuroOne Medical Technologies Corporation, OSOK Acquisition Company and
    NeuroOne, Inc. dated as of July 20, 2017 (incorporated by reference to Exhibit 2.1 on the Registrant&rsquo;s Current Report
    on Form 8-K filed on July 20, 2017)</FONT></A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2.2</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><A HREF="http://www.sec.gov/Archives/edgar/data/1500198/000114420417034948/v470040_ex2-1.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Plan
    of Conversion of NeuroOne Medical Technologies Corporation dated June 20, 2017 (incorporated by reference to Exhibit 2.1 on
    the Registrant&rsquo;s Current Report on Form 8-K filed on June 29, 2017)</FONT></A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.1</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><A HREF="http://www.sec.gov/Archives/edgar/data/1500198/000114420417034948/v470040_ex3-4.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Certificate
    of Incorporation of NeuroOne Medical Technologies Corporation (incorporated by reference to Exhibit 3.4 on the Registrant&rsquo;s
    Current Report on Form 8-K filed on June, 29, 2017)</FONT></A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.2</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><A HREF="http://www.sec.gov/Archives/edgar/data/1500198/000114420417034948/v470040_ex3-5.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Bylaws
    of NeuroOne Medical Technologies Corporation (incorporated by reference to Exhibit 3.5 on the Registrant&rsquo;s Current Report
    on Form 8-K filed on June 29, 2017)</FONT></A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.1</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><A HREF="http://www.sec.gov/Archives/edgar/data/1500198/000114420417037533/v468812_ex4-1.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form
    of Common Stock Certificate (incorporated by reference to Exhibit 4.1 on the Registrant&rsquo;s Current Report on Form 8-K
    filed on July 20, 2017)</FONT></A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">5.1</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><A HREF="fs12019ex5-1_neuroone.htm">Opinion of Honigman LLP</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.1
    #</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><A HREF="http://www.sec.gov/Archives/edgar/data/1500198/000114420417037533/v468812_ex10-1.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exclusive
    Start-Up Company License Agreement; WARF Agreement No. 14-00333 by and between Wisconsin Alumni Research Foundation and Neuro
    One LLC, dated October 1, 2014 (incorporated by reference to Exhibit 10.1 on the Registrant&rsquo;s Current Report on Form
    8-K filed on July 20, 2017)</FONT></A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.2
    #</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><A HREF="http://www.sec.gov/Archives/edgar/data/1500198/000114420417037533/v468812_ex10-2.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Amendment
    to Exclusive Start-Up Company License Agreement by and between Wisconsin Alumni Research Foundation, Neuro One LLC, and NeuroOne,
    Inc. dated as of February 22, 2017 (incorporated by reference to Exhibit 10.2 on the Registrant&rsquo;s Current Report on
    Form 8-K filed on July 20, 2017)</FONT></A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.3
    #</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><A HREF="http://www.sec.gov/Archives/edgar/data/1500198/000114420417037533/v468812_ex10-3.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mayo
    Foundation for Medical Education and Research Amended and Restated License and Development Agreement by and between Mayo Foundation
    for Medical Education and Research, and NeuroOne LLC dated as of May 25, 2017 (incorporated by reference to Exhibit 10.3 on
    the Registrant&rsquo;s Current Report on Form 8-K filed on July 20, 2017)</FONT></A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.4</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><A HREF="http://www.sec.gov/Archives/edgar/data/1500198/000114420417037533/v468812_ex10-4.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form
    of October 2016 Common Stock Subscription Agreement (incorporated by reference to Exhibit 10.4 on the Registrant&rsquo;s Current
    Report on Form 8-K filed on July 20, 2017)</FONT></A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.5</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><A HREF="http://www.sec.gov/Archives/edgar/data/1500198/000114420417037533/v468812_ex10-5.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form
    of November 2016 Promissory Note and Warrant Subscription Agreement (incorporated by reference to Exhibit 10.5 on the Registrant&rsquo;s
    Current Report on Form 8-K filed on July 20, 2017)</FONT></A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.6</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><A HREF="http://www.sec.gov/Archives/edgar/data/1500198/000114420417037533/v468812_ex10-6.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form
    of Promissory Note issued pursuant to November 2016 Promissory Note and Warrant Subscription Agreement (incorporated by reference
    to Exhibit 10.6 on the Registrant&rsquo;s Current Report on Form 8-K filed on July 20, 2017)</FONT></A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.7</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><A HREF="http://www.sec.gov/Archives/edgar/data/1500198/000114420417037533/v468812_ex10-7.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">First
    Amendment to Promissory Note issued pursuant to November 2016 Promissory Note and Warrant Subscription Agreement (incorporated
    by reference to Exhibit 10.7 on the Registrant&rsquo;s Current Report on Form 8-K filed on July 20, 2017)</FONT></A></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; background-color: white">
    <TD STYLE="width: 9%; border-bottom: black 1.5pt solid; white-space: nowrap"><B>Exhibit No.</B></TD>
    <TD STYLE="width: 1%; padding-bottom: 1.5pt; white-space: nowrap"><B>&nbsp;</B></TD>
    <TD STYLE="width: 90%; border-bottom: black 1.5pt solid; text-align: left; white-space: nowrap; vertical-align: bottom"><B>Document</B></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD>10.8</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1500198/000121390017012639/f8k112717ex4-3_neuroone.htm">Form of Second Amendment to Promissory Note issued pursuant to November 2016 Promissory Note and Warrant Subscription Agreement (incorporated by reference to Exhibit 4.3 on the Registrant&rsquo;s Current Report on Form 8-K filed on November 27, 2017)</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD>10.9</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1500198/000114420417037533/v468812_ex10-8.htm">Form of Capital Stock Purchase Warrant issued pursuant to November 2016 Promissory Note and Warrant Subscription Agreement (incorporated by reference to Exhibit 10.8 on the Registrant&rsquo;s Current Report on Form 8-K filed on July 20, 2017)</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD>10.10</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1500198/000114420417037533/v468812_ex10-9.htm">Form of First Amendment to Capital Stock Purchase Warrant issued pursuant to November 2016 Promissory Note and Warrant Subscription Agreement (incorporated by reference to Exhibit 10.9 on the Registrant&rsquo;s Current Report on Form 8-K filed on July 20, 2017)</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD>10.11</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1500198/000121390017012639/f8k112717ex4-4_neuroone.htm">Form of Second Amendment to Capital Stock Purchase Warrant issued pursuant to November 2016 Promissory Note and Warrant Subscription Agreement (incorporated by reference to Exhibit 4.4 on the Registrant&rsquo;s Current Report on Form 8-K filed on November 27, 2017)</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD>10.12</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1500198/000114420417037533/v468812_ex10-10.htm">Stockholders Agreement by and among NeuroOne, Inc., and the stockholders party thereto dated as of October 20, 2016 (incorporated by reference to Exhibit 10.10 on the Registrant&rsquo;s Current Report on Form 8-K filed on July 20, 2017)</A></TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD>10.13 +</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1500198/000114420417037533/v468812_ex10-11.htm">2016 Equity Incentive Plan of NeuroOne, Inc. (incorporated by reference to Exhibit 10.11 on the Registrant&rsquo;s Current Report on Form 8-K filed on July 20, 2017)</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD>10.14 +</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1500198/000114420417037533/v468812_ex10-12.htm">Form of Stock Option Award Agreement pursuant to 2016 Equity Incentive Plan of NeuroOne, Inc. (incorporated by reference to Exhibit 10.12 on the Registrant&rsquo;s Current Report on Form 8-K filed on July 20, 2017)</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD>10.15 +</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1500198/000114420417037533/v468812_ex10-13.htm">Restricted Stock Purchase Agreement by and between NeuroOne, Inc. and Thomas Bachinski, dated as of April 10, 2017 (incorporated by reference to Exhibit 10.13 on the Registrant&rsquo;s Current Report on Form 8-K filed on July 20, 2017)</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD>10.16 +</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1500198/000114420417021319/v464727_def14c.htm">2017 Equity Incentive Plan of the Company (incorporated by reference to Appendix G to Schedule 14C filed on April 20, 2017)</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD>10.17 +</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1500198/000114420417037533/v468812_ex10-15.htm">NeuroOne Medical Technologies Corporation 2017 Equity Incentive Plan Option Agreement (incorporated by reference to Exhibit 10.15 on the Registrant&rsquo;s Current Report on Form 8-K filed on July 20, 2017)</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD>10.18 +</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1500198/000114420417037533/v468812_ex10-16.htm">NeuroOne Medical Technologies Corporation 2017 Equity Incentive Plan Restricted Stock Unit Agreement (incorporated by reference to Exhibit 10.16 on the Registrant&rsquo;s Current Report on Form 8-K filed on July 20, 2017)</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD>10.19 +</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1500198/000114420417037533/v468812_ex10-17.htm">Employment Agreement by and between NeuroOne LLC and Dave Rosa, dated as of October 5, 2016 (incorporated by reference to Exhibit 10.17 on the Registrant&rsquo;s Current Report on Form 8-K filed on July 20, 2017)</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD>10.20 +</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1500198/000114420417037533/v468812_ex10-18.htm">Offer Letter to Mark Christianson from NeuroOne, Inc. dated December 1, 2016 (incorporated by reference to Exhibit 10.18 on the Registrant&rsquo;s Current Report on Form 8-K filed on July 20, 2017)</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD>10.21 +</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1500198/000114420417037533/v468812_ex10-19.htm">Offer Letter to Thomas Bachinski from NeuroOne, Inc. dated January 9, 2017 (incorporated by reference to Exhibit 10.19 on the Registrant&rsquo;s Current Report on Form 8-K filed on July 20, 2017)</A></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; background-color: white">
    <TD STYLE="width: 9%; border-bottom: black 1.5pt solid; white-space: nowrap"><B>Exhibit No.</B></TD>
    <TD STYLE="width: 1%; padding-bottom: 1.5pt; white-space: nowrap"><B>&nbsp;</B></TD>
    <TD STYLE="width: 90%; border-bottom: black 1.5pt solid; text-align: left; vertical-align: bottom; white-space: nowrap"><B>Document</B></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD>10.22 +</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1500198/000114420417021319/v464727_def14c.htm">Form of Indemnification Agreement with the Company&rsquo;s Officers and Directors (incorporated by reference to Appendix E to Schedule 14C filed on April 20, 2017)</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD>10.23 +</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1500198/000114420417037533/v468812_ex10-23.htm">Release Agreement of Wade Fredrickson dated June 28, 2017 (incorporated by reference to Exhibit 10.23 on the Registrant&rsquo;s Current Report on Form 8-K filed on July 20, 2017)</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD>10.24 +</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1500198/000114420417040898/v472061_ex10-1.htm">Employment Agreement by and between NeuroOne Medical Technologies Corporation and David A. Rosa dated August 4, 2017 (incorporated by reference to Exhibit 10.1 on the Registrant&rsquo;s Current Report on Form 8-K filed on August 7, 2017)</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD>10.25</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1500198/000114420417044643/v473725_ex10-1.htm">Form of August 2017 Subscription Agreement (incorporated by reference to Exhibit 10.1 on the Registrant&rsquo;s Current Report on Form 8-K filed on August 23, 2017)</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD>10.26</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1500198/000114420417044643/v473725_ex4-1.htm">Form of Promissory Note issued pursuant to August 2017 Subscription Agreement (incorporated by reference to Exhibit 4.1 on the Registrant&rsquo;s Current Report on Form 8-K filed on August 23, 2017)</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD>10.27</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1500198/000121390017012956/f8k113017ex10-1_neuroone.htm">First Amendment to Promissory Note by and between NeuroOne Medical Technologies Corporation and the Subscribers dated as of November 30 (incorporated by reference to Exhibit 10.1 on the Registrant&rsquo;s Current Report on Form 8-K filed on December 6, 2017)</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD>10.28</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1500198/000114420417044643/v473725_ex4-2.htm">Form of Capital Stock Purchase Warrant pursuant to August 2017 Subscription Agreement (incorporated by reference to Exhibit 4.2 on the Registrant&rsquo;s Current Report on Form 8-K filed on August 23, 2017)</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD>10.29</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1500198/000121390017010361/f8k100417ex10-1_neuroone.htm">Form of October 2017 Subscription Agreement (incorporated by reference to Exhibit 10.1 on the Registrant&rsquo;s Current Report on Form 8-K filed on October 6, 2017)</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD>10.30</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1500198/000121390017010361/f8k100417ex4-1_neuroone.htm">Form of Promissory Note issued pursuant to October 2017 Subscription Agreement (incorporated by reference to Exhibit 4.1 on the Registrant&rsquo;s Current Report on Form 8-K filed on October 6, 2017)</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD>10.31</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1500198/000121390017010361/f8k100417ex4-2_neuroone.htm">Form of Capital Stock Purchase Warrant issued pursuant to October 2017 Subscription Agreement (incorporated by reference to Exhibit 4.2 on the Registrant&rsquo;s Current Report on Form 8-K filed on October 6, 2017)</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD>10.32</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1500198/000121390017013472/f8k121417ex10-1_neuroone.htm">Form of Amended and Restated Subscription Agreement (incorporated by reference to Exhibit 10.1 on the Registrant&rsquo;s Current Report on Form 8-K filed on December 20, 2017)</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD>10.33</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1500198/000121390017013472/f8k121417ex4-1_neuroone.htm">Form of Amended and Restated Promissory Note issued pursuant to Amended and Restated Promissory Note and Warrant Subscription Agreement (incorporated by reference to Exhibit 4.1 on the Registrant&rsquo;s Current Report on Form 8-K filed on December 20, 2017)</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD>10.34</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1500198/000121390017013472/f8k121417ex4-2_neuroone.htm">Form of Amended and Restated Capital Stock Purchase Warrant issued pursuant to Amended and Restated Promissory Note and Warrant Subscription Agreement (incorporated by reference to Exhibit 4.2 on the Registrant&rsquo;s Current Report on Form 8-K filed on December 20, 2017)</A></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="background-color: white">
    <TD STYLE="vertical-align: top; width: 9%; border-bottom: black 1.5pt solid; white-space: nowrap"><B>Exhibit No.</B></TD>
    <TD STYLE="vertical-align: top; width: 1%; padding-bottom: 1.5pt; white-space: nowrap"><B>&nbsp;</B></TD>
    <TD STYLE="text-align: left; width: 90%; border-bottom: black 1.5pt solid; vertical-align: bottom; white-space: nowrap"><B>Document</B></TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top">10.35</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1500198/000121390018018065/f8k123118ex10-1_neuroone.htm">First Amendment to Convertible Promissory Notes, dated as of December 31, 2018 (incorporated by reference to Exhibit 10.1 on the Registrant&rsquo;s Current Report filed on December 31, 2018).</A></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD>10.36</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1500198/000121390018003074/f8k031218ex4-1_neuroone.htm">Form of Amended and Restated Note issued pursuant to August 2017 Subscription Agreement, as amended (incorporated by reference to Exhibit 4.1 on the Registrant&rsquo;s Current Report on Form 8-K filed on March 16, 2018)</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD>10.37</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1500198/000121390018003074/f8k031218ex4-2_neuroone.htm">Form of Replacement Warrant issued pursuant to August 2017 Subscription Agreement, as amended (incorporated by reference to Exhibit 4.2 on the Registrant&rsquo;s Current Report on Form 8-K filed on March 16, 2018)</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD>10.38</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1500198/000121390018003074/f8k031218ex4-3_neuroone.htm">Form of Additional Warrant issued pursuant to August 2017 Subscription Agreement, as amended (incorporated by reference to Exhibit 4.3 on the Registrant&rsquo;s Current Report on Form 8-K filed on March 16, 2018)</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD>10.39 +</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1500198/000121390018004509/f10k2017ex10-40_neuroone.htm">Non-Employee Director Compensation Policy (incorporated by reference to Exhibit 10.40 on the Registrant&rsquo;s Annual Report on Form 10-K filed April 16, 2018)</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD>10.40</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1500198/000121390018004509/f10k2017ex10-41_neuroone.htm">Lock-up Agreement, effective as of March 1, 2018 by and between Wade Fredrickson and the Company (incorporated by reference to Exhibit 10.41 on the Registrant&rsquo;s Annual Report on Form 10-K filed April 16, 2018)</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD>10.41</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1500198/000121390018008841/f8k070218ex10-1_neuroone.htm">Form of Series 1 Notes Debt Conversion Agreement (incorporated by reference to Exhibit 10.1 on the Registrant&rsquo;s Current Report on Form 8-K filed July 6, 2018)</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD>10.42</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1500198/000121390018008841/f8k070218ex10-2_neuroone.htm">Form of Series 2 Notes Debt Conversion Agreement (incorporated by reference to Exhibit 10.2 on the Registrant&rsquo;s Current Report on Form 8-K filed July 6, 2018)</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD>10.43</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1500198/000121390018009196/f8k070918ex4-1_neuroone.htm">Form of Warrant (incorporated by reference to Exhibit 4.1 on the Registrant&rsquo;s Current Report on Form 8-K filed July 13, 2018)</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD>10.44</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1500198/000121390018009196/f8k070918ex10-1_neuroone.htm">Form of Purchase Agreement (incorporated by reference to Exhibit 10.1 on the Registrant&rsquo;s Current Report on Form 8-K filed July 13, 2018)</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD>10.45</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1500198/000121390018009196/f8k070918ex10-2_neuroone.htm">Form of Registration Rights Agreement (incorporated by reference to Exhibit 10.2 on the Registrant&rsquo;s Current Report on Form 8-K filed July 13, 2018)</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD>10.46</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1500198/000121390018009527/f8k07172018ex10-1_neuroone.htm">Amendment to Lock-Up Agreement, dated July 17, 2018, between the Company and Wade Fredrickson (incorporated by reference to Exhibit 10.1 on the Registrant&rsquo;s Current Report on Form 8-K filed July 23, 2018)</A></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<!-- Field: Page; Sequence: 190; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt">II-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->9<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; background-color: white">
    <TD STYLE="width: 9%; border-bottom: black 1.5pt solid; white-space: nowrap"><B>Exhibit No.</B></TD>
    <TD STYLE="width: 1%; padding-bottom: 1.5pt; white-space: nowrap"><B>&nbsp;</B></TD>
    <TD STYLE="width: 90%; border-bottom: black 1.5pt solid; text-align: left; vertical-align: bottom; white-space: nowrap"><B>Document</B></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD>10.47 +</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1500198/000121390018014619/fs12018a1ex10-50_neuroone.htm">Description of compensatory arrangement with Thomas Bachinski (incorporated by reference to Exhibit 10.50 on the Registrant&rsquo;s Registration Statement on Form S-1/A filed October 30, 2018)</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD>10.48</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1500198/000121390018017239/f10kt2018ex10-51_neuroone.htm">Sublease Agreement between National American University and NeuroOne Medical Technologies Corporation, dated November 13, 2018 (incorporated by reference to Exhibit 10.51 on the Registrant&rsquo;s Transition Report on Form 10-KT filed December 12, 2018)</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD>10.49 +</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1500198/000121390018017239/f10kt2018ex10-52_neuroone.htm">Employee Proprietary Information, Inventions, Assignment and Non-Competition Agreement (incorporated by reference to Exhibit 10.52 on the Registrant&rsquo;s Transition Report on Form 10-KT filed December 12, 2018)</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD>10.50</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1500198/000121390019000211/f8k122818ex4-1_neuroone.htm">Form of Warrant (incorporated by reference to Exhibit 4.1 on the Registrant&rsquo;s Current Report on Form 8-K filed January 4, 2019)</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD>10.51</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1500198/000121390019000211/f8k122818ex10-1_neuroone.htm">Form of Purchase Agreement (incorporated by reference to Exhibit 10.1 on the Registrant&rsquo;s Current Report on Form 8-K filed January 4, 2019)</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD>10.52</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1500198/000121390019000211/f8k122818ex10-2_neuroone.htm">Form of Registration Rights Agreement (incorporated by reference to Exhibit 10.2 on the Registrant&rsquo;s Current Report on Form 8-K filed January 4, 2019)</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD>10.53 +</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1500198/000121390019002106/fs12019ex10-60_neuroone.htm">Offer Letter between Scott Heuler and NeuroOne Medical Technologies Corporation, dated December 10, 2018 (incorporated by reference to Exhibit 10.60 on the Registrant&rsquo;s Registration Statement on Form S-1 filed February 11, 2019)</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD>10.54 +</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1500198/000121390019008306/f10q0319ex10-2_neuroone.htm">Offer Letter between Steve Mertens and NeuroOne Medical Technologies Corporation, effective April 1, 2019 (incorporated by reference to Exhibit 10.2 <U STYLE="text-decoration: none">on the Registrant&rsquo;s Quarterly Report on Form 10-Q filed May 10, 2019)</U></A></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>

<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="width: 9%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none">10.55</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="text-decoration: none">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; width: 90%"><A HREF="http://www.sec.gov/Archives/edgar/data/1500198/000121390019003689/f8k022819ex4-2_neuroonemed.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none">Form of Conversion Warrant (incorporated by reference to Exhibit 4.2 to the Registrant&rsquo;s Current Report on Form 8-K filed on March 6, 2019)</FONT></A></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="text-decoration: none">&nbsp;</FONT></TD>
    <TD><FONT STYLE="text-decoration: none">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="text-decoration: none">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none">10.56</FONT></TD>
    <TD><FONT STYLE="text-decoration: none">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none"><A HREF="http://www.sec.gov/Archives/edgar/data/1500198/000121390019012136/f8k0719ex4-2_neuroone.htm">Form of Paulson Placement Agent Warrant (incorporated by reference to Exhibit 4.2 to the Registrant&rsquo;s Current Report on Form 8-K filed on July 5, 2019)</A></FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="text-decoration: none">&nbsp;</FONT></TD>
    <TD><FONT STYLE="text-decoration: none">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="text-decoration: none">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none">10.57</FONT></TD>
    <TD><FONT STYLE="text-decoration: none">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1500198/000121390019012136/f8k0719ex4-3_neuroone.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none">Form of HRA Placement Agent Warrant (incorporated by reference to Exhibit 4.3 to the Registrant&rsquo;s Current Report on Form 8-K filed on July 5, 2019)</FONT></A></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="text-decoration: none">&nbsp;</FONT></TD>
    <TD><FONT STYLE="text-decoration: none">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="text-decoration: none">&nbsp;</FONT></TD></TR>

<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD>16.1</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1500198/000114420417037533/v468812_ex16-2.htm">Letter from Pritchett, Siler &amp; Hardy, P.C., dated July 11, 2017 (incorporated by reference to Exhibit 16.2 on the Registrant&rsquo;s Current Report on Form 8-K filed on July 20, 2017)</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="width: 9%">21.1</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: justify; width: 90%"><A HREF="http://www.sec.gov/Archives/edgar/data/1500198/000121390018004509/f10k2017ex21-1_neuroone.htm">Subsidiaries of the Registrant (incorporated by reference to Exhibit 21.1 on the Registrant&rsquo;s Annual Report on Form 10-K filed April 16, 2018)</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="text-decoration: none">23.1</FONT></TD>
    <TD><FONT STYLE="text-decoration: none">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="text-decoration: none"><A HREF="fs12019ex23-1_neuroone.htm">Consent of BDO USA, LLP</A></FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="text-decoration: none">23.2</FONT></TD>
    <TD><FONT STYLE="text-decoration: none">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="text-decoration: none"><A HREF="fs12019ex5-1_neuroone.htm">Consent of Honigman LLP (included in Exhibit 5.1 hereto)</A></FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="text-decoration: none">&nbsp;</FONT></TD>
    <TD><FONT STYLE="text-decoration: none">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="text-decoration: none">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="text-decoration: none">24.1</FONT></TD>
    <TD><FONT STYLE="text-decoration: none">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><A HREF="#POA"><FONT STYLE="text-decoration: none">Power of Attorney (included in signature page hereto)</FONT></A></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<!-- Field: Page; Sequence: 191; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt">II-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->10<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>



<P STYLE="margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; background-color: white">
    <TD STYLE="width: 9%; border-bottom: black 1.5pt solid; white-space: nowrap"><B>Exhibit No.</B></TD>
    <TD STYLE="width: 1%; padding-bottom: 1.5pt; white-space: nowrap"><B>&nbsp;</B></TD>
    <TD STYLE="width: 90%; border-bottom: black 1.5pt solid; text-align: left; vertical-align: bottom; white-space: nowrap"><B>Document</B></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD>101.INS</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">XBRL Instance Document</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD>101.SCH</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">XBRL Taxonomy Extension Schema Document</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD>101.CAL</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">XBRL Taxonomy Extension Calculation Linkbase Document</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD>101.DEF</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">XBRL Taxonomy Extension Definition Linkbase Document</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD>101.LAB</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">XBRL Taxonomy Extension Label Linkbase Document</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD>101.PRE</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">XBRL Taxonomy Extension Presentation Linkbase Document</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">*</TD><TD STYLE="text-align: justify">Pursuant to Item 601(b)(2) of Regulation S-K, the Registrant agrees to furnish supplementally a
copy of any omitted schedule or exhibit to the Agreement and Plan of Merger to the Securities and Exchange Commission upon request.</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">#</TD><TD STYLE="text-align: justify">Portions of this exhibit have been omitted pursuant to a request for confidential treatment and
have been separately filed with the Securities and Exchange Commission.</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left">+</TD><TD STYLE="text-align: justify">Indicates management contract or compensatory plan.</TD>
</TR></TABLE>



<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><A NAME="POA"></A>SIGNATURES</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Pursuant to the requirements of the Securities
Act of 1933, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto
duly authorized in the City of Minnetonka, State of Minnesota, on July 15, 2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3in"><B>&nbsp;</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><B>NeuroOne Medical Technologies Corporation</B></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 60%">&nbsp;</TD>
    <TD STYLE="width: 4%">&nbsp;</TD>
    <TD STYLE="width: 36%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>By:</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid">/s/ David Rosa</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>David Rosa</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>Its:</TD>
    <TD>Chief Executive Officer</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Each person whose signature appears below constitutes and appoints David Rosa his true and lawful attorney
in fact and agent, with full power of substitution and resubstitution, for him and in his name, place and stead, in any and all
capacities, to sign any or all amendments (including post effective amendments) to the Registration Statement, and to sign any
registration statement for the same offering covered by this Registration Statement that is to be effective upon filing pursuant
to Rule 462(b) under the Securities Act of 1933, as amended, and all post effective amendments thereto, and to file the same, with
all exhibits thereto, and all documents in connection therewith, with the Securities and Exchange Commission, granting unto said
attorney-in-fact and agent, full power and authority to do and perform each and every act and thing requisite and necessary to
be done in and about the premises, as fully to all intents and purposes as he or she might or could do in person, hereby ratifying
and confirming all that said attorney-in-fact and agent, each acting alone, or his or her substitute or substitutes, may lawfully
do or cause to be done by virtue hereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Pursuant to the requirements of the Securities
Act of 1933, this registration statement has been signed by the following persons in the capacities and on the dates indicated.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: top; width: 40%; border-bottom: black 1.5pt solid; padding-right: 1.1pt">/s/ David Rosa </TD>
    <TD STYLE="width: 20%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 40%"> July 15, 2019</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 1.1pt">David Rosa</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 1.1pt">Chief Executive Officer and Director<BR>
(Principal Executive Officer,<BR>
Principal Financial Officer and<BR>
Principal Accounting Officer)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; border-bottom: black 1.5pt solid; padding-right: 1.1pt">/s/ Paul Buckman</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top"> July 15, 2019</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Paul Buckman</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Director</P></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; border-bottom: black 1.5pt solid">/s/ Suraj Kalia</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top"> July 15, 2019</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">Suraj Kalia</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">Director </TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; border-bottom: black 1.5pt solid">/s/ Jeffrey Mathiesen</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top"> July 15, 2019</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">Jeffrey Mathiesen</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">Director </TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
</TABLE>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt">II-12</P>

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{"company-data": {"conformed-name": "NEUROONE MEDICAL TECHNOLOGIES Corp", "cik": "0001500198", "assigned-sic": "3841", "irs-number": "270863354", "state-of-incorporation": "DE", "fiscal-year-end": "0930"}, "filing-values": {"form-type": "S-1", "act": "33", "file-number": "333-232656", "film-number": "19955397"}, "business-address": {"street1": "10901 RED CIRCLE DR.", "street2": "SUITE 150", "city": "MINNETONKA", "state": "MN", "zip": "55343", "phone": "(952) 426-1383"}, "mail-address": {"street1": "10901 RED CIRCLE DR.", "street2": "SUITE 150", "city": "MINNETONKA", "state": "MN", "zip": "55343"}, "former-company": {"former-conformed-name": "Original Source Entertainment, Inc.", "date-changed": "20100830"}}
As filed with the Securities and Exchange Commission on
July 15, 2019.
Registration No. 333-
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM S-1
REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OF 1933
NeuroOne
Medical Technologies Corporation
(Exact name of registrant as specified
in its charter)
Delaware
3841
27-0863354
(State or other jurisdiction of
(Primary Standard Industrial
(I.R.S. Employer
incorporation or organization)
Classification Code Number)
Identification No.)
10901 Red Circle Drive, Suite 150
Minnetonka, MN 55343
952-426-1383
(Address, including zip code, and telephone
number, including area code, of registrant's principal executive offices)
David Rosa
10901 Red Circle Drive, Suite 150
Minnetonka, MN 55343
952-426-1383
(Name, address, including zip code, and
telephone number, including area code, of agent for service)
With copies to:
Phillip D. Torrence, Esq.
Gabrielle L. Sims, Esq.
Honigman LLP
650 Trade Centre Way, Suite 200
Kalamazoo, MI 49002
Phone: (269) 337-7702
Fax: (269) 337-7703
Approximate date of commencement of
proposed sale to the public: From time to time after this Registration Statement becomes effective.
If any securities being registered on
this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, check the
following box:
☒
If this Form is filed to register additional
securities for an offering pursuant to Rule 462(b) under the Securities Act, check the following box and list the Securities Act
registration statement number of the earlier effective registration statement for the same offering.
☐
If this Form is a post-effective amendment
filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement
number of the earlier effective registration statement for the same offering.
☐
If this Form is a post-effective amendment
filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement
number of the earlier effective registration statement for the same offering.
☐
Indicate by check mark whether the registrant
is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth
company. See definitions of "large accelerated filer," "accelerated filer," "smaller reporting company"
and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated
    filer
☐
Accelerated filer
☐
Non-accelerated filer
☒
Smaller reporting
    company
☒
Emerging growth company
☐
If an emerging growth company, indicate
by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial
accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act.
☐
CALCULATION OF REGISTRATION
FEE
Title of Each Class of Securities to be Registered
Amount to be Registered(1)
Proposed Maximum Offering Price Per Share(2)
Proposed Maximum Aggregate Offering Price(1)
Amount of
Registration Fee
Common stock, par value $0.001 per share
8,032,952
$3.63
$29,119,451.00
$3,529.28
(1)
Pursuant to Rule 416 under the Securities Act of 1933,
as amended (the "Securities Act"), this registration statement also covers any additional number of additional shares
of common stock issuable upon stock splits, stock dividends, dividends or other distribution, recapitalization or similar events
with respect to the shares of common stock being registered pursuant to this registration statement
(2)
Estimated solely
                                         for the purpose of computing the amount of the registration fee pursuant to Rule 457(c)
                                         under the Securities Act, using the average of the high and low prices of our common
                                         stock as reported on the OTCQB on July 11, 2019, a date within five business days prior
                                         to the date of filing of this Registration Statement.
The information
in this prospectus is not complete and may be changed. The selling stockholders may not sell these securities under this prospectus
until the registration statement of which it is a part and filed with the Securities and Exchange Commission is effective. This
prospectus is not an offer to sell these securities and it is not soliciting an offer to buy these securities in any state where
the offer or sale is not permitted.
PRELIMINARY PROSPECTUS, SUBJECT TO
COMPLETION, DATED JULY 15, 2019
NeuroOne Medical Technologies Corporation
8,032,952 Shares of Common Stock
Offered by Selling Stockholders
This prospectus relates to the public
offering of up to 8,032,952
shares of common stock of NeuroOne Medical Technologies Corporation (the
"Company") by the selling stockholders listed on page 42 (the "Selling Stockholders"), which includes
(i) 3,633,630 outstanding shares of our common stock, par value $0.001 per share (the "Common Stock") and (ii) an
aggregate of 4,399,322 shares of our Common Stock issuable upon exercise of certain common stock purchase warrants. We are registering
these shares on behalf of the Selling Stockholders, to be offered and sold by them from time to time.
We are not selling any securities
under this prospectus and we will not receive proceeds from the sale of Common Stock by the Selling Stockholders. However, we
may receive proceeds from the cash exercise of the warrants, which, if exercised in cash at the current applicable exercise
price with respect to all of the
4,399,322 shares of Common Stock, would result in gross
proceeds to the Company of $12,594,510.
We will pay the expenses of registering
the shares of Common Stock offered by this prospectus, but all selling and other expenses incurred by each Selling Stockholder
will be paid by such Selling Stockholder. The Selling Stockholders may sell the shares of our Common Stock offered by this prospectus
from time to time on terms to be determined at the time of sale through ordinary brokerage transactions or through any other means
described in this prospectus under "Plan of Distribution." The prices at which the Selling Stockholders may sell shares
will be determined by the prevailing market price for shares of our Common Stock or in negotiated transactions.
Investing in our Common Stock
involves a high degree of risk. You should consider carefully the risk factors beginning on page 3  of this prospectus before
purchasing any of the shares offered by this prospectus.
Our Common Stock is quoted on the
OTCQB and trades under the symbol "NMTC." The last reported sale price of our Common Stock on the OTCQB on July
12, 2019 was $3.30 per share.
We may amend or supplement this prospectus
from time to time by filing amendments or supplements as required. You should read the entire prospectus and any amendments or
supplements carefully before you make your investment decision.
Neither the Securities and Exchange
Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus
is truthful or complete. Any representation to the contrary is a criminal offense.
The date of this prospectus is                   , 2019.
NEUROONE MEDICAL TECHNOLOGIES CORPORATION
TABLE OF CONTENTS
PROSPECTUS SUMMARY
1
RISK FACTORS
3
FORWARD-LOOKING STATEMENTS
40
USE OF PROCEEDS
41
SELLING STOCKHOLDERS
42
PLAN OF DISTRIBUTION
47
DESCRIPTION OF SECURITIES TO BE REGISTERED
49
DESCRIPTION OF BUSINESS
51
DESCRIPTION OF PROPERTY
76
LEGAL PROCEEDINGS
77
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
78
MARKET FOR AND DIVIDENDS ON REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS
95
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
96
DIRECTORS AND EXECUTIVE OFFICERS
97
EXECUTIVE COMPENSATION
103
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
115
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE
116
ADDITIONAL INFORMATION
119
DISCLOSURE OF COMMISSION POSITION ON INDEMNIFICATION FOR SECURITIES ACT LIABILITIES
120
LEGAL MATTERS
122
EXPERTS
123
INDEX TO FINANCIAL STATEMENTS
F-1
You may only rely on the information contained
in this prospectus or that we have referred you to. We have not authorized anyone to provide you with different information. This
prospectus does not constitute an offer to sell or a solicitation of an offer to buy any securities other than the common stock
offered by this prospectus. This prospectus does not constitute an offer to sell or a solicitation of an offer to buy any common
stock in any circumstances in which such offer or solicitation is unlawful. Neither the delivery of this prospectus nor any sale
made in connection with this prospectus shall, under any circumstances, create any implication that there has been no change in
our affairs since the date of this prospectus or that the information contained by reference to this prospectus is correct as
of any time after its date.
i
ABOUT THIS PROSPECTUS
This prospectus relates to the resale from time to time of up to 8,032,952 shares of Common Stock of the
Company by the Selling Stockholders listed on page 42. As described below under "About this Offering," the shares of
our Common Stock registered by this prospectus include (i) 2,317,179 shares of our Common Stock and 2,338,179 shares of our Common
Stock issuable upon the exercise of warrants issued to investors in the 2019 Private Placement (as described below), (ii) 839,179
shares of our Common Stock and 1,678,358 shares of our Common Stock issuable upon the exercise of warrants issued on February 28,
2019 to certain noteholders upon the automatic conversion of outstanding convertible notes, (iii) 382,785 shares of our Common
Stock issuable upon the exercise of warrants issued to placement agents pursuant to certain placement agent agreements, (iv) 250,000
shares of our Common Stock issued to a service provider pursuant to a consulting agreement, and (v) 227,272 shares of our Common
Stock purchased from a former officer of the Company by certain investors in February 2018. We are not selling any shares of Common
Stock under this prospectus and will not receive any proceeds from the sale of shares of Common Stock by the Selling Stockholders.
This prospectus is part of a registration
statement on Form S-1 that we filed with the Securities and Exchange Commission ("SEC"). It omits some of the information
contained in the registration statement and reference is made to the registration statement for further information with regard
to us and the securities being offered by the Selling Stockholders. You should review the information and exhibits in the registration
statement for further information about us and the securities being offered hereby. Statements in this prospectus concerning any
document we filed as an exhibit to the registration statement or that we otherwise filed with the SEC are not intended to be comprehensive
and are qualified by reference to the filings. You should review the complete document to evaluate these statements.
You should read this prospectus, any documents
that we incorporate by reference in this prospectus and the additional information described below under "Additional Information"
before making an investment decision. You should rely only on the information contained or incorporated by reference in this prospectus.
We have not authorized any other person to provide you with different information. If anyone provides you with additional, different
or inconsistent information, you should not rely on it. This prospectus is not an offer to sell these securities and it is not
soliciting an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.
You should not assume that the information
in this prospectus or any documents we incorporate by reference herein is accurate as of any date other than the date on the front
of such document. Our business, financial condition, results of operations and prospects may have changed since those dates.
ii
PROSPECTUS SUMMARY
This summary highlights information
contained in other parts of this prospectus. Because it is only a summary, it does not contain all of the information that you
should consider before investing in shares of our Common Stock and it is qualified in its entirety by, and should be read in conjunction
with, the more detailed information included or incorporated by reference in this prospectus. You should read the entire prospectus
carefully, especially "Risk Factors," "Management's Discussion and Analysis of Financial Condition and
Results of Operations" and our financial statements, related notes and other financial information included or incorporated
by reference in this prospectus, before deciding to buy shares of our Common Stock. Unless the context requires otherwise, references
in this prospectus to "we," "us," "the Company" and "our" refer to NeuroOne Medical
Technologies Corporation, together with its subsidiary, NeuroOne Inc.
About Us
We are a medical technology company focused
on the development and commercialization of thin film electrode technology for continuous electroencephalogram (cEEG) and stereoelectroencephalography
(sEEG) recording, brain stimulation and ablation solutions for patients suffering from epilepsy, Parkinson's disease, dystonia,
essential tremors and other related brain related disorders. Additionally, we are investigating the potential applications of
our technology associated with artificial intelligence. Members of our management team have held senior leadership positions at
a number of medical technology and biopharmaceutical companies, including Boston Scientific, St. Jude Medical, Stryker Instruments,
C.R. Bard, A-Med Systems, Sunshine Heart, Empi, Don-Joy and PMT Corporation ("PMT").
Our principal executive offices are located
at 10901 Red Circle Drive, Suite 150, Minnetonka, MN 55343, and our telephone number is 952-426-1383.
About this Offering
2019 Private Placement
Between December 28, 2018 and July 1, 2019, the Company entered into subscription agreements with certain
accredited investors, whereby we issued and sold 2,338,179 units at a price of $2.50 per unit for gross proceeds of approximately
$5,845,448 (the "2019 Private Placement"). Each unit consists of one share of Common Stock, and a warrant to purchase
one share of Common Stock. The warrants issued in the 2019 Private Placement have an exercise price of $3.00 per share and are
exercisable from the date of issuance through December 28, 2023. At the close of the 2019 Private Placement and pursuant to placement
agent agreements, we also issued warrants to purchase up to an aggregate of (i) 193,417 shares of our Common Stock to Paulson Investment
Company, LLC ("Paulson") and its designees, which have an initial exercise price of $2.75 per share, and (ii) 17,760
shares of our Common Stock to Corinthian Partners, LLC ("Corinthian") and its designees, which have an initial exercise
price of $3.00 per share (each subject to adjustment as set forth therein), which are immediately exercisable and expire on July
1, 2024.
2018 Private Placement Broker Warrants
From July 9, 2018 through November 30, 2018, the Company entered
into purchase agreements with accredited investors, pursuant to which the Company, agreed to issue and sell units, each consisting
of (i) one share of our Common Stock and (ii) a warrant to purchase 1 share of Common Stock at an initial exercise price of $3.00
per share (the "2018 Private Placement"). In connection with the 2018 Private Placement and pursuant to a placement
agent agreement, on July 1, 2019, the Company issued to Corinthian and its designees warrants to purchase 36,096 shares of Common
Stock at an exercise price of $3.00 per share, which warrants were exercisable beginning on the date of issuance, July 1, 2019,
and expiring on July 1, 2024.
Series 3 Note Conversion
Between October 2017 and May 2018, the
Company issued 8% convertible notes (the "Series 3 Notes") to certain accredited investors in an aggregate
principal amount of $1.5 million and warrants to purchase shares of the Company's capital stock. On February 28, 2019,
the Company completed an equity round of financing resulting in more than $3 million in gross proceeds when it closed on the
sale of units in connection with the 2019 Private Placement. Following such financing, the outstanding principal and interest
of the Series 3 Notes of $1.7 million was automatically converted in accordance with the terms of the Series 3 Notes into
839,179 shares of Common Stock and 839,179 warrants, which have an exercise price equal to $3.00 per share. Additionally, the
previously issued warrants became immediately exercisable for 839,179 shares of Common Stock, at an exercise price equal to
$2.50 per share (each subject to adjustment as set forth therein), and will expire on February 28, 2024. In connection with
this transaction, we also issued to the placement agent warrants as described below under "Prospectus Summary - About
this Offering - Note Transactions Broker Warrants".
1
Note Transactions
Broker Warrants
From November 2016 to June 2017, the Company issued 8% convertible
promissory notes in an aggregate principal amount of $1.6 million (the "Series 1 Notes") and warrants to purchase shares
of the Company's capital stock. In August 2017, the Company entered into a subscription agreement and issued interest free
promissory notes in an aggregate principal amount of $253,000 to certain accredited investors, which notes were subsequently amended
to become 8% convertible promissory notes and to increase warrant coverage among other items (the "Series 2 Notes"
and, together with the Series 1 Notes and Series 3 Notes, the "Notes"). The Notes were converted to Common Stock in
accordance with their terms. In connection with the Notes transactions and pursuant to a placement agent agreement, on July 1,
2019, the Company issued to Corinthian and its designees warrants to purchase 135,512 shares of Common Stock at an exercise price
of $2.00 per share, which warrants were exercisable beginning on the date of issuance, July 1, 2019 and expiring on July 1, 2024.
Consulting Agreement
On February 6, 2018, pursuant to a services
agreement with JLS Ventures, LLC ("JLS"), the Company agreed to issue to JLS an aggregate of 250,000 shares of Common
Stock for investor relations services. The Company issued to JLS 100,000 shares of Common Stock on April 26, 2018, 50,000 shares
of Common Stock on May 7, 2018, 50,000 shares of Common Stock on August 29, 2018, and 50,000 shares of Common Stock on November
2, 2018.
February Stock Purchase
On February 28, 2018, pursuant to stock purchase agreements, three investors purchased an aggregate of
227,272 shares of Common Stock from Wade Fredrickson, our former Vice President of Therapy and Product Development.
We are filing a registration statement on Form S-1, of which this prospectus is a part, to provide for
the resale by the holders of all of the (i) shares of our Common Stock issued in connection with the agreements and transactions
described above and (ii) shares of our Common Stock issuable upon exercise of common stock purchase warrants we issued in connection
with the agreements and transactions described above, totaling an aggregate of up to 8,032,952 shares of our Common Stock.
2
RISK FACTORS
An investment in our Common Stock involves
a high degree of risk. Before deciding whether to invest in our Common Stock, you should consider carefully the risks and uncertainties
described under the section captioned "Risk Factors" contained in our most recent Transition Report on Form 10-KT,
as amended, and other filings we make with the SEC from time to time, which are incorporated by reference herein in their entirety,
together with other information in this prospectus and in the documents incorporated by reference in this prospectus. We caution
you that the risks and uncertainties we have described, among others, could cause our actual results to differ materially from
those expressed in forward-looking statements made by us or on our behalf in filings with the SEC, press releases, communications
with investors and oral statements. We undertake no obligation to update any forward-looking statements, whether as a result of
new information, future events or otherwise. You are advised, however, to consult any further disclosure we make in our reports
filed with the SEC.
Risks Related to Our Business
We have incurred significant
operating losses since inception and cannot assure you that we will ever achieve or sustain profitability.
We have incurred losses since inception,
and as of September 30, 2018 and March 31, 2019, we had an accumulated deficit of $10.5 million and $14.0 million, respectively,
primarily as a result of expenses incurred in connection with our general and administrative expenses associated with our operations
and from our research and development programs. We expect to continue to incur significant expenses and increasing operating costs
resulting in net losses for the foreseeable future. To date, we have financed our operations primarily through debt and equity
financings, and our primary activities have been limited to, and our limited resources have been dedicated to, performing business
and financial planning, raising capital, recruiting personnel, negotiating with business partners and the licensors of our intellectual
property and conducting development activities.
To implement our business strategy we
need to, among other things, successfully complete the development, testing and 510(k) device submission to the U.S. Food and
Drug Administration ("FDA") for our cortical and strip electrodes for the diagnosis of epilepsy, successfully complete
the development, testing and all required steps for regulatory approval of our depth electrodes for sEEG recording in the U.S.,
develop and introduce a minimally invasive delivery system for our cortical electrodes, develop an all-in-one diagnostic and therapeutic
solution, successfully complete the necessary testing and clinical trials required for regulatory approval of our technology for
ablation and stimulation therapies, gain approval for other brain or motor related disorders such as Parkinson's with the
therapeutic technologies developed for epilepsy, convince physicians and patients that our technology, if approved, represents
an improvement over existing diagnostic or treatment options, hire direct experienced sales representatives to market our technology,
if approved, in the United States, evaluate international opportunities and initiate and successfully complete the approval processes
in targeted geographies and engage in beneficial partnerships that can leverage our core technology. We have never been profitable
and do not expect to be profitable in the foreseeable future. We expect our expenses to increase significantly as we pursue our
objectives. The extent of our future operating losses and the timing of profitability are highly uncertain, and we expect to continue
incurring significant expenses and operating losses over the next several years. Our prior losses have had, and will continue
to have, an adverse effect on our stockholders' equity and working capital. Any additional operating losses may have an
adverse effect on our stockholders' equity, and we cannot assure you that we will ever be able to achieve profitability.
Even if we achieve profitability, we may not be able to sustain or increase profitability on a quarterly or annual basis. Our
failure to become and remain profitable would depress the value of our Company and could impair our ability to raise capital,
expand our business, maintain our development efforts, obtain regulatory approvals or continue our operations.
We have a limited operating
history, making it difficult for you to evaluate our business and your investment.
Our operating subsidiary, NeuroOne, Inc.
was incorporated on October 7, 2016, and our predecessor, NeuroOne LLC (the "LLC"), had very limited operations. We
are an early-stage medical technology company developing comprehensive neuromodulation cEEG and sEEG monitoring, ablation, and
brain stimulation solutions to diagnose and treat patients with epilepsy, Parkinson's disease, essential tremors, and other
brain related disorders. Our cortical strip technology under development has only been used by Mayo Foundation for Medical Education
and Research ("Mayo") in five patients for research purposes and has not been tested in any clinical trials. Our operations
are subject to all of the risks inherent in the establishment of a new business enterprise, including but not limited to the absence
of an operating history, lack of fully-developed or commercialized products, insufficient capital, expected substantial and continual
losses for the foreseeable future, limited experience in dealing with regulatory issues, lack of manufacturing and marketing experience,
need to rely on third parties for the development and commercialization of our proposed products, a competitive environment characterized
by well-established and well-capitalized competitors and reliance on key personnel.
3
Since inception, we have not established
any revenues or operations that will provide financial stability in the long term, and there can be no assurance that we will
realize our plans on our projected timetable (or at all) in order to reach sustainable or profitable operations.
Investors are subject to all the risks
incident to the creation and development of a new business and each investor should be prepared to withstand a complete loss of
his, her or its investment. Furthermore, the accompanying financial statements have been prepared assuming that we will continue
as a going concern. We have not emerged from the development stage, and may be unable to raise further equity. These factors raise
substantial doubt about our ability to continue as a going concern. Our financial statements do not include any adjustments that
might result from the outcome of this uncertainty.
Our Company has limited experience in
medical device development and may not be able to successfully develop any device or therapy. Our ability to become profitable
depends primarily on: our ability to develop our cortical strip, grid electrode and depth electrode technology, our successful
completion of all necessary pre-clinical testing and clinical trials on such technology, our ability to obtain approval for such
technology and, if approved, successfully commercialize such technology, our ongoing research and development efforts, the timing
and cost of clinical trials, our ability to identify personnel with the necessary skill sets or enter into favorable alliances
with third-parties who can provide substantial capabilities in clinical development, regulatory affairs, sales, marketing and
distribution and our ability to obtain and maintain necessary intellectual property rights to such technology. Our limited experience
in medical device development may make it more difficult for us to complete these tasks.
Even if we successfully develop and market
such technology, we may not generate sufficient or sustainable revenue to achieve or sustain profitability, which could cause
us to cease operations and cause you to lose all of your investment. Because we are subject to these risks, you may have a difficult
time evaluating our business and your investment in our Company.
Our ability to continue our
operations requires that we raise additional capital and our operations could be curtailed if we are unable to obtain the additional
funding as or when needed.
Upon the completion of the audit
of our financial statements for the nine month transition period ended September 30, 2018 and the year ended December 31,
2017, and management's assessment of our ability to continue as a going concern, we concluded there was substantial
doubt about our ability to continue as a going concern. Our independent registered public accounting firm included an
explanatory paragraph in its reports on our financial statements as of and for the nine months ended September 30, 2018 and as
of and for the year ended December 31, 2017, noting the existence of substantial doubt about our ability to continue as a
going concern. As of March 31, 2019, there has been no changes to management's conclusion that there remains
substantial doubt about our ability to continue as a going concern.
At March 31, 2019, September 30, 2018
and December 31, 2017, we had $2.3 million, $13,260 and $26,467, respectively, in cash deposits. Our existing cash and cash
equivalents will not be sufficient to fund our operating expenses throughout our fiscal year ending September 30, 2019. To continue
to fund operations, we will need to secure additional funding. We may obtain additional financing in the future through the issuance
of our Common Stock, through other equity or debt financings or through collaborations or partnerships with other companies. We
may not be able to raise additional capital on terms acceptable to us, or at all.
4
We will need to raise substantial
additional funds in the future, and these funds may not be available on acceptable terms or at all. A failure to obtain this necessary
capital when needed could force us to delay, limit, scale back or cease some or all operations.
The continued growth of our business,
including the development, regulatory approval and commercialization of our cortical strip, grid electrode and depth electrode
technology, will significantly increase our expenses going forward. As a result, we will be required to seek substantial additional
funds in the future. Our future capital requirements will depend on many factors, including:
·
the
                                         cost of developing our cortical strip, grid electrode and depth electrode technology;
·
obtaining
                                         and maintaining regulatory clearance or approval for our cortical strip, grid electrode
                                         and depth electrode technology;
·
the
                                         costs associated with commercializing our cortical strip, grid electrode and depth electrode
                                         technology;
·
any
                                         change in our development priorities;
·
the
                                         revenue generated by sales of our cortical strip, grid electrode and depth electrode
                                         technology, if approved;
·
the
                                         costs associated with expanding our sales and marketing infrastructure for commercialization
                                         of our cortical strip grid electrode and depth electrode technology, if approved;
·
any
                                         change in our plans regarding the manner in which we choose to commercialize any approved
                                         product in the United States or internationally;
·
the
                                         cost of ongoing compliance with regulatory requirements;
·
expenses
                                         we incur in connection with potential litigation or governmental investigations;
·
the
                                         costs to develop additional intellectual property;
·
anticipated
                                         or unanticipated capital expenditures; and
·
unanticipated
                                         general and administrative expenses.
As a result of these and other factors,
we do not know whether and the extent to which we may be required to raise additional capital. We may in the future seek additional
capital from public or private offerings of our capital stock, borrowings under credit lines or other sources.
We may not be able to raise additional
capital on terms acceptable to us, or at all. Any failure to raise additional capital could compromise our ability to execute
on our business plan, and we may be forced to liquidate our assets. In such a scenario, the values we receive for our assets in
liquidation or dissolution could be significantly lower than the values reflected in our financial statements.
If we issue equity or debt securities
to raise additional funds, our existing stockholders may experience dilution, and the new equity or debt securities may have rights,
preferences and privileges senior to those of our existing stockholders. In addition, if we raise additional funds through collaborations,
licensing, joint ventures, strategic alliances, partnership arrangements or other similar arrangements, it may be necessary to
relinquish valuable rights to our potential future products or proprietary technologies, or grant licenses on terms that are not
favorable to us.
Medical device development
involves a lengthy and expensive process, with an uncertain outcome. We may incur additional costs or experience delays in completing,
or ultimately be unable to complete, the development and commercialization of any product.
5
Before obtaining marketing approval from
regulatory authorities for the sale of our cortical strip, grid electrode and depth electrode technology under development in
the United States or elsewhere, we must complete all pre-clinical testing, clinical trials and other regulatory requirements necessitated
by the FDA and foreign regulatory bodies and demonstrate the performance and safety of our technology. Clinical testing is expensive,
difficult to design and implement, can take many years to complete and is inherently uncertain as to outcome. A failure of one
or more clinical trials can occur at any stage of testing. Further, the outcomes of completed clinical trials may not be predictive
of the success of later clinical trials, and interim results of a clinical trial do not necessarily predict final results. Clinical
data is often susceptible to varying interpretations and analyses, and many companies that have believed their products performed
satisfactorily in clinical trials have nonetheless failed to obtain marketing approval. We have limited resources to complete
the expensive process of medical device development, pre-clinical testing and clinical trials, putting us at a disadvantage, particularly
compared to some of our larger and established competitors, and we may not have sufficient resources to commercialize our products
under development in a timely fashion, if ever.
We may experience numerous unforeseen
events during or as a result of clinical trials that could delay or prevent our ability to receive marketing approval or commercialize
our products, including:
·
regulators
                                         may not authorize us or our investigators to commence a clinical trial or conduct a clinical
                                         trial at a prospective trial site;
·
the
                                         failure to successfully complete pre-clinical testing requirements required by the FDA
                                         and international organizations;
·
we
                                         may experience delays in reaching, or fail to reach, agreement on acceptable clinical
                                         trial contracts with third parties or clinical trial protocols with prospective trial
                                         sites, the terms of which can be subject to extensive negotiation and may vary significantly
                                         among different trial sites;
·
clinical
                                         trials of our cortical strip, grid electrode and depth electrode technology may produce
                                         negative or inconclusive results, including failure to demonstrate statistical significance,
                                         and we may decide, or regulators may require us, to conduct additional clinical trials
                                         or abandon our development programs;
·
the
                                         number of people with brain related disorders required for clinical trials may be larger
                                         than we anticipate, enrollment in these clinical trials may be slower than we anticipate
                                         or people may drop out of these clinical trials or fail to return for post-treatment
                                         follow-up at a higher rate than we anticipate;
·
our
                                         products may have undesirable side effects or other unexpected characteristics, causing
                                         us or our investigators, regulators or institutional review boards to suspend or terminate
                                         the trials;
·
our
                                         third-party contractors conducting the clinical trials may fail to comply with regulatory
                                         requirements or meet their contractual obligations to us in a timely manner, or at all;
·
regulators
                                         may require that we or our investigators suspend or terminate clinical development for
                                         various reasons, including noncompliance with regulatory requirements or a finding that
                                         the participants are being exposed to unacceptable health risks;
·
the
                                         cost of clinical trials of our products may be greater than we anticipate;
·
the
                                         supply or quality of our products or other materials necessary to conduct clinical trials
                                         of our products may be insufficient or inadequate; and
·
delays
                                         from our suppliers and manufacturers could impact clinical trial completion and impact
                                         revenue.
If we are required to conduct additional
clinical trials or other testing of our cortical strip, grid electrode and depth electrode technology under development beyond
those that we contemplate, if we are unable to successfully complete clinical trials of our cortical strip, grid electrode and
depth electrode technology under development or other testing, if the results of these trials or tests are not favorable or if
there are safety concerns, we may:
·
not
                                         obtain marketing approval at all;
·
be
                                         delayed in obtaining marketing approval for our cortical strip, grid electrode and depth
                                         electrode technology under development in a jurisdiction;
·
be
                                         subject to additional post-marketing testing requirements; or
·
have
                                         our cortical strip, grid electrode and depth electrode technology removed from the market
                                         after obtaining marketing approval.
6
Our development costs will also increase
if we experience delays in testing or marketing approvals. We do not know whether any of our clinical trials will begin as planned,
will need to be restructured or will be completed on schedule, or at all. Significant clinical trial delays also could allow our
competitors to bring innovative products to market before we do and impair our ability to successfully commercialize our products.
Changes in the configuration
of our cortical strip, grid electrode and depth electrode technology under development may result in additional costs or delay.
As products are developed through pre-clinical
testing and clinical trials towards approval and commercialization, it is common that various aspects of the development program,
such as manufacturing methods and configuration, are altered along the way in an effort to optimize processes and results. Any
changes we make carry the risk that they will not achieve the intended objectives. Any of these changes could cause our products
to perform differently and affect the results of planned clinical trials or other future clinical trials conducted with the altered
device. Such changes may also require additional testing, regulatory notification or regulatory approval. This could delay completion
of pre-clinical testing or clinical trials, increase costs, delay approval of our future products and jeopardize our ability to
commence sales and generate revenue.
We have no products that are
approved for commercial sale. If we are unable to successfully develop, receive regulatory approval for and commercialize our
cortical strip, grid electrode and depth electrode technology under development, or if we experience significant delays in doing
so, our business will be harmed.
We have no products that are approved
for commercial sale. We initially plan to seek regulatory approval to commercialize our cortical strip, grid electrode and depth
electrode technology under development in the United States and we may seek approval to commercialize in select international
geographies. Our ability to generate revenue from our developed products, if any, will depend heavily on their successful development,
regulatory approval and eventual commercialization. The success of any products that we develop will depend on several factors,
including:
·
FDA
                                         approval of our planned regulatory pathway (or approval of foreign regulatory body if
                                         we seek approval in any jurisdiction outside the United States);
·
successful
                                         completion of all necessary pre-clinical testing and clinical trials;
·
receipt
                                         of timely commercialization approvals from applicable regulatory authorities;
·
our
                                         ability to procure and maintain suppliers and manufacturers of the components of our
                                         current cortical strip, grid electrode and depth electrode technology and future versions;
·
launching
                                         commercial sales of our cortical strip, grid electrode and depth electrode technology,
                                         if approved for marketing;
·
market
                                         acceptance of our cortical strip, grid electrode and depth electrode technology, if approved,
                                         by people with epilepsy, Parkinson's disease, essential tremors and other brain
                                         related disorders, the medical community and third-party payors;
·
our
                                         ability to obtain extensive coverage and reimbursement for our cortical strip, grid electrode
                                         and depth electrode technology and implantation procedures;
·
our
                                         success in educating healthcare providers and people with epilepsy, Parkinson's
                                         disease, essential tremors and other brain related disorders about the benefits, administration
                                         and use of our cortical strip, grid electrode and depth electrode technology and future
                                         versions;
·
the
                                         prevalence and severity of adverse events;
·
the
                                         perceived advantages, cost, safety, convenience and accuracy of alternative therapies;
7
·
obtaining
                                         and maintaining patent, trademark and trade secret protection and regulatory exclusivity
                                         for our cortical strip, grid electrode and depth electrode technology and otherwise protecting
                                         our rights in our intellectual property portfolio;
·
maintaining
                                         compliance with regulatory requirements, including current good manufacturing practices;
                                         and
·
obtaining
                                         and maintaining a continued acceptable performance and safety profile of our cortical
                                         strip, grid electrode and depth electrode technology following approval.
Whether regulatory approval will be granted
is unpredictable and depends upon numerous factors, including the substantial discretion of the regulatory authorities. Our success
in clinical trials will not guarantee regulatory approval. The FDA and, if we seek to commercialize in select international geographies,
other comparable foreign regulatory authorities may require that we conduct additional pre-clinical testing or clinical trials,
provide additional data, take additional manufacturing steps, or require other conditions before they will grant us approval.
If the FDA or other comparable foreign regulatory authorities require additional clinical trials or data, we would incur increased
costs and delays in the marketing approval process, which may require us to expend more resources than we have available. In addition,
the FDA or other comparable foreign regulatory authorities may not consider sufficient any additional required clinical trials,
data or information that we perform and complete or generate.
In cases where we are successful in obtaining
regulatory approval to market one or more of our products, our revenue will be dependent, in part, upon the size of the markets
in the territories for which we gain regulatory approval, the accepted price for the product, the ability to obtain coverage and
reimbursement, and whether we own the commercial rights for that territory. If the number of people we target is not as significant
as we estimate or the treatment population is narrowed by competition, physician choice or treatment guidelines, we may not generate
significant revenue from sales of such products, even if approved.
Approval or clearance in the United States
by the FDA or by a regulatory agency in another country does not guarantee approval by the regulatory authorities in other countries
or jurisdictions or ensure approval for the same conditions of use. In addition, clinical trials conducted in one country may
not be accepted by regulatory authorities in other countries. Approval processes vary among countries and can involve additional
product testing and validation and additional administrative review periods. It is possible that no product we develop will ever
obtain regulatory approval in the United States or any other jurisdiction, even if we expend substantial time and resources seeking
such approval. If we do not achieve one or more of these approvals in a timely manner or at all, we could experience significant
delays or an inability to fully commercialize any product and achieve profitability.
Both before and after a product is commercially
released, we will have ongoing responsibilities under U.S. and foreign regulations. We will also be subject to periodic inspections
by the FDA and comparable foreign authorities to determine compliance with regulatory requirements, such as the Quality System
Regulation, or QSR, of the FDA, medical device reporting regulations, vigilance in reporting of adverse events and regulations
regarding notification, corrections, and recalls. These inspections can result in observations or reports, warning letters or
other similar notices or forms of enforcement action. If the FDA or any comparable foreign authority concludes that we are not
in compliance with applicable laws or regulations, or that any of our products are ineffective or pose an unreasonable health
risk, such authority could ban these products, suspend or cancel our marketing authorizations, impose "stop-sale"
and "stop-import" orders, refuse to issue export certificates, detain or seize adulterated or misbranded products,
order a recall, repair, replacement, correction or refund of such products, or require us to notify health providers and others
that the products present unreasonable risks of substantial harm to the public health. Discovery of previously unknown problems
with our product's design or manufacture may result in restrictions on use, restrictions placed on us or our suppliers,
or withdrawal of an existing regulatory clearance. The FDA or comparable foreign authorities may also impose operating restrictions,
enjoin and restrain certain violations of applicable law pertaining to medical devices, assess civil or criminal penalties against
our officers, employees or us, or recommend criminal prosecution of our Company. Adverse regulatory action may restrict us from
effectively marketing and selling our products. In addition, negative publicity and product liability claims resulting from any
adverse regulatory action could have a material adverse effect on our business, financial condition, and operating results.
Foreign governmental regulations have
become increasingly stringent and more extensive, and we may become subject to even more rigorous regulation by foreign governmental
authorities in the future. Penalties for a company's noncompliance with foreign governmental regulation could be severe,
including revocation or suspension of a company's business license and civil or criminal sanctions. In some jurisdictions,
such as Germany, a violation of law related to medical devices may also be considered to be a violation of unfair competition
law. In such cases, governmental authorities, our competitors and business or consumer associations may file lawsuits to prohibit
us from commercializing a product in such jurisdictions. Our competitors may also sue us for damages. Any domestic or foreign
governmental law or regulation imposed in the future may have a material adverse effect on our business, financial condition and
operating results.
8
Depending on the cost and market opportunity,
we may never seek approval to commercialize our cortical strip, grid electrode and depth electrode technology in the European
Union. We anticipate the cost to seek approval to commercialize in the European Union will be significantly greater than the cost
to seek approval to commercialize in the United States. This is because we believe commercial approval by the corresponding Notified
Body in the European Union and the European Economic Area, or EEA, even for diagnostic purposes, will require human clinical trials,
which we do not believe will be required for regulatory approval by the FDA in the United States in order to seek approval of
the use of our technology for diagnostic purposes.
Our success depends on our
ability to continue to develop, commercialize and gain market acceptance for our product under development, our cortical strip,
grid electrode and depth electrode technology.
Our current business strategy is highly
dependent on developing and commercially launching one product, our cortical strip, grid electrode and depth electrode technology,
and achieving and maintaining market acceptance. In order for us to sell cortical strip, grid electrode and depth electrode technology
to people with epilepsy, Parkinson's disease, essential tremors and other brain related disorders, we must convince them,
their caregivers and healthcare providers that cortical strip, grid electrode and depth electrode technology is an attractive
alternative to competitive products for neuromodulation cEEG and sEEG recording, ablation, and brain stimulation. Market acceptance
and adoption of our cortical strip, grid electrode and depth electrode technology depends on educating people with epilepsy, Parkinson's
disease, essential tremors and other brain related disorders, as well as their caregivers and healthcare providers, and other
perceived benefits of our cortical strip, grid electrode and depth electrode technology as compared to competitive products. We
may face challenges convincing physicians, many of whom have extensive experience with competitors' products and established
relationships with other companies, to appreciate the benefits of our cortical strip, grid electrode and depth electrode technology
and, in particular, its ability to successfully diagnose and treat epilepsy, Parkinson's disease, and other brain related
disorders in a way that is superior to and differentiated from currently available technology, and adopt it for treatment of their
patients.
Achieving and maintaining market acceptance
of cortical strip, grid electrode and depth electrode technology could be negatively impacted by many factors, including:
·
the
                                         failure of our cortical strip, grid electrode and depth electrode technology to achieve
                                         wide acceptance among people with epilepsy, Parkinson's disease, essential tremors
                                         and other brain related disorders, their caregivers, healthcare providers, third-party
                                         payors and key opinion leaders in the community;
·
lack
                                         of evidence supporting the performance criteria or other perceived benefits of our cortical
                                         strip, grid electrode and depth electrode technology over competitive products or other
                                         currently available technology;
·
perceived
                                         risks associated with the use of our cortical strip, grid electrode and depth electrode
                                         technology or similar products or technologies generally;
·
the
                                         introduction of competitive products and the rate of acceptance of those products as
                                         compared to our cortical strip, grid electrode and depth electrode technology;
·
adverse
                                         results of clinical trials relating to our cortical strip, grid electrode and depth electrode
                                         technology or similar competitive products; and
·
loss
                                         of regulatory approval for our cortical strip, grid electrode and depth electrode technology,
                                         adverse publicity or other adverse events including any product liability lawsuits.
9
In addition, our cortical strip, grid
electrode and depth electrode technology may be perceived by people with epilepsy, Parkinson's disease, essential tremors
and other brain related disorders, their caregivers or healthcare providers to be more complicated or less effective than current
technology, and people may be unwilling to change their current regimens.
Moreover, we believe that healthcare providers
tend to be slow to change their medical treatment practices because of perceived liability risks arising from the use of new products
and the uncertainty of third-party reimbursement. Accordingly, healthcare providers may not recommend our cortical strip, grid
electrode and depth electrode technology until, if ever, there is sufficient evidence to convince them to alter the treatment
methods they typically recommend, such as receiving recommendations from prominent healthcare providers or other key opinion leaders
in the community.
If we are not successful in convincing
people with epilepsy, Parkinson's disease, essential tremors and other brain related disorders of the benefits of our cortical
strip, grid electrode and depth electrode technology, or if we are unable to achieve the support of caregivers and healthcare
providers or widespread market acceptance for our cortical strip, grid electrode and depth electrode technology, then our sales
potential, strategic objectives and profitability could be negatively impacted, which would adversely affect our business, financial
condition and operating results.
We may fail to obtain regulatory
approvals to market our products in the United States or in other countries.
Before we can market or sell a new regulated
product in the United States, we must obtain either clearance under Section 510(k) of the Federal Food, Drug, and Cosmetic Act
("FDCA") or approval of a pre-market approval ("PMA") application from the FDA, unless an exemption from
pre-market review applies. In the 510(k) clearance process, the FDA must determine that a proposed device is "substantially
equivalent" to a device legally on the market, known as a "predicate" device, with respect to intended use,
technology and safety and effectiveness, in order to clear the proposed device for marketing. Clinical data is sometimes required
to support substantial equivalence. The PMA pathway requires an applicant to demonstrate the safety and effectiveness of the device
based, in part, on extensive data, including, but not limited to, technical, preclinical, clinical trial, manufacturing and labeling
data. The PMA process is typically required for devices that are deemed to pose the greatest risk, such as life-sustaining, life-supporting
or implantable devices. Both the 510(k) and PMA processes can be expensive and lengthy and require the payment of significant
fees, unless exempt. The FDA's 510(k) clearance process usually takes from three to 12 months, but may last longer. The
process of obtaining a PMA is much more costly and uncertain than the 510(k) clearance process and generally takes from one to
three years, or even longer, from the time the application is submitted to the FDA until an approval is obtained. The process
of obtaining regulatory clearances or approvals to market a medical device can be costly and time-consuming, and we may not be
able to obtain these clearances or approvals on a timely basis, if at all.
Even if we obtain clearance or approval
by the FDA, said clearance or approval by the FDA does not ensure approval or certification by regulatory authorities in other
countries or jurisdictions, and approval or certification by one foreign regulatory authority does not ensure approval or certification
by regulatory authorities in other foreign countries or by the FDA. The foreign regulatory approval or certification process may
include all of the risks associated with obtaining FDA clearance or approval. We may not obtain foreign regulatory approvals on
a timely basis, if at all. We may not be able to file for regulatory approvals or certifications and may not receive necessary
approvals to commercialize our products in any market. If we fail to receive necessary approvals or certifications to commercialize
our products in foreign jurisdictions on a timely basis, or at all, our business, results of operations and financial condition
could be adversely affected.
Failure to secure or retain
coverage or adequate reimbursement for our cortical strip, grid electrode and depth electrode technology or future versions thereof,
including the implantation procedures, by third-party payors could adversely affect our business, financial condition and operating
results.
We plan to derive nearly all of our revenue
from sales of our cortical strip, grid electrode and depth electrode technology under development, if approved, in the United
States and potentially select international geographies and expect to do so for the next several years. We anticipate a substantial
portion of the purchase price of our cortical strip, grid electrode and depth electrode technology will be paid for by third-party
payors, including private insurance companies, preferred provider organizations and other managed care providers. Patients who
receive treatment for their medical conditions and their healthcare providers generally rely on third-party payors to reimburse
all or part of the costs associated with their medical treatment, including healthcare providers' services. Coverage and
adequate reimbursement from third-party payors, including governmental healthcare programs, such as Medicare and Medicaid, and
commercial payors, is critical to new product acceptance. Future sales of our cortical strip, grid electrode and depth electrode
technology will be limited unless people with epilepsy, Parkinson's disease, essential tremors and other brain related disorders
can rely on third-party payors to pay for all or part of the cost to purchase our cortical strip, grid electrode and depth electrode
technology. Access to adequate coverage and reimbursement for our cortical strip, grid electrode and depth electrode technology
by third-party payors is essential to the acceptance of our products by people with epilepsy, Parkinson's disease, essential
tremors and other brain related disorders.
10
In the United States, a third-party payor's
decision to provide coverage for our products does not imply that an adequate reimbursement rate will be obtained. Further, one
third-party payor's decision to cover our products does not assure that other payors will also provide coverage for the
products or will provide coverage at an adequate reimbursement rate. Healthcare providers may choose not to order a product unless
third-party payors pay a substantial portion of the product. Within and outside the United States, reimbursement is obtained from
a variety of sources, including government-sponsored and private health insurance plans. These third-party payors determine whether
to provide coverage and reimbursement for specific products and procedures. Coverage determinations and reimbursement levels of
both our products and the healthcare provider's performance of the insertion and removal procedures are critical to the
commercial success of our product, and if we are not able to secure positive coverage determinations and reimbursement levels
for our products or the insertion and removal procedures, our business would be materially adversely affected.
In addition, there may be significant
delays in obtaining reimbursement, and coverage may be more limited than the purposes for which the product is cleared by the
FDA or other foreign regulatory authorities. Moreover, eligibility for reimbursement does not imply that any product will be paid
for in all cases or at a rate that covers our costs, including research, development, manufacture, sale and distribution. Payment
rates may vary according to the use of the product and the clinical setting in which it is used, may be based on payments allowed
for lower cost products that are already reimbursed, and may be incorporated into existing payments for other services. Net prices
for products may be reduced by mandatory discounts or rebates required by government healthcare programs or third-party payors
and by any future relaxation of laws that presently restrict imports of products from countries where they may be sold at lower
prices than in the United States.
Because there is generally no separate
reimbursement for medical devices and other supplies used in such procedures, including our cortical strip, grid electrode and
depth electrode technology, and because we believe that our cortical strip, grid electrode and depth electrode technology, if
approved, would be adequately described by existing DRG and ICD-9 codes for epilepsy surgery, some of our target customers may
be unwilling to adopt our cortical strip, grid electrode and depth electrode technology over more established or lower cost therapeutic
alternatives already available or subsequently become available. Further, any decline in the amount payors are willing to reimburse
our customers for procedures using our cortical strip, grid electrode and depth electrode technology could make it difficult for
new customers to adopt our cortical strip, grid electrode and depth electrode technology and could create additional pricing pressure
for us, which could adversely affect our ability to invest in and grow our business.
Third-party payors, whether foreign or
domestic, or governmental or commercial, are developing increasingly sophisticated methods of controlling healthcare costs. In
addition, in the United States, no uniform policy of coverage and reimbursement for medical device products and services exists
among third-party payors. Therefore, coverage and reimbursement for medical device products and services can differ significantly
from payor to payor. In addition, payors continually review new technologies for possible coverage and can, without notice, deny
coverage for these new products and procedures. As a result, the coverage determination process is often a time-consuming and
costly process that will require us to provide scientific and clinical support for the use of our products to each payor separately,
with no assurance that coverage and adequate reimbursement will be obtained, or maintained if obtained.
Reimbursement systems in international
markets vary significantly by country and by region within some countries, and reimbursement approvals must be obtained on a country-by-country
basis. In many international markets, a product must be approved for reimbursement before it can be approved for sale in that
country. Further, many international markets have government-managed healthcare systems that control reimbursement for new devices
and procedures. In most markets there are private insurance systems as well as government-managed systems. If sufficient coverage
and reimbursement is not available for our any product we develop, in either the United States or internationally, the demand
for our products and our revenues will be adversely affected.
11
Reimbursement by Medicare
is highly regulated and subject to change.
The Medicare program is administered by
the Centers for Medicare and Medicaid Services, or CMS, which imposes extensive and detailed requirements on medical services
providers, including, but not limited to, rules that govern how we structure our relationships with physicians, and how and where
we provide our solutions. Our failure to comply with applicable Medicare rules could result in discontinuing the ability for physicians
to receive reimbursement as they will likely utilize our cortical strip, grid electrode and depth electrode technology under the
Medicare payment program, civil monetary penalties, and/or criminal penalties, any of which could have a material adverse effect
on our business and revenues.
The impact of the Patient
Protection and Affordable Care Act ("ACA") remains uncertain.
In 2010, significant reforms to the health
care system were adopted as law in the United States. The law includes provisions that, among other things, reduce or limit Medicare
reimbursement, require all individuals to have health insurance (with limited exceptions) and impose increased taxes. These factors,
in turn, could result in reduced demand for our products, if approved, and increased downward pricing pressure. Because other
parts of the 2010 health care law remain subject to implementation, the long-term impact on us is uncertain. The new law or any
future legislation could reduce medical procedure volumes, lower reimbursement for our products, and impact the demand for our
products or the prices at which we sell our products.
In addition, some of the provisions of
the ACA have yet to be implemented, and there have been legal and political challenges to certain aspects of the ACA. Since January
2017, President Trump has signed executive orders and other directives designed to delay, circumvent, or loosen certain requirements
mandated by the ACA. Concurrently, Congress has considered legislation that would repeal or repeal and replace all or part of
the ACA. While Congress has not passed repeal legislation, the Tax Cuts and Jobs Act of 2017 (H.R. 1) (the "Tax Act")
includes a provision repealing, effective January 1, 2019, the tax-based shared responsibility payment imposed by the ACA on certain
individuals who fail to maintain qualifying health coverage for all or part of a year that is commonly referred to as the "individual
mandate." Congress may consider other legislation to repeal or replace elements of the ACA. We continue to evaluate the
effect that the ACA and its possible repeal and replacement has on our business but expect that the ACA, as currently enacted
or as it may be amended in the future, and other healthcare reform measures that may be adopted in the future could have a material
adverse effect on our industry generally and on our ability to successfully commercialize our cortical strip, grid electrode and
depth electrode technology, if approved. In addition to the ACA, there will continue to be proposals by legislators at both the
federal and state levels, regulators and third party payors to keep healthcare costs down while expanding individual healthcare
benefits.
Accordingly, while it is too early to
understand and predict the ultimate impact of the ACA on our business, the legislation and resulting regulations could have a
material adverse effect on our business, cash flows, financial condition and results of operations.
If our competitors are better
able to develop and market products for the diagnosis and treatment of epilepsy, Parkinson's disease, essential tremors
and other brain related disorders that are safer, more effective, less costly, easier to use or otherwise more attractive than
our cortical strip, grid electrode and depth electrode technology, our business will be adversely impacted.
The medical device industry is highly
competitive and subject to technological change. Our success depends, in part, upon our ability to establish a competitive position
in the market for the diagnosis and treatment of epilepsy, Parkinson's disease, essential tremors and other brain related
disorders by securing broad market acceptance of our cortical strip, grid electrode and depth electrode technology under development.
Any product we develop that achieves regulatory clearance or approval will have to compete for market acceptance and market share.
If developed as anticipated, we believe that the primary competitive factors of our cortical strip, grid electrode and depth electrode
technology under development will be: reduced infections, ability to record additional brain activity, minimally invasive surgical
procedure, ease of use and cost effectiveness. We face significant competition in the United States and internationally, which
we believe will intensify. For example, our major competitors (i) in the market for diagnosis are PMT, Ad-Tec Medical
and Integra Lifesciences, (ii) in the market for neuro-ablation are Medtronic and Monteris Medical and (iii) in the market for
neurostimulation are Medtronic, Boston Scientific, NeuroPace Biotronik and Abbott. Each of the foregoing competitors has systems
approved in the United States and certain foreign jurisdictions and has been established for several years. We face a particular
challenge overcoming the long-standing practices by some physicians of using the existing technology of our larger, more established
competitors. Physicians may be reluctant to try new products from a source with which they are less familiar. If these physicians
do not try to subsequently adopt our product, then we may never achieve profitability and such failure to adopt our product could
have a material adverse effect on our business, financial condition and operating results.
12
Additionally, the Mayo Clinic is conducting
testing of its own minimally invasive cortical electrode delivery device. In the event the Mayo Clinic completes development of
its own device prior to us, we may forego completing development of our device and we may be unable to enter into any arrangement
with Mayo Clinic relating to its device. If we are unable to pursue the development of a minimally invasive cortical electrode
device, this may delay our ability to become profitable and we could be forced to terminate our operations.
In addition to facing competition from
major competitors and potentially our development partner, we may also face competition from other emerging competitors or smaller
companies with active development programs that may emerge in the future.
Many of the companies developing or marketing
competing products enjoy several advantages over us, including:
·
more
                                         experienced sales forces;
·
greater
                                         name recognition;
·
more
                                         established sales and marketing programs and distribution networks;
·
earlier
                                         regulatory approval in the United States or foreign jurisdictions;
·
long
                                         established relationships with physicians and hospitals;
·
significant
                                         patent portfolios, including issued U.S. and foreign patents and pending patent applications,
                                         as well as the resources to enforce patents against us or any of our third-party suppliers
                                         and distributors;
·
the
                                         ability to acquire and integrate our competitors and/or their technology;
·
demonstrated
                                         ability to develop product enhancements and new product offerings;
·
established
                                         history of product reliability, safety and durability;
·
the
                                         ability to offer rebates or bundle multiple product offerings to offer greater discounts
                                         or incentives;
·
greater
                                         financial and human resources for product development, sales, and marketing; and
·
greater
                                         experience in and resources for conducting research and development, clinical studies,
                                         manufacturing, preparing regulatory submissions, obtaining regulatory clearance or approval
                                         for products and marketing approved products.
Our competitors may develop and patent
processes or products earlier than us, obtain patents that may apply to us at any time, obtain regulatory clearance or approvals
for competing products more rapidly than us or develop more effective or less expensive products or technologies that render our
technology or products obsolete or less competitive. Furthermore, the frequent introduction by competitors of products that are,
or claim to be, superior to our products may create market confusion that may make it difficult to differentiate the benefits
of our products over competitive products. In addition, the entry of multiple new products may lead some of our competitors to
employ pricing strategies that could adversely affect the pricing of any product we may develop and commercialize. We also face
fierce competition in recruiting and retaining qualified sales, scientific, and management personnel, establishing clinical trial
sites and enrolling patients in clinical studies. If our competitors are more successful than us in these matters, our business
may be harmed.
13
The size and future growth
in the market for our cortical strip, grid electrode and depth electrode technology under development has not been established
with precision and may be smaller than we estimate, possibly materially. If our estimates and projections overestimate the size
of this market, our sales growth may be adversely affected.
Our estimates of the size and future growth
in the market for our cortical strip, grid electrode and depth electrode technology under development, including the number of
people with epilepsy, Parkinson's disease, essential tremors and other brain related disorders who may benefit from and
be amenable to using cortical strip, grid electrode and depth electrode technology for diagnosis and treatment, is based on a
number of internal and third-party studies, reports and estimates. In addition, our internal estimates are based in large part
on current treatment patterns by healthcare providers using current generation technology and our belief is that the incidence
of epilepsy, Parkinson's disease, essential tremors and other brain related disorders in the United States and worldwide
is increasing. While we believe these factors have historically provided and may continue to provide us with effective tools in
estimating the total market for cortical strip, grid electrode and depth electrode technology, these estimates may not be correct
and the conditions supporting our estimates may change at any time, thereby reducing the predictive accuracy of these underlying
factors. The actual incidence of brain related disorders, and the actual demand for our products or competitive products, could
differ materially from our projections if our assumptions are incorrect. As a result, our estimates of the size and future growth
in the market for cortical strip, grid electrode and depth electrode technology may prove to be incorrect. If the actual number
of people with brain related disorders who would benefit from cortical strip, grid electrode and depth electrode technology and
the size and future growth in the market for cortical strip, grid electrode and depth electrode technology is smaller than we
have estimated, it may impair our projected sales growth and have an adverse impact on our business.
We depend on intellectual
property licensed from Wisconsin Alumni Research Foundation ("WARF") for our technology under development, and the
termination of this license would harm our business.
WARF has granted us the WARF License (as
defined below), to make, use and sell, in the United States only, products that employ certain licensed patents for a neural probe
array or thin-film micro electrode array and method. See "Business — WARF License" for additional information
regarding our license agreement with WARF.
We have agreed to diligently develop,
manufacture, market and sell products under the WARF License in the United States during the term of the agreement and, specifically,
that we would submit a business plan to WARF by February 1, 2018, which we submitted on January 18, 2018 and file an application
for 510(k) marketing clearance with the FDA by February 1, 2019, which we filed on January 28, 2019. WARF may terminate this license
in the event that we fail to meet these milestones on 30 days' written notice, if we default on the payments of amounts
due to WARF or fail to timely submit development reports, actively pursue our development plan or breach any other covenant in
the WARF License and fail to remedy such default in 90 days or in the event of certain bankruptcy events involving us. WARF may
also terminate this license (i) on 90 days' notice if we fail to have commercial sales of one or more FDA-approved products
under the WARF License by September 30, 2019 or (ii) if, after royalties earned on sales begin to be paid, such earned royalties
cease for more than four calendar quarters. The WARF License otherwise expires by its terms on the date that no valid claims on
the patents licensed thereunder remain.
Disputes may arise between us and WARF
regarding intellectual property subject to this agreement, including with respect to: the scope of rights granted under the WARF
License and other interpretation-related issues; whether and the extent to which our technology and processes infringe on intellectual
property of WARF that is not subject to the WARF License; the amount and timing of milestones and royalty payments; the rights
of WARF under the license; our right to sublicense; and the ownership of inventions and know-how resulting from the WARF License.
For example, if we or any of our sublicenses for any reason contest the validity of any patent licensed under the WARF License,
the royalty rate will be doubled during the pendency of such contest and, if the contested patent is found to be valid and would
be infringed by us if not for the WARF License, the royalty rate will be tripled for the remaining term of the WARF License.
Any disputes with WARF may prevent or
impair our ability to maintain our current licensing arrangement. We depend on the intellectual property licensed from WARF to
develop our cortical strip, grid electrode and depth electrode technology. We cannot assure you that we will be able to meet the
milestones or commercialize a product under the WARF License by the dates required. In fact, the original license agreement entered
into with WARF in 2014 required that we meet certain earlier milestones than set forth above and make certain payments to WARF.
We failed to do so and were in default under the original license agreement. Furthermore, the LLC was not able to transfer the
rights and obligations under the 2014 WARF Agreement to us at the time of the Merger (as defined below) without the consent of
WARF. As a result, in February 2017, we signed an amendment to the WARF License which, among other things, modified and removed
certain previous milestones and provided WARF's consent to such transfer. Because of this past breach, WARF may be less
likely to waive future defaults or breaches or further amend the WARF License in the future, to the extent we request any waiver
or amendment. See "Note 4—Commitments and Contingencies" to the financial statements included in this prospectus.
14
Termination of our license could result
in the loss of significant rights and would harm our ability to further develop our cortical strip, grid electrode and depth electrode
technology. In addition, WARF reserves the right to grant non-profit research institutions and government agencies non-exclusive
licenses to practice and use the inventions of the licensed patents for non-commercial research purposes, and we grant WARF a
non-exclusive, sub licensable, royalty-free right and license for non-commercial research purposes to use improvements to the
licensed patents. In the event that we discontinue use or commercialization of the licensed patents or improvements thereon, we
must grant WARF an option to obtain a non-exclusive, sub-licensable royalty-bearing license to use the improvements for commercial
purposes. Such rights, if exercised by WARF, could harm our ability to develop and commercialize our cortical strip, grid electrode
and depth electrode technology.
We depend on our partnership
with Mayo to license certain know how for the development and commercialization of our technology. Termination of this partnership
would harm our business, and even if this partnership continues, it may not be successful.
We have entered into the Amended and Restated
License and Development Agreement with Mayo (the "Mayo Development Agreement") to (i) exclusively license worldwide
certain Mayo improvements for the development and commercialization of products, methods and processes related to flexible circuit
technology for the recording and stimulation of tissue and (ii) license, on a non-exclusive basis, worldwide Mayo thin film electrode
technology know-how for the development and commercialization of products, methods and processes related to flexible circuit technology
for the recording and stimulation of tissue. Mayo has agreed to assist the Company by providing access to the Mayo Principal Investigators
in developing a minimally invasive device/delivery system and procedure for a minimally invasive approach for the implantation
of any flexible circuit technology developed by the Company, including prototype development, animal testing, protocol development
for human and animal use, abstract development and presentation and access to and license of any intellectual property that the
Mayo Principal Investigators develop relating to the procedure. See "Business—Mayo Foundation for Medical Education
and Research License and Development Agreement" for additional information regarding our agreement with Mayo.
The Mayo Development Agreement generally
will expire in October 2034, unless the Mayo know-how and improvements under the Mayo Development Agreement remain in use, and
the Mayo Development Agreement may be terminated by Mayo for cause or under certain circumstances. Mayo and the Company may not
be successful in their efforts to develop any product, method, process, device, delivery system or minimally invasive approach
by such expiration date or termination, if at all. If no such minimally invasive device or delivery system and procedure for minimally
invasive approach is developed, the Company may never receive regulatory approval of its cortical strip, grid electrode and depth
electrode technology under development or the market may never accept such technology, if approved.
Disputes may arise between us and Mayo
regarding intellectual property subject to the Mayo Development Agreement or other matters, including with respect to: the scope
of rights granted under the agreement and other interpretation-related issues; the amount and timing of payments; the rights and
obligations of Mayo under the license agreement; and the ownership of inventions and know-how resulting from the joint creation
or use of intellectual property by Mayo and us.
Any disputes with Mayo may prevent or
impair our ability to maintain our current arrangement. We depend on the intellectual property licensed from and development assistance
from Mayo to develop our cortical strip, grid electrode and depth electrode technology. We cannot assure you that we will be able
to continue to comply with the Mayo Development Agreement. In fact, the original license and development agreement entered into
with Mayo in 2014 required that, upon the Merger with the LLC, we make certain payments and issue shares of common stock to Mayo,
which we failed to do at such time. We signed the Mayo Development Agreement in May 2017, which, among other things, modified
or removed certain provisions of the original agreement, including those we breached. In addition, pursuant to the Mayo Development
Agreement signed in May 2017, we agreed to pay Mayo a cash payment of approximately $92,000 on the earlier of September 30, 2017
or the date we raise a minimum amount of financing. We did not make this payment by September 30, 2017 and breached this provision
of the Mayo Development Agreement. Mayo granted us an extension of this deadline to December 31, 2017, and we made this payment
within such extended deadline. Because of our past breach, Mayo may be less likely to waive future defaults or breaches or further
amend the Mayo Development Agreement in the future, to the extent we request any waiver or amendment. Termination of the Mayo
Development Agreement could result in the loss of significant rights and would harm our ability to further develop our technology.
15
Even if we have our cortical
strip, grid electrode and depth electrode technology approved for commercial sale, if we are unable to expand our sales and marketing
infrastructure, we may not be successful in commercializing our cortical strip, grid electrode and depth electrode technology
in the United States.
We are an early stage development company
with limited resources. Even if we had products available for sale, which we currently do not, we have not secured sufficient
sales and marketing staff at this early stage of operations to sell products. In 2019, we hired a Vice President of Sales and
a Senior Director of Marketing. However, to achieve commercial success in the United States for our cortical strip, grid electrode
and depth electrode technology, we will need to expand our sales and marketing infrastructure to drive adoption of our products,
which will include a team of educators that will train healthcare providers and people with brain related disorders on the benefits
and use of our cortical strip, grid electrode and depth electrode technology. There is significant competition for sales personnel
experienced in relevant medical device sales. We expect that we will face significant challenges as we recruit and subsequently
grow our sales and marketing infrastructure. If we are unable to attract and retain sufficient, and skilled, sales and marketing
representatives, our sales could be adversely affected. If one of our sales or marketing representatives were to depart and be
retained by one of our competitors, they could help competitors solicit business from customers, which could further harm our
sales. In addition, if our sales and marketing representatives or educators fail to achieve their objectives or if we are not
able to recruit and retain a network of educators, we may not be able to successfully train healthcare providers on the use of
our cortical strip, grid electrode and depth electrode technology, which could delay new sales and harm our reputation.
As we increase our sales and marketing
expenditures with respect to our cortical strip, grid electrode and depth electrode technology under development, if approved,
or future versions thereof, we will need to hire, train, retain and motivate skilled sales and marketing representatives with
significant industry-specific knowledge in various areas. Our success will depend largely on the competitive landscape for our
products and the ability of our sales personnel to obtain access to healthcare providers and persuade those healthcare providers
to recommend our cortical strip, grid electrode and depth electrode technology. Recently hired sales representatives require training
and take time to achieve full productivity. If we fail to train new hires adequately, or if we experience high turnover in our
sales force in the future, we cannot be certain that new hires will become as productive as may be necessary to maintain or increase
our sales. In addition, the expansion of our sales and marketing personnel will place significant burdens on our management team.
If approved for sale, we anticipate that
we will derive nearly all of our U.S. revenue from the sales of our cortical strip, grid electrode and depth electrode technology
or future versions thereof. As a result, our financial condition and operating results will be highly dependent on the ability
of our sales representatives to adequately promote, market and sell our cortical strip, grid electrode and depth electrode technology
and the ability of our educators to train healthcare providers on the use of our cortical strip, grid electrode and depth electrode
technology. If we are unable to expand our sales and marketing capabilities, we may not be able to effectively commercialize our
existing or planned products, or enhance the strength of our brand, either of which could impair our projected sales growth and
have an adverse impact on our business.
We will depend on a limited
number of third-party suppliers for the components of our cortical strip, grid electrode and depth electrode technology under
development and the loss of any of these suppliers, or their inability to provide us with an adequate supply of materials, could
harm our business.
We will rely on third-party suppliers
to supply and manufacture the components of our cortical strip, grid electrode and depth electrode technology. For our business
strategy to be successful, our suppliers must be able to provide us with components in sufficient quantities, in compliance with
regulatory requirements and quality control standards, in accordance with agreed upon specifications, at acceptable costs and
on a timely basis. Future increases in sales of our cortical strip and sheet electrode technology, if approved, whether expected
or unanticipated, could strain the ability of our suppliers to deliver an increasingly large supply of components and our cortical
strip, grid electrode and depth electrode technology in a manner that meets these various requirements.
16
We will likely use a small number of suppliers
of components for our products. Depending on a limited number of suppliers exposes us to risks, including limited control over
pricing, availability, quality and delivery schedules. We may not have long-term supply agreements with our suppliers and, in
many cases, we may make our purchases on a purchase order basis. Our ability to purchase adequate quantities of components or
our products may be limited and we may not be able to convince suppliers to make components and products available to us. Additionally,
our suppliers may encounter problems that limit their ability to supply components or manufacture products for us, including financial
difficulties, damage to their manufacturing equipment or facilities, or product discontinuations. As a result, there is a risk
that certain components could be discontinued and no longer available to us. We may be required to make significant "last
time" purchases of component inventory that is being discontinued by the supplier to ensure supply continuity. If we fail
to obtain sufficient quantities of high quality components to meet demand for our products in a timely manner or on terms acceptable
to us, we would have to seek alternative sources of supply. Because of factors such as the proprietary nature of our products,
our quality control standards and regulatory requirements, we may not be able to quickly engage additional or replacement suppliers
for some of our critical components. Failure of any supplier to deliver components at the level our business requires could disrupt
the manufacturing of our products and, if approved, limit our ability to meet our sales commitments, which could harm our reputation
and adversely affect our business.
Furthermore, vandalism, terrorism or a
natural or other disaster, such as an earthquake, fire or flood, could damage or destroy equipment or our inventory of component
supplies or finished products, cause substantial delays in development or our operations, result in the loss of key information,
and cause us to incur additional expenses. We do not currently have insurance to cover such losses or expenses and, once we obtain
such insurance, it may not cover our losses in any particular case. In addition, regardless of the level of insurance coverage,
damage to our or our suppliers' facilities could harm our business, financial condition and operating results.
We may also have difficulty obtaining
similar components from other suppliers that are acceptable to the FDA or other regulatory agencies, and the failure of any supplier
to comply with strictly enforced regulatory requirements could expose us to regulatory action including warning letters, product
recalls, and termination of distribution, product seizures or civil penalties. It could also require us to cease using the components,
seek alternative components or technologies and modify our products to incorporate alternative components or technologies, which
could result in a requirement to seek additional regulatory approvals. Any disruption of this nature or increased expenses could
harm our development, approval or commercialization efforts and adversely affect our operating results.
We plan to contract with third
parties for the manufacture of our cortical strip, grid electrode and depth electrode technology under development and expect
to continue to do so for clinical trials and commercialization. Risks associated with the manufacturing of our products could
reduce our gross margins and negatively affect our operating results.
We currently rely, and expect to continue
to rely, on third parties for the manufacture of our cortical strip, grid electrode and depth electrode technology during development,
for clinical testing, as well as for commercial manufacture if our cortical strip, grid electrode and depth electrode technology
receives regulatory approval. Therefore, our business strategy depends on our third-party manufacturers' ability to manufacture
our cortical strip, grid electrode and depth electrode technology and future generations thereof in sufficient quantities and
on a timely basis so as to meet consumer demand, while adhering to product quality standards, complying with regulatory requirements
and managing manufacturing costs. To date, we have only had an initial supply of our product manufactured. As a result, we currently
have limited data and experience regarding the quality, reliability and timeliness of our third-party manufacturers.
17
We are subject to numerous risks relating
to the manufacturing capabilities of our third-party manufacturers, including:
·
quality
                                         or reliability defects;
·
inability
                                         to secure product components in a timely manner, in sufficient quantities or on commercially
                                         reasonable terms;
·
failure
                                         to increase production to meet demand;
·
inability
                                         to modify production lines to enable us to efficiently produce future products or implement
                                         changes in current products in response to regulatory requirements;
·
difficulty
                                         identifying and qualifying alternative manufacturers in a timely manner;
·
inability
                                         to manufacture product components cost-effectively;
·
inability
                                         to establish agreements with future third-party manufacturers or to do so on acceptable
                                         terms; or
·
potential
                                         damage to or destruction of our manufacturers' equipment or facilities.
These risks are likely to be exacerbated
by our limited experience with our cortical strip, grid electrode and depth electrode technology and its manufacturing process.
As demand for our products increases, our third-party suppliers will need to invest additional resources to purchase components,
hire and train employees, and enhance their manufacturing processes. If our manufacturers fail to increase production capacity
efficiently, our sales may not increase in line with our expectations and our operating margins could fluctuate or decline. In
addition, manufacturing any future versions of our cortical strip, grid electrode and depth electrode technology may require the
modification of production lines, the identification of new manufacturers for specific components, or the development of new manufacturing
technologies. It may not be possible for us to manufacture these products at a cost or in quantities sufficient to make any future
versions of our cortical strip, grid electrode and depth electrode technology commercially viable.
If we or our third-party suppliers
or manufacturers fail to comply with the FDA's good manufacturing practice regulations, this could impair our ability to
market our products in a cost-effective and timely manner.
We and our third-party suppliers are required
to comply with the FDA's QSR, which covers the methods and documentation of the design, testing, production, control, quality
assurance, labeling, packaging, sterilization, storage and shipping of our products. The FDA audits compliance with the QSR through
periodic announced and unannounced inspections of manufacturing and other facilities. The FDA may impose inspections or audits
at any time. If we or our suppliers or manufacturers have significant non-compliance issues or if any corrective action plan that
we or our suppliers propose in response to observed deficiencies is not sufficient, the FDA could take enforcement action against
us. Any of the foregoing actions could impair our reputation, business, financial condition and operating results.
Various factors outside our
direct control may adversely affect manufacturing, sterilization and distribution of our products.
The manufacture, sterilization and distribution
of our products is challenging. Changes that our suppliers may make outside the purview of our direct control can have an impact
on our processes, quality of our products and the successful delivery of products to our customers. Necessary materials for our
product under development may not be available from our third-party suppliers in a timely fashion or at all. Mistakes and mishandling
are not uncommon and can affect supply and delivery. Some of these risks include:
·
failure
                                         to complete sterilization on time or in compliance with the required regulatory standards;
·
transportation
                                         and import and export risk;
18
·
delays
                                         in analytical results or failure of analytical techniques that we will depend on for
                                         quality control and release of products;
·
natural
                                         disasters, labor disputes, financial distress, raw material availability, issues with
                                         facilities and equipment or other forms of disruption to business operations affecting
                                         our manufacturers or suppliers; and
·
latent
                                         defects that may become apparent after products have been released and that may result
                                         in a recall of such products.
If any of these risks were to materialize,
our ability to develop products, conduct clinical trials or provide our products to customers on a timely basis, if approved,
would be adversely impacted.
Potential complications from
our cortical strip, grid electrode and depth electrode technology may come to light or may not be revealed by our clinical experience.
Based on our industry experience and the
experience of the physicians that use products similar to our cortical strip, grid electrode and depth electrode technology, complications
from use of our cortical strip, grid electrode and depth electrode technology may include post-operative hemorrhage, infection,
brain inflammation, brain tissue necrosis, inability to accurately localize the epileptogenic focus (the area of the cerebral
cortex responsible for causing epileptic seizures), neurologic deficit (abnormal function of a body area due to weaker function
of the brain, spinal cord, muscles or nerves, such as abnormal reflexes, inability to speak and decreased sensation) and extra
axial fluid collections (fluid that occurs in the brain after surgery). If these or unanticipated complications or side-effects
result from the use of our cortical strip, grid electrode and depth electrode technology, our product development may be delayed,
we may not be able to obtain regulatory approval for any product, we could be subject to liability and, even if approved, our
technology would not be widely adopted. Additionally, we have no clinical experience with use of our cortical strip, grid electrode
and depth electrode technology. We cannot assure you that use, even for a limited time, would not result in unanticipated complications,
even after the device is removed.
Undetected errors or defects
in our cortical strip, grid electrode and depth electrode technology under development or future versions thereof could harm our
reputation, decrease the market acceptance of our cortical strip, grid electrode and depth electrode technology or expose us to
product liability claims.
Our cortical strip, grid electrode and
depth electrode technology may contain undetected errors or defects. Disruptions or other performance problems with our cortical
strip, grid electrode and depth electrode technology may delay development, prevent regulatory approval or harm our reputation.
If that occurs, we may incur significant costs, the attention of our key personnel could be diverted or other significant customer
relations problems may arise. We may also be subject to warranty and liability claims for damages related to errors or defects
in our cortical strip and sheet electrode technology or future versions thereof. A material liability claim or other occurrence
that harms our reputation or decreases market acceptance of our cortical strip, grid electrode and depth electrode technology
could harm our business and operating results. This risk exists even if a device is cleared or approved for commercial sale and
manufactured in facilities licensed and regulated by the FDA or an applicable foreign regulatory authority. Our products are designed
to affect, and any future products will be designed to affect, important bodily functions and processes. Any side effects, manufacturing
defects, misuse or abuse associated with our cortical strip, grid electrode and depth electrode technology or future versions
thereof could result in patient injury or death. The medical device industry has historically been subject to extensive litigation
over product liability claims, and we cannot offer any assurance that we will not face product liability lawsuits.
The sale and use of our cortical strip,
grid electrode and depth electrode technology or future versions thereof could lead to the filing of product liability claims
if someone were to allege that our cortical strip, grid electrode and depth electrode technology or one of our products contained
a design or manufacturing defect. A product liability claim could result in substantial damages and be costly and time consuming
to defend, either of which could materially harm our business or financial condition. Product liability claims may be brought
against us by patients, healthcare providers or others selling or otherwise coming into contact with our products, among others.
If we cannot successfully defend ourselves against product liability claims, we will incur substantial liabilities and reputational
harm. In addition, regardless of merit or eventual outcome, product liability claims may result in:
·
litigation;
·
distraction
                                         of management's attention from our primary business;
19
·
the
                                         inability to commercialize our cortical strip, grid electrode and depth electrode technology;
·
decreased
                                         demand;
·
damage
                                         to our business reputation;
·
product
                                         recalls or withdrawals from the market;
·
withdrawal
                                         of clinical trial participants;
·
substantial
                                         monetary awards to patients or other claimants; or
·
loss
                                         of revenue.
Product liability lawsuits and claims,
safety alerts or product recalls, with or without merit, could cause us to incur substantial costs, delay our product development
efforts, place a significant strain on our financial resources, divert the attention of management from our core business, harm
our reputation, increase our product liability insurance rates, once we obtain such insurance, or prevent us from securing such
insurance coverage in the future and adversely affect our ability to attract and retain customers, if approved, any of which could
harm our business, financial condition and operating results.
We do not currently maintain any product
liability insurance and do not anticipate obtaining product liability insurance until we commence clinical trials. Once we obtain
such insurance, we cannot assure you that such insurance would adequately protect our assets from the financial impact of defending
a product liability claim. Even if any product liability loss is covered by an insurance policy, these policies typically have
substantial deductibles for which we are responsible. Product liability claims in excess of applicable insurance coverage would
negatively impact our business, financial condition and operating results. Insurance coverage varies in cost and can be difficult
to obtain, and we cannot guarantee that we will be able to obtain insurance coverage in the future on terms acceptable to us or
at all.
If there are significant disruptions
in our information technology systems, our business, financial condition and operating results could be adversely affected.
The efficient operation of our business
depends on our information technology systems. We rely on our information technology systems to effectively manage product development
tasks, research and development data and accounting and financial functions. We expect in the future we will rely on our information
technology systems for inventory management and technical support functions, if and once implemented. Our information technology
systems are vulnerable to damage or interruption from earthquakes, fires, floods and other natural disasters, terrorist attacks,
attacks by computer viruses or hackers, power losses, and computer system or data network failures. In addition, our data management
application and a variety of our software systems are hosted by third-party service providers whose security and information technology
systems are subject to similar risks, which could be subject to computer viruses or hacker attacks or other failures. If our or
our third-party service provider's security systems are breached or fail, unauthorized persons may be able to obtain access
to sensitive data.
To the extent that any disruption or security
breach were to result in a loss of, or damage to, our data or applications, or inappropriate disclosure of confidential or proprietary
information, we could incur liability, and the failure of our or our service providers' information technology systems or
our transmitter's software to perform as we anticipate or our failure to effectively implement new information technology
systems could disrupt our entire operation or adversely affect our products and could delay our product development, clinical
trial or commercialization efforts, result in increased overhead costs and damage our reputation, all of which could negatively
affect our business, financial condition and operating results.
20
We may enter into collaborations,
in-licensing arrangements, joint ventures, strategic alliances or partnerships with third-parties that may not result in the development
of commercially viable products or the generation of significant future revenues.
In the ordinary course of our business,
we may enter into collaborations, in-licensing arrangements, joint ventures, strategic alliances, partnerships or other arrangements
to develop products and to pursue new markets. Proposing, negotiating and implementing collaborations, in-licensing arrangements,
joint ventures, strategic alliances or partnerships may be a lengthy and complex process. Other companies, including those with
substantially greater financial, marketing, sales, technology or other business resources, may compete with us for these opportunities
or arrangements. We may not identify, secure, or complete any such transactions or arrangements in a timely manner, on a cost-effective
basis, on acceptable terms or at all. We have limited institutional knowledge and experience with respect to these business development
activities, and we may also not realize the anticipated benefits of any such transaction or arrangement. In particular, these
collaborations may not result in the development of products that achieve commercial success or result in significant revenues
and could be terminated prior to developing any products.
Additionally, we may not be in a position
to exercise sole decision making authority regarding the transaction or arrangement, which could create the potential risk of
creating impasses on decisions, and our future collaborators may have economic or business interests or goals that are, or that
may become, inconsistent with our business interests or goals. It is possible that conflicts may arise with our collaborators,
such as conflicts concerning the achievement of performance milestones, or the interpretation of significant terms under any agreement,
such as those related to financial obligations or the ownership or control of intellectual property developed during the collaboration.
If any conflicts arise with any future collaborators, they may act in their self-interest, which may be adverse to our best interest,
and they may breach their obligations to us. In addition, we may have limited control over the amount and timing of resources
that any future collaborators devote to our or their future products. Disputes between us and our collaborators may result in
litigation or arbitration which would increase our expenses and divert the attention of our management. Further, these transactions
and arrangements will be contractual in nature and will generally be terminable under the terms of the applicable agreements and,
in such event, we may not continue to have rights to the products relating to such transaction or arrangement or may need to purchase
such rights at a premium.
If we enter into in-bound intellectual
property license agreements, we may not be able to fully protect the licensed intellectual property rights or maintain those licenses.
Future licensors could retain the right to prosecute and defend the intellectual property rights licensed to us, in which case
we would depend on the ability of our licensors to obtain, maintain and enforce intellectual property protection for the licensed
intellectual property. These licensors may determine not to pursue litigation against other companies or may pursue such litigation
less aggressively than we would. Further, entering into such license agreements could impose various diligence, commercialization,
royalty or other obligations on us. Future licensors may allege that we have breached our license agreement with them, and accordingly
seek to terminate our license, which could adversely affect our competitive business position and harm our business prospects.
We may seek to grow our business
through acquisitions of complementary products or technologies, and the failure to manage acquisitions, or the failure to integrate
them with our existing business, could harm our business, financial condition and operating results.
From time to time, we may consider opportunities
to acquire other companies, products or technologies that may enhance our product platform or technology, expand the breadth of
our markets or customer base, or advance our business strategies. Potential acquisitions involve numerous risks, including:
·
problems
                                         assimilating the acquired products or technologies;
·
issues
                                         maintaining uniform standards, procedures, controls and policies;
·
unanticipated
                                         costs associated with acquisitions;
·
diversion
                                         of management's attention from our existing business;
·
risks
                                         associated with entering new markets in which we have limited or no experience;
21
·
increased
                                         legal and accounting costs relating to the acquisitions or compliance with regulatory
                                         matters; and
·
unanticipated
                                         or undisclosed liabilities of any target.
We have no current commitments with respect
to any acquisition. We do not know if we will be able to identify acquisitions we deem suitable, whether we will be able to successfully
complete any such acquisitions on favorable terms or at all, or whether we will be able to successfully integrate any acquired
products or technologies. Our potential inability to integrate any acquired products or technologies effectively may adversely
affect our business, operating results and financial condition.
Our future success depends
on our ability to retain key executives and to attract, retain and motivate qualified personnel.
We are highly dependent on the management,
research and development, clinical, financial and business development expertise of our officers and advisory board members. See
"Advisory Boards" under "Directors and Executive Officers". Although we have an employment agreement with
David Rosa, he (and each of our other key employees) may terminate his employment with us at any time and will continue to be
able to do so. We do not maintain "key person" insurance for any of our executives or employees.
Recruiting and retaining qualified scientific
and clinical personnel will also be critical to our success. The loss of the services of our executive officers or other key employees
could impede the achievement of our research, development and commercialization objectives and seriously harm our ability to successfully
implement our business strategy. Furthermore, replacing executive officers and key employees may be difficult and may take an
extended period of time because of the limited number of individuals in our industry with the breadth of skills and experience
required to successfully develop, gain regulatory approval of and commercialize our products. Competition to hire from this limited
pool is intense, and we may be unable to hire, train, retain or motivate these key personnel on acceptable terms given the competition
among numerous medical device companies for similar personnel, many of which have greater financial and other resources dedicated
to attracting and retaining personnel. We also experience competition for the hiring of scientific and clinical personnel from
universities and research institutions. In addition, we rely on consultants and advisors, including scientific and clinical advisors,
to assist us in formulating our research and development and commercialization strategy. Our consultants and advisors may be employed
by employers other than us and may have commitments under consulting or advisory contracts with other entities that may limit
their availability to us. If we are unable to continue to attract and retain high quality personnel, our ability to pursue our
growth strategy will be limited.
Prolonged negative economic
conditions could adversely affect us, our customers and third-party partners, manufactures or suppliers, if any, which could harm
our financial condition.
We are subject to the risks arising from
adverse changes in general economic and market conditions. Uncertainty about future economic conditions could negatively impact
our existing and potential customers, adversely affect the financial ability of health insurers to pay claims, adversely impact
our expenses and ability to obtain financing of our operations, and cause delays or other problems with key suppliers.
Healthcare spending in Europe and the
United States has been, and is expected to continue to be, under significant pressure and there are many initiatives to reduce
healthcare costs. As a result, we believe that some insurers are scrutinizing insurance claims more rigorously and delaying or
denying coverage and reimbursement more often. Because the sale, if approved, of our cortical strip, grid electrode and depth
electrode technology under development will generally depend on the availability of third-party coverage and reimbursement, any
delay or decline in coverage and reimbursement will adversely affect our sales.
22
Risks Related to our Intellectual Property
Our ability to protect our
intellectual property and proprietary technology is uncertain.
We rely primarily on patent, trademark
and trade secret laws, as well as confidentiality and non-disclosure agreements, to protect our proprietary technologies. Our
patent estate consists of three issued United States patents licensed from WARF relating to a neural probe array and thin-film
micro electrode array and method, and two pending U.S. patent applications filed by us and published October 11, 2018 relating
to a wide variety of concepts, ranging from accessories for brain surgery to ablation and stimulation concepts for both cortical
and depth electrodes. The licensed issued patents expire between 2025 and 2030, subject to any patent extensions that may be available
for such patents. If a patent is issued on our pending patent application, the resulting patent is projected to expire in 2038.
We continue to review new technological developments in order to make decisions about what additional filings would be the most
appropriate for us. We also plan to seek patent protection for our proprietary technology in select countries internationally.
We also have one pending U.S. trademark application and one pending foreign trademark application, as well as one foreign trademark
registration. We have applied for patent protection relating to certain existing and proposed products and processes. Currently,
several of our issued U.S. patents licensed from WARF as well as our pending U.S. patent application relate to our cortical and
depth electrode technologies and are therefore important to the functionality of our products. If we fail to timely file a patent
application in any jurisdiction, we may be precluded from doing so at a later date. Furthermore, we cannot assure you that any
patent application will be approved in a timely manner or at all. The rights granted to us under our patents, and the rights we
are seeking to have granted in our pending patent applications, may not be meaningful or provide us with any commercial advantage.
In addition, those rights could be opposed, contested or circumvented by our competitors, or be declared invalid or unenforceable
in judicial or administrative proceedings. The failure of our patents to adequately protect our technology might make it easier
for our competitors to offer the same or similar products or technologies. Even if we are successful in receiving patent protection
for certain products and processes, our competitors may be able to design around our patents or develop products that provide
outcomes which are comparable to ours without infringing on our intellectual property rights. Due to differences between foreign
and U.S. patent laws, our patented intellectual property rights may not receive the same degree of protection in foreign countries
as they would in the United States. Even if patents are granted outside the United States, effective enforcement in those countries
may not be available.
We rely on our trademarks and trade names
to distinguish our products from the products of our competitors, and have registered or applied to register many of these trademarks.
For example, we have one pending application in the United States for the "NeuroOne" trademark. We cannot assure you
that our trademark applications will be approved in a timely manner or at all. Third parties also may oppose our trademark applications,
or otherwise challenge our use of the trademarks. In the event that our trademarks are successfully challenged, we could be forced
to rebrand our products, which could result in loss of brand recognition, and could require us to devote additional resources
to marketing new brands. Further, we cannot assure you that competitors will not infringe upon our trademarks, or that we will
have adequate resources to enforce our trademarks.
We also rely on trade secrets, know-how
and technology, which are not protectable by patents, to maintain our competitive position. We try to protect this information
by entering into confidentiality agreements and intellectual property assignment agreements with our officers, employees, temporary
employees and consultants regarding our intellectual property and proprietary technology. In the event of unauthorized use or
disclosure or other breaches of those agreements, we may not be provided with meaningful protection for our trade secrets or other
proprietary information. In addition, our trade secrets may otherwise become known or be independently discovered by competitors.
To the extent that our commercial partners, collaborators, employees and consultants use intellectual property owned by others
in their work for us, disputes may arise as to the rights in the related or resulting know-how and inventions. If any of our trade
secrets, know-how or other technologies not protected by a patent were to be disclosed to or independently developed by a competitor,
our business, financial condition and results of operations could be materially adversely affected.
If a competitor infringes upon one of
our patents, trademarks or other intellectual property rights, enforcing those patents, trademarks and other rights may be difficult
and time-consuming. Patent law relating to the scope of claims in the industry in which we operate is subject to rapid change
and constant evolution and, consequently, patent positions in our industry can be uncertain. Even if successful, litigation to
defend our patents and trademarks against challenges or to enforce our intellectual property rights could be expensive and time
consuming and could divert management's attention from managing our business. Moreover, we may not have sufficient resources
or desire to defend our patents or trademarks against challenges or to enforce our intellectual property rights. Litigation also
puts our patents at risk of being invalidated or interpreted narrowly and our patent applications at risk of not issuing. Additionally,
we may provoke third-parties to assert claims against us. We may not prevail in any lawsuits that we initiate and the damages
or other remedies awarded, if any, may not be commercially valuable. The occurrence of any of these events may harm our business,
financial condition and operating results.
23
We may not be able to establish
or strengthen our brand.
We believe that establishing and strengthening
our brand is critical to achieving widespread acceptance of our cortical strip, grid electrode and depth electrode technology.
Promoting and positioning our brand will depend largely on the success of our marketing efforts and our ability to provide physicians
with a reliable product for successful treatment of brain-related disorders. Additionally, we believe the quality and reliability
of our product is critical to building physician support in the United States, and any negative publicity regarding the quality
or reliability of our cortical strip, grid electrode and depth electrode technology could significantly damage our reputation
in the market. Further, given the established nature of our competitors, it is likely that our future marketing efforts will require
us to incur significant additional expenses. These brand promotion activities may not yield increased sales and, even if they
do, any sales increases may not offset the expenses we incur to promote our brand. If we fail to successfully promote and maintain
our brand, or if we incur substantial expenses in an unsuccessful attempt to promote and maintain our brand, our cortical strip,
grid electrode and depth electrode technology may not be accepted by physicians, which would adversely affect our business, results
of operations and financial condition.
The medical device industry
is characterized by patent litigation, and we could become subject to litigation that could be costly, result in the diversion
of management's time and efforts, stop our development and commercialization measures or require us to pay damages.
Our success will depend in part on not
infringing the patents or violating the other proprietary rights of third-parties. Significant litigation regarding patent rights
exists in our industry. Our competitors in both the United States and abroad, many of which have substantially greater resources
and have made substantial investments in competing technologies, may have applied for or obtained or may in the future apply for
and obtain, patents that will prevent, limit or otherwise interfere with our ability to make and sell our products. The large
number of patents, the rapid rate of new patent issuances, and the complexities of the technology involved increase the risk of
patent litigation.
In the future, we could receive communications
from various industry participants alleging our infringement of their intellectual property rights. Any potential intellectual
property litigation could force us to do one or more of the following:
·
stop
                                         selling our products or using technology that contains the allegedly infringing intellectual
                                         property;
·
incur
                                         significant legal expenses;
·
pay
                                         substantial damages to the party whose intellectual property rights we are allegedly
                                         infringing;
·
redesign
                                         those products that contain the allegedly infringing intellectual property; or
·
attempt
                                         to obtain a license to the relevant intellectual property from third-parties, which may
                                         not be available on reasonable terms or at all, and if available, may be non-exclusive,
                                         thereby giving our competitors access to the same technology.
Patent litigation can involve complex
factual and legal questions, and its outcome is uncertain. Any litigation or claim against us, even those without merit, may cause
us to incur substantial costs, and could place a significant strain on our financial resources, divert the attention of management
from our core business and harm our reputation. Further, as the number of participants in the neurostimulation market increases,
the possibility of intellectual property infringement claims against us increases.
24
We may be subject to damages
resulting from claims that we, or our employees, have wrongfully used or disclosed alleged trade secrets of our competitors or
are in breach of non-competition or non-solicitation agreements with our competitors.
Some of our current or future employees
may have previously been employed at other medical device companies, including those that are our direct competitors or could
potentially be our direct competitors. We may be subject to claims that we, or our employees, have inadvertently or otherwise
used or disclosed trade secrets or other proprietary information of these former employers or competitors. In addition, we may
in the future be subject to allegations that we caused an employee to breach the terms of his or her non-competition or non-solicitation
agreement. Litigation may be necessary to defend against these claims.
In May 2017, NeuroOne, Inc. received a
letter from PMT, the former employer of Mark Christianson and Wade Fredrickson. PMT claimed that these
officers had breached their restrictive covenant obligations with PMT by virtue of their work for NeuroOne, Inc. and such officer's
prior work during employment with the prior employer, that these officers had breached their confidentiality and non-disclosure
obligations to PMT and federal and state law by misappropriating confidential and trade secret information, and that the Company
is responsible for tortious interference with the contracts. The letter demanded that Mr. Fredrickson (who resigned from the Company
in June 2017), Mr. Christianson and NeuroOne, Inc. cease and desist all competitive activities, that Mr. Fredrickson step down
from his position and that Mr. Christianson and NeuroOne, Inc. provide the former employer access to NeuroOne, Inc.'s systems
to demonstrate that it is not using trade secrets or proprietary information nor competing with the former employer.
On March 29, 2018, we were served with
a complaint filed by PMT adding the Company, NeuroOne, Inc. and Mr. Christianson to its existing lawsuit against Mr. Fredrickson.
In the lawsuit, PMT claims that Mr. Fredrickson and Mr. Christianson breached their non-competition, non-solicitation and non-disclosure
obligations, breached their fiduciary duty obligations, were unjustly enriched, engaged in unfair competition, engaged in a civil
conspiracy, tortiously interfered with PMT's contracts and prospective economic advantage, and breached a covenant of good
faith and fair dealing. Against Mr. Fredrickson, PMT also alleges that he intentionally or negligently spoliated evidence, made
negligent or fraudulent misrepresentations, misappropriated trade secrets in violation of Minnesota law, and committed the tort
of conversion and statutory civil theft. Against the Company and NeuroOne, Inc., PMT alleges that the Company and NeuroOne, Inc.
were unjustly enriched and engaged in unfair competition. PMT asks the Court to impose a constructive trust over the shares held
by Mr. Fredrickson and Mr. Christianson and to award compensatory damages, equitable relief, punitive damages, attorneys'
fees, costs and interest. The Company, NeuroOne, Inc. and Mr. Christianson (who has not worked for PMT since 2012) intend to defend
themselves vigorously. Furthermore, Mr. Christianson is a key officer and the loss of him would be detrimental to our operations
and prospects.
On April 18, 2018, Mr. Christianson, the
Company and NeuroOne, Inc. filed a motion for dismissal, which was heard by the Court on October 11, 2018. The motion for dismissal
states that: the contract claims against Mr. Christianson fail because his agreement was not supported by consideration; the Minnesota
Uniform Trade Secrets Act preempts plaintiff's claims for unfair competition, civil conspiracy and unjust enrichment; plaintiff
fails to state a claim regarding alleged breach of the duties of loyalty and good faith/fair dealing; plaintiff cannot legally
obtain a constructive trust; plaintiff has insufficiently pled its tortious interference claims; and Plaintiff has not stated
a claim for unfair competition. On January 7, 2019, the judge granted the motion for dismissal with respect to PMT's claim
for breach of the duty of good faith and fair dealing, and denied the motion for dismissal with respect to the other claims presented.
Discovery is now virtually complete. On June 28, 2019, the Company presented to the special master evidence of what it believed
to reflect significant litigation misconduct by PMT relating to a manufactured non-compete agreement for Wade Fredrickson that
it had attempted to pass off as a business record of PMT. Based on the evidence presented, the special master ruled that PMT had
waived the attorney client privilege with respect to certain communications with respect to the Fredrickson non-compete with both
its former and current litigation counsel and authorized a deposition of the former litigation counsel concerning these communications.
On August 30, 2019 the Hennepin County District Court will hear dispositive motions in this case. The Company, NeuroOne, Inc.
and Mr. Christianson (who has not worked for PMT since February 2012) intend to continue to defend themselves vigorously.
Even if we successfully defend against
these claims, litigation could cause us to incur substantial costs, and could place a significant strain on our financial resources,
divert the attention of management from our core business and harm our reputation. If our defense to those claims fails, in addition
to paying monetary damages, we may lose valuable intellectual property rights or personnel. There can be no assurance that this
type of litigation will not occur, and any future litigation or the threat thereof may adversely affect our ability to hire additional
employees. A loss of key personnel or their work product could hamper or prevent our ability to develop or commercialize our cortical
strip, grid electrode and depth electrode technology or future versions thereof, which could have an adverse effect on our business,
financial condition and operating results.
25
We are subject to the patent
laws of countries other than the United States, which may not offer the same level of patent protection and whose rules could
seriously affect how we draft, file, prosecute and maintain patents, trademarks and patent and trademark applications.
Many countries, including certain countries
in Europe, have compulsory licensing laws under which a patent owner may be compelled to grant licenses to third parties (for
example, the patent owner has failed to "work" the invention in that country, or the third party has patented improvements).
In addition, many countries limit the enforceability of patents against government agencies or government contractors. In these
countries, the patent owner may have limited remedies, which could materially diminish the value of the patent. Moreover, the
legal systems of certain countries, particularly certain developing countries, do not favor the aggressive enforcement of patent
and other intellectual property protection which makes it difficult to stop infringement.
We cannot be certain that the patent or
trademark offices of countries outside the United States will not implement new rules that increase costs for drafting, filing,
prosecuting and maintaining patents, trademarks and patent and trademark applications or that any such new rules will not restrict
our ability to file for patent protection. For example, we may elect not to seek patent protection in some jurisdictions in order
to save costs. We may be forced to abandon or return the rights to specific patents due to a lack of financial resources.
Intellectual property rights
do not necessarily address all potential threats to our competitive advantage.
The degree of future protection afforded
by our intellectual property rights is uncertain because intellectual property rights have limitations, and may not adequately
protect our business, or permit us to maintain our competitive advantage. The following examples are illustrative:
·
others
                                         may be able to make devices that are the same as or similar to our cortical strip, grid
                                         electrode and depth electrode technology but that are not covered by the claims of the
                                         patents that we own;
·
we
                                         or any collaborators might not have been the first to make the inventions covered by
                                         the issued patents or pending patent applications that we own;
·
we
                                         might not have been the first to file patent applications covering certain of our inventions;
·
others
                                         may independently develop similar or alternative technologies or duplicate any of our
                                         technologies without infringing our intellectual property rights;
·
it
                                         is possible that our pending patent applications will not lead to issued patents;
·
issued
                                         patents that we own may not provide us with any competitive advantages, or may be held
                                         invalid or unenforceable as a result of legal challenges;
·
we
                                         might enforce our patent rights or defend a challenge to our issued patents or pending
                                         application, putting the patents and patent applications at risk of being invalidated
                                         or interpreted narrowly;
·
our
                                         competitors might conduct research and development activities in the United States and
                                         other countries that provide a safe harbor from patent infringement claims for certain
                                         research and development activities, as well as in countries where we do not have patent
                                         rights, and then use the information learned from such activities to develop competitive
                                         products for sale in our major commercial markets; and
·
we
                                         may not develop additional proprietary technologies that are patentable.
Risks Related to our Legal and Regulatory Environment
Our products and operations
are subject to extensive governmental regulation, and failure to comply with applicable requirements could cause our business
to suffer.
The medical device industry is regulated
extensively by governmental authorities, principally the FDA and corresponding state regulatory agencies in the United States
and the European Commission and corresponding Notified Body in the European Union and the EEA. The regulations are very complex
and are subject to rapid change and varying interpretations. Regulatory restrictions or changes could limit our ability to carry
on or expand our operations or result in higher than anticipated costs or lower than anticipated sales. These governmental authorities
enforce laws and regulations that are meant to assure product safety and effectiveness, including the regulation of, among other
things:
·
product
                                         design and development;
·
pre-clinical
                                         studies and clinical trials;
26
·
product
                                         safety;
·
establishment
                                         registration and product listing;
·
labeling,
                                         content and language of instructions for use and storage;
·
marketing,
                                         manufacturing, sales and distribution;
·
pre-market
                                         clearance or approval;
·
servicing
                                         and post-market surveillance;
·
record-keeping
                                         procedures;
·
product
                                         import and export;
·
advertising
                                         and promotion; and
·
recalls
                                         and field safety corrective actions.
The regulations to which we are subject
are complex and have tended to become more stringent over time. Regulatory changes could result in restrictions on our ability
to carry on or expand our operations, higher than anticipated costs or lower than anticipated revenues.
Failure to comply with applicable regulations
could jeopardize our ability to sell our products and result in enforcement actions such as fines, civil penalties, injunctions,
warning letters, recalls of products, delays in the introduction of products into the market, refusal of the regulatory agency
or other regulators to grant future clearances or approvals, and the suspension or withdrawal of existing approvals by such regulatory
agencies. Any of these sanctions could result in higher than anticipated costs or lower than anticipated sales and harm our reputation,
business, financial condition and operating results.
The FDA regulatory clearance
process is expensive, time-consuming and uncertain, and the failure to obtain and maintain required regulatory clearances and
approvals could prevent us from commercializing our cortical strip, grid electrode and depth electrode technology under development
and future versions thereof.
Our products and operations are subject
to extensive and rigorous regulation by the FDA under the Federal Food, Drug, and Cosmetic Act, or FDCA, and its implementing
regulations, guidance, and standards. The FDA regulates the research, testing, manufacturing, safety, labeling, storage, recordkeeping,
promotion, distribution, and production of medical devices in the United States to ensure that medical products distributed domestically
are safe and effective for their intended uses. The FDA also regulates the export of medical devices manufactured in the United
States to international markets. Any violations of these laws and regulations could result in a material adverse effect on our
business, financial condition and results of operations. In addition, if there is a change in law, regulation or judicial interpretation,
we may be required to change our business practices, which could have a material adverse effect on our business, financial condition
and results of operations.
Under the FDCA, medical devices are classified
into one of three classes—Class I, Class II or Class III—depending on the degree of risk associated with each medical
device and the extent of control needed to ensure safety and effectiveness.
Class I devices are those for which safety
and effectiveness can be assured by adherence to FDA's "general controls" for medical devices, which include
compliance with the applicable portions of the QSR facility registration and product listing, reporting of adverse medical events,
and appropriate, truthful and non-misleading labeling, advertising, and promotional materials. Some Class I devices also require
premarket clearance by the FDA through the 510(k) premarket notification process described below.
27
Class II devices are subject to FDA's
general controls, and any other "special controls" deemed necessary by FDA to ensure the safety and effectiveness
of the device. Premarket review and clearance by the FDA for Class II devices is accomplished through the 510(k) premarket notification
procedure, though certain Class II devices are exempt from this premarket review process. When a 510(k) is required, the manufacturer
must submit to the FDA a premarket notification submission demonstrating that the device is "substantially equivalent"
to a legally marketed device, which in some cases may require submission of clinical data. A legally marketed device is defined
by statute to mean a device that was legally marketed prior to May 28, 1976, the date upon which the Medical Device Amendments
of 1976 were enacted, or another commercially available, similar device that was cleared through the 510(k) process. Unless a
specific exemption applies, 510(k) premarket notification submissions are subject to user fees. If the FDA determines that the
device, or its intended use, is not substantially equivalent to a legally marketed device, the FDA will place the device, or the
particular use of the device, into Class III, and the device sponsor must then fulfill much more rigorous premarketing requirements
in the form of a premarket approval, or PMA.
A Class III device includes devices deemed
by the FDA to pose the greatest risk such as life-supporting or life-sustaining devices, or implantable devices, in addition to
a device that has a new intended use or utilizes advanced technology that is not substantially equivalent to that of a legally
marketed device. The safety and effectiveness of Class III devices cannot be assured solely by general and special controls. These
devices almost always require formal clinical studies to demonstrate safety and effectiveness. Submission and FDA approval of
a PMA application is required before marketing of a Class III device can proceed.
We believe our cortical strip, grid electrode
and depth electrode technology under development will be a Class II medical device. The FDA has not made any determination about
whether our specific technology is a Class II medical device. While such a determination is not necessary in order for us to list
a device with the FDA and bring that device to the U.S. market, we may decide to get clarification from the FDA prior to introducing
a product into the market. From time to time, the FDA may disagree with the classification and require us to apply for approval
as a Class III medical device. In the event that the FDA determines that our technology should be classified as Class III, we
could be precluded from marketing the devices for clinical use within the United States for months, years or longer, depending
on the specific change in the classification. Reclassification of our technology as Class III could significantly increase our
regulatory costs, including the timing and expense associated with required clinical trials and other costs.
If the FDA requires us to go through more
costly, lengthy and uncertain PMA process for our cortical strip, grid electrode and depth electrode technology, future products
or modifications to existing products than we had expected, we may be less likely to receive approval for our cortical strip,
grid electrode and depth electrode technology or such approval may take longer and be more costly.
The FDA can delay, limit or deny clearance
or approval of a device for many reasons, including:
·
we
                                         may not be able to demonstrate that our products are safe and effective for their intended
                                         users;
·
the
                                         data from our clinical trials may be insufficient to support clearance or approval; and
·
the
                                         manufacturing process or facilities we use may not meet applicable requirements.
When FDA approval of a device requires
human clinical trials, and if the device presents a "significant risk" to human health, the device sponsor is required
to file an investigational device exemption, or IDE, application with the FDA and obtain IDE approval prior to commencing the
human clinical trial. If the device is considered a "non-significant risk," IDE submission to FDA is not required.
Instead, only approval from the Institutional Review Board, or IRB, overseeing the investigation at each clinical trial site is
required. Human clinical studies are generally required in connection with approval of Class III devices and may be required for
Class I and II devices. The FDA or the IRB at each institution at which a clinical trial is being performed may suspend a clinical
trial at any time for various reasons, including a belief that the subjects are being exposed to an unacceptable health risk.
We believe that we will need to complete human clinical trials and submit an application for an IDE in order to seek approval
to use of our cortical strip, grid electrode and depth electrode technology for stimulation and ablation but not for diagnostic
purposes. Because any IDE, if required, must be cleared by the FDA prior to the start of a clinical investigation, this requirement
may delay our product development or clinical trial efforts. Any delay in, or failure to receive or maintain, clearance or approval
for our products under development could prevent us from generating revenue from these products or achieving profitability.
28
In addition, the FDA may change its clearance
and approval policies, adopt additional regulations or revise existing regulations, or take other actions which may prevent or
delay approval or clearance of our products under development or impact our ability to modify our currently cleared or approved
products on a timely basis.
After the FDA permits a device to enter
commercial distribution, numerous regulatory requirements apply. These include: compliance with the QSR, which requires manufacturers
to follow elaborate design, testing, control, documentation and other quality assurance procedures during the manufacturing process;
labeling regulations; the FDA's general prohibition against promoting products for unapproved or "off-label"
uses; the reports of Corrections and Removals regulation, which requires manufacturers to report recalls and field actions to
the FDA if initiated to reduce a risk of health posed by the device or to remedy a violation of the Federal Food, Drug and Cosmetic
Act; and the Medical Device Reporting regulation, which requires that manufacturers report to the FDA if their device may have
caused or contributed to a death or serious injury or malfunctioned in a way that would likely cause or contribute to a death
or serious injury if it were to reoccur. Manufacturers are also required to register and list their devices with the FDA, based
on which the FDA will conduct inspections to ensure continued compliance with applicable regulatory requirements.
The FDA has broad post-market and regulatory
and enforcement powers. Failure to comply with the applicable U.S. medical device regulatory requirements could result in, among
other things, warning letters; fines; injunctions; consent decrees; civil penalties; repairs, replacements or refunds; recalls,
corrections or seizures of products; total or partial suspension of production; the FDA's refusal to grant future premarket
clearances or approvals; withdrawals or suspensions of current product applications; and criminal prosecution. Regulatory enforcement
or inquiries, or other increased scrutiny on us, could dissuade some people with brain related disorders from using our products
and adversely affect our reputation and the perceived accuracy and safety of our products. If any of these events were to occur,
they could have a material adverse effect on our business, financial condition and results of operations.
International sales are subject to regulatory
requirements in the countries in which our products are sold. The regulatory review process varies from country to country and
may in some cases require the submission of clinical data. In addition, the FDA must be notified of, or approve the export to
certain countries of devices that require a PMA, and are not yet approved in the United States.
A recall of our products,
or the discovery of serious safety issues with our products, could have a significant negative impact on us.
The FDA has the authority to require the
recall of commercialized products in the event of material deficiencies or defects in design or manufacture or in the event that
a product poses an unacceptable risk to health. Our third-party suppliers may, under their own initiative, recall a product if
any material deficiency in a device is found. A government-mandated or voluntary recall by us or one of our third-party distributors,
if any, could occur as a result of an unacceptable risk to health, component failures, manufacturing errors, design or labeling
defects or other deficiencies and issues. Recalls of any of our products would divert managerial and financial resources and have
an adverse effect on our reputation, financial condition and operating results, which could impair our ability to produce our
products in a cost-effective and timely manner.
Further, under the FDA's medical
device reporting regulations, we are required to report to the FDA any incident in which our product may have caused or contributed
to a death or serious injury or in which our product malfunctioned and, if the malfunction were to recur, would likely cause or
contribute to death or serious injury. Repeated product malfunctions may result in a voluntary or involuntary product recall,
which could divert managerial and financial resources, impair our ability to manufacture our products in a cost-effective and
timely manner and have an adverse effect on our reputation, financial condition and operating results.
Any adverse event involving our products
could result in future voluntary corrective actions, such as recalls or customer notifications, or regulatory agency action, which
could include inspection, mandatory recall or other enforcement action. Any corrective action, whether voluntary or involuntary,
will require the dedication of our time and capital, distract management from operating our business and may harm our reputation
and financial results.
29
We will be subject to
the U.S. Foreign Corrupt Practices Act ("FCPA"), the U.K. Bribery Act and other anti-corruption and anti-money-laundering laws, as
well as export control laws, customs laws, sanctions laws and other laws governing our future global operations. If we fail
to comply with these laws, we could be subject to civil or criminal penalties, other remedial measures and legal expenses,
which could adversely affect our business, results of operations and financial condition.
Our future global operations will expose
us to trade and economic sanctions and other restrictions imposed by the United States, the European Union and other governments
and organizations. The U.S. Departments of Justice, Commerce, State and Treasury and other federal agencies and authorities have
a broad range of civil and criminal penalties they may seek to impose against corporations and individuals for violations of economic
sanctions laws, export control laws, the FCPA, and other federal statutes and regulations,
including those established by the Office of Foreign Assets Control, or OFAC. In addition, the U.K. Bribery Act of 2010, or the
Bribery Act, prohibits both domestic and international bribery, as well as bribery across both private and public sectors. An
organization that "fails to prevent bribery" by anyone associated with the organization can be charged under the Bribery
Act unless the organization can establish the defense of having implemented "adequate procedures" to prevent bribery.
Under these laws and regulations, as well as other anti-corruption laws, anti-money-laundering laws, export control laws, customs
laws, sanctions laws and other laws governing our operations, various government agencies may require export licenses, may seek
to impose modifications to business practices, including cessation of business activities in sanctioned countries or with sanctioned
persons or entities and modifications to compliance programs, which may increase compliance costs, and may subject us to fines,
penalties and other sanctions. A violation of these laws or regulations could adversely impact our business, results of operations
and financial condition.
We will implement and maintain policies
and procedures designed to ensure compliance by us, and our directors, officers, employees, representatives, third-party distributors,
if any, consultants and agents with the FCPA, OFAC restrictions, the Bribery Act and other export control, anticorruption, anti-money-laundering
and anti-terrorism laws and regulations. We cannot assure you, however, that our policies and procedures will be sufficient or
that directors, officers, employees, representatives, third-party distributors, if any, consultants and agents have not engaged
and will not engage in conduct for which we may be held responsible, nor can we assure you that our business partners have not
engaged and will not engage in conduct that could materially affect their ability to perform their contractual obligations to
us or even result in our being held liable for such conduct. Violations of the FCPA, OFAC restrictions, the Bribery Act or other
export control, anti-corruption, anti-money-laundering and anti-terrorism laws or regulations may result in severe criminal or
civil sanctions, and we may be subject to other liabilities, which could have a material adverse effect on our business, financial
condition, cash flows and results of operations.
We are subject to additional
federal, state and foreign laws and regulations relating to our healthcare business; our failure to comply with those laws could
have an adverse impact on our business.
Although we will not provide healthcare
services, submit claims for third-party reimbursement, or receive payments directly from government health insurance programs
or other third-party payors for our cortical strip, grid electrode and depth electrode technology, we are subject to healthcare
fraud and abuse regulation and enforcement by federal, state and foreign governments, which could adversely impact our business.
Healthcare fraud and abuse and health information privacy and security laws potentially applicable to our operations include,
but are not limited to:
·
the
                                         federal Anti-Kickback Statute (the "Anti-Kickback Statute"), which will apply to our marketing practices, educational
                                         programs, pricing policies and relationships with healthcare providers, by prohibiting,
                                         among other things, soliciting, receiving, offering or providing remuneration intended
                                         to induce the purchase or recommendation of an item or service reimbursable under a federal
                                         healthcare program, such as the Medicare or Medicaid programs. A person or entity does
                                         not need to have actual knowledge of this statute or specific intent to violate it to
                                         have committed a violation;
·
federal
                                         civil and criminal false claims laws and civil monetary penalty laws, including civil
                                         whistleblower or qui tam actions that prohibit, among other things, knowingly presenting,
                                         or causing to be presented, claims for payment or approval to the federal government
                                         that are false or fraudulent, knowingly making a false statement material to an obligation
                                         to pay or transmit money or property to the federal government or knowingly concealing
                                         or knowingly and improperly avoiding or decreasing an obligation to pay or transmit money
                                         or property to the federal government. The government may assert that a claim including
                                         items or services resulting from a violation of the Anti-Kickback Statute constitutes
                                         a false or fraudulent claim for purposes of the false claims statutes;
30
·
the Health Insurance Portability and Accountability Act of 1996 ("HIPAA"),
                                                                                                             and its
                                                                                                             implementing
                                                                                                             regulations,
                                                                                                             which                                                                                                              created
                                                                                                             federal criminal laws that prohibit,                                          among other things, executing a scheme
                                                                                                             to defraud any healthcare benefit program or making                                          false statements relating to
                                                                                                             healthcare matters. A person or entity does not need to                                          have actual knowledge of
                                                                                                             these statutes or specific intent to violate them;
·
HIPAA,
                                         as amended by the Health Information Technology for Economic and Clinical Health Act
                                         of 2009, and their implementing regulations, also imposes certain regulatory and contractual
                                         requirements regarding the privacy, security and transmission of individually identifiable
                                         health information;
·
federal
                                         "sunshine" requirements imposed by the ACA on device manufacturers regarding
                                         any "transfer of value" made or distributed to physicians and teaching hospitals.
                                         Failure to submit required information may result in civil monetary penalties of up to
                                         an aggregate of $150,000 per year (or up to an aggregate of $1 million per year for "knowing
                                         failures"), for all payments, transfers of value or ownership or investment interests
                                         that are not timely, accurately, and completely reported in an annual submission. Manufacturers
                                         must submit reports by the 90th day of each subsequent calendar year;
·
federal
                                         consumer protection and unfair competition laws, which broadly regulate marketplace activities
                                         and activities that potentially harm consumers;
·
state
                                         law equivalents of each of the above federal laws, such as anti-kickback and false claims
                                         laws that may apply to items or services reimbursed by any third-party payor, including
                                         commercial insurers; state laws that require device companies to comply with the industry's
                                         voluntary compliance guidelines and the relevant compliance guidance promulgated by the
                                         federal government or otherwise restrict payments that may be made to healthcare providers;
                                         state laws that require device manufacturers to report information related to payments
                                         and other transfers of value to physicians and other healthcare providers or marketing
                                         expenditures; and state laws governing the privacy and security of certain health information,
                                         many of which differ from each other in significant ways and often are not preempted
                                         by HIPAA; and
·
foreign
                                         data privacy regulations, such as the EU Data Protection Directive (Directive 95/46/EC),
                                         and the country-specific regulations that implement Directive 95/46/EC, which impose
                                         strict obligations and restrictions on the ability to collect, analyze and transfer personal
                                         data, including health data from clinical trials and adverse event reporting, and may
                                         be stricter than U.S. laws.
The risk of our being found in violation
of these laws and regulations is increased by the fact that the scope and enforcement of these laws is uncertain, many of them
have not been fully interpreted by the regulatory authorities or the courts, their provisions are open to a variety of interpretations,
or they vary country by country. We are unable to predict what additional federal, state or foreign legislation or regulatory
initiatives may be enacted in the future regarding our business or the healthcare industry in general, or what effect such legislation
or regulations may have on us. Federal, state or foreign governments may (i) impose additional restrictions or adopt interpretations
of existing laws that could have a material adverse effect on us or (ii) challenge our current or future activities under these
laws. Any of these challenges could impact our reputation, business, financial condition and operating results.
If our operations are found to be in violation
of any of the laws described above or any other governmental regulations that apply to us now or in the future, we may be subject
to penalties, including civil and criminal penalties, damages, fines, disgorgement of profits, exclusion from governmental health
care programs, and the curtailment or restructuring of our operations, any of which could adversely affect our ability to operate
our business and our financial results. Any federal, state or foreign regulatory review to which we may become subject, regardless
of the outcome, would be costly and time-consuming.
31
For example, to enforce compliance with
the federal laws, the U.S. Department of Justice, or DOJ, has recently increased its scrutiny of interactions between healthcare
companies and healthcare providers, which has led to a number of investigations, prosecutions, convictions and settlements in
the healthcare industry. Dealing with investigations can be time and resource consuming and can divert management's attention
from our core business. Additionally, if we settle an investigation with law enforcement or other regulatory agencies, we may
be forced to agree to additional onerous compliance and reporting requirements as part of a consent decree or corporate integrity
agreement. Any such investigation or settlement could increase our costs or otherwise have an adverse effect on our business.
We may be liable if the FDA
or another regulatory agency concludes that we have engaged in the off-label promotion of our products.
Our promotional materials and training
methods must comply with FDA and other applicable laws and regulations, including the prohibition of the promotion of the off-label
use of our products. Healthcare providers may use our products, if approved, off-label, as the FDA does not restrict or regulate
a physician's choice of treatment within the practice of medicine. However, if the FDA determines that our promotional materials
or training constitute promotion of an off-label use, it could request that we modify our training or promotional materials or
subject us to regulatory or enforcement actions, including the issuance of an untitled letter, a warning letter, injunction, seizure,
civil fine and criminal penalties. It is also possible that other federal, state or foreign enforcement authorities might take
action if they consider our promotional or training materials to constitute promotion of an unapproved use, which could result
in significant fines or penalties. Although we intend to train our marketing and direct sales force to not promote our products
for uses outside of their cleared uses and our policy will be to refrain from statements that could be considered off-label promotion
of our products, the FDA or another regulatory agency could disagree and conclude that we have engaged in off-label promotion.
In addition, the off-label use of our products may increase the risk of product liability claims. Product liability claims are
expensive to defend and could result in substantial damage awards against us and harm our reputation.
Further, if we seek commercial approval
in Europe, the advertising and promotion of our products is subject to the laws of EEA Member States implementing Directive 93/42/EEC
concerning medical devices, Directive 2006/114/EC concerning misleading and comparative advertising, and Directive 2005/29/EC
on unfair commercial practices, as well as other EEA Member State legislation governing the advertising and promotion of medical
devices. A new Medical Device Regulation (2017/745) that replaced Directive 93/42/EEC was published in 2017, with a three year
implementation period, which will impose significant additional premarket and post-market certification requirements on medical
devices marketed in the EU. EEA Member State legislation may also restrict or impose limitations on our ability to advertise our
products directly to the general public. In addition, voluntary EU and national codes of conduct provide guidelines on the advertising
and promotion of our products to the general public and may impose limitations on our promotional activities with healthcare providers
harming our business, operating results and financial condition.
Legislative or regulatory
healthcare reforms may make it more difficult and costly for us to obtain regulatory clearance or approval of our products.
Recent political, economic and regulatory
influences are subjecting the healthcare industry to fundamental changes. The sales of our products depend in part on the availability
of coverage and reimbursement from third-party payors such as government health administration authorities, private health insurers,
health maintenance organizations and other healthcare-related organizations. Both the federal and state governments in the United
States continue to propose and pass new legislation and regulations designed to contain or reduce the cost of healthcare. This
legislation and regulation may result in decreased reimbursement for medical devices, which may further exacerbate industry-wide
pressure to reduce the prices charged for medical devices. This could harm our ability to market our products and generate sales.
In addition, FDA regulations and guidance
are often revised or reinterpreted by the FDA in ways that may significantly affect our business and our products. Any new regulations
or revisions or reinterpretations of existing regulations may impose additional costs or lengthen review times of our products.
Delays in receipt of or failure to receive regulatory clearances or approvals for our products would harm our business, financial
condition and operating results.
32
While one often stated goal of healthcare
reform is to expand coverage to more individuals, it also involves increased government price controls, additional regulatory
mandates and other measures designed to constrain medical costs. For example, the ACA was enacted in March 2010. The ACA substantially
changes the way healthcare is financed by both governmental and private insurers, encourages improvements in the quality of healthcare
items and services and significantly impacts the medical device industries. Among other things, the ACA:
·
establishes
                                         a new Patient-Centered Outcomes Research Institute to oversee, identify priorities in
                                         and conduct comparative clinical effectiveness research; and
·
implements
                                         payment system reforms including value-based payment programs, increased funding for
                                         comparative effectiveness research, reduced hospital payments for avoidable readmissions
                                         and hospital acquired conditions, and pilot programs to evaluate alternative payment
                                         methodologies that promote care coordination (such as bundled physician and hospital
                                         payments).
At this time, we cannot predict which,
if any, additional healthcare reform proposals will be adopted, when they may be adopted or what impact they, or the ACA, may
have on our business and operations, and any of these impacts may be adverse on our operating results and financial condition.
Our financial performance may be adversely affected by medical device tax provisions in the healthcare reform laws.
The ACA imposes, among other things, an
annual excise tax of 2.3% on any entity that manufactures or imports medical devices offered for sale in the United States beginning
in 2013. Due to subsequent legislative amendments, the excise tax has been suspended from January 1, 2016 to December 31, 2019,
and, absent further legislative action, will be reinstated starting January 1, 2020. We do not believe that our cortical strip,
grid electrode and depth electrode technology under development is currently subject to this tax based on the retail exemption
under applicable Treasury Regulations. However, the availability of this exemption is subject to interpretation by the Internal
Revenue Service, or IRS, and the IRS may disagree with our analysis. In addition, future products that we manufacture, produce
or import may be subject to this tax. The financial impact this tax may have on our business is unclear and there can be no assurance
that our business will not be materially adversely affected by it.
Tax matters, including the
changes in corporate tax rates, disagreements with taxing authorities and imposition of new taxes could impact our results of
operations and financial condition.
We are subject to income and other taxes
in the U.S. and our operations, plans and results are affected by tax and other initiatives. On December 22, 2017, the Tax Act
was signed into law by President Trump. The Tax Act contains significant changes to corporate taxation, including reduction of
the corporate tax rate from a top marginal rate of 35% to a flat rate of 21%, limitation of the tax deduction for interest expense
to 30% of earnings (except for certain small businesses), limitation of the deduction for net operating losses to 80% of current
year taxable income and elimination of net operating loss carrybacks, one-time taxation of offshore earnings at reduced rates
regardless of whether they are repatriated, elimination of U.S. tax on foreign earnings (subject to certain important exceptions),
immediate deductions for certain new investments instead of deductions for depreciation expense over time, and modifying or repealing
many business deductions and credits. Notwithstanding the reduction in the corporate income tax rate, guidance on tax reform continues
to be released and such guidance may adversely affect our business and financial condition. While the new federal tax law did
not extend the moratorium on the medical device excise tax, the reinstatement of which could negatively impact our operating results
as we begin full commercialization of our platforms in the United States, the moratorium was subsequently extended until 2020.
It is also unknown if and to what extent various states will conform to the newly enacted federal tax law. The impact of this
tax reform on holders of our Common Stock is likewise uncertain and could be adverse. We urge you to consult with your legal and
tax advisors with respect to this legislation and the potential tax consequences of investing in our Common Stock. The decrease
in the corporate tax rate resulted in changes in the valuation of our deferred tax assets and liabilities.
We are also subject to regular reviews,
examinations, and audits by the Internal Revenue Service and other taxing authorities with respect to our taxes. Although we believe
our tax estimates are reasonable, if a taxing authority disagrees with the positions we have taken, we could face additional tax
liability, including interest and penalties. There can be no assurance that payment of such additional amounts upon final adjudication
of any disputes will not have a material impact on our results of operations and financial position.
33
We also need to comply with new, evolving
or revised tax laws and regulations. The enactment of or increases in tariffs, or other changes in the application or interpretation
of the Tax Act, or on specific products that we sell or with which our products compete, may have an adverse effect on our business
or on our results of operations.
Inadequate funding for the
FDA, the SEC and other government agencies could hinder their ability to hire and retain key leadership and other personnel, prevent
new products and services from being developed or commercialized in a timely manner or otherwise prevent those agencies from performing
normal business functions on which the operation of our business may rely, which could negatively impact our business.
The ability of the FDA to review and approve
new products can be affected by a variety of factors, including government budget and funding levels, ability to hire and retain
key personnel and accept the payment of user fees, and statutory, regulatory, and policy changes. Average review times at the
agency have fluctuated in recent years as a result. Disruptions at the FDA and other agencies may also slow the time necessary
for new drugs, devices and treatments to be reviewed and/or approved by necessary government agencies, which would adversely affect
our business.
In addition, government funding of the
SEC and other government agencies on which our operations may rely, is subject to the political process, which is inherently fluid
and unpredictable. For example, over the last several years, including beginning on December 22, 2018, the U.S. government has
shut down several times and certain regulatory agencies, such as the FDA and the SEC, have had to furlough critical FDA, SEC and
other government employees and stop critical activities. If a prolonged government shutdown occurs, it could significantly impact
the ability of the FDA to timely review and process our regulatory submissions, which could have a material adverse effect on
our business. Further, upon completion of this offering and in our operations as a public company, future government shutdowns
could impact our ability to access the public markets and obtain necessary capital in order to properly capitalize and continue
our operations.
Risks Related to our Common Stock
An active and visible public
trading market for our Common Stock may not develop.
We do not currently have an active or
visible trading market. We cannot predict whether an active market for our Common Stock will ever develop in the future. In the
absence of an active trading market:
·
Investors
                                         may have difficulty buying and selling or obtaining market quotations;
·
Trading
                                         of our Common Stock may be extremely sporadic;
·
Market
                                         visibility for shares of our Common Stock may be limited; and
·
A
                                         lack of visibility for shares of our Common Stock may have a depressive effect on the
                                         market price for shares of our Common Stock.
Our Common Stock is quoted over-the-counter
on a market operated by OTC Markets Group, Inc. These markets are relatively unorganized, inter-dealer, over-the-counter markets
that provide significantly less liquidity than Nasdaq or the NYSE MKT. No assurances can be given that our Common Stock, even
if quoted on such markets, will ever actively trade on such markets, much less a senior market like Nasdaq or NYSE MKT. In this
event, there would be a highly illiquid market for our Common Stock and you may be unable to dispose of your Common Stock at desirable
prices or at all. Moreover, there is a risk that our Common Stock could be delisted from its current tier of the OTC Market, in
which case our stock may be quoted on markets even more illiquid.
The price of our Common Stock
might fluctuate significantly, and you could lose all or part of your investment.
Volatility in the market price of our
Common Stock may prevent you from being able to sell your shares of our Common Stock at or above the price you paid for your shares.
The trading price of our Common Stock may be volatile and subject to wide price fluctuations in response to various factors, including:
·
actual
                                         or anticipated fluctuations in our quarterly financial and operating results;
34
·
our
                                         progress toward developing our cortical strip and sheet electrode technology;
·
the
                                         commencement, enrollment and results of our future clinical trials;
·
adverse
                                         results from, delays in or termination of our clinical trials;
·
adverse
                                         regulatory decisions, including failure to receive regulatory approval;
·
publication
                                         of research reports about us or our industry or positive or negative recommendations
                                         or withdrawal of research coverage by securities analysts, if any;
·
perceptions
                                         about the market acceptance of our products and the recognition of our brand;
·
adverse
                                         publicity about our products or industry in general;
·
overall
                                         performance of the equity markets;
·
introduction
                                         of products, or announcements of significant contracts, licenses or acquisitions, by
                                         us or our competitors;
·
legislative,
                                         political or regulatory developments;
·
additions
                                         or departures of key personnel;
·
threatened
                                         or actual litigation and government investigations;
·
third-party
                                         promotional activities, which are subject to ongoing regulatory obligations;
·
sale
                                         of shares of our Common Stock by us or members of our management; and
·
general
                                         economic conditions.
These and other factors might cause the
market price of our Common Stock to fluctuate substantially, which may negatively affect the liquidity of our Common Stock. In
addition, in recent years, the stock market has experienced significant price and volume fluctuations. This volatility has had
a significant impact on the market price of securities issued by many companies across many industries. The changes frequently
appear to occur without regard to the operating performance of the affected companies. Accordingly, the price of our Common Stock
could fluctuate based upon factors that have little or nothing to do with our Company, and these fluctuations could materially
reduce our share price.
Securities class action litigation has
often been instituted against companies following periods of volatility in the overall market and in the market price of a company's
securities. This litigation, if instituted against us, could result in substantial costs, divert our management's attention
and resources, and harm our business, operating results and financial condition.
Concentration of ownership
of our Common Stock among our existing executive officers, directors and principal stockholders may prevent new investors from
influencing significant corporate decisions.
As of July 1, 2019, our executive officers,
directors and current beneficial owners of 5% or more of our Common Stock and their respective affiliates, in the aggregate, beneficially
own approximately 50.7% of our outstanding Common Stock. As a result, these persons, acting together, would be able to significantly
influence all matters requiring stockholder approval, including the election and removal of directors, any merger, consolidation,
sale of all or substantially all of our assets, or other significant corporate transactions.
Some of these persons or entities may
have interests different than yours. For example, they may be more interested in selling our Company to an acquirer than other
investors, or they may want us to pursue strategies that deviate from the interests of other stockholders.
Our management has identified
certain internal control deficiencies, which management believes constitute material weaknesses. Our failure to establish and
maintain an effective system of internal controls could result in material misstatements of our financial statements or cause
us to fail to meet our reporting obligations or fail to prevent fraud in which case, our stockholders could lose confidence in
our financial reporting, which would harm our business and could negatively impact the price of our stock.
35
Prior to the Acquisition (as defined below),
NeuroOne, Inc. was a private company with limited accounting personnel and other resources with which to address our internal
controls and procedures. We review and update our internal controls, disclosure controls and procedures, and corporate governance
policies as our Company continues to evolve. In addition, in connection with the Acquisition and becoming a company required to
file reports with the SEC, we are required to comply with the internal control evaluation and certification requirements of Section
404 of the Sarbanes-Oxley Act of 2002 ("SOX") and management is required to report annually on our internal control
over financial reporting. Our independent registered public accounting firm will not be required to formally attest to the effectiveness
of our internal control over financial reporting pursuant to Section 404 of SOX until the date we have a public float of $75 million
or greater.
During the audits for the periods ended
September 30, 2018 and December 31, 2017, it was determined that our internal control over financial reporting is not effective.
Such shortcomings could have an adverse effect on our business and financial results. This lack of control effectiveness could
also make it more difficult or more costly for us to obtain certain types of insurance, including director and officer liability
insurance, and we may be forced to accept reduced policy limits and coverage or incur substantially higher costs to obtain the
same or similar coverage. Any system of internal controls, however well designed and operated, is based in part on certain assumptions
and can provide only reasonable, not absolute, assurances that the objectives of the system are met. Any failure or circumvention
of the controls and procedures or failure to comply with regulation concerning control and procedures could have a material effect
on our business, results of operation and financial condition. Any of these events could result in an adverse reaction in the
financial marketplace due to a loss of investor confidence in the reliability of our financial statements, which ultimately could
negatively affect the market price of our shares, increase the volatility of our stock price and adversely affect our ability
to raise additional funding. The effect of these events could also make it more difficult for us to attract and retain qualified
persons to serve on our Board of Directors (the "Board") and as executive officers.
Our management's evaluation of the
effectiveness of our internal controls over financial reporting as of March 31, 2019 concluded that our controls were not effective,
due to material weaknesses resulting from an ineffective overall control environment. The material weaknesses stem primarily from
our small company size and include the inability to maintain effective controls over (i) accounting for non-routine and complex
debt and equity transactions, (ii) the financial statement close and reporting process, (iii) accounting for routine transactions,
and (iv) segregation of duties.
Management believes there is a reasonable
possibility that these control deficiencies, if uncorrected, could result in material misstatements in the annual or interim financial
statements that would not be prevented or detected in a timely manner. Accordingly, we have determined that these control deficiencies
constitute material weaknesses. Subject to limitations on liquidity, the Company is planning to take steps to remediate these
material weaknesses.
We will need to evaluate our existing
internal controls over financial reporting against the criteria set forth in Internal Control – Integrated Framework (2013)
issued by the Committee of Sponsoring Organizations of the Treadway Commission. During the course of our ongoing evaluation of
the internal controls, we may identify other areas requiring improvement, and may have to design enhanced processes and controls
to address issues identified through this review. Remediating any deficiencies, significant deficiencies or material weaknesses
that we or our independent registered public accounting firm may identify may require us to incur significant costs and expend
significant time and management resources. We cannot assure you that any of the measures we implement to remedy any such deficiencies
will effectively mitigate or remedy such deficiencies. The existence of one or more material weaknesses could affect the accuracy
and timing of our financial reporting. Investors could lose confidence in our financial reports, and the value of our Common Stock
may be harmed, if our internal controls over financial reporting are found not to be effective or if we make disclosure of existing
or potential material weaknesses in those controls.
Even if we conclude that our internal
control over financial reporting provides reasonable assurance regarding the reliability of financial reporting and the preparation
of financial statements for external purposes in accordance with generally accepted accounting principles, because of its inherent
limitations, internal control over financial reporting may not prevent or detect fraud or misstatements. Failure to implement
required new or improved controls, or difficulties encountered in their implementation, could harm our operating results or cause
us to fail to meet our future reporting obligations.
36
Our reporting obligations as a public
company will place a significant strain on our management, operational and financial resources and systems for the foreseeable
future. If we fail to timely achieve and maintain the adequacy of our internal control over financial reporting, we may not be
able to produce reliable financial reports or help prevent fraud. Our failure to achieve and maintain effective internal control
over financial reporting could prevent us from filing our periodic reports on a timely basis which could result in the loss of
investor confidence in the reliability of our financial statements, harm our business and negatively impact the trading price
of our Common Stock.
We intend to issue more shares
to raise capital, which will result in substantial dilution.
Our certificate of incorporation authorizes
the issuance of a maximum of 100,000,000 shares of Common Stock and 10,000,000 shares of preferred stock. Any additional financings
effected by us may result in the issuance of additional securities without stockholder approval and the substantial dilution in
the percentage of Common Stock held by our then existing stockholders. Moreover, the Common Stock issued in any such transaction
may be valued on an arbitrary or non-arm's-length basis by our management, resulting in an additional reduction in the percentage
of Common Stock held by our current stockholders. Our Board has the power to issue any or all of such authorized but unissued
shares without stockholder approval. To the extent that additional shares of Common Stock are issued in connection with a financing,
dilution to the interests of our stockholders will occur and the rights of the holder of Common Stock might be materially and
adversely affected.
As of March 31, 2019, we had outstanding warrants to purchase an aggregate of 6,448,613 shares of Common
Stock at a weighted average exercise price of $2.52 per share, and options to purchase an aggregate of 600,209 shares of Common
Stock at a weighted average exercise price of $1.26 per share. We are registering 4,399,322 shares of our Common Stock issuable
upon exercise of warrants on this registration statement of which this prospectus is a part. Once sold under the registration statement,
of which this prospectus is a part, the shares of Common Stock issuable upon exercise of the warrants will be freely tradable in
the hands of persons other than our affiliates. For a description of our outstanding warrants and information about the number
of shares of Common Stock for which they are exercisable, see "Management's Discussion and Analysis of Financial Condition
and Results of Operations-Liquidity and Capital Resources-Historical Capital Resources." To the extent these outstanding
options or warrants are exercised, there will be further dilution to holders of our Common Stock.
Anti-takeover provisions in
the Company's certificate of incorporation and bylaws may prevent or frustrate attempts by stockholders to change the Board
or current management and could make a third-party acquisition of the Company difficult.
The Company's certificate of incorporation
and bylaws contain provisions that may discourage, delay or prevent a merger, acquisition or other change in control that stockholders
may consider favorable, including transactions in which stockholders might otherwise receive a premium for their shares. For example,
our certificate of incorporation permits the Board without stockholder approval to issue up to 10,000,000 shares of preferred
stock and to fix the designation, power, preferences, and rights of those shares. Furthermore, our Board has the ability to increase
the size of the Board and fill the newly created vacancies without stockholder approval. These provisions could limit the price
that investors might be willing to pay in the future for shares of the Common Stock.
We are a smaller reporting
company, and the reduced reporting requirements applicable to smaller reporting companies may make our Common Stock less attractive
to investors.
We are a "smaller reporting company"
as defined in Section 12 of the Exchange Act. For as long as we continue to be a smaller reporting company, we may take advantage
of exemptions from various reporting requirements that are applicable to other public companies that are not smaller reporting
companies such as, reduced disclosure obligations regarding executive compensation in our annual and periodic reports and proxy
statements, and exemptions from the requirements of holding nonbinding advisory votes on executive compensation, and stockholder
approval of any golden parachute payments not previously approved. We will remain a "smaller reporting company" as
long as (i) our public float remains less than $250 million or (ii) our annual revenues are less than $100 million and we either
have no public float, or our public float is less than $700 million. Public float is measured as of the last business day of our
most recently-completed second fiscal quarter, and annual revenues are as of the most recently completed fiscal year for which
audited financial statements are available. We cannot predict if investors will find our Common Stock less attractive because
we may rely on these exemptions. If some investors find our Common Stock less attractive as a result, there may be a less active
trading market for our Common Stock and our stock price may be more volatile.
37
Our Common Stock is subject
to the "penny stock" rules of the SEC, which makes transactions in our stock cumbersome and may reduce the value of
an investment in our stock.
The SEC has adopted regulations which
generally define a "penny stock" as an equity security that has a market price of less than $5.00 per share, subject
to specific exemptions. The SEC's penny stock rules require a broker-dealer, before a transaction in a penny stock not otherwise
exempt from the rules, to deliver a standardized risk disclosure document that provides information about penny stocks and the
risks in the penny stock market. The broker-dealer must also provide the customer with current bid and offer quotations for the
penny stock, the compensation of the broker-dealer and the salesperson in the transaction, and monthly account statements showing
the market value of each penny stock held in the customer's account. In addition, the penny stock rules generally require
that before a transaction in a penny stock occurs, the broker-dealer must make a special written determination that the penny
stock is a suitable investment for the purchaser and receive the purchaser's agreement to the transaction. These rules may
restrict the ability of brokers-dealers to sell our Common Stock and may affect the ability of investors to sell their shares,
until our Common Stock no longer is considered a penny stock.
The market for penny stocks
has experienced numerous frauds and abuses, which could adversely impact investors in our stock.
OTC Market securities are frequent targets
of fraud or market manipulation, both because of their generally low prices and because reporting requirements are less stringent
than those of the stock exchanges such as Nasdaq and The New York Stock Exchange. Patterns of fraud and abuse include:
·
Control
                                         of the market for the security by one or a few broker-dealers that are often related
                                         to the promoter or issuer;
·
Manipulation
                                         of prices through prearranged matching of purchases and sales and false and misleading
                                         press releases;
·
"Boiler
                                         room" practices involving high pressure sales tactics and unrealistic price projections
                                         by inexperienced sales persons;
·
Excessive
                                         and undisclosed bid-ask differentials and markups by selling broker-dealers; and
·
Wholesale
                                         dumping of the same securities by promoters and broker-dealers after prices have been
                                         manipulated to a desired level, along with the inevitable collapse of those prices with
                                         consequent investor losses.
We have not paid dividends
in the past and do not expect to pay dividends in the future, and any return on investment may be limited to the value of our
stock.
We have never declared or paid cash dividends
on our capital stock. We currently intend to retain all available funds and any future earnings for use in the operation and expansion
of our business and do not anticipate paying any cash dividends in the foreseeable future. Accordingly, you may have to sell some
or all of your shares of our Common Stock in order to generate cash flow from your investment. You may not receive a gain on your
investment when you sell shares and you may lose the entire amount of the investment.
We expect to incur increased
costs and demands upon management as a result of being a public company.
As a public company in the United States,
we expect to incur significant additional legal, accounting and other costs. These additional costs could negatively affect our
financial results. In addition, changing laws, regulations and standards relating to corporate governance and public disclosure,
including regulations implemented by the SEC and the stock exchange on which we may list our Common Stock, may increase legal
and financial compliance costs and make some activities more time-consuming. These laws, regulations and standards are subject
to varying interpretations and, as a result, their application in practice may evolve over time as new guidance is provided by
regulatory and governing bodies. We intend to invest resources to comply with evolving laws, regulations and standards, and this
investment may result in increased general and administrative expenses and a diversion of management's time and attention
from revenue-generating activities to compliance activities. If, notwithstanding our efforts to comply with new laws, regulations
and standards, we fail to comply, regulatory authorities may initiate legal proceedings against us and our business may be harmed.
38
Failure to comply with these rules might
also make it more difficult for us to obtain some types of insurance, including director and officer liability insurance, and
we might be forced to accept reduced policy limits and coverage or incur substantially higher costs to obtain the same or similar
coverage. The impact of these events could also make it more difficult for us to attract and retain qualified persons to serve
on our Board, on committees of our Board or as members of senior management.
A significant portion of our
total outstanding shares are restricted from immediate resale but may be sold into the market in the future. This could cause
the market price of our Common Stock to drop significantly, even if our business is doing well.
Sales of a substantial number of shares
of our Common Stock in the public market could occur at any time. If our stockholders sell, or the market perceives that our stockholders
intend to sell substantial amounts of our Common Stock in the public market, the market price of our Common Stock could decline
significantly.
Certain shares of our outstanding Common Stock are freely tradable without restriction by stockholders
who are not our affiliates. Upon the effectiveness of the registration statement of which this prospectus is a part, 8,032,952
shares of our Common Stock will be freely tradable by the Selling Stockholders without restriction. However, we have shares of
Common Stock that are restricted under securities laws but will be able to be resold in the future. In addition to the shares we
are registering hereunder, we also may register additional shares of Common Stock that we may issue in connection with our future
capital raising efforts. Once we register those shares, they can be freely sold in the public market.
Furthermore, shares issued pursuant to
awards under our equity incentive plans and registered under a registration statement on Form S-8 will be available for sale in
the public market subject to vesting arrangements and exercise of options and the restrictions of Rule 144 in the case of our
affiliates.
If securities or industry
analysts do not publish research or reports, or publish unfavorable research or reports, about us, our business or our market,
our stock price and trading volume could decline.
The trading market for our Common Stock
will be influenced by the research and reports that securities or industry analysts publish about us and our business. Securities
or industry analysts may elect not to provide coverage of our Common Stock, and such lack of coverage may adversely affect the
market price of our Common Stock. In the event we do not secure additional securities or industry analyst coverage, we will not
have any control over the analysts or the content and opinions included in their reports. The price of our stock could decline
if one or more securities or industry analysts downgrade our stock or issue other unfavorable commentary or research. If one or
more securities or industry analysts ceases coverage of our Company or fails to publish reports on us regularly, demand for our
stock could decrease, which in turn could cause our stock price or trading volume to decline.
Risks Related to the Acquisition
We may be subject to unknown
risks as a result of our completed acquisition by Original Source Entertainment, Inc.
Original Source Entertainment, Inc., which
was renamed NeuroOne Medical Technologies Corporation in connection with the Acquisition, was formed to license songs to the television
and movie industry and has generated very little revenues. Prior to the Acquisition, its operations have been primarily limited
to organizational, start-up, and capital formation activities, with no employees other than the former officers. On February 5,
2014, the board of directors of Original Source Entertainment, Inc. authorized the spin-off of Original Source Music, Inc., a
wholly-owned subsidiary which then held all of our operations and assets, to our stockholders of record as of February 25, 2014.
Under the terms of the spin-off, the common stock, par value $0.001 per share, of Original Source Music, Inc. was distributed
on a pro-rata basis to each holder of our common stock on the February 25, 2014 record date without any consideration or action
on the part of such holders, and the holders of our common stock as of the February 25, 2014 record date became owners of 100%
of the common stock of Original Source Music, Inc. The spin-off of Original Source Music, Inc. was effective as of May 13, 2016,
due to the satisfactory resolution of all comments from the SEC to the Registration Statement on Form 10 of Original Source Music,
Inc. and the Form 10's effectiveness. Therefore, upon the spinoff of Original Source Music, which held all of our operations
and assets at the time, on May 13, 2016, Original Source Entertainment, Inc. ceased having a specific business plan and purpose.
In connection with the Acquisition, the
liabilities existing in Original Source Entertainment, Inc. at the time of the Acquisition were cancelled or paid by a related
party, as required by the Merger Agreement with NeuroOne, Inc. and OSOK Acquisition Company (the "Merger Agreement").
Despite this requirement and the representations and warranties of Original Source Entertainment, Inc. in the Merger Agreement,
there may be unknown liabilities, or liabilities that were known but believed to be immaterial, related to the business of Original
Source Entertainment, Inc. that may become material liabilities we are subject to in the future. If we are subject to material
liabilities as a result of the conduct of Original Source Entertainment, Inc., we may have limited recourse for such liabilities,
which could have a material impact on our business and stock price.
Because we were engaged in
a transaction that can be generally characterized as a "reverse merger," we may not be able to attract the attention
of major brokerage firms.
Additional risks may exist since we were
engaged in a transaction that can be generally characterized as a "reverse merger." Securities analysts of major brokerage
firms may not provide coverage of the Company since there is little incentive to brokerage firms to recommend the purchase of
the Common Stock. No assurance can be given that brokerage firms will want to conduct any secondary offerings.
39
FORWARD-LOOKING
STATEMENTS
This prospectus contains forward-looking
statements that involve substantial risks and uncertainties. The forward-looking statements are contained principally in the sections
entitled "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations"
and "Description of Business," but are also contained elsewhere in this prospectus. In some cases, you can identify
forward-looking statements by the words "may," "might," "will," "could," "would,"
"should," "expect," "intend," "plan," "objective," "anticipate,"
"believe," "estimate," "predict," "project," "potential," "target,"
"seek," "contemplate," "continue" and "ongoing," or the negative of these terms,
or other comparable terminology intended to identify statements about the future. These statements involve known and unknown risks,
uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially
different from the information expressed or implied by these forward-looking statements. Although we believe that we have a reasonable
basis for each forward-looking statement contained in this prospectus, we caution you that these statements are based on a combination
of facts and factors currently known by us and our expectations of the future, about which we cannot be certain. Forward-looking
statements include statements about:
·
our
                                         plans to develop and commercialize our cortical strip, grid and depth electrode technology;
·
our
                                         plans for and our expectations regarding the pre-clinical testing and clinical trials
                                         of our cortical strip, grid and depth electrode technology that will be required by the
                                         FDA or foreign regulatory bodies;
·
the
                                         timing and availability of data from pre-clinical tests or clinical trials;
·
the
                                         timing of our planned regulatory filings;
·
the
                                         timing of and our ability to obtain and maintain regulatory approval of our cortical
                                         strip, grid and depth electrode technology;
·
our
                                         expectations regarding international opportunities for commercializing our cortical strip,
                                         grid and depth electrode technology under development;
·
the
                                         clinical utility of our cortical strip, grid and depth electrode technology under development;
·
our
                                         ability to develop our cortical strip, grid and depth electrode technology with the benefits
                                         we hope to offer as compared to existing technology, or at all;
·
our
                                         ability to develop future generations of our cortical strip, grid and depth electrode
                                         technology;
·
our
                                         future development priorities;
·
our
                                         ability to obtain reimbursement coverage for our cortical strip, grid and depth electrode
                                         technology;
·
our
                                         expectations about the willingness of healthcare providers to recommend our cortical
                                         strip, grid and depth electrode technology to people with epilepsy, Parkinson's
                                         disease, essential tremors, and other brain related disorders;
·
our
                                         future commercialization, marketing and manufacturing capabilities and strategy;
·
estimates
                                         of the impact of material weaknesses in the internal control over financial reporting;
·
our
                                         ability to comply with applicable regulatory requirements;
·
our
                                         ability to maintain our intellectual property position;
·
our
                                         estimates regarding the size of, and future growth in, the market for our technology
                                         under development; and
·
our
                                         estimates regarding our future expenses and needs for additional financing.
40
Forward-looking statements are based on
management's current expectations, estimates, forecasts and projections about our business and the industry in which we
operate, and management's beliefs and assumptions are not guarantees of future performance or development and involve known
and unknown risks, uncertainties and other factors that are in some cases beyond our control. You should refer to the "Risk
Factors" section of this prospectus for a discussion of important factors that may cause our actual results to differ materially
from those expressed or implied by our forward-looking statements. As a result of these factors, we cannot assure you that the
forward-looking statements in this prospectus will prove to be accurate. Furthermore, if our forward-looking statements prove
to be inaccurate, the inaccuracy may be material. In light of the significant uncertainties in these forward-looking statements,
you should not regard these statements as a representation or warranty by us or any other person that we will achieve our objectives
and plans in any specified time frame, or at all.
These forward-looking statements speak
only as of the date of this prospectus. Except as required by law, we assume no obligation to update or revise these forward-looking
statements for any reason, even if new information becomes available in the future. You should, however, review the factors and
risks and other information we describe in the reports we will file from time to time with the SEC after the date of this prospectus.
USE OF PROCEEDS
We are not selling any
securities under this prospectus and will not receive any proceeds from the sale of shares of Common Stock offered by this
prospectus by the Selling Stockholders. However, we may receive proceeds from the cash exercise of the warrants, which, if
exercised in cash at the current exercise price with respect to all warrants, would result in gross proceeds to us of
approximately
$12.6 million.
The use of proceeds
from such Warrant exercises, if any, will be used for research and development, clinical studies, legal fees and
sales and marketing expenses, as well as working capital and general corporate purposes. For information about the Selling
Stockholders, see "Selling Stockholders."
The Selling Stockholders will pay any
underwriting discounts and commissions and expenses incurred by the Selling Stockholders for brokerage or legal services or any
other expenses incurred by the Selling Stockholders in disposing of the shares of Common Stock offered hereby. We will bear all
other costs, fees and expenses incurred in effecting the registration of the shares of Common Stock covered by this prospectus,
including all registration and filing fees and fees and expenses of our counsel and accountants.
41
SELLING STOCKHOLDERS
This prospectus covers an aggregate
of up to 8,032,952
shares of our common stock that may be sold or otherwise disposed of by the
Selling Stockholders identified herein. Such shares include (a) shares of Common Stock and shares issuable upon the exercise
of certain warrants we issued and/or sold to (i) investors in the 2019 Private Placement (ii) noteholders upon the automatic
conversion of the Series 3 Notes, (iii) placement agents pursuant to placement agent agreements, and (iv) an investor
relations firm in connection with certain consulting services, and (b) shares of Common Stock sold to three investors by a former officer of the Company.
The
table below sets forth, to our knowledge, information concerning the beneficial ownership of shares of our Common Stock by the
Selling Stockholders as of
July 1, 2019. The information in the table below with respect to the Selling Stockholders has
been obtained from the Selling Stockholders. The Selling Stockholders may sell all, some or none of the shares of Common Stock
subject to this prospectus. See "Plan of Distribution."
Beneficial ownership is determined in
accordance with the rules of the SEC, and includes voting or investment power with respect to shares. To our knowledge, except
as indicated in the footnotes to this table, (i) each person named in the table has sole voting and investment power with respect
to all shares of Common Stock shown in the table to be beneficially owned by such person, and (ii) none of the selling stockholders
has had any position, office or other material relationship with us or any of our predecessors or affiliates within the past three
years. Except as set forth below, none of the selling stockholders is a broker-dealer or an affiliate of a broker-dealer.
We have assumed all shares of Common Stock
reflected on the table will be sold from time to time in the offering covered by this prospectus, although the Selling Stockholders
are under no obligation known to us to sell any shares of Common Stock at this time. Because the Selling Stockholders may offer
all or any portions of the shares of Common Stock listed in the table below, no estimate can be given as to the amount of those
shares of Common Stock covered by this prospectus that will be held by the Selling Stockholders upon the termination of the offering.
Number
    of
Shares of
Common Stock
Beneficially
Number
    of
Shares of
Number
    of Shares
of Common Stock
Offered
Beneficial
    Ownership After Offering
Name
    of Selling Stockholder
Owned Prior
to Offering
(1)
Common
Stock Offered
Upon
Exercise
    of
Warrants
Number
    of
Shares
Ownership
Percentage(2)
Allen
    Gabriel
40,000
(3)
20,000
20,000
0
*
Douglas
    Harnar LLC
200,000
(3)(4)
100,000
100,000
0
*
J&C
    Resources, LLC
80,000
(3)(5)
40,000
40,000
0
*
Bruce
    Walter McFadden
8,000
(3)
4,000
4,000
0
*
Ousama
    Elsaadi
20,000
(3)
10,000
10,000
0
*
Joseph
    Tagliaferro
12,000
(3)
6,000
6,000
0
*
Christopher
    James Carrie
80,000
(3)
40,000
40,000
0
*
Samuel
    J. Chantilis
64,000
(3)
32,000
32,000
0
*
Dr.
    George E. Deshon Jr.
10,000
(3)
5,000
5,000
0
*
David
    and Martha Kadue Living Trust
40,000
(3)(6)
20,000
20,000
0
*
Christopher
    P. Gutek
20,000
(3)
10,000
10,000
0
*
David
    R. Gienapp
32,000
(3)
16,000
16,000
0
*
S.
    Bruce Lansky Revocable Trust
20,000
(3)(7)
10,000
10,000
0
*
Jack
    Cavin Holland 1979 Trust u/a/d 02/14/1979
48,000
(3)(8)
24,000
24,000
0
*
Charles
    Brian Evans & Lisa Smith Evans
20,000
(3)
10,000
10,000
0
*
Robert
    Biederman
40,000
(3)
20,000
20,000
0
*
Dr.
    Steve Sahai
80,000
(3)
40,000
40,000
0
*
Flying
    S Ranch Trust
40,000
(3)(9)
20,000
20,000
0
*
The GBS Living Trust
20,000
(3)
(10)
10,000
10,000
0
*
Alain
    M. Baudry
33,000
(3)
14,000
14,000
5,000
*
Nickitas
    Michael Panayotou
219,000
(3)
99,000
120,000
0
*
42
Dean
    Bekken
40,000
(3)
20,000
20,000
0
*
Francis
    Lymburner
40,000
(3)
20,000
20,000
0
*
William
    M. Stocker III
40,000
(3)
20,000
20,000
0
*
Paul
    G. Darr & Dawn L. Darr
40,000
(3)
20,000
20,000
0
*
Bradley
    Rotter
200,000
(3)
100,000
100,000
0
*
Gregory
    H. Blaine
20,000
(3)
10,000
10,000
0
*
Veronica
    Marano & Thomas M. Volckening
160,000
(3)
80,000
80,000
0
*
Clayton
    A. Struve
160,000
(3)
80,000
80,000
0
*
Nachiketa
    Das
20,000
(3)
10,000
10,000
0
*
Barrie
    Peterson
40,000
(3)
20,000
20,000
0
*
Stephen
    Kann
2
0,000
(3)
10,000
10,000
0
*
CD
    Walker LLC
40,000
(3)(11)
20,000
20,000
0
*
Kenneth
    Grutman
20,000
(3)
10,000
10,000
0
*
DKS&C
    Enterprises, LLC
40,000
(3)(12)
20,000
20,000
0
*
Mohammad
    Jainal Bhuiyan
883,629
(3)(13)(14)
204,545
150,971
528,113
*
David
    L. Salentine
42,400
(3)
21,200
21,200
0
*
RBC Capital Markets, LLC CUST FBO David L. Salentine IRA
24
,000
(3)
12,000
12,000
0
*
Noah
    Anderson
160,000
(3)
80,000
80,000
0
*
Jerry
    B. Watkins Revocable Trust Dated 01/03/01
90,000
(3)(15)
40,000
40,000
10,000
*
Cagan-Wolfenbarger
    Family Trust
400,000
(3)(16)
200,000
200,000
0
*
Gary
    W. Levine
20,000
(3)
10,000
10,000
0
*
Antonie
    Wobbe Ploegsma
100,000
(3)
50,000
50,000
0
*
Kari
    Beth Widhalm & Samuel Thomas Widhalm
16,000
(3)(17)
8,000
8,000
0
*
Darrell
    R. Heinen
40,000
(3)
10,000
10,000
20,000
*
Kenneth
    Ashkin
2
0,000
(3)
10,000
10,000
0
*
Michael
    Connor
12,000
(3)
6,000
6,000
0
*
Aaron
    Lehmann
30,000
(3)
15,000
15,000
0
*
Ipai
    Terry Hsiao
40,000
(3)
20,000
20,000
0
*
KBB
    Asset Management LLC
40,000
(3)(18)
20,000
20,000
0
*
Amy
    Milam & Terry
Milam
40,000
(3)
(19)
20,000
20,000
0
*
Arnold
    Balsam
3
0,000
(3)
15,000
15,000
0
*
Khristopher
    M. Lugo
30,000
(3)
15,000
15,000
0
*
Resolute
    Venture Partners L.P.
220,000
(3)(20)
110,000
110,000
0
*
Kamaljit
    Khara
20,000
(3)
10,000
10,000
0
*
Patrick
    J. Wanner
48,000
(3)
16,000
16,000
16,000
*
Paul
    Russo
12,000
(3)
6,000
6,000
0
*
Shital
    Mehta D.O.
40,000
(3)
20,000
20,000
0
*
Randy
    Rabin
20,000
(3)
10,000
10,000
0
*
Thomas
    Nolan & Patricia N. Nolan Jt/Wros
40,000
(3)
(21)
20,000
20,000
0
*
Martin
    Siegel
39,958
(3)
19,979
19,979
0
*
John
    Avon
20,000
(3)
10,000
10,000
0
*
David
    Templeton
40
,000
(3)
10,000
10,000
20
,000
*
Steven
    E. Wietsma
20,000
(3)
10,000
10,000
0
*
RBC Capital Markets, LLC CUST FBO David L. Salentine IRA
24
,000
(3)
12,000
12,000
0
*
Currie
    Family Trust
80,000
(3)
(22)
40,000
40,000
0
*
William
    Murphy
240,000
(3)
120,000
120,000
0
*
Alexander
    Tosi
60,000
(3)
30,000
30,000
Gerald
    W. Simonson
80,000
(3)
40,000
40,000
0
*
Gary
    Lyn Hadwin Sr.
40,000
(3)
10,000
10,000
20,000
*
Christopher
    Frattaroli
80,000
(3)
40,000
40,000
0
*
Joseph
    J. McElmeel, Jr. Trust dated 11/17/1993
24,000
(3)(23)
6,000
6,000
12,000
*
David
    S. Gray
10,000
(3)
5,000
5,000
0
*
43
Efrat
    Investments
80,000
(3)(24)
40,000
40,000
0
*
James
    T. Betts
20,000
(3)
10,000
10,000
0
*
Larry
    Vaught
20,000
(3)
10,000
10,000
0
*
Charles
    Robinson
20,000
(3)
10,000
10,000
0
*
Miller
    Living Trust
12,000
(3)(25)
6,000
6,000
0
*
Mark
    Robert Barrett
178,954
(26)
27,822
55,644
95,488
*
Michael
    Logar
83,466
(26)
27,822
55,644
0
*
Sean
    Wambold
143,774
(26)
46,004
55,644
42,126
*
Asif
    Zaman
41,493
(26)
13,831
27,662
0
*
Leonard
    Mazur
368,651
(26)
81,139
162,278
125,234
*
Nabil
    Mallick
66,333
(26)
22,111
44,222
0
*
The
    Len Mertz Trust
165,801
(26)(27)
55,267
110,534
0
*
Adam
    Lipson
82,566
(26)
27,522
55,044
0
*
Karen
    Torpey
82,566
(26)
27,522
55,044
0
*
Daniel
    Kramer Revocable Trust
82,299
(26)(28)
27,433
54,866
0
*
Edward
    G. Gleason
82,299
(26)
27,433
54,866
0
*
Qasim
    M. Husain
164,433
(26)
54,811
109,622
0
*
H.
    Edward Wilkin III
81,999
(26)
27,333
54,666
0
*
Kenan
    M. Basha
408,750
(26)
136,250
272,500
0
*
Farzana
    Hakeem
81,618
(26)
27,206
54,412
0
*
Lifestyle
    Healthcare LLC
1,058,435
(26)(29)
172,267
135,444
750,724
*
Lev
    Grzhonko
40,149
(26)
13,383
26,766
0
*
Barry
    Pressman Family Trust
286,081
(26)(30)
53,533
107,066
125,482
*
Mark
    H. Rephen
160,167
(26)
53,389
106,778
0
*
Bosun
    Hau
39,951
(26)
13,317
26,634
0
*
Mustafa
    Ameenuddin
79,533
(26)
26,511
53,022
0
*
Corinthian
    Partners, LLC
28,405
(13)(31)
0
28,405
0
*
Marta
    Wypych
8,050
(13)
0
8,050
0
*
Nickolay
    Kukekov
50,971
(13)
0
50,971
0
*
Theodore
    Kalem
297,804
(13)
0
50,971
246,833
*
JLS
    Ventures, LLC
50,000
(32)
50,000
0
0
*
JOJ Holdings,
    LLC
200,000
(32)
200,000
0
0
*
James Diemert
20,000
(3)
10,000
10,000
0
*
Ken Lyons
12,000
(3)
6,000
6,000
0
*
Robert Susie
20,000
(3)
10,000
10,000
0
*
Baxter House Properties, LLC
80,000
(3)(33)
40,000
40,000
0
*
Dmitry Aksenov
4,700
(34)
0
4,700
0
*
Todd Bennschneider
300
(34)
0
300
0
*
44
Christopher Clark
30,251
(34)
0
30,251
0
*
Basil Christakos
1,702
(34)
0
1,702
0
*
Tim Dabulis
1,750
(34)
0
1,750
0
*
Trent Davis
3,199
(34)
0
3,199
0
*
Thomas Endres
600
(34)
0
600
0
*
Mark Finckle
2,902
(34)
0
2,902
0
*
Peter Fogarty
7,500
(34)
0
7,500
0
*
Dane Grouell
681
(34)
0
681
0
*
Stephen Kann
17,400
(34)
0
17,400
0
*
Albert Landstrom
3,075
(34)
0
3,075
0
*
Lorraine Maxfield
1,702
(34)
0
1,702
0
*
John Nole
1,968
(34)
0
1,968
0
*
Evan Paliotta
300
(34)
0
300
0
*
Thomas Parigian
30,251
(34)
0
30,251
0
*
Gary Saccaro
8,100
(34)
0
8,100
0
*
Robert Setteducati
30,251
(34)
0
30,251
0
*
Timothy Touloukian
800
(34)
0
800
0
*
Eugene Webb
10,800
(34)
0
10,800
0
*
Malcolm Alexander Winks
3,199
(34)
0
3,199
0
*
Paulson Investment Company, LLC
31,986
(34)(35)
0
31,986
0
*
*Less than 1%.
(1)
Beneficial ownership is determined
                                         in accordance with Rule 13d-3 under the Securities Act, and includes any shares of Common Stock as to
                                         which the Selling Stockholder has sole or shared voting power or investment power, and
                                         also any shares which the Selling Stockholder has the right to acquire within 60 days
                                         of July 1, 2019, whether through the exercise or conversion of any stock option, convertible
                                         security, warrant or other right. The indication herein that shares are beneficially
                                         owned is not an admission on the part of the Selling Stockholder that he, she or it is
                                         a direct or indirect beneficial owner of those shares.
(2)
Based upon 13,463,765 shares of Common
                                         Stock issued and outstanding as of July 1, 2019.
(3)
Includes shares of Common Stock issuable
                                         upon exercise of warrants issued in the 2019 Private Placement.
(4)
Douglas Harnar
                                         has voting control and investment discretion over the securities reported herein that
                                         are held by Douglas Harnar LLC.
(5)
Charles Johnston
                                         has voting control and investment discretion over the securities reported herein that
                                         are held by J&C Resources, LLC.
(6)
Martha Elaine
                                         Kadue has voting control and investment discretion over the securities reported herein
                                         that are held by the David and Martha Kadue Living Trust.
(7)
Bruce Lansky has
                                         voting control and investment discretion over the securities reported herein that are
                                         held by the S. Bruce Lansky Revocable Trust.
(8)
Jack C. Holland has voting control and investment discretion over the securities
reported herein that are held by the Jack Cavin Holland 1979 Trust u/a/d 02/14/1979.
(9)
Ryan Shay has voting control and investment discretion over the securities reported herein that are held
by the Flying S Ranch Trust.
(10)
Gregory B. Stewart, the trustee of the trust, has voting and dispositive power over the
    securities
reported herein that are held by the GBS Living Trust.
(11)
Curtis Walker has voting control and investment discretion over the securities reported herein that are
held by CD Walker LLC.
(12)
Dale Powell and Katharine Powell have shared voting control and investment discretion over the securities
reported herein that are held by DKS&C Enterprises, LLC.
45
(13)
Includes shares of Common Stock issuable                                          upon
                                                            exercise of outstanding warrants issued to the selling stockholder as the designee
                                                            of our placement agent, Corinthian, a registered broker dealer,  as compensation for placement
                                                            agent                                                                                                      services in
                                                            connection with certain offerings. The selling stockholder is an affiliate of Corinthian. Corinthian is an
                                                            affiliate of                                                             HRA
                                                            Capital. HRA Capital is affiliated with Chromium 24 LLC and Lifestyle Healthcare LLC, which have been greater than 5%
                                                            stockholders at some point within the past three years. For more information, see "Certain
                                                            Relationships                                                             and
                                                            Related Transactions and Director Independence."
(14)
The selling stockholder is a partner
                                         at HRA Capital, and HRA Capital's affiliate, Corinthian, a registered
                                         broker-dealer, has acted as a placement agent for private placements by the Company and
                                         NeuroOne, Inc. Additionally, HRA Capital is affiliated with Chromium 24 LLC and Lifestyle
                                         Healthcare LLC, which have been greater than 5% stockholders at some point within the
                                         past three years. For more information, see "Certain Relationships and Related
                                         Transactions and Director Independence."
(15)
Jerry B. Watkins has voting control and investment discretion over the securities reported herein that
are held by the Jerry B. Watkins Revocable Trust Dated 01/03/01.
(16)
Laird Cagan has voting control and investment discretion over the securities reported herein that are
held by the Cagan-Wolfenbarger Family Trust.
(17)
Kari Beth Widhalm and Samuel Thomas Widhalm have shared voting control and investment
                                                                              discretion over the securities reported herein.
(18)
Steve Segal has voting control and investment discretion over the securities reported herein that are
held by KBB Asset Management LLC.
(19)
Amy Milam & Terry Milam have shared voting control
and investment discretion over the securities herein.
(20)
Victor and Judd Morgenstern, the general partners of Resolute Venture
                                                            Partners L.P., have shared voting control and
                                                            investment                                                             discretion over
                                                            the                                                                                                 securities reported
                                                            herein that are held by Resolute Venture
                                                            Partners L.P.
(21)
Thomas Nolan and Patricia N. Nolan have shared voting control
and investment discretion over the securities herein.
(22)
Malcom Currie has voting control and investment discretion
over the securities reported herein that are held by the Currie Family Trust.
(23)
Joseph J. McElmeel, Jr., the trustee
                                         of the trust, has voting and dispositive power over the shares.
(24)
Pinny Rotter has voting control and investment discretion over the securities reported herein that are
held by Efrat Investments.
(25)
David Vincent Miller has voting control and investment discretion over the securities reported herein
that are held by Miller Living Trust.
(26)
Includes shares of Common Stock issuable
                                         upon exercise of outstanding warrants issued upon the conversion of Series 3 Notes.
(27)
Len P. Mertz, the trustee of the trust, has voting control and investment
                                                            discretion                                                             over the securities reported herein that are held by
                                                            The Len Mertz Trust.
(28)
Daniel Kramer, the trustee of the trust, has voting control and investment
                                                            discretion                                                             over the securities reported herein that are held by
                                                            Daniel Kramer Revocable
                                                            Trust.
(29)
Nickolay Kukekov has voting and dispositive
                                         power over the shares. Nickolay Kukekov is the Managing Director at HRA Capital, and
                                         a partner at HRA Capital's affiliate, Corinthian, a registered broker-dealer
                                         which has acted as a placement agent for private placements by the Company and NeuroOne,
                                         Inc. Additionally, the selling stockholder has provided consulting services to NeuroOne,
                                         Inc. For more information, see "Certain Relationships and Related Transactions
                                         and Director Independence."
(30)
Barry Pressman has voting control and investment discretion over the securities reported herein that are
held by the Barry Pressman Family Trust.
(31)
Richard Calabrese and Mitchell Manoff have voting control and investment
                                                            discretion over the securities reported herein that are held by Corinthian.
(32)
Justin Schreiber has voting control and investment
                                                            discretion                                                             over the securities reported herein that are held by
                                                            JLS and JOJ Holdings, LLC.
(33)
Amarjit S. Bhalla has voting control and investment discretion over the securities reported
    herein that are held by Baxter House Properties, LLC.
(34)
Includes shares of Common Stock issuable upon exercise of outstanding warrants issued to the
    selling stockholder as the designee of our placement agent, Paulson, a registered broker dealer, as     compensation for
    placement agent services in connection with the 2019 Private Placement. The selling stockholder is an affiliate of Paulson.
(35)
Trent Donald Davis, the chief executive officer of Paulson, has
                                                            voting                                                             control and
                                                            investment                                                                                              discretion
                                                            over the                                                             securities reported herein that are held by
                                                            Paulson.
46
PLAN OF DISTRIBUTION
This prospectus includes
8,032,952
shares of Common Stock offered by the Selling Stockholders.
Each Selling Stockholder and any of its
pledgees, assignees and successors-in-interest may, from time to time, sell any or all of its shares of Common Stock on the OTCQB
or any other stock exchange, market or trading facility on which our shares are traded or in private transactions. These sales
may be at fixed or negotiated prices. A selling stockholder may use any one or more of the following methods when selling shares:
·
ordinary
                                         brokerage transactions and transactions in which the broker-dealer solicits purchasers;
·
block
                                         trades in which the broker-dealer will attempt to sell the shares as agent but may position
                                         and resell a portion of the block as principal to facilitate the transaction;
·
purchases
                                         by a broker-dealer as principal and resale by the broker-dealer for its account;
·
an
                                         exchange distribution in accordance with the rules of the applicable exchange;
·
privately
                                         negotiated transactions;
·
settlement
                                         of short sales entered into after the effective date of the registration statement of
                                         which this prospectus is a part;
·
broker-dealers
                                         may agree with the Selling Stockholders to sell a specified number of such shares at
                                         a stipulated price per share;
·
through
                                         the writing or settlement of options or other hedging transactions, whether through an
                                         options exchange or otherwise;
·
a
                                         combination of any such methods of sale; or
·
any
                                         other method permitted pursuant to applicable law.
The Selling Stockholders may also sell
shares under Rule 144 under the Securities Act, if available, rather than under this prospectus.
In addition, the Selling Stockholders
may transfer the shares of Common Stock by other means not described in this prospectus. If the Selling Stockholders effect such
transactions by selling shares of Common Stock to or through underwriters, broker-dealers or agents, such underwriters, broker-dealers
or agents may receive commissions in the form of discounts, concessions or commissions from the Selling Stockholders or commissions
from purchasers of the shares of Common Stock for whom they may act as agent or to whom they may sell as principal (which discounts,
concessions or commissions as to particular underwriters, broker-dealers or agents may be in excess of those customary in the
types of transactions involved). In connection with sales of the shares of Common Stock or otherwise, the Selling Stockholders
may enter into hedging transactions with broker-dealers, which may in turn engage in short sales of the shares of Common Stock
in the course of hedging in positions they assume. The Selling Stockholders may also sell shares of Common Stock short and deliver
shares of Common Stock covered by this prospectus to close out short positions and to return borrowed shares in connection with
such short sales. The Selling Stockholders may also loan or pledge shares of Common Stock to broker-dealers that in turn may sell
such shares.
The Selling Stockholders may pledge or
grant a security interest in some or all of the shares of Common Stock owned by them and, if they default in the performance of
their secured obligations, the pledgees or secured parties may offer and sell the shares of Common Stock from time to time pursuant
to this prospectus or any amendment to this prospectus under Rule 424(b)(3) or other applicable provision of the Securities Act
amending, if necessary, the list of Selling Stockholders to include the pledgee, transferee or other successors in interest as
Selling Stockholders under this prospectus. The Selling Stockholders also may transfer and donate the shares of Common Stock in
other circumstances in which case the transferees, donees, pledgees or other successors in interest will be the selling beneficial
owners for purposes of this prospectus.
47
To the extent required by the Securities
Act and the rules and regulations thereunder, the Selling Stockholders and any broker-dealer participating in the distribution
of the shares of Common Stock may be deemed to be "underwriters" within the meaning of the Securities Act, and any
commission paid, or any discounts or concessions allowed to, any such broker-dealer may be deemed to be underwriting commissions
or discounts under the Securities Act. At the time a particular offering of the shares of Common Stock is made, a prospectus supplement,
if required, will be distributed, which will set forth the aggregate amount of shares of Common Stock being offered and the terms
of the offering, including the name or names of any broker-dealers or agents, any discounts, commissions and other terms constituting
compensation from the Selling Stockholders and any discounts, commissions or concessions allowed or re-allowed or paid to broker-dealers.
There can be no assurance that any Selling Stockholder will sell any or all of the shares of Common Stock
registered pursuant to the registration statement, of which this prospectus is a part.
The Selling Stockholders and any other
person participating in such distribution will be subject to applicable provisions of the Exchange Act, and the rules and regulations
thereunder, including, without limitation, to the extent applicable, Regulation M of the Exchange Act, which may limit the timing
of purchases and sales of any of the shares of Common Stock by the Selling Stockholders and any other participating person. To
the extent applicable, Regulation M may also restrict the ability of any person engaged in the distribution of the shares of Common
Stock to engage in market-making activities with respect to the shares of Common Stock. All of the foregoing may affect the marketability
of the shares of Common Stock and the ability of any person or entity to engage in market-making activities with respect to the
shares of Common Stock. We will pay all expenses of the registration of the shares of Common Stock.
Once sold under the registration statement, of which this prospectus is a part, the shares of Common Stock
will be freely tradable in the hands of persons other than our affiliates.
48
DESCRIPTION OF SECURITIES
TO BE REGISTERED
This prospectus relates to the resale from time to time of up to 8,032,952 shares of Common Stock of the
Company by the selling stockholders listed on page 42. As described below under "About this Prospectus" and "Prospectus
Summary About this Offering," the shares of our Common Stock registered by this prospectus include (i) 2,317,179 shares of
our Common Stock and 2,338,179 shares of our Common Stock issuable upon the exercise of warrants issued to investors in the 2019
Private Placement, (ii) 839,179 shares of our Common Stock and 1,678,358 shares of our Common Stock issuable upon the exercise
of warrants issued on February 28, 2019 to the noteholders upon the automatic conversion of the Series 3 Notes, (iii) 382,785 shares
of our Common Stock issuable upon the exercise of warrants issued to placement agents pursuant to certain placement agent agreements,
(iv) 250,000 shares issued to JLS pursuant to a consulting agreement, and (v) 227,272 shares of our Common Stock purchased from
a former officer of the Company by certain investors in February 2018. We are not selling any shares of Common Stock under this
prospectus and will not receive any proceeds from the sale of shares of Common Stock by the Selling Stockholders.
The Company's authorized capital
stock consists of 100,000,000 shares of common stock, par value of $0.001 per share, and 10,000,000 shares of preferred stock,
par value $0.001 per share.
Common Stock
Holders of the Company's Common Stock
are entitled to one vote for each share on all matters submitted to a stockholder vote. Holders of Common Stock do not have cumulative
voting rights. Therefore, holders of a majority of the shares of Common Stock voting for the election of directors can elect all
of the directors. Holders of the Company's Common Stock representing a majority of the voting power of the Company's
capital stock issued, outstanding and entitled to vote, represented in person or by proxy, are necessary to constitute a quorum
at any meeting of stockholders. A vote by the holders of a majority of the Company's outstanding Common Stock is required
to effectuate certain fundamental corporate changes such as liquidation, merger or an amendment to the Company's certificate
of incorporation.
Holders of the Company's Common Stock
are entitled to share in all dividends that the Company's board of directors, in its discretion, declares from legally available
funds. In the event of a liquidation, dissolution or winding up, each outstanding share entitles its holder to participate pro
rata in all assets that remain after payment of liabilities and after providing for each class of stock, if any, having preference
over the Common Stock. The Company's Common Stock has no pre-emptive rights, no conversion rights and there are no redemption
provisions applicable to the Company's Common Stock.
The Company's certificate of incorporation
authorize the issuance of 10,000,000 shares of "blank check" preferred stock, par value $0.001 per share, in one or
more series, subject to any limitations prescribed by law, without further vote or action by the stockholders. Each such series
of preferred stock shall have such number of shares, designations, preferences, voting powers, qualifications, and special or relative
rights or privileges as shall be determined by our board of directors, which may include, among others, dividend rights, voting
rights, liquidation preferences, conversion rights and preemptive rights.
Anti-Takeover Provisions
We are subject to Section 203 of the Delaware
General Corporation Law, or Section 203. Section 203 generally prohibits a public Delaware corporation from engaging in a "business
combination" with an "interested stockholder" for a period of three years after the date of the transaction in
which the person became an interested stockholder, unless:
●
prior to the date of the transaction, the board of directors of the corporation approved either
the business combination or the transaction which resulted in the stockholder becoming an interested stockholder;
●
the interested stockholder owned at least 85% of the voting stock of the corporation outstanding
upon consummation of the transaction, excluding for purposes of determining the number of shares outstanding (a) shares owned by
persons who are directors and also officers and (b) shares owned by employee stock plans in which employee participants do not
have the right to determine confidentially whether shares held subject to the plan will be tendered in a tender or exchange offer;
or
●
on or subsequent to the consummation of the transaction, the business combination is approved by
the board of directors and authorized at an annual or special meeting of stockholders, and not by written consent, by the affirmative
vote of at least 66 2/3% of the outstanding voting stock which is not owned by the interested stockholder.
49
Section 203 defines a business combination
to include:
●
any merger or consolidation involving the corporation and the interested stockholder;
●
any sale, transfer, pledge or other disposition involving the interested stockholder of 10% or
more of the assets of the corporation;
●
subject to exceptions, any transaction involving the corporation that has the effect of increasing
the proportionate share of the stock of any class or series of the corporation beneficially owned by the interested stockholder;
●
subject to exceptions, any transaction that results in the issuance or transfer by the corporation
of any stock of the corporation to the interested stockholder; and
●
the receipt by the interested stockholder of the benefit of any loans, advances, guarantees, pledges
or other financial benefits provided by or through the corporation.
In general, Section 203 defines an interested
stockholder as any entity or person beneficially owning 15% or more of the outstanding voting stock of the corporation and any
entity or person affiliated with or controlling or controlled by the entity or person.
Certificate of Incorporation and Bylaws
Provisions of our certificate of incorporation
and bylaws may delay or discourage transactions involving an actual or potential change in our control or change in our management,
including transactions in which stockholders might otherwise receive a premium for their shares or transactions that our stockholders
might otherwise deem to be in their best interests. Therefore, these provisions could adversely affect the price of our Common
Stock. Among other things, our certificate of incorporation and bylaws:
●
permit our board of directors to issue up to 10,000,000 shares of preferred stock, with any rights,
preferences and privileges as they may designate;
●
provide that the authorized number of directors may be changed only by resolution adopted by a
majority of the board of directors;
●
provide that the board of directors or any individual director may only be removed with cause and
the affirmative vote of the holders of at least 66 2/3% of the voting power of all of our then outstanding capital stock;
●
provide that all vacancies, including newly created directorships, may, except as otherwise required
by law or subject to the rights of holders of preferred stock as designated from time to time, be filled by the affirmative vote
of a majority of directors then in office, even if less than a quorum;
●
divide our board of directors into three classes;
●
require that any action to be taken by our stockholders must be effected at a duly called annual
or special meeting of stockholders and not be taken by written consent or electronic transmission;
●
provide that stockholders seeking to present proposals before a meeting of stockholders or to nominate
candidates for election as directors at a meeting of stockholders must provide notice in writing in a timely manner and also specify
requirements as to the form and content of a stockholder's notice;
●
do not provide for cumulative voting rights, which means that holders of a majority of the shares
of Common Stock entitled to vote in any election of directors can elect all of the directors standing for election;
●
provide that special meetings of our stockholders may only be called by the chairman of the board
of directors, our Chief Executive Officer or by the board of directors pursuant to a resolution adopted by a majority of the total
number of authorized directors (whether or not any vacancies exist); and
●
provide that the Court of Chancery of the State of Delaware will be the sole and exclusive forum
for (i) any derivative action or proceeding brought on our behalf, (ii) any action asserting a claim of breach of a fiduciary duty
owed by any of our directors or officers to us or our stockholders, (iii) any action asserting a claim against us arising pursuant
to any provision of the DGCL, or (iv) any action asserting a claim against us governed by the internal affairs doctrine.
The amendment of any of these provisions,
with the exception of the ability of our board of directors to issue shares of preferred stock and designate any rights, preferences
and privileges thereto, would require the affirmative vote of the holders of at least 66 2/3% of the voting power of all of our
then outstanding capital stock.
50
DESCRIPTION OF BUSINESS
Overview
Corporate Overview of NeuroOne Medical Technologies Corporation
We were originally incorporated as Original
Source Entertainment, Inc. under the laws of the State of Nevada on August 20, 2009. Prior to the closing of the Acquisition, we
completed a series of steps contemplated by a Plan of Conversion pursuant to which we, among other things, changed our name to
NeuroOne Medical Technologies Corporation, increased our authorized number of shares of Common Stock from 45,000,000 to 100,000,000,
increased our authorized number of shares of preferred stock from 5,000,000 to 10,000,000 and reincorporated in Delaware. On July
20, 2017, we acquired NeuroOne, Inc. (the "Acquisition"). Immediately following the closing of the Acquisition, the
business of NeuroOne, Inc. became our sole focus. Unless otherwise stated or unless the context otherwise requires, the description
of our business set forth below is provided on a combined basis, taking into account our wholly-owned subsidiary, NeuroOne, Inc.
Corporate Overview and History of NeuroOne, Inc.
NeuroOne, Inc. was incorporated under the
laws of the State of Delaware on October 7, 2016. Its predecessor entity, the LLC,  was formed on December
13, 2013 and operated as a limited liability company until it was merged with and into NeuroOne, Inc. on October 27, 2016 with
NeuroOne, Inc. as the surviving entity (the "Merger"). As a result of the Merger, all of the properties, rights, privileges
and powers of the LLC vested in NeuroOne, Inc., and all debts, liabilities and duties of the LLC became the debts, liabilities
and duties of NeuroOne, Inc., except for the license agreement (the "WARF License") with the WARF which was not legally
transferred until May 2017. The purposes of the Merger were to: change the jurisdiction of incorporation from Minnesota to Delaware;
change the ownership of the LLC's underlying assets; and convert from a limited liability company to a corporation.
We are a medical technology company focused
on the development and commercialization of thin film electrode technology for cEEG and sEEG recording, brain stimulation and ablation
solutions for patients suffering from epilepsy, Parkinson's disease, dystonia, essential tremors and other related brain
related disorders. Additionally, we are investigating the potential applications of our technology associated with artificial intelligence.
Members of our management team have held senior leadership positions at a number of medical technology and biopharmaceutical companies,
including Boston Scientific, St. Jude Medical, Stryker Instruments, C.R. Bard, A-Med Systems, Sunshine Heart, Empi, Don-Joy and
PMT.
We are developing our cortical and sheet
and depth electrode technology to provide solutions for diagnosis through cEEG recording and sEEG recording and treatment through
brain stimulation and ablation, all in one product. A cEEG is a continuous recording of the electrical activity of the brain that
identifies the location of irregular brain activity, which information is required for proper treatment. cEEG recording involves
an invasive surgical procedure, referred to as a craniotomy. sEEG involves a less invasive procedure whereby doctors place electrodes
in targeted brain areas by drilling small holes through the skull. Both methods of seizure diagnosis are used to identify areas
of the brain where epileptic seizures originate in order to precisely locate the seizure source for therapeutic treatment if possible.
Deep brain stimulation, or DBS, therapies
involve activating or inhibiting the brain with electricity that can be given directly by electrodes on the surface or implanted
deeper in the brain via depth electrodes. Introduced in 1987, this procedure involves implanting a power source referred to as
a neurostimulator, which sends electrical impulses through implanted depth electrodes, to specific targets in the brain for the
treatment of disorders such as Parkinson's disease, essential tremor, dystonia, and chronic pain. Alzheimer's is another
indication evaluating the effects of DBS. Unlike ablative technologies, the effects of DBS are reversible.
RF ablation is a procedure that uses radiofrequency
under the electrode contacts that is directed to the site of the brain tissue that is targeted for removal. The process involves
delivering energy to the contacts, thereby heating them and destroying the brain tissue. The ablation does not remove the tissue.
Rather, it is left in place and typically scar tissue forms in the place where the ablation occurs. This procedure is also known
as brain lesioning as it causes irreversible lesions.
51
Our cortical sheet electrode and depth
electrode technology has been tested over the years by both WARF, the owners of our licensed patents, and Mayo Clinic located in
Rochester, Minnesota, in both pre-clinical models as well as through an IRB approval at Mayo Clinic for clinical research. Regarding
our ablation electrode, the Cleveland Clinic has performed testing in bench top models and pre-clinical (or animal testing) modes.
These pre-clinical tests have demonstrated that the technology is capable of recording, ablation and acute stimulation, although
our technology remains in product development (meaning that additional trials will be needed prior to it being approved for sale
by the FDA) for all of the recording (or diagnostic) and therapeutic modalities.
Prior to commercialization of our technology,
we will have to obtain regulatory approval as discussed in "—Clinical Development and Regulatory Pathway" and
"—Government Regulation" below.
Our Market Opportunity
Epilepsy Market
We expect to initially target the diagnosis
and treatment of epilepsy. Epilepsy can be caused by a variety of conditions that affect a person's brain, some of which
are: stroke, brain tumor, traumatic brain injury and central nervous system infections. According to the Centers for Disease Control
and Prevention (the "CDC") and Citizens United for Research in Epilepsy ("CURE"), there are approximately
3,000,000 patients annually suffering with epilepsy in the United States, with an additional 200,000 diagnosed every year. They
also estimate that epilepsy costs the United States $15.5 billion per year. We believe the European market is similar. Approximately
720,000 of these patients are not receptive to pharmaceutical treatment and therefore are appropriate for surgical treatment of
this disorder. In addition to poor quality of life, epilepsy also is associated with fairly high mortality rates, especially in
children. CURE reported that Sudden Unexpected Death in Epilepsy accounts for 34% of all deaths in children. Such deaths have increased
by close to 100% from 2005 to 2015 according to the CDC. Despite the large market opportunity, it is estimated that there are only
16,000 craniotomies performed for epilepsy cases each year in the United States with 18,000 performed in Europe.1 These numbers
represent an underpenetrated market due to the invasiveness of a full craniotomy required just to perform the diagnostic procedure.
After the diagnostic procedure, a second therapeutic procedure is required and at times even a third surgery if the seizures persist.
We believe patients are unwilling to proceed due to the long diagnostic times (one-four weeks in the hospital with a craniotomy),
infection rates and 50% rate of success in the diagnosis and treatment of the disorder. As detailed above, after the diagnosis
is completed, if successful, the patient must undergo an additional procedure to have the affected area of brain tissue removed.
The average cost for the diagnostic technology per procedure is $10,000, with ablation devices costing $15,000 and brain stimulation
devices costing $25,000 to $30,000. We believe our technology, once developed, will offer an all in one solution with diagnostic
and therapeutic capabilities.
1.       American
Association of Neurological Surgeons National Neurosurgical Procedural Statistics 2012.
We believe that many leading neurologists
believe that the limits of today's current technologies are the reason the exact affected area of the brain causing epileptic
seizures is not well-determined. We expect our technology, which has been developed to date by physicians at WARF and Mayo Clinic,
will provide a number of advantages over the current commercially available technologies, including the following:
●
Our proprietary thin film technology under development has a smaller footprint with many more electrodes.
●
We expect that our technology will eventually be able to be implanted using a minimally invasive
procedure utilizing a dime sized burr hole rather than a full craniotomy which is typically required to implant the currently available
technology.
●
Our technology may provide more accurate detection of irregular brain activity over currently available
technology. In limited clinical testing, doctors at Mayo Clinic have documented pre-seizure activity (micro-seizures) during their
clinical research with their patients using our cEEG technology.
We expect our technology can ablate through
the electrodes as well as perform brain stimulation, allowing for diagnosis and treatment through the same product and in the same
procedure.
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Parkinson's Disease
The Parkinson's Disease Foundation
estimates that as many as 1,000,000 patients in the United States live with Parkinson's disease with an additional 60,000
patients diagnosed per year. Over 10,000,000 patients worldwide are living with Parkinson's disease. There have not been
any drugs introduced that have been effective at treating Parkinson's disease. The average onset is over 60 years old but
some people have been diagnosed as young as 40 years old. Parkinson's is a disorder of the central nervous system caused
by loss of brain cells throughout various regions of the brain. It is attributed to the loss of dopamine production in the brain,
a messenger in the brain that allows for movement and coordination. There are no objective tests to diagnose Parkinson's
disease, and misdiagnosis rates are still very high. Doctors look to find two or more signs to make a diagnosis, including balance
problems, rigidity and tremors that occur during rest. In 2011, the FDA approved the first imaging device called a DaTscan that
can capture images of the dopamine system in the brain. By itself, these scans cannot diagnose Parkinson's but can help confirm
a doctor's diagnosis. Parkinson's disease is typically not fatal; however, complications caused by the symptoms of
Parkinson's, such as difficulty swallowing causing food to travel to the lungs resulting in pulmonary issues or falls related
to loss of balance, can be fatal.
Today's primary treatment for Parkinson's
disease involves medications that have not proven to resolve symptoms but rather ease symptoms. Years ago, surgical procedures
such as thalamotomy and pallidotomy targeted certain parts of the brain and involved destroying the tissue. More recently, these
procedures have been replaced with DBS. A doctor evaluates the patient by reviewing the patient's symptoms and medications
taken and administering detailed memory, thinking and imaging tests to determine if they are appropriate for DBS. According to
the Michael J. Fox Parkinson's Disease Research Foundation website, patients that seem to do best with DBS are those that
have had the disease for at least four years and have benefited from taking medications prescribed to control the disease. In addition,
DBS seems to help with reducing the issues with motor functions such as tremors, stiffness and slowness but not for balance issues.
Doctors are evaluating treatment to other parts of the brain in an effort to address more symptoms to treat walking or balance
issues. In addition, research is being conducted to provide stimulation when the symptoms return as opposed to all of the time.
Essential Tremors
Essential tremors are thought to be due
to electrical irregularities in the brain that send abnormal signals to the muscles. It is a progressive condition that worsens
over time and is linked to genetic disorders that typically appear in people who are over 40. Essential tremors usually occur alone
and without any other neurological symptoms or signs. The tremors usually occur when the hands are raised and primarily affect
the hands. Muscles in the trunk, face and neck may also experience symptoms. Sometimes misdiagnosed as Parkinson's disease,
essential tremors are an involuntary rhythmic shaking of the hands that is not present at rest. It is apparent during activities
such as drinking, writing and eating. Symptoms can worsen due to stress, anxiety, smoking, caffeine, fatigue, etc. Genetics Home
Reference estimates that as many as 10,000,000 people in the United States are affected by the disease. Treatments for the disease
include medical therapy, weighting the limbs and DBS. Patients need to eliminate any medications they are taking that cause tremors
as this can exacerbate the symptoms. For some patients, using wrist weights may ease symptoms allowing the patient to function.
Other patients may also use relaxation techniques as stress can increase symptoms. Medical therapy is also used to treat patients'
symptoms. Primidone is typically the first drug prescribed as it has had success in some situations for epilepsy. Botox is also
used at times to control head tremors. When these fail, surgery is the next alternative. A surgical procedure used years ago created
lesions in the ventral intermediate thalamus and was highly successful with treating essential tremors but is no longer commonly
used due to increased risk of developing speech problems. The latest therapy is DBS, which, unlike other therapies, is reversible
and programmable, helping to adjust the settings to maximize patient benefit. Similar to Parkinson's disease, the ability
to detect this irregular brain activity before it causes a tremor is highly desirable.
Dystonia
Dystonia is a neurological condition recognized
as a motion disorder that involves over activity of a variety of different muscles simultaneously that work against each other.
It presents itself in a variety of symptoms but typically involves repetitive, patterned and often twisting involuntary muscle
contractions resembling tremors. According to the Dystonia Medical Research Foundation, over 300,000 people are affected in the
United States and Canada alone. Dystonia is the third most common problem seen in movement disorder clinics. Because it has many
different manifestations, it is often misdiagnosed. In addition, similar to Parkinson's disease, there are no specific tests
that can positively diagnose dystonia. A doctor typically will evaluate patient and family history, potentially do genetic testing,
EEG testing, blood and urine tests. There are also many treatment options for patients but depend on the type of dystonia. Botox
and certain medications may be helpful or DBS may be used.
53
Artificial Intelligence
The brain consists of approximately 100
billion nerve cells, which are small wires that pass electrical signals to control all of its functions. There have been a number
of successful clinical trials in which small metal wires, known as electrodes, are implanted in the brain to correct nerve damage
using wireless communication between implanted wires to simulate functional nerve cells. In addition to correcting damaged nerve
cells, certain scientists have theorized that if millions of wires could be implanted in the brain, these electrodes could present
an opportunity to use artificial intelligence to create infrared sight, increase hearing or perfect memory recall. However, there
currently is no commercially available manufacturing platform capable of making thousands of wires that can be placed within or
on the brain and work reliably for the lifetime of a subject, and are soft enough to match the tissue of the brain, that avoid
damage to the brain.
Limitations of Currently Available Therapies
There are a limited number of currently
available products for diagnosis and treatment for people with neurological disorders such as epilepsy. Although the currently
available systems provide diagnosis and treatment for patients, they have certain inherent limitations and shortcomings that we
believe limit their use and validate the need for improved technology in the market. These limitations include:
●
Lengthy diagnostic times:
Patients spend one to four weeks in the hospital waiting to have
seizures that will allow doctors to determine where the seizures are occurring.
●
Lower Accuracy:
Historically, clinical electrode manufacturers primarily provided electrodes
that sample brain tissue at approximately centimeter spacial scales. Advances in digital EEG acquisition have made recordings at
sub-millimeter spatial scales possible, but high-spatial resolution EEG has been slow to impact clinical practice. Existing, higher
spatial scales increase the potential for missing data that may be critical in the removal of brain tissue causing the irregular
activity.
●
Need to perform a full craniotomy (invasiveness):
Currently available cortical electrode
technology is placed through a craniotomy, which requires removing the top part of the cranium and is a very painful and invasive
procedure. Procedural times for a craniotomy range from a minimum of four to eight hours. A variety of complications can occur
when a full craniotomy is performed, including but not limited to: stroke, bleeding, infection, seizures, swelling of the brain
(which may require a second craniotomy), nerve damage, which may cause muscle paralysis or weakness, cerebrospinal fluid (CSF)
leak, which may require repair, loss of mental functions and permanent brain damage with associated disabilities. The invasiveness,
procedural times and possible surgical complications have limited the growth of surgical treatment of epilepsy.
●
Multiple technologies required for diagnosis and treatment:
Currently, a patient undergoes
a craniotomy for implantation of diagnostic film technologies. The patient then waits in the hospital for one to four weeks waiting
to have seizures that will allow doctors to pinpoint where the seizures are occurring in the brain. After this is complete, a patient
has to undergo another lengthy procedure to have the brain tissue removed or undergo permanent implantation of depth electrodes
for chronic stimulation. There is a need for an all in one technology that can potentially allow for diagnosis and treatment concurrently
and potentially offer real time treatment without the need for surgery.
54
Our Solution
As a result of the inherent limitations
and inconvenience of existing systems, we believe that there is a significant unmet need among people with neurological disorders
for cortical strip, grid and depth electrodes that provide diagnostic capabilities through cEEG and sEEG recording in addition
to therapeutic modalities, such as brain stimulation and ablation, offered as an all in one product. In comparison to currently
available technologies, we are currently developing our strip, grid and depth electrodes with the goal of providing the following
expected advantages:
●
Reduced time for diagnosis:
If we are successful in identifying brain activity more quickly,
in offering a minimally invasive procedure and developing an all in one solution, we expect our technology will reduce overall
procedural times. While our pre-clinical and clinical experience to date is very limited, our cortical grid technology under development
has, in some cases, demonstrated the ability to provide hi fidelity recordings that have allowed physicians to identify the affected
brain tissue causing seizures in hours versus weeks. This represents the potential for meaningful cost savings for hospitals and
patients and improved quality of life for patients.
●
Improved accuracy of diagnostic technologies:
Because we believe our thin film technology
will be capable of recording at higher fidelity than current technologies used in EEG recording, we believe our technology may
be able to more precisely determine the brain tissue causing seizures. Additionally, in the limited clinical tests performed by
Mayo Clinic with five patients to date, our technology under development has identified what clinicians refer to as pre-seizure
activity (made possible by the ability to detect brain activity using sub-millimeter spatial scales). We believe our technology
under development may be able to improve outcomes compared to using other therapeutic technologies regardless of whether we are
able to offer an all in one diagnostic and therapeutic solution.
●
Implantation via minimally invasive procedure with fewer post-procedure complications:
We
are currently developing an approach to deliver the cortical electrodes, including minimizing the invasiveness of the procedure.
We expect that patients who have qualified for this therapy will be more accepting of a minimally-invasive procedure. Such a procedure
would potentially reduce the patient's pain, bleeding and other adverse events associated with a full craniotomy. Our technology
is expected to also have fewer wires, also referred to as tails, exiting the patient's head, which can also reduce the potential
for infections. Furthermore, the material we currently use in our cortical electrodes has shown in pre-clinical evaluations to
cause less inflammation than current electrode substrates as it appears more compatible with brain tissue. As discussed under "Our
Strategy" below, our technology under development, if approved, will be implanted via a full craniotomy until such time,
if ever, as we are able to develop our minimally invasive procedure.
●
All-in-one diagnostic and therapeutic technology solution:
Due to the expected high fidelity
recording capabilities of our technology under development, we have received feedback from physicians that they will attempt to
perform the diagnosis and treatment in a single procedure, thereby eliminating the need for a second surgical procedure, reducing
the likelihood of patient infection and minimizing the diagnostic, procedural and hospital costs. As discussed under "Our
Strategy" below, our initial product offering will offer diagnostic-only capabilities while we advance the development of
our all in one approach.
Our Strategy
Our goal is to be the global leader in
cEEG and sEEG recording, deep brain stimulation and ablation, owning the procedure from diagnosis through treatment. The key elements
of our strategy include:
●
Introduce cortical strip
                                         and grid electrodes for the diagnosis of epilepsy in United States
:
In January 2019, we
                                         filed a 510(k) device submission to the FDA for our cortical and strip electrodes for
                                         temporary (less than 30 day) use with recording, monitoring, and acute stimulation equipment
                                         for the recording, monitoring and stimulation of electrical signals on the surface of
                                         the brain. In June 2019, the FDA requested additional data, which the Company plans to
                                         submit by the end of July 2019. If the FDA agrees that the device is substantially equivalent
                                         to a legally marketed predicate device, it will grant clearance to commercially market
                                         the device. Our initial product offering will be placed through traditional surgical
                                         means involving a craniotomy until such time, if any, that we launch our minimally invasive
                                         procedure. We believe, due to physician feedback, that our technology under development
                                         would represent a major improvement over existing cortical electrodes for the recording
                                         of brain activity. We are initially targeting epilepsy as we believe this is a clinical
                                         area of great need and a market that is underserved with a quick path to commercialization.
                                         We believe the largest and quickest-to-market geography for our cortical strip and grid
                                         technology under development is in the United States for a number of reasons, including
                                         the following: (i) many industry sources believe there is a large underserved U.S. market,
                                         (ii) healthy procedural reimbursement for centers and physicians, (iii) robust average
                                         selling prices, (iv) physician enthusiasm for our technology under development. We expect
                                         to hire direct experienced sales representatives to market our technology, if approved,
                                         in the United States.
55
●
Launch depth electrodes for sEEG recording:
Given the reluctance of patients to undergo
epilepsy surgery due to its invasiveness, a number of epilepsy centers have adopted the use of depth electrodes, which are placed
by drilling small holes into the patient's cranium, thereby avoiding a craniotomy. We believe our technology will offer advantages
to current depth electrode technology and will enable us to offer a therapeutic solution using this technology in the future. As
we develop our technology, we plan to release further information about the expected advantages of our technology over currently
available therapies.
●
Introduce minimally invasive delivery system for cortical electrodes:
Cortical electrodes
generally require a craniotomy, which is a very invasive procedure that can cause patient complications. Because of this, many
patients have opted to not have epilepsy surgery, instead accepting the consequences and risks associated with epilepsy. We intend
to develop a procedure that may include a delivery system placed through a small circular incision in the skull for implantation
of the cortical grid and strip electrodes. We believe this will increase patient willingness to accept the surgery and increase
market penetration. Until we are able to develop this procedure, if at all, our initial product offering will be placed through
traditional surgical means involving a craniotomy and may be less likely to be adopted by physicians and patients due to unwillingness
of patients to undergo epilepsy surgery.
●
Utilize these core technologies to develop all in one diagnostic and therapeutic solutions:
Patients currently undergo one surgical procedure for diagnosis (either to have a cortical electrode placed via a craniotomy
or depth electrodes placed via holes drilled into the skull) and, hopefully after the brain recordings successfully indicate where
the affected brain tissue is located, a second procedure or surgery is then required to treat the patient. There is strong physician
interest in being able to perform both the diagnostic and therapeutic procedure concurrently. We are developing our technology
with the goal of being able to offer this benefit although there can be no assurance that we will be able to do so. We are pursuing
cortical grid, strip and depth electrode technology that can record brain activity (diagnose), ablate brain tissue and also provide
both acute and long term stimulation. The technology has demonstrated these functions in acute and short term animal models; however,
additional development is required to offer a device that has long term therapeutic application. These therapeutic technologies
are expected to require more robust regulatory approvals for the United States, ranging from a 510(k) with human clinical data
to PMAs. We will engage the FDA at the proper time to determine the most efficient clinical
path.
●
Gain approval for other brain or motor related disorders such as Parkinson's with the
therapeutic technologies developed for epilepsy:
While we are developing our technology for the diagnosis and treatment of
epilepsy, we believe that our technology has strong application and utilization for other brain or motor related disorders such
as Parkinson's disease, dystonia, essential tremors and facial pain as these diseases are currently treated with DBS if medications
are not effective. As previously mentioned, we are planning to offer electrodes that can be implanted for long term stimulation
applications, but such use will require that we pursue additional approvals from the FDA and any international regulatory bodies
where we seek to commercialize our technology.
●
Explore partnerships with other companies that leverage our core technology:
Given that
our technology enables, complements and/or competes with a number of companies that are in the market or attempting to enter the
market with diagnostic or therapeutic technologies to treat brain related disorders, we believe there may be opportunities to establish
mutually beneficial relationships. In addition, our technology may have application in cardiovascular, orthopedic and pain related
indications that could benefit from a hi-fidelity thin film electrode product that can provide stimulation and/or ablation therapies.
●
Investigate the potential applications associated with Artificial Intelligence:
We have
been informed by some of our corporate advisors that the ability to offer scale-able electrode technology that can provide thousands
of electrodes in the brain may be helpful in treating medical conditions that may benefit from using artificial intelligence. The
Company has formed an advisory board that will provide guidance to the Company as we continue to explore the opportunities in this
exciting field.
56
Our Technology
Epilepsy Mapping and Monitoring
Epileptic seizures occur when the neurons
in the brain miscommunicate. This miscommunication typically results in involuntary muscle seizure activities and/or periods of
perceptual disconnect where the individual appears frozen. Modern medical science has advanced the treatment of epileptic seizures
by mapping the electrical communication activity of neurons and understanding their special orientation in the brain. This mapping
is accomplished by access to the cranium (through a craniotomy) and placing conductive contacts on the brain directly. The craniotomy
procedure is very invasive, traumatic to the surrounding tissue, results in high patient down time, and increases the risk of infection.
Our Technology
We seek to leverage scale-able technology
and produce ultra-thin, or paper-thin electrodes that allow for high-resolution and high-definition recordings, which would improve
mapping resolution and signal acquisition. If the Company is able to leverage scale-able technology, it would mean that our technology
would be able to incorporate smaller electrodes and thereby increase the number of electrodes on a given surface area. We expect
that this would increase the imaging resolution so that brain activity is displayed in greater definition. We also believe that
the electrodes' unique thinness and flexibility will provide a less invasive approach to electrode placement. The electrodes
would be able to be placed through a small quarter size hole instead of by an invasive full craniotomy procedure.
The images under "Cortical Electrode,"
from bottom to top, are images of our cortical electrode strip, our grid electrode, and the placement of the grid electrode on
the brain, respectively. The images under "High Density Interconnect" are both images of our product that connects
our electrodes to the head box, which is a piece of hardware that connects to electrodes to acquire, amplify, display, store and
archive electrophysiological signals, and is integrated as part of our manufactured electrode product. The images under "Head
Box" and "Signal Monitoring and Mapping" are images of the device which processes information received through
the high density interconnect, and a sample output of data acquisition, respectively, neither of which is one of a Company product.
Our technology consists of three primary
types of cortical electrodes: grid electrodes, strip electrodes and dual-sided electrodes. These electrodes have a patented design
that utilizes proprietary processing and materials technology, which we believe will allow the electrodes to have improved features
over the current industry standard recording electrodes.
57
What sets our technology apart from others
is the integration of state of the art design leveraging the latest in flexible printed circuit technology. We believe our patented
designs will provide the surgeon a higher tactile perspective on electrode placement allowing for ultra-precise neuron recording.
We expect the benefits of our electrode designs to include the ability to detect better defined margins between healthy tissue
and resect-able tissue, less immune-response from the brain and surrounding tissue, better signal acquisition due to superior conformability
of the electrode over the brain, improved flexibility that physicians have requested, which we expect will enable a minimally invasive
approach and the electrodes unique thinness that is unmatched by current products being used.
The Future of Neurology Mapping
with NeuroOne
We seek to develop superior "scale-able"
technology for future product system iterations in higher density contact placement. This will open the doors to other brain related
disease recording procedures by providing hi-fidelity, more accurate diagnostic capabilities and also the ability to provide an
all in one therapy capable of diagnosis, ablation and/or stimulation. Beyond the brain, we believe our technology under development
has applications in other neurological signal recording disease states related to voluntary or involuntary motor neuron abnormalities,
understanding sensory neuro behavior (pain), limb prosthetics and degenerative muscle disease.
Clinical Development and Regulatory Pathway
Clinical Experience, Future
Development and Clinical Trial Plans
Our technology under development has not
been approved for commercialization by any U.S. or foreign regulatory body. To date, the Company has performed a number of bench
top (which includes feasibility testing) and pre-clinical tests (which include animal testing of device placement, ergonomics,
performance, ease of use, and other tests required by FDA regulations). As described in "—Government Regulation"
below, the Company will be required to perform additional testing of its technology in connection with obtaining regulatory approvals.
In parallel with the development and testing
needed to launch our cortical strip and grid electrodes, we intend to expand our product offerings to include less invasive means
and all in one solutions, thus providing both patients and physicians better options to treat epilepsy and other brain related
disorders. While we expect to make modifications to this initial system, we believe that most of our future product development
initiatives will involve unique and transformational next generation technology that should drive further appeal of our products
with both physicians and patients.
We are utilizing a number of resources
to develop these technologies. We license three critical patents from WARF that are the foundation of the technology we are developing
and intend to commercialize and benefit from the thin film technology know-how of Mayo Clinic doctors through our license and development
agreement. WARF, Mayo Clinic and Cleveland Clinic have been responsible for all pre-clinical studies of our technology under development
to date. See "—WARF License" and "—Mayo Foundation for Medical Education and Research License and
Development Agreement" below.
58
Below we have summarized, for each component
of our technology under development, the current stage of development, the pre-clinical testing done to date by WARF, The Cleveland
Clinic or Mayo Clinic on such component, if any, our plans for further testing or clinical trials and our expectations regarding
the requirements for regulatory approval and timing of regulatory submissions:
Technology
Stage of Development and Pre-Clinical Testing to Date
Additional Expected Steps for Regulatory Approval
Cortical strip and grid electrodes for the diagnosis of epilepsy
Company has finalized the
        design for the product and there are no further expected changes to the device ("design freeze").
Pre-clinical testing and
        clinical testing on the final design has been conducted by Mayo Clinic and WARF (as described in "Mayo Clinic Studies"
        below).
510(k) filing submitted
        to the FDA in January 2019. In June 2019, the FDA requested additional data, which the Company plans to submit by the
        end of July 2019.
There may be continued clinical
        evaluation of the technology under a pre-existing IRB research protocol approved by Mayo's institutional review board, which
        will provide us with additional clinical evidence that may assist with product acceptance and launch.
Commercial launch
        is planned to begin in the United States
by
the end
of 2019 pending FDA 510(k) clearance and sufficient capital to hire sales representatives.
As described in "—Government
        Regulation" below, FDA 510(k) clearance often takes longer than 90 days, and clearance is never assured. The FDA may require
        further information, including clinical data which could delay the planned launch.
Depth electrodes for recording (diagnostic) purposes
Design freeze for one design;
        currently there are additional alternative designs under evaluation.
Bench top testing and pre-clinical
        tests (animal testing) were conducted in the third and fourth calendar quarters of 2018.
No clinical testing has
        been conducted to date.
The Company is
        currently evaluating two additional alternative designs for this product. Design freeze was completed in the fourth calendar
        quarter of 2018 for one of the three designs in consideration. Additional pre-clinical tests (including safety and performance
        tests) expected to occur
by
the end
of
        2019. The tests will need to demonstrate: biocompatibility (including extractables/leachables (whether the product results
        in any leaching of metals), and ease of implantation)), which we estimate will require $100,000;
Sterilization validation
        and adoption, which we estimate will require $25,000 to complete; and
Electrical safety, which
        we estimate will require $60,000 to complete.
Pending the outcome
        of these tests, we expect to file for FDA 510(k) marketing clearance for one design in the second calendar quarter of
2020
.
Minimally invasive cortical electrode delivery system
No design freeze.
An initial pre-clinical
        feasibility study was conducted by the Mayo Clinic utilizing their device with our cortical film technology in December 2018. Additional
        testing is expected in the second half of 2019.
Pre-clinical testing
was conducted in
the first calendar quarter of 2019,
        and regulatory requirements will continue to be evaluated as we develop the design of this product. The Company is refining
        the design and expects to conduct additional cadaver and animal studies in the third quarter of 2019.
The Mayo Clinic is conducting
        testing of its own device. In the event the Mayo Clinic completes development of its own device prior to us, we may forego completing
        development of our device and seek to enter into an arrangement with Mayo Clinic relating to its device (such as, for example,
        an acquisition/licensing, or distribution agreement).
Otherwise, to complete development
        of our own device, testing will need to demonstrate design verification, which we estimate will require $50,000.
59
Technology
Stage of Development and Pre-Clinical Testing to Date
Additional Expected Steps for Regulatory Approval
Depth electrode diagnostic and ablation devices
No design freeze.
Pre-clinical testing, including
        benchtop and animal testing, has been conducted on early designs.
No clinical testing has
        been conducted to date.
The Company has partnered
        with the Cleveland Clinic to co-develop the product.
Additional pre-clinical
        testing at the Cleveland Clinic was completed in the
second
calendar
        quarter of 2019.
Once the design is finalized
        we will be required to conduct additional pre-clinical testing, which may include additional benchtop or animal testing for safety
        and performance. Additionally, the FDA may require that we conduct human clinical studies.
No FDA feedback has been
        sought or received by us to date on the clinical process that may be required for an ablation indication, but we expect regulatory
        clearance/approval will require a more robust clinical process, which could range from 510(k) clearance with human clinical data
        to a PMA, depending on proposed indications for use. We expect that we will need to demonstrate design verification, which we estimate
        will require $75,000 to complete, biocompatibility, which we estimate will require $100,000 to complete, and sterilization validation
        and adoption, which we estimate will require $25,000 to complete. We may also need to demonstrate electrical safety, which we estimate
        will require $60,000.
Future pre-clinical and
        clinical testing requirements for regulatory clearance will continue to be evaluated as we develop the design of this product
60
Technology
Stage of Development and Pre-Clinical Testing to Date
Additional Expected Steps for Regulatory Approval
Depth electrode chronic stimulation devices
No design freeze.
No pre-clinical testing,
        or clinical testing has been conducted to date
This device is in early
        development, and we do not expect to begin conducting bench top nor pre-clinical testing until the fourth calendar quarter of 2019.
Following a design freeze,
        we will be required to conduct additional pre-clinical testing, which may include additional benchtop or animal testing for safety
        and performance. Additionally, FDA-approved human clinical studies will most likely be required.
No FDA feedback has been
        sought or received by us to date on the clinical process that will be required for chronic stimulation, but we expect regulatory
        clearance/approval for chronic stimulation may require a more robust clinical process, which could range from 510(k) clearance
        with human clinical data to a PMA. Because we have not yet met with the FDA, we cannot yet determine what clinical data and testing
        we will need to complete or what the testing will need to demonstrate. However, we believe, based on the experience of competitors
        for similar technology, that we will need to conduct clinical trials, which we estimate will require approximately $1,000,000,
        as well as demonstrate biocompatibility, which we estimate will require $100,000 to complete, and demonstrate sterilization validation
        and adoption, which we estimate will require $25,000 to complete.
Mayo Clinic Studies
Our cortical technology for the diagnosis
of epilepsy has been tested by doctors at Mayo Clinic in multiple pre-clinical tests conducted from 2012 to 2017. In pre-clinical
models, doctors examined the biological impact on mammalian brains. Polyimide substrate electrodes (NeuroOne technology) were implanted
on the pig's brain for one week alongside standard competitive electrodes. The tissue underneath the two types of electrodes
was removed, fixed, stained, and examined for immunological responses. The results of a histological (evaluation of brain tissue
under a microscope) analysis showed reduced immunological reaction to prolonged polyimide substrate implants (NeuroOne technology)
compared to standard silicone substrate clinical electrodes. Electrophysiological recordings showed data obtained from polyimide
electrodes which showed the feasibility of high fidelity multi-scale electrophysiology while also displaying easier deployment
of polyimide electrodes (NeuroOne technology) through minimally invasive burr holes.
Additionally, doctors implanted our polyimide
thin film electrodes on five human patients who were undergoing surgery to remove brain tissue for drug resistant epilepsy. Electrophysiological
recordings from the polyimide thin film technology displayed in each of these patients demonstrated micro-seizure activity due
to the high fidelity multi-scale electrophysiology.
Conclusions reached by the physicians at
Mayo Clinic were that thin, flexible polyimide electrodes (NeuroOne technology) provided recordings similar to standard clinical
electrodes with reduced immunological response. In addition, the flexibility of polyimide electrodes may reduce pain and swelling
associated with implantation of the device, and the single wire exiting the skull may reduce infection risk. The ability to record
micro-seizure and single neuron brain activity may also provide additional useful clinical data. Combined, these properties suggest
that the replacement of our current competitive silicone electrodes with polyimide substrate electrodes (NeuroOne technology) for
recording brain activity for epilepsy could provide enhanced clinical value with reduced cost, reduced infection risk, and improved
patient comfort.
61
In addition, our thin film cortical implant
technology has been tested by researchers at the University of Wisconsin-Madison in multiple pre-clinical animal studies conducted
from 2006 to 2016, which included mice, rats and primates. In these studies, our technology was able to record brain activity from
different areas of the brain, was implanted in a minimally invasive fashion, electrically provided brain stimulation and tissue
ablation, and had increased flexibility compared to existing commercially available technology, which allowed the grids to conform
more easily to the brain surface (and may have reduced pain and swelling, compared to less flexible devices).
Sales and Marketing
Based on the size and maturity of the U.S.
market, our initial commercial focus, if our technology is approved for commercialization for the diagnosis of epilepsy in the
United States, will be to invest in developing a direct sales force and infrastructure to support the launch of the product in
the United States and target what we estimate to be approximately 188 Level 4 epilepsy centers along with their respective epilepsy
teams comprised of neurologists, neurosurgeons and technicians in the United States who are clinically active. To prepare for future potential commercialization, the Company hired Scott Heuler as Vice-President of
Sales.
In parallel, we have evaluated the opportunity
to commercialize our products in select European markets and have concluded that while there is a market for our technology in
Europe, the regulatory changes in the European Union will require a lengthy and costly approval pathway. At this time, we will
utilize our resources to remain focused on the opportunity in the United States but will reexamine international opportunities
at a later time. If our technology is approved for commercialization for the diagnosis of epilepsy in the United States, we will
look to educate neurologists, neurosurgeons and primary care physicians on the advantages to existing epilepsy approaches through
a variety of targeted marketing tools and social media.
Reimbursement
Coverage in the United States
Reimbursement from private third-party
healthcare payors and, to a lesser extent, Medicare will be an important element of our success. Although CMS and third-party payors
have adopted coverage policies for our targeted indications, there is no guarantee this will continue at the same levels or at
all in the future. Current Procedural Terminology, or CPT, is a medical code set that is used to report medical, surgical and diagnostic
procedures and services to entities such as physicians, health insurance companies and accreditation organizations.
Applicable diagnostic CPT codes for mapping
(diagnosing) the brain for diagnostic procedures are as follows:
●
61531 Subdural implantation of strip electrodes through one or more burr or trephine (saw) hole(s)
for long-term seizure monitoring;
●
61533 Craniotomy with elevation of bone flap: for subdural implantation of an electrode array,
for long term seizure monitoring;
●
61535 Craniotomy with elevation of bone flap; for removal of epidural or subdural electrode array,
without excision of cerebral tissue (separate procedure); and
●
61760 Stereotactic implantation of depth electrodes into the cerebrum for long term seizure monitoring.
Regarding ICD-10 codes, the International
Classification of Diseases, Tenth Edition (ICD-10) is a clinical cataloging system that went into effect for the U.S. healthcare
industry on October 1, 2015, after a series of lengthy delays. Accounting for modern advances in clinical treatment and medical
devices, ICD-10 codes offer many more classification options compared to those found in its predecessor, ICD-9. Within the healthcare
industry, providers, coders, IT professionals, insurance carriers, government agencies and others use ICD codes to properly note
diseases on health records, to track epidemiological trends and to assist in medical reimbursement decisions.
62
ICD-10 codes for epilepsy are as follows:
●
G40.0 Localization-related (focal) (partial) idiopathic epilepsy and epileptic syndromes with seizures
of localized onset;
●
G40.1 Localization-related (focal) (partial) symptomatic epilepsy and epileptic syndromes with
simple partial seizures;
●
G40.2 Localization-related (focal) (partial) symptomatic epilepsy and epileptic syndromes with
complex partial seizures;
●
G40.3 Generalized idiopathic epilepsy and epileptic syndromes;
●
G40.A Absence epileptic syndrome;
●
G40.4 Other generalized epilepsy and epileptic syndromes;
●
G40.50 Epileptic seizures related to external causes, not intractable;
●
G40.80 Other epilepsy; and
●
G40.82 Epileptic spasms.
We believe that many of the indications
we are pursuing with our technologies are currently reimbursed on a widespread basis by Medicare, Medicaid and private insurance
companies.
Medicare, Medicaid, health maintenance
organizations and other third-party payors are increasingly attempting to contain healthcare costs by limiting both coverage and
the level of reimbursement of new medical devices, and, as a result, their coverage policies may be restrictive, or they may not
cover or provide adequate payment for our products. In order to obtain reimbursement arrangements, we may have to agree to a net
sales price lower than the net sales price we might charge in other sales channels. Our revenue may be limited by the continuing
efforts of government and third-party payors to contain or reduce the costs of healthcare through various increasingly sophisticated
means, such as requiring prospective reimbursement and second opinions, purchasing in groups, or redesigning benefits. Our future
dependence on the commercial success of our technologies makes us particularly susceptible to any cost containment or reduction
efforts. Accordingly, unless government and other third-party payors provide adequate coverage and reimbursement for our products
and the related insertion and removal procedures, our financial performance may be limited.
Coverage Outside the United
States
If we seek to commercialize in countries
outside the United States, coverage for epilepsy surgical procedures are available from certain governmental authorities, private
health insurance plans, and labor unions. Coverage systems in international markets vary significantly by country and, within some
countries, by region. If we seek to commercialize our technology, if approved, outside the United States, coverage approvals must
be obtained on a country-by-country, region-by-region or, in some instances, a case-by case basis. Based on our ongoing evaluation,
certain countries reimburse more highly than others.
We evaluated international opportunities
to market our technology under development. While we believe there is a market for our technology in Europe and other foreign jurisdictions,
we have determined not to seek to commercialize in any foreign jurisdictions due to time intensive approval processes, the lack
of certainty regarding approval, significant cost and the stringency of the regulatory approval process in Europe in particular,
among other factors.
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Manufacturing, Supply and Quality Assurance
We currently outsource the supply and manufacture
of all components of our prototypes of our technology under development. We plan to continue with an outsourced manufacturing arrangement
for the foreseeable future. Our third-party manufacturers are recognized in their field for their competency to manufacture the
respective portions of our system and have quality systems established that meet FDA requirements. We believe the manufacturers
we currently utilize have sufficient capacity to meet our launch requirements if our technology under development is approved in
the future and are able to scale up their capacity relatively quickly with minimal capital investment. We believe that, as we increase
our demand in the future, our per-unit costs will decrease materially. We have also identified capable second source manufacturers
and suppliers in the event of disruption from any of our primary vendors.
Our suppliers meet the latest ISO 13485
certification, which includes design control requirements. As a medical device developer, the facilities of our sterilization and
other critical suppliers are subject to periodic inspection by the FDA and corresponding state and foreign agencies. We believe
that our quality systems and those of our suppliers are robust and achieve high product quality. We plan to audit our suppliers
periodically to ensure conformity with the specifications, policies and procedures for our devices.
Research and Development
Our research and development team, which
includes our Chief Technology Officer and Chief Development Officer who are full-time employees, and two third party consultants
who perform research and development activities for us, is focused on the development of thin film cortical grid and strip electrodes
and depth electrodes for recording, ablation and chronic stimulation for brain related disorders as well as stimulation for spinal
cord stimulation for back related pain.
Our research and development expenses were
$0.7 million for the year ended December 31, 2017, $0.7 million for the nine months ended September 30, 2018 and $0.4 million for
the three months ended March 31, 2019.
Competition
In the market for Epilepsy diagnosis, our
cortical strip, sheet and depth electrode technology will likely compete with Integra Life Science's Integra Epilepsy Strip,
Grid and depth electrodes, which provide a similar function to our diagnostic technologies under development. These products are
well established in the marketplace and Integra has greater resources than us, which could allow them to innovate faster. Ad-Tech
Medical Instrument Corporation's Epilepsy/LTM (subdural grid, strip and depth) electrodes, which have become the market leaders
for diagnostic mapping in epilepsy, and PMT's Cortac Strips and grid electrodes and Depthalon depth electrodes
are used for recording brain activity similar to other competitive technologies. In addition, Dixie Medical has launched a product
line of depth electrodes and CorTec has launched a cortical electrode product line called AirRay. Today's success rates for
seizure free post-operative conditions remain at 50%, which has limited patients' willingness to undergo the currently highly
invasive surgical procedure. We will also compete against other companies in early stages of development of thin film technologies.
In the neuro-ablation market, we expect
to compete with Medtronic's Visualase guided-laser ablation technology and Monteris Medical's NeuroBlate technology,
which use MRI guided laser surgical ablation for use to ablate, necrotize or coagulate soft tissue through interstitial irradiation
or thermal therapy in medicine and surgery in the discipline of neurosurgery with 1064 nm lasers. Their website claims it is used
for ablation in the brain for soft tissue and tumors. We believe there are other laser-based systems in development that will compete
with these technologies.
In the neurostimulation market, we expect
to compete with NeuroPace's RNS system approved for epilepsy, Medtronic's Activa system approved for Parkinson's
disease, Boston Scientific Vercise (indicated for Parkinson's, dystonia and essential tremors), Abbott/St. Jude Medical's
Infinity DBS system (approved for Parkinson's disease and essential tremors), Liva Nova/Cyberonic's VNS therapy intended
for patients suffering with epilepsy. We believe there are additional companies pursuing thin film electrode technology for use
in the brain although none are expected to be commercially available in 2019. Although we will face potential competition from
many different sources, we believe that our technology, knowledge, experience and scientific resources will provide us with competitive
advantages. We expect the key competitive factors affecting the success of our cortical strip and sheet electrodes under development,
if successfully developed and approved, are likely to be: hi-fidelity recording that allows for detection of pre-seizure activity,
ability to place the devices minimally invasively, deliverability of cortical grid, strip and depth electrode technology, ability
to offer grid, strip and depth electrodes in various electrode shapes and sizes, potential reduction in infections and ability
to record brain activity both on the surface using cortical grid and strip technology and deeper into the brain using depth electrodes
concurrently.
64
Many of the companies against which we
may compete in the future have significantly greater financial resources and expertise in research and development, manufacturing,
preclinical testing, conducting clinical trials, obtaining regulatory approvals and marketing approved products than we do. Mergers
and acquisitions in the pharmaceutical, biotechnology and diagnostic industries may result in even more resources being concentrated
among a smaller number of our competitors. Smaller or early stage companies may also prove to be significant competitors, particularly
through collaborative arrangements with large and established companies. These competitors also compete with us in recruiting and
retaining qualified scientific and management personnel and establishing clinical trial sites and subject registration for clinical
trials, as well as in acquiring technologies complementary to, or necessary for, our development.
WARF License
We have an Exclusive Start-Up Company License
Agreement with WARF, pursuant to which WARF has granted us the WARF License, to make, use and sell, in the United States only,
products that employ certain licensed patents for a neural probe array or thin-film micro electrode array and method. In exchange
for the WARF License, we have agreed to pay WARF $55,000 (representing a license fee) upon the earliest to occur of the date we
cumulatively raise at least $3.0 million in financing, which threshold was recently met, the date of a change of control, or our
revenue reaching a specified threshold amount, and to pay $65,000 (representing reimbursement for costs incurred by WARF in maintaining
the licensed patents) upon the earliest to occur of the date that we cumulatively raise at least $5 million in financing, the date
of a change of control, or our revenue reaching a specified threshold amount, which amount was paid on February 1, 2019.
The initial $55,000 payment was due on
May 3, 2018 and was paid April 22, 2018. We have also agreed to pay WARF a royalty equal to a single-digit percentage of our product
sales pursuant to the WARF License, with a minimum annual royalty payment of $50,000 for 2019, $100,000 for 2020 and $150,000 for
2021 and each calendar year thereafter that the WARF License is in effect. If we or any of our sublicenses contest the validity
of any licensed patent, the royalty rate will be doubled during the pendency of such contest and, if the contested patent is found
to be valid and would be infringed by us if not for the WARF License, the royalty rate will be tripled for the remaining term of
the WARF License.
We have agreed to diligently develop, manufacture,
market and sell products under the WARF License in the United States during the term of the agreement and, specifically, that we
would submit a business plan to WARF by February 1, 2018, which we submitted on January 18, 2018, and would file an application
for 510(k) marketing clearance with the FDA by February 1, 2019, which we submitted on January 28, 2019. WARF may terminate this
license in the event that we fail to meet these milestones on 30 days' written notice, if we default on the payments of amounts
due to WARF or fail to timely submit development reports, actively pursue our development plan or breach any other covenant in
the WARF License and fail to remedy such default in 90 days or in the event of certain bankruptcy events involving us. WARF may
also terminate the WARF License (i) on 90 days' notice if we fail to have commercial sales of one or more FDA-approved products
under the WARF License by September 30, 2019 or (ii) if, after royalties earned on sales begin to be paid, such earned royalties
cease for more than four calendar quarters. The WARF License otherwise expires by its terms on the date that no valid claims on
the patents licensed thereunder remain. We expect the latest expiration of a licensed patent to occur in 2030.
In addition, WARF reserves the right to
grant non-profit research institutions and government agencies non-exclusive licenses to practice and use the inventions of the
licensed patents for non-commercial research purposes, and we grant WARF a non-exclusive, sub licensable, royalty-free right and
license for non-commercial research purposes to use improvements to the licensed patents. In the event that we discontinue use
or commercialization of the licensed patents or improvements thereon, we must grant WARF an option to obtain a non-exclusive, sub-licensable
royalty-bearing license to use the improvements for commercial purposes.
See "Risk Factors"— We
depend on intellectual property licensed from WARF for our technology under development, and the termination of this license would
harm our business" for additional information regarding the WARF License and our past breach thereof.
65
Mayo Foundation for Medical Education and Research License
and Development Agreement
We have entered into the Mayo Development
Agreement with Mayo to license worldwide (i) certain know how for the development and commercialization of products, methods and
processes related to flexible circuit thin film technology for the recording of tissue and (ii) the products developed therefrom,
and to partner with Mayo to assist the Company in the investigation, research application, development and improvement of such
technology. Mayo has agreed to assist us by providing access to certain individuals at Mayo, or the Mayo Principal Investigators,
in developing our cortical thin film flexible circuit technology, including prototype development, animal testing, protocol development
for human and animal use, abstract development and presentation and access to and license of any intellectual property that the
Mayo Principal Investigators develop relating to the procedure.
On May 25, 2017, prior to the closing of
the Acquisition, NeuroOne, Inc. issued Mayo 50,556 shares of common stock of NeuroOne, Inc. (the "NeuroOne Shares"),
pursuant to a subscription agreement, which shares were converted into 859,976 shares of the Company's Common Stock at the
closing of the Acquisition.
Whether or not any such technology, product,
method, process, device or delivery system is developed, we agreed, in consideration for Mayo's efforts under the Mayo Development
Agreement, to pay Mayo a cash payment of approximately $92,000 on the earlier of September 30, 2017 or the date we raise a minimum
amount of financing. We did not make this payment by September 30, 2017 and breached this provision of the Mayo Development Agreement.
Mayo granted us an extension of this deadline to December 31, 2017, and we made this payment within such extended deadline period.
Finally, we have agreed to pay Mayo a royalty
equal to a single-digit percentage of our product sales pursuant to the Mayo Development Agreement. Mayo may purchase any developed
products licensed under the Mayo Development Agreement at the best price offered by us to the end user in the prior year. The Mayo
Development Agreement generally will expire in October 2034, unless the Mayo know-how and improvements under the Mayo Development
Agreement remain in use, and the Mayo Development Agreement may be terminated by Mayo for cause or under certain circumstances.
For additional information regarding the
Mayo Development Agreement and our past breach thereof, see "Risk Factors—We depend on our partnership with Mayo Foundation
for Medical Education and Research to license certain know how for the development and commercialization of our technology. Termination
of this partnership would harm our business, and even if this partnership continues, it may not be successful."
Intellectual Property
Protection of our intellectual property
is a strategic priority for our business. We rely on a combination of patents, trademarks, copyrights, trade secrets as well as
nondisclosure and assignment of invention agreements, material transfer agreements, confidentiality agreements and other measures
to protect our intellectual property and other proprietary rights.
Patents
As of July 1, 2019, our patent estate
consists of three issued United States patents licensed from WARF covering a neural probe array and thin-film micro electrode array
and method and two pending U. S. patent applications filed by us and published on October 11, 2018 covering our applications and
additional devices used during the diagnostic and therapeutic ablation and stimulation procedures. In addition, we filed a provisional
patent in May 2019 to include coatings for application on our thin film electrode technology. The licensed issued patents expire
between 2025 and 2030, subject to any patent extensions that may be available for such patents. If a patent or patents are issued
on our pending patent application, the resulting patent is projected to expire in 2038.
Our patent application may not result in
an issued patent, and any patents that have been issued or may be issued in the future may not protect the commercially important
aspects of our technology. Furthermore, the validity and enforceability of our issued patents may be challenged by third parties
and our patents could be invalidated or modified by the issuing governmental authority. Third parties may independently develop
technology that is not covered by our patents that is similar to, or competes with, our technology. In addition, our intellectual
property may be infringed or misappropriated by third parties, particularly in foreign countries where the laws and governmental
authorities may not protect our proprietary rights as effectively as those in the United States.
66
The medical device industry in general,
and the recording, ablation and neurostimulation sector of this industry in particular, are characterized by the existence of a
large number of patents and frequent litigation based on assertions of patent infringement. We are aware of numerous patents issued
to third parties that may relate to the technology used in our business, including the design and manufacture of electrodes and
pulse generators, as well as methods for device placement. Each of these patents contains multiple claims, any one of which may
be independently asserted against us. The owners of these patents may assert that the manufacture, use, sale or offer for sale
of our cortical strip and sheet electrodes infringe one or more claims of their patents. Furthermore, there may be additional patents
issued to third parties of which we are presently unaware that may relate to aspects of our technology that such third parties
could assert against us and materially and adversely affect our business. In addition, because patent applications can take many
years to issue, there may be patent applications that are currently pending and unknown to us, which may later result in issued
patents that third parties could assert against us and materially and adversely affect our business.
Any adverse determination in litigations,
post grant trial proceedings, including interference proceedings, at the Patent Office relating to intellectual property to which
we are or may become a party could subject us to significant liabilities to third parties or require us to seek licenses from third
parties, and result in the cancellation and/or invalidation of our intellectual property. Furthermore, if a court finds that we
have willfully infringed a third party's intellectual property, we could be required to pay treble damages and/or attorney
fees for the prevailing party, in addition to other penalties. Although intellectual property disputes in the medical device area
are often settled through licensing or similar arrangements, costs associated with such arrangements can be substantial and often
require ongoing royalty payments. We may be unable to obtain necessary licenses on satisfactory terms, if at all. If we do not
obtain necessary licenses, we may not be able to redesign our products to avoid infringement; if we are able to redesign our products
to avoid infringement, we may not receive FDA approval in a timely manner. Adverse determinations in a judicial or administrative
proceeding or failure to obtain necessary licenses could prevent us from manufacturing and selling our products, which could have
a significant adverse impact on our business.
Trademarks
We have one pending U.S.
trademark application for the "NeuroOne
TM
" trademark. We were issued a notice of allowance from the
U.S. Patent and Trademark Office in December 2017, and on June 11, 2019, we received an approval of our extension
request.
Trade Secrets
We also rely on trade secrets, technical
know-how and continuing innovation to develop and maintain our competitive position. We seek to protect such intellectual property
and proprietary information by generally requiring our employees, consultants, contractors, scientific collaborators and other
advisors to execute non-disclosure and assignment of invention agreements upon the commencement of their employment or engagement
as the case may be. Our agreements with our employees prohibit them from providing us with any intellectual property or proprietary
information of third parties. We also generally require confidentiality agreements or material transfer agreements with third parties
that receive or have access to our confidential information, data or other materials. Notwithstanding the foregoing, there can
be no assurance that our employees and third parties that have access to our confidential proprietary information will abide by
the terms of their agreements. Despite the measures that we take to protect our intellectual property and confidential information,
unauthorized third parties may copy aspects of our products or obtain and use our proprietary information.
Government Regulation
Our cortical strip, grid and depth electrodes
are a medical device subject to extensive and ongoing regulation by the FDA, the U.S. CMS, the European Commission, and regulatory
bodies in other countries. Regulations cover virtually every critical aspect of a medical device company's business operations,
including research activities, product development, quality and risk management, contracting, reimbursement, medical communications,
and sales and marketing. In the United States, the Federal Food, Drug and Cosmetic Act, or FDCA, and the implementing regulations
of the FDA govern product design and development, pre-clinical and clinical testing, premarket clearance or approval, product manufacturing,
quality systems, import and export, product labeling, product storage, recalls and field safety corrective actions, advertising
and promotion, product sales and distribution, and post-market clinical surveillance. Our business is subject to federal, state,
local, and foreign regulations, such as ISO 13485, ISO 14971, FDA's QSR contained in 21 CFR
Part 820, and the European Commission's Directive 93/42/EEC concerning medical devices and its amendments.
67
Regulatory Framework in the
United States
Device classification
The FDA characterizes medical devices into
one of three classes. Devices that are considered by the FDA to pose lower risk are classified as Class I or II. Class I devices
are subject to controls for labeling, pre-market notification and adherence to the FDA's QSR. This pertains to manufacturers'
methods and documentation of the design, testing, production, control quality assurance, labeling, packaging, sterilization, storage
and shipping of products, but are usually exempt from premarket notification requirements. Class II devices are subject to the
same general controls but may be subject to special controls such as performance standards, post-market surveillance, FDA guidelines,
or particularized labeling, and may also require clinical testing prior to clearance or approval. Class III devices are those for
which insufficient information exists to assure safety and effectiveness solely through general or special controls, including
devices that support or sustain human life, are of substantial importance in preventing impairment of human health, or which present
a potential, unreasonable risk of illness or injury.
Some Class I and Class II devices are exempted
by regulation from the pre-market notification requirement under Section 510(k) of the FDCA, also referred to as a 510(k) clearance,
and the requirement of compliance with substantially all of the QSR. However, a pre-market approval, or PMA application, is required
for devices deemed by the FDA to pose the greatest risk, such as life-sustaining, life-supporting or certain implantable devices,
or those that are "not substantially equivalent" either to a device previously cleared through the 510(k) process or
to a "preamendment" Class III device in commercial distribution before May 28, 1976 when PMA applications were not
required. The PMA approval process is more comprehensive than the 510(k) clearance process and typically takes several years to
complete. Based on FDA definitions, we believe our diagnostic strip, grid and depth electrode technology will be categorized by
the FDA as a Class II device that does not require clinical testing and can be filed as a 510(k), similar to existing competitive
technology. The Company expects that indications for treating epilepsy, Parkinson's and other patients suffering from motor
related neurological deficiencies via a permanent implant for chronic treatment will require a PMA process to commercially distribute
in the United States.
The 510(k) clearance process
Under the 510(k) clearance process, the
manufacturer must submit to the FDA a premarket notification, demonstrating that the device is "substantially equivalent"
to a legally marketed predicate device. A predicate device is a legally marketed device that is not subject to a PMA, i.e., a device
that was legally marketed prior to May 28, 1976 (pre-amendments device) and for which a PMA is not required, a device that has
been reclassified from Class III to Class II or I, or a device that was previously found substantially equivalent through the 510(k)
process. To be "substantially equivalent," the proposed device must have the same intended use as the predicate device,
and either have the same technological characteristics as the predicate device or have different technological characteristics
and not raise different questions of safety or effectiveness than the predicate device. Clinical data is sometimes required to
support substantial equivalence.
After a 510(k) premarket notification is
submitted, the FDA determines whether to accept it for substantive review. If it lacks necessary information for substantive review,
the FDA will refuse to accept the 510(k) notification. If it is accepted for filing, the FDA begins a substantive review. By statute,
the FDA is required to complete its review of a 510(k) notification within 90 days of receiving the 510(k) notification. As a practical
matter, clearance often takes longer, and clearance is never assured. Although many 510(k) premarket notifications are cleared
without clinical data, the FDA may require further information, including clinical data, to make a determination regarding substantial
equivalence, which may significantly prolong the review process. If the FDA agrees that the device is substantially equivalent,
it will grant clearance to commercially market the device.
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If the FDA determines that the device is
not "substantially equivalent" to a predicate device, or if the device is automatically classified into Class III,
the device sponsor must then fulfill the more rigorous premarketing requirements of the PMA approval process, or seek reclassification
of the device through the de novo process. The de novo classification process is an alternate pathway to classify medical devices
that are automatically classified into Class III but which are low to moderate risk. A manufacturer can submit a petition for direct
de novo review if the manufacturer is unable to identify an appropriate predicate device and the new device or new use of the device
presents a moderate or low risk. De novo classification may also be available after receipt of a "not substantially equivalent"
letter following submission of a 510(k) to FDA.
After a device receives 510(k) clearance,
any modification that could significantly affect its safety or effectiveness, or that would constitute a new or major change in
its intended use, will require a new 510(k) clearance or, depending on the modification, could require a PMA application. The FDA
requires each manufacturer to determine whether the proposed change requires a new submission in the first instance, but the FDA
can review any such decision and disagree with a manufacturer's determination. Many minor modifications are accomplished
by a letter-to-file in which the manufacture documents the change in an internal letter-to-file. The letter-to-file is in lieu
of submitting a new 510(k) to obtain clearance for such change. The FDA can always review these letters to file in an inspection.
If the FDA disagrees with a manufacturer's determination regarding whether a new premarket submission is required for the
modification of an existing 510(k)-cleared device, the FDA can require the manufacturer to cease marketing and/or recall the modified
device until 510(k) clearance or approval of a PMA application is obtained. In addition, in these circumstances, the FDA can impose
significant regulatory fines or penalties for failure to submit the requisite application(s).
The PMA approval process
Following receipt of a PMA application,
the FDA conducts an administrative review to determine whether the application is sufficiently complete to permit a substantive
review. If it is not, the agency will refuse to file the PMA. If it is, the FDA will accept the application for filing and begin
the review. The FDA has 180 days to review a filed PMA application, although the review of an application more often occurs over
a significantly longer period of time. During this review period, the FDA may request additional information or clarification of
information already provided, and the FDA may issue a major deficiency letter to the applicant, requesting the applicant's
response to deficiencies communicated by the FDA.
Before approving or denying a PMA, an FDA
advisory committee may review the PMA at a public meeting and provide the FDA with the committee's recommendation on whether
the FDA should approve the submission, approve it with specific conditions, or not approve it. The FDA is not bound by the recommendations
of an advisory committee, but it considers such recommendations carefully when making decisions.
Prior to approval of a PMA, the FDA may
conduct inspections of the clinical trial data and clinical trial sites, as well as inspections of the manufacturing facility and
processes. Overall, the FDA review of a PMA application generally takes between one and three years, but may take significantly
longer. The FDA can delay, limit or deny approval of a PMA application for many reasons, including:
●
the device may not be safe, effective, reliable or accurate to the FDA's satisfaction;
●
the data from pre-clinical studies and clinical trials may be insufficient to support approval;
●
the manufacturing process or facilities may not meet applicable requirements; and
●
changes in FDA approval policies or adoption of new regulations may require additional data.
If an FDA evaluation of a PMA application
is favorable, the FDA will either issue an approval letter, or approvable letter, which usually contains a number of conditions
that must be met in order to secure final approval of the PMA. When and if those conditions have been fulfilled to the satisfaction
of the FDA, the agency will issue a PMA approval letter authorizing commercial marketing of a device, subject to the conditions
of approval and the limitations established in the approval letter. If the FDA's evaluation of a PMA application or manufacturing
facilities is not favorable, the FDA will deny approval of the PMA or issue a not approvable letter. The FDA also may determine
that additional tests or clinical trials are necessary, in which case the PMA approval may be delayed for several months or years
while the trials are conducted and data is submitted in an amendment to the PMA. The PMA process can be expensive, uncertain and
lengthy and a number of devices for which FDA approval has been sought by other companies have never been approved by the FDA for
marketing.
69
New PMA applications or PMA supplements
may be required for modifications to the manufacturing process, labeling, device specifications, materials or design of a device
that has been approved through the PMA process. PMA supplements often require submission of the same type of information as an
initial PMA application, except that the supplement is limited to information needed to support any changes from the device covered
by the approved PMA application and may or may not require as extensive technical or clinical data or the convening of an advisory
panel.
Clinical Trials
Clinical trials are typically required
to support a PMA application and are sometimes required for a 510(k) clearance. These trials generally require submission of an
application for an IDE, to the FDA. The IDE application must be supported by appropriate data, such as animal and laboratory testing
results, showing that it is safe to test the device in humans and that the testing protocol is scientifically sound. The IDE application
must be approved in advance by the FDA for a specified number of patients, unless the product is deemed a non-significant risk
device and eligible for abbreviated IDE requirements. Generally, clinical trials for a significant risk device may begin once the
IDE application is approved by the FDA and the study protocol and informed consent are approved by appropriate institutional review
boards at the clinical trial sites. The FDA's approval of an IDE allows clinical testing to go forward, but it does not bind
the FDA to accept the results of the trial as sufficient to prove the product's safety and efficacy, even if the trial meets
its intended success criteria. All clinical trials must be conducted in accordance with the FDA's IDE regulations that govern
investigational device labeling, prohibit promotion, and specify an array of recordkeeping, reporting and monitoring responsibilities
of study sponsors and study investigators. Clinical trials must further comply with the FDA's regulations for institutional
review board approval and for informed consent and other human subject protections. Required records and reports are subject to
inspection by the FDA. The results of clinical testing may be unfavorable or, even if the intended safety and efficacy success
criteria are achieved, may not be considered sufficient for the FDA to grant approval or clearance of a product. Clinical trials
must be entered into the clinical trials registry at clinicaltrials.gov.
The commencement or completion of any clinical
trial may be delayed or halted, or be inadequate to support approval of a PMA application, for numerous reasons, including, but
not limited to, the following:
●
the FDA or other regulatory authorities do not approve a clinical trial protocol or a clinical
trial, or place a clinical trial on hold;
●
patients do not enroll in clinical trials at the rate expected;
●
patients, sponsor (NeuroOne) or study sites do not comply with trial protocols;
●
patient follow-up is not at the rate expected;
●
patients experience adverse side effects;
●
patients die during a clinical trial, even though their death may not be related to the products
that are part of our trial;
●
institutional review boards and third-party clinical investigators may delay or reject the trial
protocol;
●
third-party clinical investigators decline to participate in a trial or do not perform a trial
on the anticipated schedule or consistent with the clinical trial protocol, good clinical practices or other FDA requirements;
●
the sponsor (NeuroOne) or third-party organizations do not perform data collection, monitoring
and analysis in a timely or accurate manner or consistent with the clinical trial protocol or investigational or statistical plans;
70
●
third-party clinical investigators have significant financial interests related to the sponsor
(NeuroOne) or the study that the FDA deems to make the study results unreliable, or the company or investigators fail to disclose
such interests;
●
regulatory inspections of our clinical trials or manufacturing facilities, which may, among other
things, require us to undertake corrective action or suspend or terminate our clinical trials;
●
changes in governmental regulations or administrative actions;
●
the interim or final results of the clinical trial are inconclusive or unfavorable as to safety
or efficacy; and
●
the FDA concludes that our trial design is inadequate to demonstrate safety and efficacy.
International Regulation
International sales of medical devices
are subject to local government regulations, which may vary substantially from country to country. The time required to obtain
approval in another country may be longer or shorter than that required for FDA approval, and the requirements may differ. There
is a trend towards harmonization of quality system standards among the European Union, United States, Canada and various other
industrialized countries.
The primary regulatory body in Europe is
that of the European Union, the European Commission, which includes most of the major countries in Europe. Other countries, such
as Switzerland, have voluntarily adopted laws and regulations that mirror those of the European Union with respect to medical devices.
The European Union has adopted numerous directives and standards regulating the design, manufacture, clinical trials, labeling
and adverse event reporting for medical devices. Devices that comply with the requirements of these relevant directives will be
entitled to bear the CE conformity marking, indicating that the device conforms to the essential requirements of the applicable
directives and, accordingly, can be commercially distributed throughout Europe. The method of assessing conformity varies depending
on the class of the product, but normally involves a combination of self-assessment by the manufacturer and a third party assessment
by a "Notified Body." This third-party assessment may consist of an audit of the manufacturer's quality system
and specific testing of the manufacturer's product. An assessment by a Notified Body of one country within the European Union
is required in order for a manufacturer to commercially distribute the product throughout the European Union. Additional local
requirements may apply on a country-by-country basis. Outside of the European Union, regulatory approval would need to be sought
on a country-by-country basis in order for us to market our products.
Medical devices in Europe are classified
into four primary categories. They are as follows:
●
Non-invasive devices;
●
Invasive medical devices;
●
Active medical devices; and
●
Special Rules (including contraceptive, disinfectant, and radiological diagnostic medical devices).
Devices are further segmented into the
classes noted below. In vitro diagnostic devices have their own classification scheme and while active implantable devices do not
follow the same classification system as provided by the Medical Devices Directive, they are subject to similar requirements as
Class III devices:
●
Class I – Provided non-sterile or do not have a measuring function (low risk);
●
Class I – Provided sterile and/or have a measuring function (low/medium risk);
●
Class IIa (medium risk);
●
Class IIb (medium/high risk); and
●
Class III (high risk).
71
After a review of our technology, an international
regulatory consultant advised us that our strip, grid and depth electrode diagnostic technology is likely a Class III device (since
it comes into contact with the central nervous system) which will require a lengthy approval process as a design dossier including
clinical data will be required for approval.
Other Regulatory Requirements
Even after a device receives clearance
or approval and is placed in commercial distribution, numerous regulatory requirements apply. These include:
●
establishment registration and device listing;
●
QSR, which requires manufacturers, including third party manufacturers, to follow stringent design,
testing, risk management, production, control, supplier/contractor selection, complaint handling, documentation and other quality
assurance procedures during all aspects of the manufacturing process;
●
labeling regulations that prohibit the promotion of products for uncleared, unapproved or "off-label"
uses, and impose other restrictions on labeling, advertising and promotion;
●
MDR regulations, which require that manufacturers report to the FDA if their device may have caused
or contributed to a death or serious injury or malfunctioned in a way that would likely cause or contribute to a death or serious
injury if the malfunction were to recur;
●
voluntary and mandatory device recalls to address problems when a device is defective and could
be a risk to health; and
●
corrections and removals reporting regulations, which require that manufacturers report to the
FDA field corrections and product recalls or removals if undertaken to reduce a risk to health posed by the device or to remedy
a violation of the FDCA that may present a risk to health.
Also, the FDA may require us to conduct
post-market surveillance studies or establish and maintain a system for tracking our products through the chain of distribution
to the patient level. The FDA enforces regulatory requirements by conducting periodic, unannounced inspections and market surveillance.
Inspections may include the manufacturing facilities of our subcontractors.
Failure to comply with applicable regulatory
requirements can result in enforcement actions by the FDA and other regulatory agencies. These may include any of the following
sanctions or consequences:
●
warning letters or untitled letters that require corrective action;
●
fines and civil penalties;
●
unanticipated expenditures;
●
delays in approving or refusal to approve future products;
●
FDA refusal to issue certificates to foreign governments needed to export products for sale in
other countries;
●
suspension or withdrawal of FDA clearance or approval;
●
product recall or seizure; interruption of production;
●
operating restrictions;
●
injunctions; and
●
criminal prosecution.
72
Our contract manufacturers, specification
developers and some suppliers of components or device accessories, also are required to manufacture our products in compliance
with current good manufacturing practice requirements set forth in the QSR. The QSR requires a quality system for the design, manufacture,
packaging, labeling, storage, installation and servicing of marketed devices, and it includes extensive requirements with respect
to quality management and organization, device design, buildings, equipment, purchase and handling of components or services, production
and process controls, packaging and labeling controls, device evaluation, distribution, installation, complaint handling, servicing,
and record keeping. The FDA evaluates compliance with the QSR through periodic unannounced inspections that may include the manufacturing
facilities of our subcontractors. If the FDA believes that any of our contract manufacturers or regulated suppliers are not in
compliance with these requirements, it can shut down such manufacturing operations, require recall of our products, refuse to approve
new marketing applications, institute legal proceedings to detain or seize products, enjoin future violations or assess civil and
criminal penalties against us or our officers or other employees.
HIPAA and Similar Foreign and State Laws and Regulations Affecting the Transmission,
Security and Privacy of Health Information
We may also be subject to data privacy
and security regulation by both the federal government and the states in which we conduct our business. HIPAA, as amended by the
Health Information Technology for Economic and Clinical Health Act, or HITECH, and their respective implementing regulations, imposes
specified requirements relating to the privacy, security and transmission of individually identifiable health information. Among
other things, HITECH makes HIPAA's security standards directly applicable to business associates, defined as service providers
of covered entities that create, receive, maintain or transmit protected health information in connection with providing a service
for or on behalf of a covered entity. HITECH also created four new tiers of civil monetary penalties and gave state attorneys general
new authority to file civil actions for damages or injunctions in federal courts to enforce the federal HIPAA laws and seek attorneys'
fees and costs associated with pursuing federal civil actions. In addition, many state laws govern the privacy and security of
health information in certain circumstances, many of which differ from HIPAA and each other in significant ways and may not have
the same effect.
Foreign data privacy regulations, such
as the EU Data Protection Directive (Directive 95/46/EC), the country-specific regulations that implement Directive 95/46/EC, and
the EU General Data Protection Regulation also govern the processing of personally identifiable data, and may be stricter than
U.S. laws.
Fraud and Abuse Laws
In addition to FDA restrictions, there
are numerous U.S. federal and state laws pertaining to healthcare fraud and abuse, including anti-kickback laws and physician self-referral
laws. Our relationships with healthcare providers and other third parties are subject to scrutiny under these laws. Violations
of these laws are punishable by criminal and civil sanctions, including, in some instances, imprisonment and exclusion from participation
in federal and state healthcare programs, including the Medicare, Medicaid and Veterans Administration health programs.
Federal Anti-Kickback and Self-Referral
Laws
The Anti-Kickback Statute prohibits
persons from knowingly and willfully soliciting, receiving, offering or providing remuneration (including any kickback, bribe or
rebate), directly or indirectly, overtly or covertly, to induce either the referral of an individual, or the furnishing, recommending,
or arranging of a good or service, for which payment may be made under a federal healthcare program such as Medicare and Medicaid
or other federal healthcare programs. The term "remuneration" has been broadly interpreted to include anything of value,
including such items as gifts, discounts, the furnishing of supplies or equipment, credit arrangements, waiver of payments and
providing anything at less than its fair market value. Although there are a number of statutory exceptions and regulatory safe
harbors protecting some common activities from prosecution, the exceptions and safe harbors are drawn narrowly. Practices that
involve remuneration that may be alleged to be intended to induce prescribing, purchases or recommendations may be subject to scrutiny
if they do not qualify for an exception or safe harbor. Failure to meet all of the requirements of a particular applicable statutory
exception or regulatory safe harbor does not make the conduct per se illegal under the Anti-Kickback Statute. Instead, the legality
of the arrangement will be evaluated on a case-by-case basis based on a review of all its relevant facts and circumstances. Several
courts have interpreted the statute's intent requirement to mean that if any one purpose of an arrangement involving remuneration
is to induce referrals of (or purchases, or recommendations related to) federal healthcare covered business, the Anti-Kickback
Statute has been implicated and potentially violated.
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The penalties for violating the
Anti-Kickback Statute include imprisonment for up to five years, fines of up to $25,000 per violation and possible exclusion
from federal healthcare programs such as Medicare and Medicaid. Many states have adopted prohibitions similar to the Anti-Kickback Statute, some of which do not have the same exceptions and apply to the referral of patients for healthcare
services reimbursed by any source, not only by the Medicare and Medicaid programs. Further, the Anti-Kickback Statute was
amended by the ACA. Specifically, as noted above, under the Anti-Kickback Statute, the government must prove the defendant
acted "knowingly" to prove a violation occurred. The ACA added a provision to clarify that with respect to
violations of the Anti-Kickback Statute, "a person need not have actual knowledge" of the statute or specific
intent to commit a violation of the statute. This change effectively overturns case law interpretations that set a higher
standard under which prosecutors had to prove the specific intent to violate the law. In addition, the ACA codified case law
that a claim including items or services resulting from a violation of the Anti-Kickback Statute constitutes a false or
fraudulent claim for purposes of the federal civil False Claims Act (the "False Claims Act").
We plan to provide the initial training
to providers and patients necessary for appropriate use of our technology either through our own educators or by contracting with
outside educators that have completed an appropriate training course. Outside educators are reimbursed for their services at fair
market value.
Noncompliance with the Anti-Kickback
Statute could result in our exclusion from Medicare, Medicaid or other governmental programs, restrictions on our ability to operate
in certain jurisdictions, and civil and criminal penalties.
The federal Physician Self-Referral Prohibition,
commonly known as the "Stark Law," prohibits a physician from ordering "designated health services," including
durable medical equipment, for Medicare and Medicaid patients from entities with which the physician (or an immediate family member)
has a "financial relationship." Financial relationships include both compensation arrangements and investment and ownership
interests. Violation of the Stark Law could result in denial of payment, disgorgement of reimbursements received under a noncompliant
arrangement, civil penalties, and exclusion from Medicare, Medicaid or other governmental programs. We believe that we have structured
our provider arrangements to comply with current Stark Law requirements.
Nevertheless, a determination of liability
under such laws could result in fines and penalties and restrictions on our ability to operate in these jurisdictions.
Additionally, as some of these laws are
still evolving, we lack definitive guidance as to the application of certain key aspects of these laws as they relate to our arrangements
with providers with respect to patient training. We cannot predict the final form that these regulations will take or the effect
that the final regulations will have on us. As a result, our provider and training arrangements may ultimately be found to be not
in compliance with applicable federal law.
False Claims Act
The False Claims Act provides,
in part, that the federal government may bring a lawsuit against any person whom it believes has knowingly presented, or caused
to be presented, a false or fraudulent request for payment from the federal government, or who has made a false statement or used
a false record to get a claim approved. In addition, amendments in 1986 to the False Claims Act have made it easier for
private parties to bring "qui tam" whistleblower lawsuits against companies under the False Claims Act. Penalties
include fines ranging from $5,500 to $11,000 for each false claim, plus three times the amount of damages that the federal government
sustained because of the act of that person. Qui tam actions have increased significantly in recent years, causing greater numbers
of healthcare companies to have to defend a false claim action, pay fines or be excluded from Medicare, Medicaid or other federal
or state healthcare programs as a result of an investigation arising out of such action.
There are other federal anti-fraud laws
that prohibit, among other actions, knowingly and willfully executing, or attempting to execute, a scheme to defraud any healthcare
benefit program, including private third-party payors, knowingly and willfully embezzling or stealing from a healthcare benefit
program, willfully obstructing a criminal investigation of a healthcare offense, and knowingly and willfully falsifying, concealing
or covering up a material fact or making any materially false, fictitious or fraudulent statement in connection with the delivery
of or payment for healthcare benefits, items or services.
Additionally, HIPAA established two federal
crimes related to making false statements in relation to healthcare matters. The healthcare fraud statute prohibits knowingly
and willfully executing a scheme to defraud any healthcare benefit program, including private payors. A violation of this statute
is a felony and may result in fines, imprisonment or exclusion from government sponsored programs. The false statements statute
prohibits knowingly and willfully falsifying, concealing or covering up a material fact or making any materially false, fictitious
or fraudulent statement in connection with the delivery of or payment for healthcare benefits, items or services. A violation
of this statute is a felony and may result in fines or imprisonment.
74
Civil Monetary Penalties Law
In addition to the Anti-Kickback Statute
and the False Claims Act, the federal government has the authority to seek civil monetary penalties, or CMPs, assessments, and
exclusion against an individual or entity based on a wide variety of prohibited conduct. For example, the Civil Monetary Penalties
Law authorizes the imposition of substantial CMPs against an entity that engages in activities including, but not limited to: (1)
knowingly presenting or causing to be presented, a claim for services not provided as claimed or which is otherwise false or fraudulent
in any way; (2) knowingly giving or causing to be given false or misleading information reasonably expected to influence the decision
to discharge a patient; (3) offering or giving remuneration to any beneficiary of a federal health care program likely to influence
the receipt of reimbursable items or services; (4) arranging for reimbursable services with an entity which is excluded from participation
from a federal health care program; (5) knowingly or willfully soliciting or receiving remuneration for a referral of a federal
health care program beneficiary; or (6) using a payment intended for a federal health care program beneficiary for another use.
The government is authorized to seek different amounts of CMPs and assessments based on underlying violation. For false or fraudulent
claims, the government may seek a penalty of up to $10,000 for each item or service improperly claimed, and an assessment of up
to three times the amount improperly claimed. For kickback violations, the government may seek a penalty of up to $50,000 for each
improper act and damages of up to three times the amount of remuneration at issue.
State Fraud and Abuse Provisions
Many states have also adopted some form
of anti-kickback and anti-referral laws and a false claims act. We believe that we are in conformance to such laws. Nevertheless,
a determination of liability under such laws could result in fines and penalties and restrictions on our ability to operate in
these jurisdictions.
Physician Payment Sunshine
Act
Transparency laws regarding payments or
other items of value provided to healthcare providers and teaching hospitals may also impact our business practices. The federal
Physician Payment Sunshine Act requires most medical device manufacturers to report annually to the Secretary of Human Health Services
financial arrangements, payments, or other transfers of value made by that entity to physicians and teaching hospitals. The payment
information is made publicly available in a searchable format on a CMS website. Over the next several years, we will need to dedicate
significant resources to establish and maintain systems and processes in order to comply with these regulations. Failure to comply
with the reporting requirements can result in significant civil monetary penalties. Similar laws have been enacted or are under
consideration in foreign jurisdictions.
FCPA
The FCPA prohibits U.S. corporations and
their representatives from offering, promising, authorizing or making corrupt payments, gifts or transfers to any foreign government
official, government staff member, political party or political candidate in an attempt to obtain or retain business abroad. The
FCPA also obligates companies whose securities are listed in the United States to comply with accounting provisions requiring the
company to maintain books and records that accurately and fairly reflect all transactions of the corporation, including international
subsidiaries, and to devise and maintain an adequate system of internal accounting controls for international operations. Activities
that violate the FCPA, even if they occur wholly outside the United States, can result in criminal and civil fines, imprisonment,
disgorgement, oversight, and debarment from government contracts.
Employees
As of July 1, 2019, we had six employees,
all of whom are full-time, and all of whom are located in the United States, and we also retained the services of approximately
11 regular consultants. None of our employees are represented by a labor union or covered by a collective bargaining agreement.
We consider our relationship with our employees to be good.
Corporate Information
Our principal executive offices are located at c/o David Rosa,
10901 Red Circle Drive, Suite 150, Minnetonka, Minnesota 55343, and our telephone number is 952-426-1383. Our website address
is www.neurooneinc.com. Information on our website is not part of this prospectus.
75
DESCRIPTION OF PROPERTY
On November 13, 2018, we entered into a
sublease agreement to sublease office space at 10901 Red Circle Drive, Suite 150, Minnetonka, Minnesota 55343, from December 1,
2018 through October 31, 2019.
76
LEGAL PROCEEDINGS
From time to time, we are subject to litigation
and claims arising in the ordinary course of business. In May 2017, NeuroOne, Inc. received a letter from PMT, the former employer
of Mark Christianson and Wade Fredrickson. PMT claimed that these officers had breached their restrictive covenant obligations
with PMT by virtue of their work for NeuroOne, Inc. and such officer's prior work during employment with the prior employer,
that these officers had breached their confidentiality and non-disclosure obligations to PMT and federal and state law by misappropriating
confidential and trade secret information, and that the Company is responsible for tortious interference with the contracts. The
letter demanded that Mr. Fredrickson (who resigned from the Company in June 2017), Mr. Christianson and NeuroOne, Inc. cease and
desist all competitive activities, that Mr. Fredrickson step down from his position and that Mr. Christianson and NeuroOne, Inc.
provide the former employer access to NeuroOne, Inc.'s systems to demonstrate that it is not using trade secrets or proprietary
information nor competing with the former employer.
On March 29, 2018, we were served with a complaint filed by PMT adding the Company, NeuroOne, Inc. and
Mark Christianson to its existing lawsuit against Wade Fredrickson. In the lawsuit, PMT claims that Mr. Fredrickson and Mr. Christianson
breached their non-competition, non-solicitation and non-disclosure obligations, breached their fiduciary duty obligations, were
unjustly enriched, engaged in unfair competition, engaged in a civil conspiracy, tortiously interfered with PMT's contracts
and prospective economic advantage, and breached a covenant of good faith and fair dealing. Against Mr. Fredrickson, PMT also alleges
that he intentionally or negligently spoliated evidence, made negligent or fraudulent misrepresentations, misappropriated trade
secrets in violation of Minnesota law, and committed the tort of conversion and statutory civil theft. Against the Company and
NeuroOne, Inc., PMT alleges that the Company and NeuroOne, Inc. were unjustly enriched and engaged in unfair competition. PMT asks
the Fourth Judicial District Court of the State of Minnesota (the "Court") to impose a constructive trust over the
shares held by Mr. Fredrickson and Mr. Christianson and to award compensatory damages, equitable relief, punitive damages, attorneys'
fees, costs and interest.
On April 18, 2018, Mr. Christianson, the
Company and NeuroOne, Inc. filed a motion for dismissal, which was heard by the Court on October 11, 2018. The motion for dismissal
states that: the contract claims against Mr. Christianson fail because his agreement was not supported by consideration; the Minnesota
Uniform Trade Secrets Act preempts plaintiff's claims for unfair competition, civil conspiracy and unjust enrichment; plaintiff
fails to state a claim regarding alleged breach of the duties of loyalty and good faith/fair dealing; plaintiff cannot legally
obtain a constructive trust; plaintiff has insufficiently pled its tortious interference claims; and Plaintiff has not stated
a claim for unfair competition. On January 7, 2019, the judge granted the motion for dismissal with respect to PMT's claim
for breach of the duty of good faith and fair dealing, and denied the motion for dismissal with respect to the other claims presented.
On June 28, 2019, the Company presented to the special master evidence of what it believed to reflect significant litigation misconduct
by PMT relating to a manufactured non-compete agreement for Wade Fredrickson that it had attempted to pass off as a business
record of PMT. Based on the evidence presented, the special master ruled that PMT had waived the attorney client privilege with
respect to certain communications with respect to the Fredrickson non-compete with both its former and current litigation counsel
and authorized a deposition of the former litigation counsel concerning these communications. On August 30, 2019 the Hennepin
County District Court will hear dispositive motions in this case. The Company, NeuroOne, Inc. and Mr. Christianson (who has not
worked for PMT since February 2012) intend to continue to defend themselves vigorously.
The outcome and potential loss related
to this matter is unknown as of the filing of this prospectus.
77
MANAGEMENT'S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
You should read the following discussion
and analysis of financial condition and results of operations of NeuroOne Medical Technologies Corporation together with our financial
statements and the related notes included elsewhere in this prospectus. Some of the information contained in this discussion and
analysis or set forth elsewhere in this prospectus, including information with respect to our plans and strategy for our business,
includes forward-looking statements that involve risks and uncertainties. You should review the "Risk Factors" section
of this prospectus for a discussion of important factors that could cause actual results to differ materially from the results
described in or implied by the forward-looking statements contained in the following discussion and analysis. References in this
discussion to "series" or "notes" refer to all of our outstanding notes as of the relevant date of the
item being discussed. References in this discussion to "convertible promissory notes" refer to all of our outstanding
convertible promissory notes as of the relevant date of the item being discussed.
Overview
We were originally incorporated in the
State of Nevada on August 20, 2009 as Original Source Entertainment, Inc. ("OSE"). OSE was originally formed to license
songs to the television and movie industry. From our inception and prior to the Acquisition, as described more fully below, our
operations have been primarily limited to organizational, start-up, and capital formation activities. Upon completion of the Acquisition,
as more fully described below, our operations have focused on the development and commercialization of thin film electrode technology
for cEEG and sEEG recording, brain stimulation and ablation solutions for patients suffering from epilepsy, Parkinson's disease,
dystonia, essential tremors and other related brain related disorders. Additionally, we are investigating the potential applications
of our technology associated with artificial intelligence. We are based in Minnetonka, Minnesota.
To date, our primary activities have been
limited to, and our limited resources have been dedicated to, performing business and financial planning, raising capital, recruiting
personnel, negotiating with business partners and the licensors of our intellectual property and conducting research and development
activities. Our cortical strip, grid electrode and depth electrode technology is still under development, we do not yet have regulatory
approval in any jurisdiction to sell any products and we have not generated any revenue.
We have incurred losses since inception.
As of March 31, 2019, we had an accumulated deficit of $14.0 million, primarily as a result of expenses incurred in connection
with our research and development programs, from general and administrative expenses associated with our operations and interest
expense related to our debt. We expect to continue to incur significant expenses and increasing operating costs and net losses
for the foreseeable future.
The Acquisition was accounted for as a
capital transaction, or reverse recapitalization. As a result, the financial information contained in this prospectus reflects
solely the operations of our wholly-owned subsidiary, NeuroOne, Inc.
We do not expect to generate revenue from
product sales unless and until we obtain marketing authorization to sell our cortical strip, grid electrode and depth electrode
technology from applicable regulatory authorities.
Our source of cash to date has been proceeds
from the issuances of notes with warrants and common stock with warrants and unsecured loans. See "—Liquidity and Capital
Resources—Historical Capital Resources" below.
At March 31, 2019, we had $2.3 million
in cash deposits. Our existing cash and cash equivalents will not be sufficient to fund our operating expenses throughout our fiscal
year ending September 30, 2019. We need to obtain substantial additional funding in connection with our continuing operations through
public or private equity or debt financings or other sources, which may include collaborations with third parties. However, we
may be unable to raise additional funds when needed on favorable terms or at all. Our failure to raise such capital as and when
needed would have a negative impact on our financial condition and our ability to develop and commercialize our cortical strip,
grid electrode and depth electrode technology and future products and our ability to pursue our business strategy. See "—Liquidity
and Capital Resources—Funding Requirements and Outlook" below.
78
Acquisition
On July 20, 2017, we entered into the Merger
Agreement to acquire NeuroOne, Inc. The transactions contemplated by the Merger Agreement were consummated on July 20, 2017 and,
pursuant to the terms of the Merger Agreement, (i) all outstanding NeuroOne Shares were exchanged for shares of Common Stock, based
on the exchange ratio of 17.0103706 shares of Common Stock, for every one NeuroOne Share (the "Exchange Ratio"), which
totaled 6,291,994 shares of Common Stock, for all of the then-outstanding NeuroOne Shares, (ii) all NeuroOne Options were replaced
with options ("Company Options") based on the Exchange Ratio, with corresponding adjustments to their respective exercise
prices, (iii) all NeuroOne warrants were replaced with warrants to purchase Common Stock ("Company Warrants") and (iv)
we assumed the outstanding convertible promissory notes of NeuroOne, Inc. Accordingly, we acquired 100% of NeuroOne, Inc. in exchange
for the issuance of shares of our Common Stock and NeuroOne, Inc. became our wholly-owned subsidiary. Our sole business is the
business of NeuroOne, Inc. Our management's discussion and analysis below is based on the financial results of NeuroOne,
Inc. Except as otherwise indicated herein, all share and per share information in this "Management's Discussion and
Analysis of Financial Condition and Results of Operations" section gives retroactive effect to the exchange of NeuroOne Shares,
NeuroOne Options and NeuroOne warrants for shares of Common Stock, Company Options and Company Warrants, respectively, in the Acquisition,
as well as the corresponding exercise price adjustments for such Company Options.
Financial Overview
Revenue
To date, we have not generated any revenue.
We do not expect to generate revenue unless or until we develop, obtain regulatory approval for and commercialize our cortical
strip, grid electrode and depth electrode technology. If we fail to complete the development of our cortical strip, grid electrode
and depth electrode technology, or any other product candidate we may pursue in the future, in a timely manner, or fail to obtain
regulatory approval, we may never be able to generate any revenue.
General and Administrative
General and administrative expenses consist
primarily of personnel-related costs including stock-based compensation for personnel in functions not directly associated with
research and development activities. Other significant costs include legal fees relating to corporate matters, intellectual property
costs, professional fees for consultants assisting with regulatory, clinical, product development, financial matters and product
costs. We anticipate that our general and administrative expenses will significantly increase in the future to support our continued
research and development activities, potential commercialization of our cortical strip, grid electrode and depth electrode technology,
if approved, and the increased costs of operating as a public company. These increases will include increased costs related to
the hiring of additional personnel and fees for legal and professional services, as well as other public-company related costs.
Research and Development
Research and development expenses consist
of expenses incurred in performing research and development activities in developing our cortical strip, grid electrode and depth
electrode technology. Research and development expenses include compensation and benefits for research and development employees
including stock-based compensation, overhead expenses, cost of laboratory supplies, clinical trial and related clinical manufacturing
expenses, costs related to regulatory operations, fees paid to consultants and other outside expenses. Research and development
costs are expensed as incurred and costs incurred by third parties are expensed as the contracted work is performed.
We expect our research and development
expenses to significantly increase over the next several years as we develop our cortical strip, grid electrode and depth electrode
technology and conduct preclinical testing and clinical trials and will depend on the duration, costs and timing to complete our
preclinical programs and clinical trials.
79
Interest Expense
Interest expense primarily consists of
amortized discount costs and interest costs related to our Series 1 Notes (as defined below), Series 2 Notes (as defined below)
and Series 3 Notes (as defined below) while outstanding. The Series 1 Notes, Series 2 Notes and Series 3 Notes bear interest at
a fixed rate of 8% per annum while outstanding.
Net change in fair value for
the warrant liability and premium conversion derivatives
The net change in fair value for the warrant
liability and premium conversion derivatives include the change in the fair value of the warrant liability and the premium conversion
derivatives during the particular period while the warrant liability and the premium conversion derivatives are outstanding.
Loss on note extinguishments,
net
Loss on notes extinguishments, net includes
the gain or loss associated with debt instrument modifications accounted for as note extinguishments.
Results of Operations
Comparison of the Nine Month Period Ended September 30,
2018 and 2017
The following table sets forth our results
of operations for the nine month periods ended September 30, 2018 and 2017.
For the nine months ended
September 30,
2018
2017
Period to
Period
Change
(unaudited)
Operating expenses:
General and administrative
$
2,676,872
$
1,798,131
$
878,741
Research and development
715,086
500,408
214,678
Total operating expenses
3,391,958
2,298,539
1,093,419
Loss from operations
(3,391,958
)
(2,298,539
)
(1,093,419
)
Interest expense
(763,065
)
(1,057,024
)
293,959
Net change in fair value for the warrant liability and premium conversion derivatives
336,596
(77,505
)
414,101
Loss on note extinguishments
(1,314,487
)
—
(1,314,487
)
Net loss
$
(5,132,914
)
$
(3,433,068
)
$
(1,699,846
)
General and administrative expenses
General and administrative expenses were
$2.7 million for the nine month period ended September 30, 2018, compared to $1.8 million for the nine month period ended September
30, 2017. The $0.9 million increase was primarily due to an increase in public company costs and salary related expenses to support
the increased level of commercialization and development activities. The increase in spending was primarily attributable to stock-based
compensation of $0.5 million, corporate governance related to board of director and other policy and procedures implementation
costs of $0.2 million, legal, accounting and other corporate related service costs of $0.3 million, offset in part by a $0.1 million
reduction in salary related expenses. Legal and accounting expenses during the nine month period ended September 30, 2018, were
largely incurred in connection with financing matters and securities matters, and costs are expected to be similar for future periods
as we continue our financing activities.
Research and development expenses
Research and development expenses were
$0.7 million for the nine month period ended September 30, 2018, compared to $0.5 million for the nine month period ended September
30, 2017. The increase was primarily due to an increase in salary-related expenses and development materials and supplies to support
the increased level of development activities.
80
Interest expense
Interest expense for the nine month period
ended September 30, 2018 and 2017 was $0.8 million and $1.1 million, respectively. Interest expense primarily consists of non-cash
interest expense, inclusive of the amortization of debt discounts. The $0.3 million decrease in interest expense was primarily
due to the lower level of outstanding debt discounts and related amortization in 2018 given the debt modifications that occurred
in the fourth quarter of 2017 and first quarter of 2018 as well as the extinguishment and conversion of the Series 1 Notes and
Series 2 Notes on July 2, 2018.
Net change in fair value for the warrant liability and
premium conversion derivatives
The net change in fair value for the warrant
liability and premium conversion derivatives for the nine month periods ended September 30, 2018 and 2017 was a benefit of $0.3
million and an expense of $0.1 million, respectively. The change was largely due to the impact of the July 2, 2018 extinguishment
and conversion of the Series 1 Notes and Series 2 Notes which resulted in the elimination of the associated premium conversion
derivatives.
Loss on note extinguishments, net
Non-cash loss on note extinguishments,
net for the nine month periods ended September 30, 2018 and 2017 was $1.3 million and zero, respectively. The Series 1 Notes and
Series 2 Notes were extinguished and converted on July 2, 2018 which contributed to $1.2 million of the increase. The balance of
the increase was due to the modification of the Series 2 Notes in March 2018 which was accounted for as a note extinguishment.
Comparison of the Three Months
Ended March 31, 2019 and 2018
The following table sets forth the results
of operations for the three-months ended March 31, 2019 and 2018, respectively.
For the three months ended
March 31,
(unaudited)
2019
2018
Period to
Period
Change
Operating expenses:
General and administrative
$
1,084,789
$
992,435
$
92,354
Research and development
436,311
105,045
331,266
Total operating expenses
1,521,100
1,097,480
423,620
Loss from operations
(1,521,100
)
(1,097,480
)
(423,620
)
Interest expense
(20,534
)
(193,034
)
172,500
Net change in fair value for the warrant liability and premium conversion derivatives
(116,809
)
119,960
(236,769
)
Loss on note extinguishments
(553,447
)
(186,220
)
(367,227
)
Net loss
$
(2,211,890
)
$
(1,356,774
)
$
(855,116
)
General and administrative expenses
General and administrative
expenses were $1.1 million for the three months ended March 31, 2019, compared to $1.0 million for the three months ended March
31, 2018. The increase was primarily due to payroll costs associated with new employee hires related to the business development
function and due to an increase in legal costs, accounting expenses and board of director fees primarily related to increased public
company related costs, offset in part by a decrease in stock-based compensation in the current quarter when compared to the prior
year period.
81
Research and development expenses
Research and development expenses were
$0.4 million for the three months ended March 31, 2019, compared to $0.1 million for the three months ended March 31, 2018. The
increase in the current quarter over the comparable prior year period was attributed to an increase in supporting development activities,
which primarily included salary-related expenses and other costs related to consulting services, materials and supplies.
Interest expense
Interest expense was $21,000 for the three
months ended March 31, 2019, compared to $0.2 million for the three months ended March 31, 2018. The decrease was primarily
due to less non-cash interest expense related to the Series 3 Notes in comparison to interest expense of $54,000 and amortization
of debt issuance costs of $0.1 million related to the Series 1 Notes, Series 2 Notes and Series 3 Notes that were outstanding during
the three months ended March 31, 2018.
Net change in fair value for the warrant liability and
premium conversion derivatives
The net change in fair
value for the warrant liability and premium conversion derivatives for the three months ended March 31, 2019 and 2018 was an expense
of $0.1 million and a benefit of $(0.1) million, respectively. The change is due primarily to fluctuations in our common stock
fair value and the number of potential shares of common stock issuable upon conversion of the underlying Series 1 Notes, Series
2 Notes and Series 3 Notes that were outstanding during the relevant period.
Loss on note extinguishments, net
Non-cash loss on note
extinguishments for the three months ended March 31, 2019 was $0.6 million compared to $0.2 million for three months ended March
31, 2018, resulting in an increase of $0.4 million period over period stemming from modifications to and conversions of the notes.
During the three months
ended March 31, 2019, the Series 3 Notes were converted on February 28, 2019 and the conversion was accounted for as a note extinguishment
given the bifurcated embedded premium debt conversion feature. During the three months ended March 31, 2018, the Series 2 Notes
were amended in March 2018. The amendment for the Series 2 Notes resulted in additional warrant coverage and new embedded conversion
features. As a result of the modifications made to the Series 2 Notes, we accounted for the amendments as a note extinguishment.
Comparison of the Six Months Ended March 31, 2019 and 2018
For the six months ended
March 31,
(unaudited)
2019
2018
Period to
Period
Change
Operating expenses:
General and administrative
$
1,951,468
$
1,531,294
$
420,174
Research and development
645,479
339,970
305,509
Total operating expenses
2,596,947
1,871,264
725,683
Loss from operations
(2,596,947
)
(1,871,264
)
(725,683
)
Interest expense
(284,557
)
(531,147
)
246,590
Net change in fair value for the warrant liability and premium conversion derivatives
(129,763
)
(42,587
)
(87,176
)
Loss on note extinguishments, net
(553,447
)
(537,134
)
(16,313
)
Net loss
$
(3,564,714
)
$
(2,982,132
)
$
(582,582
)
82
General and administrative expenses
General and administrative
expenses were $2.0 million for the six months ended March 31, 2019, compared to $1.5 million for the six months ended March 31,
2018. The increase was primarily due to payroll costs associated with new employee hires related to the business development function
and due to an increase in legal costs, accounting expenses and board of director fees primarily related to increased public company
related costs. These expense increases were offset in part by a decrease in stock-based compensation during the current six
month period ended March 31, 2019 when compared to the prior year period.
Research and development expenses
Research and development
expenses were $0.6 million for the six months ended March 31, 2019, compared to $0.3 million for the six months ended March 31,
2018. The increase during the six month period ended March 31, 2019 over the comparable prior year period was attributed to an
increase in supporting development activities, which primarily included salary-related expenses and other costs related to consulting
services, materials and supplies.
Interest expense
Interest expense was
$0.3 million for the six months ended March 31, 2019 compared to $0.5 million for the six months ended March 31, 2018. The decrease
was primarily due to less non-cash interest expense of $51,000 and amortization of debt discount costs of $0.2 million related
to the Series 3 Notes in comparison to interest expense of $0.1 million and amortization of debt issuance costs of $0.4 million
related to the Series 1 Notes, Series 2 Notes and Series 3 Notes that were outstanding during the three months ended March 31,
2018.
Net change in fair value for the warrant
liability and premium conversion derivatives
The net change in fair
value for the warrant liability and premium conversion derivatives for the six months ended March 31, 2019 and 2018 was $0.1 million
and $43,000, respectively. The change is due primarily to fluctuations in our common stock fair value and the number of potential
shares of common stock issuable upon conversion of the underlying Series 1 Notes, Series 2 Notes and Series 3 Notes that were outstanding
during the relevant period.
Loss on note extinguishments, net
Non-cash loss on note
extinguishments, net for the six months ended March 31, 2019 was $0.6 million as compared to $0.5 million during the six month
period ended March 31, 2018, resulting in a slight increase period over period stemming from modifications to and conversions of
the notes.
During the six month period
ended March 31, 2019, the Series 3 Notes were converted on February 28, 2019 and the conversion was accounted for as a note extinguishment
given the bifurcated embedded premium debt conversion feature. During the six month period ended March 31, 2018, the Series 1
Notes and Series 2 Notes were amended in November 2017 and the Series 3 Notes were amended in December 2017. The amendment for
the Series 1 Notes extended the maturity date by approximately eight months and revised certain warrant and other provisions.
The amendment for the Series 2 Notes added additional warrant coverage and extended the maturity date by approximately five months.
The amendment for the Series 3 Notes accelerated the maturity date from October 2022 to December 2018 and revised certain formulaic
provisions contained in the underlying embedded conversion features. Lastly, the Series 2 Notes were amended again in March 2018
whereby new warrants and embedded conversion features were added. As a result of the modifications made to the Series 1 Notes,
Series 2 Notes and Series 3 Notes as discussed in this paragraph, the amendments were accounted for as note extinguishments.
83
Liquidity and Capital Resources
Historical Capital Resources
As of March 31, 2019, our principal source
of liquidity consisted of cash deposits of $2.3 million. We have not generated any revenue, and we anticipate that we will continue
to incur losses for the foreseeable future. We anticipate that our expenses will increase substantially as we develop our cortical
strip, grid electrode and depth electrode technology and pursue pre-clinical testing and clinical trials, seek regulatory approvals,
contract to manufacture any products, establish our own sales, marketing and distribution infrastructure to commercialize our cortical
strip, grid electrode and depth electrode technology under development, if approved, hire additional staff, add operational, financial
and management systems and continue to operate as a public company.
Our source of cash to date has been proceeds
from the issuances of notes with warrants, common stock with warrants and unsecured loans, the terms of which are further described
below. See "—Funding Requirements and Outlook" below for the outstanding balances on our convertible notes.
Private Placements
2019 Private Placement
In connection with the 2019 Private Placement,
between December 28, 2018 and July 1, 2019, the Company entered into subscription agreements ("2019 Purchase Agreements")
with accredited investors (the "2019 Purchasers"), pursuant to which the Company agreed to issue and sell to accredited
investors up to a maximum of 4,000,000 units (the "2019 Maximum Offering") at a price of $2.50 per Unit for total gross
proceeds to the Company of up to $10,000,000. Each unit consisted of one share of our Common Stock and (ii) a warrant to purchase
one share of Common Stock at an initial exercise price of $3.00 per share. The Company has issued an aggregate of 2,338,179 units,
for total gross proceeds to the Company of approximately $5,845,448 in connection with all closings of the 2019 Private Placement
to date.
Under the 2019 Purchase
Agreements, the Company agreed to use the net proceeds from the 2019 Private Placement to pay the outstanding principal and accrued
interest on its convertible promissory notes if such notes did not convert prior to maturity, to pay the principal on its unsecured
term loans, for research and development, clinical studies, legal fees and sales and marketing expenses, as well as working capital
and general corporate purposes. The Company granted the 2019 Purchasers indemnification rights with respect to its representations,
warranties and agreements under the 2019 Purchase Agreement.
In connection with the 2019 Private Placement,
the Company entered into registration rights agreements with each of the 2019 Purchasers, pursuant to which the Company agreed
to file a registration statement with the SEC within 75 days of the final closing of the 2019 Private Placement covering the resale
of the shares of Common Stock sold in the 2019 Private Placement and the shares of Common Stock issuable upon exercise of the warrants.
This prospectus forms a part of the registration statement the Company agreed to file pursuant to the registration rights agreement.
Each registration rights agreement includes customary indemnification rights in connection with the registration statement.
The warrants are exercisable beginning
on the date of issuance and will expire on December 28, 2023, five years from the date of the first closing of the 2019 Private
Placement. Prior to expiration, subject to the terms and conditions set forth in the warrants, the holders of such warrants may
exercise the warrants for shares of Common Stock by providing notice to the Company and paying the exercise price per share for
each share so exercised.
In connection with the 2019 Private Placement, Paulson received a cash commission equal to 12% of the
gross proceeds from the sale of the units to certain investors ("Paulson Investors"), and HRA Capital received a cash
commission equal to 8% of the gross proceeds from the sale of the units to certain investors ("HRA Investors"). In
addition, the Company issued 5-year warrants to Paulson to purchase an amount of Common Stock equal to 10% of the shares of Common
Stock sold in the 2019 Private Placement to Paulson Investors at an exercise price of $2.75 per share, and the Company issued 5-year
warrants to Corinthian, an affiliate of HRA, and its designees, to purchase an amount of Common Stock equal to 8% of the shares
of Common Stock sold in the 2019 Private Placement to HRA Investors at an exercise price of $3.00 per share.
On July 1, 2019, the Board terminated the
2019 Private Placement.
84
2018 Private Placement
From July 9, 2018 through November 30,
2018, in connection with the 2018 Private Placement, the Company entered into Purchase Agreements with accredited investors, pursuant
to which the Company, agreed to issue and sell units, each consisting of (i) one share of our Common Stock and (ii) a warrant to
purchase 1 share of Common Stock at an initial exercise price of $3.00 per share.
In the 2018 Private Placement, the Company
sold an aggregate of 615,200 units to the Purchasers, for total gross proceeds to the Company of approximately $1,538,000, inclusive
of the advances received in June 2018 in the amount of $188,000, before deducting offering expenses.
In connection with the 2018 Private Placement,
the Company entered into registration rights agreements with each of the Purchasers, pursuant to which the Company agreed
to file a registration statement with the SEC within 75 days of the final closing of the 2018 Private Placement covering the resale
of the shares of Common Stock sold in the 2018 Private Placement and the shares of Common Stock issuable upon exercise of the warrants.
The warrants are exercisable beginning on the date of issuance and will expire on July 9, 2023, five years from the date of the
first closing. Prior to expiration, subject to the terms and conditions set forth in the warrants, the Purchasers may
exercise the warrants for shares of Common Stock by providing notice to the Company and paying the exercise price per share for
each share so exercised. The registration statement was filed, and became effective on February 28, 2019.
In connection with the 2018 Private Placement,
the Company agreed to pay certain brokers a cash commission equal to 10% of the gross proceeds from the sale of the Units to certain
investors. In addition to the brokers' commission, the Company agreed to issue 5 year warrants to the brokers to purchase
an amount of Common Stock equal to 10% of the total amount of shares sold in the 2018 Private Placement at an exercise price of
$3.45 per share.
Pursuant to the Company's engagement
letter with HRA Capital (acting through the registered broker-dealer, Corinthian), as amended in February 2019, the Company agreed
to pay HRA Capital a cash fee equal to 8% of the gross proceeds received by the Company from certain investors in the 2018 Private
Placement and to issue warrants exercisable to purchase shares of Common Stock (or common stock equivalents) in an amount equal
to 8% of the shares of Common Stock purchased by such investors in the 2018 Private Placement. Such warrants were issued on July
1, 2019.
On December 12, 2018, the Board terminated
the 2018 Private Placement.
Series 3 Notes and Warrants
From October 2017 to May 2018, the Company
issued the Series 3 Notes in an aggregate principal amount of $1.5 million that bear interest
at a fixed rate of 8% per annum and warrants to purchase shares of the Company's capital stock. The Company initially entered
into a subscription agreement with certain accredited investors and closed an initial private placement of the Series 3 Notes
in October 2017. In December 2017, the Company and holders of a majority in aggregate principal amount of the Series 3 Notes entered
into an amended and restated subscription agreement to amend the terms of the Series 3 Notes and warrants. In December 2018, the
Company and the holders of a majority in aggregate principal amount of the Series 3 Notes agreed to further amend the Series 3
Notes to extend the maturity date from December 31, 2018 to June 30, 2019 under what was classified as a troubled debt restructuring.
The amendment was accounted for as a troubled debt restructuring given the Company's financial condition and given the concession
granted by the lenders with regards to pushing out the maturity date to June 30, 2019 with no corresponding compensation paid
for the extension. The Series 3 Notes, as amended, require us to repay the principal and accrued and unpaid interest thereon at
June 30, 2019. If the Company consummated an equity round of financing resulting in more than $3 million in gross proceeds before
June 30, 2019 (the "Series 3 Qualified Financing"), the outstanding principal and accrued and unpaid interest on the
Series 3 Notes would automatically convert into the securities issued by us in the Series 3 Qualified Financing equal to the outstanding
principal and accrued interest on the Series 3 Notes divided by 80% of the price per share of the securities issued by us in the
Series 3 Qualified Financing. If a Change of Control (as defined below) occurred prior to the earlier of a Series 3 Qualified
Financing or June 30, 2019, the Series 3 Notes would, at the election of the holders of a majority of the outstanding principal
amount of the Series 3 Notes, either become payable on demand as of the closing date of the Change of Control or become convertible
into shares of Common Stock immediately prior to the Change of Control at a price per share equal to the lesser of (i) the per
share value of the Common Stock as determined by our Board as if in connection with the granting of stock-based compensation or
in a private sale to a third party in an arms-length transaction or (ii) at the per share consideration to be paid in the Change
of Control (the date of any such conversion of the Series 3 Notes in connection with a Change of Control or Series 3 Qualified
Financing, is referred to herein as the "Series 3 Conversion Date"). Change of Control means a merger or consolidation
with another entity in which our stockholders do not own more than 50% of the outstanding voting power of the surviving entity
or the disposition of all or substantially all of our assets.
85
Prior to the December 2017 amendment, if
the Company raised more than $3,000,000 in an equity financing before October 4, 2022, the outstanding principal and accrued and
unpaid interest on the Series 3 Notes would have automatically converted into the securities issued by the Company in such financing
based on the greater number of such securities resulting from either (i) the outstanding principal and accrued interest on the
Series 3 Notes divided by $2.25 or (ii) the outstanding principal and accrued interest on the Series 3 Notes multiplied by 1.25,
divided by the price paid per security in such financing.
Each warrant originally issued to the holders
of Series 3 Notes grants the holders the option to purchase shares of our capital stock equal to the number of shares of capital
stock of the Company received by the holder upon conversion of the Series 3 Notes at a per share exercise price equal to (i) the
actual per share price of the securities issued in the Series 3 Qualified Financing if the Series 3 Notes convert in connection
with such a qualified financing or (ii) the price at which the Series 3 Notes converted if they converted in connection with a
Change of Control. The warrants are exercisable commencing on the Series 3 Conversion Date and expiring on the five year anniversary
of that date. The exercise price and number of the shares of our capital stock issuable upon exercising the warrants will be subject
to adjustment in the event of any stock dividends and splits, reverse stock split, recapitalization, reorganization, business combination
or similar transaction, as described therein.
On February 28, 2019, the Company completed an equity round of financing resulting in more than $3 million
in gross proceeds when it closed on the sale of Units in connection with the 2019 Private Placement. Following such financing,
the outstanding principal and interest of the Series 3 Notes of $1.7 million was automatically converted in accordance with the
terms of the Series 3 Notes into 839,179 Units, consisting of 839,179 shares of Common Stock and 839,179 warrants at an exercise
price equal to $3.00 per share. Additionally, the previously issued warrants became immediately exercisable for 839,179 shares
of Common Stock, at an exercise price equal to $2.50 per share, and will expire on February 28, 2024. The exercise price and number
of the shares of our Common Stock issuable upon exercise of the warrants will be subject to adjustment in the event of any stock
dividends and splits, reverse stock split, recapitalization, reorganization, business combination or similar transaction. As of
July 1, 2019, no principal remained outstanding on the Series 3 Notes. The shares of Common Stock offered pursuant to the registration
statement of which this prospectus is a part includes the shares of Common Stock issued upon conversion of the Series 3 Notes and
shares of Common Stock issuable upon exercise of the warrants issued in connection with the Series 3 Notes.
Series 2 Notes and Warrants
In August 2017, the Company entered into
a subscription agreement and issued interest free promissory notes in an aggregate principal amount of $253,000 to certain accredited
investors. In November 2017, the Company and each subscriber amended the notes to extend the maturity date from February 18, 2018
to July 31, 2018 and to increase warrant coverage. In March 2018, the Company and each subscriber entered into a written consent
to again amend and restate the Series 2 Notes and to amend the subscription agreement
to replace the form of warrant agreement annexed to the subscription agreement and to provide for the issuance of an additional
warrant. In March 2018, the Company issued and delivered the Series 2 Notes and warrants to the subscribers. Effective as of July
2, 2018, the Company amended the Series 2 Notes by entering into debt conversion agreements with each subscriber to (i) convert
the outstanding principal and accrued and unpaid interest under the Series 2 Notes into shares of Common Stock based on the outstanding
balance divided by $1.80 per share (the "Series 2 Conversion Shares"); (ii) cancel and extinguish the Series 2 Notes;
and (iii) amend and restate the warrants to make them immediately exercisable upon conversion, at a per share exercise price equal
to $1.80 per share. As consideration for the early conversion of the Series 2 Notes, the Company issued each subscriber a new warrant,
exercisable for up to the number of shares of Common Stock equal to the number of Series 2 Conversion Shares received by such subscriber;
at a per share exercise price of $1.80 per share. The new warrants were exercisable commencing on July 2, 2018 and expire on November
21, 2021. The original warrants became immediately exercisable upon the July 2, 2018 conversion date, at a per share exercise price
equal to $1.80 per share and will expire on November 21, 2021.
86
The exercise price and number of the shares
issuable upon exercising all warrants are subject to adjustment in the event of any stock dividends and splits, reverse stock split,
recapitalization, reorganization or similar transaction, as described therein. The Series 2 Notes were converted into 144,053 shares
of Common Stock and warrants exercisable for 477,856 shares of Common Stock were issued as a result of the Series 2 Notes conversion
and extinguishment.
Series 1 Notes and Warrants
From November 2016 to June 2017, the Company
issued the Series 1 Notes in an aggregate principal amount of $1.6 million that bear interest at a fixed rate of 8% per
annum and warrants to purchase shares of the Company's capital stock. In June 2017 and November 2017, the terms of the Series 1 Notes and warrants were amended.
Effective as of July 2, 2018, the Company
amended the Series 1 Notes by entering into debt conversion agreements with each Series 1 Note subscriber to (i) convert the outstanding
principal and accrued and unpaid interest under the Series 1 Notes into shares of the Company's Common Stock based on the
outstanding balance divided by $1.80 per share (the "Series 1 Conversion Shares"); (ii) cancel and extinguish the Series
1 Notes; and (iii) amend and restate the warrants to make them immediately exercisable upon conversion, at a per share exercise
price equal to $1.80 per share. As consideration for the early conversion of the Series 1 Notes, the Company issued each subscriber
a new warrants, exercisable for up to the number of shares of Common Stock equal to the number of Series 1 Conversion Shares received
by such subscriber; at a per share exercise price of $1.80 per share. The warrants are exercisable commencing on July 2, 2018,
and expire on November 21, 2021. The warrants became immediately exercisable upon the July 2, 2018 conversion date, at a per share
exercise price equal to $1.80 per share, and will expire on November 21, 2021.
The exercise price and number of the shares
issuable upon exercising the warrants are subject to adjustment in the event of any stock dividends and splits, reverse stock split,
recapitalization, reorganization or similar transaction, as described therein. The Series 1 Notes were converted into 1,002,258
shares of Common Stock and warrants exercisable for 2,004,516 shares of Common Stock were issued on July 2, 2018 as a result of
the Series 1 Notes conversion and extinguishment.
The Series 1 Notes, prior to the July 2,
2018 conversion and extinguishment, required us to repay the principal and accrued and unpaid interest thereon at the earlier of
July 31, 2018, or the consummation of the next equity or equity-linked round of financing resulting in more than $3 million in
gross proceeds.
Unsecured Loans
In December 2018, we received cash gross
proceeds from an unsecured loan represented by a promissory note in the amount of $100,000 from a stockholder owning over 5% of
the Company's Common Stock. The loan was interest free and required that we repay the principal in full on the earlier of
the closing of an equity round of financing of the Company resulting in more than $5 million in gross proceeds or December 12,
2019. In November 2018, we received cash gross proceeds from unsecured loans represented by two promissory notes in the amounts
of $45,000 and $100,000 from stockholders owning over 5% of the Company's Common Stock. The loans were interest free and
required that we repay the principal in full on the earlier of the closing of an equity round of financing of the Company resulting
in more than $5 million in gross proceeds or November 14, 2019. In May 2018, we received cash gross proceeds from unsecured loans
represented by promissory notes in the amount of $168,000, of which $84,000 was from a stockholder owning over 5% of the Company's
Common Stock. The loans were interest free and required that we repay the principal in full on the earlier of the closing of an
equity round of financing of the Company resulting in more than $5 million in gross proceeds or May 17, 2019. In March 2018, we
also received cash gross proceeds in the amount of $115,000 represented by a promissory note from a stockholder owning over 5%
of the Company's Common Stock. The loan was also interest free and required that we repay the principal in full on the earlier
of the closing of an equity round of financing of the Company resulting in more than $3 million in gross proceeds or March 20,
2019.
As of June 3, 2019, the Company had repaid
all of the promissory notes in full.
87
Funding Requirements and Outlook
We have no current source of revenue to
sustain our present activities, and we do not expect to generate revenue until, and unless, the FDA or other regulatory authorities
approve our cortical strip, grid electrode and depth electrode technology under development and we successfully commercialize our
cortical strip, grid electrode and depth electrode technology. Until such time, if ever, as we can generate substantial product
revenue, we expect to finance our cash needs through a combination of equity and debt financings as well as collaborations, strategic
alliances and licensing arrangements. We do not have any committed external source of funds. To the extent that we raise additional
capital through the sale of equity or convertible debt securities, the ownership interest of our stockholders will be diluted,
and the terms of these securities may include liquidation or other preferences that adversely affect your rights as a common stockholder.
Debt financing, if available, may involve agreements that include covenants limiting or restricting our ability to take specific
actions, such as incurring additional debt, making capital expenditures or declaring dividends. If we raise additional funds through
collaborations, strategic alliances or licensing arrangements with third-party partners, we may have to relinquish valuable rights
to our technologies, future revenue streams or grant licenses on terms that may not be favorable to us. If we are unable to raise
additional funds through equity or debt financings or through collaborations, strategic alliances or licensing arrangements when
needed, we may be required to delay, limit, reduce or terminate our product development, future commercialization efforts, or grant
rights to develop and market our cortical strip, grid electrode and depth electrode technology that we would otherwise prefer to
develop and market ourselves.
Our independent registered public accounting
firm included an explanatory paragraph in its report on our financial statements as of and for the nine months ended September
30, 2018 and for the year ended December 31, 2017, noting the existence of substantial doubt about our ability to continue as a
going concern. This uncertainty arose from management's review of our results of operations and financial condition and its
conclusion that, based on our operating plans, we did not have sufficient existing working capital to fund our operating expenses.
We have agreements with WARF and Mayo that
require us to make certain milestone and royalty payments.
Under the WARF License, we have agreed
to pay WARF $55,000 (representing a license fee) upon the earliest to occur of the date we cumulatively raise at least $3 million
in financing, which threshold was met, the date of a change of control, or our revenue reaching a specified threshold amount, and
to pay $65,000 (representing reimbursement for costs incurred by WARF in maintaining the licensed patents) upon the earliest to
occur of the date we cumulatively raise at least $5 million in financing, the date of a change of control, or our revenue reaching
a specified threshold amount. The initial $55,000 payment was paid in April 2018. The $65,000 reimbursement milestone was paid
in February 2019
.
We have also agreed to pay WARF a royalty equal to a single-digit percentage of our product sales pursuant
to the WARF License, with a minimum annual royalty payment of $50,000 for 2019, $100,000 for 2020 and $150,000 for 2021 and each
calendar year thereafter that the WARF License is in effect. If we or any of our sublicenses contest the validity of any licensed
patent, the royalty rate will be doubled during the pendency of such contest and, if the contested patent is found to be valid
and would be infringed by us if not for the WARF License, the royalty rate will be tripled for the remaining term of the WARF License.
Under the Mayo Development Agreement, we
have agreed to pay Mayo a royalty equal to a single-digit percentage of our product sales pursuant to the Mayo Development Agreement.
Nothing further is due until we start selling our products.
See "Business—WARF License,"
"Business—Mayo Foundation for Medical Education and Research License and Development Agreement," "Risk
Factors—Risks Relating to Our Business—We depend on intellectual property licensed from WARF for our technology under
development, and the termination of this license would harm our business" and "Risk Factors—We depend on our
partnership with Mayo to license certain know how for the development and commercialization of our technology."
88
Our existing cash and cash equivalents
will not be sufficient to fund our operating expenses throughout our fiscal year ending September 30, 2019. To continue to fund
operations, we will need to secure additional funding. We may obtain additional financing in the future through the issuance of
our Common Stock and securities convertible into our Common Stock, through other equity or debt financings or through collaborations
or partnerships with other companies. We may not be able to raise additional capital on terms acceptable to us, or at all, and
any failure to raise capital when needed could compromise our ability to execute on our business plan, and we may be forced to
liquidate our assets. In such a scenario, the values we receive for our assets in liquidation or dissolution could be significantly
lower than the values reflected in our financial statements.
The development of our cortical strip,
grid electrode and depth electrode technology is subject to numerous uncertainties, and we have based these estimates on assumptions
that may prove to be substantially different than we currently anticipate and could use our cash resources sooner than we expect.
Additionally, the process of developing medical devices is costly, and the timing of progress in pre-clinical tests and clinical
trials is uncertain. Our ability to successfully transition to profitability will be dependent upon achieving FDA approval and
then a level of product sales adequate to support our cost structure. We cannot assure you that we will ever be profitable or generate
positive cash flow from operating activities.
Cash Flows for the Nine Months
Ended September 30, 2018 and 2017
The following is a summary of cash flows
for each of the periods set forth below.
For the Nine Months Ended
September 30,
2018
2017
(unaudited)
Net cash used in operating activities
$
(2,229,207
)
$
(1,509,669
)
Net cash used in investing activities
(55,000
)
—
Net cash provided by financing activities
2,271,000
1,057,481
Net decrease in cash
$
(13,207
)
$
(452,188
)
Net cash used in operating activities
Net cash used in operating activities was
$2.2 million for the nine months ended September 30, 2018, which consisted of a net loss of $5.1 million partially offset primarily
by non-cash interest, stock-based compensation for non-employee services, note discount amortization, revaluation of premium debt
conversion derivatives and warrant liabilities and note extinguishments, totaling $2.2 million in the aggregate, and a net increase
in accounts payable and accrued expenses of $0.7 million. Net cash used in operating activities over the next year are expected
to increase as payments are made related to accrued legal services incurred through September 30, 2018.
Net cash used in operating activities was
$1.5 million for the nine months ended September 30, 2017, which consisted of a net loss of $3.4 million partially offset primarily
by non-cash interest, stock-based compensation, discount amortization, warrant issuance costs and revaluation of premium debt conversion
derivatives on the Series 1 Notes and Series 2 Notes totaling $1.2 million in the aggregate, an increase in accrued expenses of
$0.6 million, and a decrease in prepaid expenses of $46,677.
Net cash used by investing activities
Net cash used by investing activities was
$55,000 for the nine months ended September 30, 2018 and consisted of the payment owed under the terms of the 2017 WARF Agreement
for the purchase of a patent license for research and development. There was no cash used for investing activities during the nine
months ended September 30, 2017.
Net cash provided by financing activities
Net cash provided by financing activities
was $2.3 million for the nine months ended September 30, 2018, which consisted of net proceeds received from the 2018 Private Placement
totaling $1.1 million, the issuance of the Series 3 Notes and warrants of $0.9 million and issuance of unsecured loans in the amount
of $0.3 million during the nine month period.
89
Net cash provided by financing activities
was $1.1 million for the nine months ended September 30, 2017, which consisted of $1.1 million in net proceeds received upon the
issuance of the Series 1 Notes and warrants and Series 2 Notes and warrants which was partially offset by a $50,000 repayment of
a short-term unsecured loan.
Cash Flows for the Six Months
Ended March 31, 2019 and 2018
The following is a
summary of cash flows for each of the periods set forth below.
For the Six Months Ended
March 31,
2019
2018
Net cash used in operating activities
$
(2,576,280
)
$
(1,189,673
)
Net cash used by investing activities
(65,000
)
(91,709
)
Net cash provided by financing activities
4,933,419
1,236,551
Net increase (decrease) in cash
$
2,292,139
$
(44,831
)
Net cash used in operating activities
Net cash used in operating
activities was $2.6 million for the six months ended March 31, 2019, which consisted of a net loss of $3.6 million partially offset
by non-cash interest, note discount amortization, revaluation of premium debt conversion derivatives and warrant liabilities, non-cash
note extinguishment, amortization related to intangible assets and stock-based compensation, totaling approximately $1.2 million
in the aggregate. Net loss was also adjusted by a net change of $0.2 million in our net operating assets and liabilities. The change
in operating assets and liabilities was primarily attributable to a net decrease in accounts payable and accrued expenses, offset
in part by an increase in our prepaid expenses, associated with fluctuations in our operating activities.
Net cash
used in operating activities was $1.2 million for the six months ended March 31, 2018, which consisted of a net loss of $3.0 million
partially offset primarily by non-cash interest, stock-based compensation for non-employee services, note discount amortization,
revaluation of premium debt conversion derivative and warrant liabilities and short-term notes extinguishment, totaling $1.4 million
in the aggregate, and an increase in accrued expenses of $0.4 million.
Net cash used by investing activities
Net cash used by investing
activities was $0.1 million for the six months ended March 31, 2019 and consisted of the payment owed under the terms of the WARF
License related to research and development.
Net cash used by investing
activities was $0.1 million for the six months ended March 31, 2018 and consisted of the payment owed under the terms of the Mayo
Development Agreement for the purchase of a patent license for research and development.
Net cash provided by financing activities
Net cash provided by
financing activities was $4.9 million for the six months ended March 31, 2019 which consisted primarily of net proceeds received
upon the issuance of the Units in the 2019 and 2018 Private Placements in the amount of approximately $4.6 million. Additionally,
cash provided by financing activities also included proceeds from stock option and warrant exercises in the aggregate of $0.4 million,
offset in part by net repayments over proceeds relating to our unsecured loans in the amount of $54,000 during the six month period.
Net cash provided by
financing activities was $1.2 million for the six months ended March 31, 2018 which largely consisted of $1.1 million in net proceeds
received upon the issuance of the Series 3 Notes and warrants during the quarter and $0.1 million in net proceeds received upon
the issuance of unsecured non-interest bearing notes.
90
Critical Accounting Policies and Significant Judgments
and Estimates
Critical Accounting Policies
Our management's discussion and analysis
of our financial condition and results of operations is based on our consolidated financial statements, which have been prepared
in accordance with accounting principles generally accepted in the United States of America, or GAAP. The preparation of these
consolidated financial statements requires us to make estimates, judgments and assumptions that affect the reported amounts of
assets and liabilities, disclosure of contingent assets and liabilities as of the dates of the balance sheets and the reported
amounts of revenue and expenses during the reporting periods. In accordance with GAAP, we base our estimates on historical experience
and on various other assumptions that we believe are reasonable under the circumstances at the time such estimates are made. Actual
results may differ materially from our estimates and judgments under different assumptions or conditions. We periodically review
our estimates in light of changes in circumstances, facts and experience. The effects of material revisions in estimates are reflected
in our consolidated financial statements prospectively from the date of the change in estimate.
While our significant accounting policies
are more fully described in the notes to our consolidated financial statements appearing elsewhere in this prospectus, we believe
the following are the critical accounting policies used in the preparation of our consolidated financial statements that require
significant estimates and judgments.
Fair Value of Financial Instruments
We account for fair value measurements
of assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring or nonrecurring
basis adhering to the Financial Accounting Standards Board (FASB) fair value hierarchy that prioritizes the inputs to valuation
techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for
identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable
inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows:
●
Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities
accessible to the Company at the measurement date.
●
Level 2 Inputs: Other than quoted prices included in Level 1 inputs that are observable for the
asset or liability, either directly or indirectly, for substantially the full term of the asset or liability.
●
Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the
extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity
for the asset or liability at measurement date.
As of March 31, 2019, September 30, 2018
and December 31, 2017, the fair values of cash, accounts payable, accrued expenses and the unsecured loans approximated their carrying
values because of the short-term nature of these assets or liabilities. The estimated fair value of the notes was based on amortized
cost which was deemed to approximate fair value. The fair value of the warrant liability and the premium conversion derivatives
associated with the convertible promissory notes was based on both the estimated fair value of our Common Stock of $2.29, $2.30
and $2.52 as of February 28, 2019, September 30, 2018 and December 31, 2017, respectively, and cash flow models discounted at current
implied market rates evidenced in recent arms-length transactions representing expected returns by market participants for similar
instruments which were based on Level 3 inputs.
Intellectual Property
We entered into two licensing agreements
with major research institutions, which allow for access to certain patented technology and know-how. Milestone payments under
those agreements are capitalized and amortized to general and administrative expense over the expected useful life of the acquired
technology.
91
Impairment of Long-Lived Assets
We evaluate long-lived assets, which consist
entirely of licensed intellectual property for impairment whenever events or changes in circumstances indicate that the carrying
value of these assets may not be recoverable. We assess the recoverability of long-lived assets by determining whether or not the
carrying value of such assets will be recovered through undiscounted expected future cash flows. If the asset is considered to
be impaired, the amount of any impairment is measured as the difference between the carrying value and the fair value of the impaired
asset. Through March 31, 2019, no milestones triggering possible impairment of our long-lived assets have occurred.
Debt Issuance Costs
Debt issuance costs are recorded as a reduction
of the notes. Amortization of debt issuance costs is calculated using the straight-line method over the term of the notes, which
approximates the effective interest method, and is recorded in interest expense in the statements of operations.
Research and Development Costs
Research and development costs are charged
to expense as incurred. Research and development expenses may be comprised of costs incurred in performing research and development
activities, including clinical trial costs, manufacturing costs for both clinical and pre-clinical materials as well as other contracted
services, license fees, and other external costs. Nonrefundable advance payments for goods and services that will be used in future
research and development activities are expensed when the activity is performed or when the goods have been received, rather than
when payment is made, in accordance with ASC 730,
Research and Development
.
Warrant Liability
We issued warrants to purchase equity securities
in connection with the issuance of convertible promissory notes. We account for these warrants as a liability at fair value when
the number of shares is not fixed and determinable and when warrant pricing protections in future equity financings are not available
to other common stockholders. Additionally, issuance costs associated with the warrant liability are expensed as incurred and reflected
as interest expense in the accompanying consolidated statements of operations. We adjust the liability for changes in fair value
until the earlier of the exercise or expiration of the warrants, amendment of warrant terms that no longer require liability treatment,
or until such time, if any, as the number of shares to be exercised becomes fixed, at which point the warrants will be classified
in stockholders' (deficit) equity provided that there are sufficient authorized and unissued shares of common stock to settle
the warrants and redeem any other contracts that may require settlement in shares of common stock. Any change in fair value of
the warrant liability while outstanding is recognized in the consolidated statements of operations.
Premium Debt Conversion Derivatives
We evaluate all conversion and redemption
features contained in a debt instrument to determine if there are any embedded derivatives that require separation from the host
debt instrument. An embedded derivative that requires separation is bifurcated from its host debt instrument and a corresponding
discount to the host debt instrument is recorded. The discount is amortized and recorded to interest expense over the term of the
host debt instrument using the straight-line method which approximates the effective interest method. The separated embedded derivatives
are accounted for separately on a fair value basis. We record the fair value changes of separated embedded derivatives in the consolidated
statements of operations at each reporting period while outstanding.
Income Taxes
Income taxes are accounted for under the
asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to
differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax base and
operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected
to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Deferred
tax assets are reduced by a valuation allowance if it is more likely than not that some portion of all of the deferred tax asset
will not be realized.
92
Net Earnings or Loss Per Share
Basic earnings or loss per share of common
stock is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period.
Diluted earnings or loss per share of common
stock is computed similarly to basic earnings or loss per share except the weighted average shares outstanding are increased to
include additional shares from the assumed exercise of any common stock equivalents, if dilutive. Our stock options, warrants and
convertible promissory notes are considered common stock equivalents for this purpose. Diluted earnings is computed utilizing the
treasury method for the stock options and warrants. Diluted earnings with respect to the convertible promissory notes utilizing
the if-converted method was not applicable during the periods presented as no conditions required for conversion had occurred during
these periods. No incremental common stock equivalents were included in calculating diluted loss per share because such inclusion
would be anti-dilutive given the net loss reported for the periods presented.
Common Stock Valuation Methodology
Prior to the Acquisition
Prior to the Acquisition on July 20, 2017,
NeuroOne, Inc. was a private company with no active public market for its common stock. Therefore, at the time of grant, NeuroOne,
Inc. determined the fair value of its common stock using a contemporaneous valuation performed in accordance with the guidance
outlined in the
American Institute of Certified Public Accountants Practice Aid, Valuation of Privately-Held Company Equity
Securities Issued as Compensation
, also known as the Practice Aid. We performed these contemporaneous valuations on an as-needed
basis. In conducting the contemporaneous valuations, NeuroOne, Inc. considered all objective and subjective factors that it believed
to be relevant for each valuation conducted, including its best estimate of our business condition, prospects and operating performance
at each valuation date. Within this contemporaneous valuation performed by us, a range of factors, assumptions and methodologies
were used. These significant factors included:
●
our recent securities transactions;
●
our stage of development and business strategy;
●
the likelihood of a liquidity event such as an initial public offering, a merger or the sale of
our company;
●
our financial condition and operating results, including our projected results; and
●
the financial condition and operating results of comparable publicly owned companies
The fair value of NeuroOne, Inc.'s
common stock prior to the Acquisition was determined during a period when there was limited data with regard to value indication
other than convertible notes issued between November 2016 and June 2017. At the time, such convertible notes contained a $1.80
conversion cap, which was treated as an estimated price of preferred stock into which the notes would convert. A transaction backsolve
was performed that equated the $1.5 million investment in the convertible notes with the resulting equity allocation to the hypothetical
converted shares and warrants expected to be issued upon conversion. The resulting equity value was then used to infer the value
of common stock within the same option-pricing framework. This scenario implicitly assumed 100% likelihood of a stock financing.
In order to account for the possibility of dissolution, the transaction backsolve was used along with a dissolution scenario within
a hybrid Probability Weighted Expected Return Method ("PWERM"). The scenarios were weighted 50/50, and a Discount For
Lack of Marketability ("DLOM") applied, to determine the valuation conclusion.
93
Following the Acquisition
For valuations following the Acquisition,
management estimated our enterprise value on a continuing operations basis, using the market approach, with certain adjustments
relating to the thinly traded status of the Company. The traded price of the Company was deemed not to be an entirely reliable
indication of fair market value given the lack of trading liquidity. Therefore, in addition to applying partial weighting to the
traded price, we relied on forward revenue multiples from guideline public companies ("GPC") for calendar year 2019
and 2020. The resulting equity value from the GPC method was allocated to Common Stock using the option pricing method, and a DLOM
was applied. Based on the above methodology and weightings, we derived a valuation conclusion of $2.38, $2.30 and $2.52 per share
as of March 31, 2019, September 30, 2018 and December 31, 2017, respectively.
The significant factors contributing to
the increase in the fair value of our Common Stock following the Acquisition included the following:
●
The successful completion of the reverse merger;
●
Access to new capital as a public company;
●
Improved revenue projections;
●
Improved general economic conditions;
●
Additional issuance of convertible notes; and
●
Important developments relating to achievement of our business objectives
There are significant judgments and estimates
inherent in the determination of fair value of our Common Stock, including the contemporaneous valuations. These judgments and
estimates include assumptions regarding our future operating performance, and the determination of the appropriate valuation methods.
If we had made different assumptions, our stock-based compensation expense, net loss and net loss per common share could have been
significantly different.
The fair value of our Common Stock is used
as an input into the fair value determination of the warrants, stock option or other equity awards that we have issued during the
year or are outstanding liabilities at our reporting date.
Recent Accounting Pronouncements
See Note 3 — "Summary of Significant
Accounting Policies" included in the financial statements in this prospectus regarding the impact of certain recent accounting
pronouncements on our financial statements.
Off-Balance Sheet Arrangements
None.
94
MARKET FOR AND DIVIDENDS
ON REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS
Our Common Stock has been quoted on the
OTCQB under the symbol "NMTC" since December 19, 2017. Prior to that date, our Common Stock had been quoted on the
OTC Pink from November 2012. Trading in stocks quoted on the OTCQB is often thin and is characterized by wide fluctuations in trading
prices due to many factors that may be unrelated or have little to do with a company's operations or business prospects.
We cannot assure you that there will be a market for our Common Stock in the future.
The following table presents the range of high and low closing bid information for our common equity for
each full quarterly period within the six months ended March 31, 2019, each full quarterly period within the nine months ended
September 30, 2018 (the "Transition Period") and the years ended December 31, 2017 and 2016, as quoted by the OTC.
There is no established public trading
market for our Common Stock. The over-the-counter market quotations below reflect inter-dealer prices, without retail mark-up,
mark-down or commission and may not necessarily represent actual transactions. Prior to August 1, 2017, only one market maker was
quoting the bid price information for our Common Stock and only one bid price was available.
High
Low
Subsequent Interim Periods
First Quarter Ended December 31, 2018
$
7.79
$
4.60
Second Quarter Ended March 31, 2019
$
4.74
$
3.10
Transition Period Ended September 30, 2018
First Quarter
$
4.22
$
3.50
Second Quarter
$
6.00
$
3.55
Third Quarter
$
10.00
$
3.00
Fiscal Year Ended December 31, 2017
First Quarter
$
1.50
$
1.50
Second Quarter
$
1.50
$
1.50
Third Quarter
$
4.15
$
1.50
Fourth Quarter
$
3.50
$
2.02
Fiscal Year Ended December 31, 2016
First Quarter
$
1.50
$
1.50
Second Quarter
$
1.50
$
1.50
Third Quarter
$
1.50
$
1.50
Fourth Quarter
$
1.50
$
1.50
Holders
As of July 1, 2019, there were 159 holders
of record of our Common Stock.
Dividends
We have not declared or paid any cash dividends
on our Common Stock and presently intend to retain our future earnings, if any, to fund the development and growth of our business
and, therefore, do not anticipate paying any cash dividends in the foreseeable future.
95
CHANGES IN AND DISAGREEMENTS
WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
None beyond what has previously been reported.
96
DIRECTORS AND EXECUTIVE
OFFICERS
Directors and Executive Officers
The Board is divided into three classes.
Members of each class serve staggered three-year terms. The following table provides information as to each person who is, as of
the filing hereof, a director and/or executive officer of the Company:
Name
Position(s)
Age
David Rosa
Class II Director, Chief Executive Officer, and President
55
Mark Christianson
Vice President, Business Development and Marketing
52
Thomas Bachinski
Chief Development Officer
58
Scott Heuler
Vice President, Sales
55
Steve Mertens
Chief Technology Officer
56
Paul Buckman
Class I Director and Chairman of the Board
63
Suraj Kalia
Class III Director
47
Jeffrey Mathiesen
Class III Director
58
No Family Relationships
There is no family relationship between
any director and executive officer or among any directors or executive officers.
Business Experience and Background of Directors and Executive
Officers
David Rosa
Mr. Rosa has served as the Chief Executive
Officer, President and a director of the Company since July 2017 and as Chief Executive Officer and a director of our wholly-owned
subsidiary, NeuroOne, Inc., since October 2016. From November 2009 to November 2015, Mr. Rosa served as the chief executive officer
and president of Sunshine Heart, Inc., a publicly-held early-stage medical device company. From 2008 to November 2009, Mr. Rosa
served as chief executive officer of Milksmart, Inc., a company that specializes in medical devices for animals. From 2004 to 2008,
Mr. Rosa served as the vice president of global marketing for cardiac surgery and cardiology at St. Jude Medical. Currently, he
serves as a director on the board of directors of Biotricity Inc.
Mr. Rosa's qualifications to serve
on the Board include his senior leadership experience in the medical device industry. In addition, his day-to-day leadership of
the Company gives him critical insights into the Company's operations, strategy and competition, and he facilitates the Board's
ability to perform its oversight function. Throughout his career at the Company and his former positions, he has demonstrated strong
technical, strategic, and operational expertise, and he possesses in-depth knowledge of the medical device industry on a global
basis.
Mark Christianson
Mr. Christianson has served as Vice President
of Business Development and Marketing of the Company since July 2017 and of our wholly-owned subsidiary, NeuroOne, Inc., since
December 2016. From May 2013 to December 2016 Mr. Christianson served as North American sales manager for Cortec Corporation. From
February 2012 to May 2013 Mr. Christianson held the position of business development executive for Robert Half International. From
May 2009 to February 2012 Mr. Christianson held the position of regional sales manager for PMT. Mr. Christianson studied
accounting at Augsburg College in Minneapolis. Mr. Christianson brings 15 years of high performing sales, sales management, and
project management experience to the team. In addition, he also has contributed to the development and corporate strategy of the
Company given his experience in the neurological field and his close relationships with key epilepsy opinion leaders.
Thomas Bachinski
Mr. Bachinski has served as Chief Development
Officer of the Company since July 2017 and of our wholly-owned subsidiary, NeuroOne, Inc., since January 2017. From July 2015 to
January 2017, Mr. Bachinski served as the vice president of research and development/engineering at Caerus Corporation, a privately
held medical device company developing products for both the human medical and animal veterinarian industries. In December 2014,
Mr. Bachinski founded FutureWorks Innovative Engineering where technology commercialization strategies are developed and executed
for a variety of clients across the medical device industry. Prior to FutureWorks, Mr. Bachinski was vice president of research
and development and director of the advanced concept development group at Empi, Inc., developing and commercializing a portfolio
of neuro-stimulation devices and technologies. He holds a Master's degree in Engineering and an MBA. We believe that Mr.
Bachinski's extensive engineering background and accomplishments in technology commercialization in the neurological market
space will bring key engineering solutions and insight into our future product portfolio under development and future commercialization
efforts, if approved.
97
Scott Heuler
Mr. Heuler has served as Vice President
of Sales of the Company since January 2019. From January 2005 through December 2018, Mr. Heuler served as the Area Vice President
of Sales-U.S. for the Intervention Cardiology Division of Boston Scientific Corporation. From January 2017 through December 2018,
Mr. Heuler also managed sales for Boston Scientific Corporation's Structural Heart Division. Prior to this, Mr. Heuler held
various senior sales and marketing roles with Guidant Corporation and U.S Surgical Corporation. He holds a BS in Marketing and
Finance from the University of Central Florida.
Steve Mertens
Mr. Mertens has served as Chief Technology
Officer of the Company since April 2019. From September 2018 through April 2019, Mr. Mertens was a consultant at Steve Mertens
Consulting, L.L.C., of which he was the principal and owner. From November 2012 through September 2018, Mr. Mertens served as the
Senior Vice President of Research and Development and Operations at Nuvaira Inc., a privately held lung denervation company developing
minimally invasive product for obstructive lung diseases. Prior to Nuvaira
,
Mr. Mertens served as a Senior Vice President
of Research and Development for Boston Scientific Corporation, guiding a wide range of technologies through product development
for the cardiology, electrophysiology and peripheral vascular markets. He holds a bachelor's degree in engineering and a
Master's degree in business administration. Currently, he serves as chairman of the board of directors of the University
Enterprise Laboratories.
Paul Buckman
Mr. Buckman has served as Chairman of the
Board of the Company since August 2017 and as Chairman of the Board of our wholly-owned subsidiary, NeuroOne, Inc., since October
2016. Mr. Buckman is currently the General Manager of Structural Heart for LivaNova PLC. Prior to joining LivaNova, Mr. Buckman
served as chief executive officer of Conventus Orthopaedics, a Minnesota-based company specializing in peri-articular bone fracture
fixation, from September 2013 until March of 2017. Mr. Buckman was chief executive officer of Sentreheart, Inc., a medical technology
company focused on closure of various anatomic structures, from February 2012 to September 2013. Previously, Mr. Buckman served
as chief executive officer and chairman of Pathway Medical Technologies, Inc., a medical device company focused on treatment of
peripheral arterial disease, from September 2008 to February 2012; as chief executive officer of Devax, Inc., a developer and manufacturer
of drug eluting stents, from December 2006 to September 2008; as president of the cardiology division of St. Jude Medical, Inc.,
a publicly traded diversified medical products company, from August 2004 to December 2006; and as chairman of the board of directors
and chief executive officer of ev3, LLC, a Minnesota-based medical device company focused on endovascular therapies that Mr. Buckman
founded and developed into an $80 million business, from January 2001 to January 2004. Mr. Buckman has worked in the medical device
industry for over 30 years, including 10 years at Scimed Life Systems, Inc. and Boston Scientific Corporation, a publicly traded
medical device manufacturer, where he held several executive positions before becoming president of the cardiology division of
Boston Scientific in January 2000. Mr. Buckman also currently serves as a director for Ablative Solutions, Inc., ActivOrtho, Aortica,
Inc., DyaMX, Inc., and as chairman of Miromatrix, Inc. He previously served as a director of Conventus Orthopaedics, Caisson Interventional
LLC, Velocimed, Inc., where he was a co-founder, EndiCor, Inc., Microvena, Inc., Sunshine Heart, Inc., a publicly-held early-stage
medical device company, NexGen Medical, and Micro Therapeutics, Inc. Mr. Buckman received a Master's degree in Business Administration
and Finance and a B.A. degree in Business Administration from Western Michigan University.
We believe that Mr. Buckman's strong
executive experience in medical device companies provides the Company with valuable guidance on product development and operational
matters.
Suraj Kalia
Mr. Kalia has served as a member of our
Board since August 2017 and as a director of our wholly-owned subsidiary, NeuroOne, Inc., since March 2017. He currently serves
as a managing director and senior research analyst at Northland Capital Markets, where he covers the medical technology sector,
after rejoining the firm in August 2012. His previous positions include managing director and senior medical device analyst at
Rodman & Renshaw Capital Group, senior vice president at Madison Williams and Company LLC, senior research analyst at Piper
Jaffray Companies, and project manager at Entegris, Inc. as part of the Business Development & Engineering groups.
Mr. Kalia has served as a member of the
Advisory Board of Levitronix, LLC from 2009 until its acquisition by Thoratec Corporation in 2011. He has more than 18 years of
experience working in the financial and health care industries. Mr. Kalia has also served as an Adjunct Professor of Finance and
taught MBA level courses on Investment Theory and Mergers & Acquisitions at University of St. Thomas.
Mr. Kalia holds the Chartered Financial
Analyst (CFA) designation. He received a Master's of Business Administration degree in Finance from the University of St.
Thomas in Minneapolis, a Bachelor's degree in Chemical Engineering from the Indian Institute of Technology in Bombay, India
and a Master's degree in Chemical Engineering from Stevens Institute of Technology in Hoboken, N.J.
We believe that Mr. Kalia's extensive
background in the financial and medtech industry bring important practical experience from a financial and strategic perspective.
In addition, his engineering background enables him to provide key insights with respect to the Company's product development
strategy.
98
Jeffrey Mathiesen
Mr. Mathiesen has served as a member of
the Board of the Company since August 2017 and as a director of our wholly-owned subsidiary, NeuroOne, Inc., since April 2017.
He has served as chief financial officer of Teewinot Life Sciences, a privately held biopharmaceutical company focused on the biosynthetic
production of pure pharmaceutical grade cannabinoids since March 2019. Previously he served as the chief financial officer of Gemphire
Therapeutics Inc., a publicly-held clinical-stage biopharmaceutical company developing therapies for patients with cardiometabolic
disorders, from September 2015 to September 2018. From August 2015 to September 2015 he was a consultant to Gemphire. Prior to
joining Gemphire, Mr. Mathiesen served as chief financial officer of Sunshine Heart, Inc., a publicly-held early-stage medical
device company, from March 2011 to January 2015. From December 2005 to April 2010, Mr. Mathiesen served as vice president and chief
financial officer of Zareba Systems, Inc., a manufacturer and marketer of medical products, perimeter fencing and security systems,
which was purchased by Woodstream Corporation in April 2010. Mr. Mathiesen has held executive positions with publicly traded companies
dating back to 1993, including vice president and chief financial officer positions. Mr. Mathiesen also serves as a director, audit
committee chairman and nominating and governance committee member of Sun BioPharma, Inc., a publicly traded clinical stage biopharmaceutical
company that develops therapies for pancreatic diseases and as a director and audit committee chairman of eNeura, Inc., a privately-held
medical technology company providing therapy for both acute treatment and prevention of migraine. Mr. Mathiesen received a B.S.
in Accounting from the University of South Dakota and is also a Certified Public Accountant.
We believe that Mr. Mathiesen brings financial
insight and leadership and a wealth of experience in capital markets to the Board, as well as knowledge of public company accounting
and financial reporting requirements and familiarity with the life sciences industry.
Board and Committee Information
We are committed to good corporate governance
practices. These practices provide an important framework within which our Board and management pursue our strategic objectives
for the benefit of our stockholders.
99
Board Leadership Structure
Our Board is currently chaired by Paul
Buckman, who has authority, among other things, to call and preside over meetings of our Board, to set meeting agendas and to determine
materials to be distributed to the Board and, accordingly, has substantial ability to shape the work of the Board. The positions
of our chairman of the Board and Chief Executive Officer are presently separated. Separating these positions allows our Chief Executive
Officer, Mr. Rosa, to focus on our day-to-day business, while allowing Mr. Buckman to lead the Board.
Role of the Board in Risk Oversight
Our Board does not have a standing risk
management committee, but rather administers this oversight function directly through their Board as a whole. The Board's
risk oversight is administered primarily through the following:
●
review and approval of an annual business plan;
●
review of a summary of risks and opportunities at meetings of the Board;
●
review of business developments, business plan implementation and financial results;
●
oversight of internal controls over financial reporting; and
●
review of employee compensation and its relationship to our business plans.
Director Independence
We are not currently listed on a national
securities exchange or in an inter-dealer quotation system that has requirements that a majority of our Board be independent. However,
our Board has undertaken a review of the independence of the directors and considered whether any director has a material relationship
with us that could compromise his ability to exercise independent judgment in carrying out his or her responsibilities applying
Nasdaq independence standards. As a result of this review, our Board has determined that, Messrs. Buckman, Kalia and Mathiesen,
representing three of our four directors, are "independent directors." Mr. Rosa is not considered independent due to
his service as an executive officer of the Company. Prior to the Acquisition, Mr. Samad was Original Source Entertainment's
sole executive officer and director and was not considered independent.
Structure and Operation of the Board
Because our Common Stock is quoted on the
OTCQB Marketplace, the Company is not subject to the listing requirements of any securities exchange regarding committee matters.
We do not have standing compensation or nominating committees of our Board. However, the full Board performs all of the functions
of a standing compensation committee and nominating committee.
Nomination of Directors
Our Board does not currently have a standing
nominating committee, and thus we do not have a nominating committee charter. Due to our small size and limited operations to date,
the Board determined that it was appropriate for the entire Board to act as the nominating committee. The full Board currently
has the responsibility of selecting individuals to be nominated for election to the Board. Board candidates are identified by existing
directors or members of management. The Board considers the needs for the Board as a whole when identifying and evaluating nominees
and, among other things, considers diversity in background, age, experience, qualifications, attributes and skills in identifying
nominees, although it does not have a formal policy regarding the consideration of diversity. In 2018, the Board did not employ
a search firm or pay fees to other third parties in connection with identifying or evaluating Board nominee candidates.
The Board will consider director candidates
recommended by stockholders so long as such recommendations are sent on a timely basis and are otherwise in accordance with the
Company's Certificate of Incorporation, our Bylaws and applicable law. Any such candidates will be evaluated on the same
basis as other candidates being evaluated by the Board. Information with respect to such candidates should be sent to our principal
executive offices, at 10901 Red Circle Drive, Suite 150, Minnetonka, MN 55343.
100
Compensation Committee Related Function
Our Board does not currently have a standing
compensation committee, and thus we do not have a compensation committee charter. The Company's executive compensation program
is administered by the independent directors, who determine the compensation of the Chief Executive Officer and, considering the
recommendations of the Chief Executive Officer, other executive officers of the Company. In reviewing the compensation of our executive
officers, the independent directors consider published compensation surveys and current market conditions.
Audit Committee Matters
The Audit Committee of our Board
(the "Audit Committee") reviews with management and the Company's independent registered public
accounting firm the Company's financial statements, the accounting principles applied in their preparation, the scope
of the audit, any comments made by the independent registered public accounting firm upon the financial condition of the
Company and its accounting controls and procedures and such other matters as the Audit Committee deems appropriate. The Audit
Committee's charter is available on our website,
www.neurooneinc.com
, under Investors — Corporate
Governance.
The Audit Committee currently consists
of three directors: Mr. Mathiesen (chair), Mr. Buckman and Mr. Kalia. The Board has determined that each of Mr. Buckman, Mr. Kalia
and Mr. Mathiesen is "independent" under Nasdaq independence standards. Additionally, the Board has determined that
each of Mr. Mathiesen and Mr. Buckman qualifies as an "audit committee financial expert" as that term is defined in
rules promulgated by the SEC. The designation of an "audit committee financial expert" does not impose upon such persons
any duties, obligations or liabilities that are greater than those generally imposed on each of them as a member of the Audit Committee
and the Board, and such designation does not affect the duties, obligations or liabilities of any other member of the Audit Committee
or the Board.
The functions of the Audit Committee include:
●
Selecting our independent registered public accounting firm;
●
Reviewing the results and scope of the audit and other services provided by our independent
                                                                   registered public accounting firm; and
●
Reviewing and evaluating our audit and control functions.
Code of Business Conduct and Ethics
Our Board has adopted a code of business
conduct and ethics that applies to all of our employees, officers and directors, including our Chief Executive Officer and other
executive officers. We intend to disclose future amendments to certain provisions of our code of business conduct and ethics, or
waivers of these provisions in public filings.
Corporate Governance Guidelines
Our Board has adopted Corporate Governance
Guidelines that set forth expectations for directors, director independence standards, Board structure and functions and other
policies for the governance of the Company.
Involvement in Certain Legal Proceedings
To our knowledge, our directors and executive
officers have not been involved in any of the following events during the past ten years:
●
any bankruptcy petition filed by or against such person or any business of which such person was
a general partner or executive officer either at the time of the bankruptcy or within two years prior to that time;
101
●
any conviction in a criminal proceeding or being subject to a pending criminal proceeding (excluding
traffic violations and other minor offenses);
●
being subject to any order, judgment, or decree, not subsequently reversed, suspended or vacated,
of any court of competent jurisdiction, permanently or temporarily enjoining him from or otherwise limiting his involvement in
any type of business, securities or banking activities or to be associated with any person practicing in banking or securities
activities;
●
being found by a court of competent jurisdiction in a civil action, the SEC or the Commodity Futures
Trading Commission to have violated a Federal or state securities or commodities law, and the judgment has not been reversed, suspended,
or vacated;
●
being subject of, or a party to, any Federal or state judicial or administrative order, judgment
decree, or finding, not subsequently reversed, suspended or vacated, relating to an alleged violation of any Federal or state securities
or commodities law or regulation, any law or regulation respecting financial institutions or insurance companies, or any law or
regulation prohibiting mail or wire fraud or fraud in connection with any business entity; or
●
being subject of or party to any sanction or order, not subsequently reversed, suspended, or vacated,
of any self-regulatory organization, any registered entity or any equivalent exchange, association, entity or organization that
has disciplinary authority over its members or persons associated with a member.
Advisory Boards
The Company has established two advisory
boards: a Physician Advisory Board, and an Artificial Intelligence Advisory Board. These advisory boards do not have decision-making
authority but solely provide advice to management.
The Company's Physician Advisory
Board has five members, including one Ph.D and four medical doctors. Company management generally meets with individuals on the
Physician Advisory Board on a weekly basis, and such members advise the Company on medical and scientific matters as they relate
to the Company's business. Three members are affiliated with the Mayo Clinic or the Cleveland Clinic, and do not receive
any additional compensation for their services. The other two members, Dr. Justin Williams and Dr. Greg Esper, entered into consulting
agreements with NeuroOne, Inc. (prior to the Acquisition) pursuant to which the NeuroOne agreed to grant each of them stock options,
in addition to certain benefits and reimbursement of certain business expenses. In April 2017 and June 2017, the Company granted
Dr. Williams and Dr. Esper, respectively, stock options exercisable for 2,500 shares of NeuroOne stock (42,525 shares of Company
Common Stock after conversion pursuant to the Exchange Ratio). These consulting agreements have expired, and Dr. Williams and Dr.
Esper have not received any additional compensation from the Company. The Company has not been party to any agreements with the
other three members.
The Artificial Intelligence Advisory Board
was formed in September 2018, and is comprised of Kip Ludwig, PhD (chair), and six additional members. Members of the Artificial
Intelligence Advisory Board will provide guidance to management of the Company on potential applications in translational neuroscience
settings, including artificial intelligence and neuromodulation for medical applications. The Company anticipates that this advisory
board will begin holding meetings in early 2019. Between September 2018 and November 2018, the Company entered into scientific
advisory board and consulting services agreements with these members. Under these agreements, each member agreed to serve on the
Artificial Intelligence Advisory Board through January 1, 2022, and the Company agreed to grant each member options to purchase
25,000 shares of Common Stock, which will vest monthly in 36 equal increments beginning on January 1, 2019. If a member leaves
the Artificial Intelligence Advisory Board prior to the three year anniversary of the date of their agreement, any remaining unvested
options will be forfeited. When the stock options are granted, vested options will be exercisable at a per share exercise price
equal to the fair value of the Common Stock on the date of grant.
102
EXECUTIVE COMPENSATION
Summary Compensation Table
The following table shows the compensation
earned or received during the nine months ended September 30, 2018 and the fiscal years ended December 31, 2017 and 2016 by each
of our named executive officers (as determined pursuant to the SEC's disclosure requirements for executive compensation in
Item 402 of Regulation S-K), as well as Mr. Samad, who served as the Chief Executive Officer of OSE from March 6, 2014 until his
resignation from such position upon the closing of the Acquisition. Compensation paid to Messrs. Rosa, Bachinski and Christianson
prior to the consummation of the Acquisition was paid by our accounting predecessor in the Acquisition, NeuroOne.
Name
    and Principal Position
Salary
($)
Non-Equity
Incentive Plan
Compensation
($)
(1)
Stock
Awards
($)
All
    Other
Compensation
($)
Total
($)
Dave Rosa,
2018 TP
(2)
287,640
129,438
—
—
417,078
Chief Executive Officer
    and President
2017
356,667
131,600
1,400
(3)
6,098
(4)
495,765
2016
75,000
—
—
2,898
(5)
77,898
Amer Samad,
2017
—
—
—
—
—
Former Chief Executive
    Officer
(6)
2016
—
—
—
—
—
Thomas Bachinski,
2018 TP
(2)
176,715
34,525
—
—
211,240
Chief Development Officer
2017
211,750
56,595
7,220
(7)
798
(8)
276,363
2016
—
—
—
—
—
Mark Christianson,
2018 TP
(2)
153,000
36,675
—
4,500
(9)
194,175
Vice President, Business
    Development
2017
200,000
37,500
2,510
(3)
6,498
(10)
246,508
and Marketing
2016
16,667
—
—
830
(11)
17,497
(1)
Bonuses for the calendar year 2018 were determined by the Board on January 29, 2019. The Board
determined the bonus pool based on twelve months ended December 31, 2018 performance. The amounts earned for the year ended December
31, 2018 were prorated for the nine months ended September 30, 2018 transition period and are reflected in the Non-Equity Incentive
Plan Compensation column.
(2)
In September 2018, we changed our fiscal year end from December 31 to September 30. The 2018 TP
salary amounts reflect the compensation earned from January 1, 2018 to September 30, 2018.
(3)
In October 2016, NeuroOne issued founders' shares to seven individuals, including Mr. Rosa
and Mr. Christianson. Such individuals did not pay the purchase price for the shares. The purchase price owed by the seven individuals
for the founders' shares under their respective subscription agreements totaling $9,050 was recorded as share subscription
receivable in 2016. The receivable was forgiven by NeuroOne prior to the Acquisition in June 2017.
(4)
Represents an $800 per month car allowance that Mr. Rosa received from January 2017 until August
4, 2017, the effective date of his amended employment agreement, and a $498 life insurance premium paid in 2017.
(5)
Represents an $800 per month car allowance commencing in October 2016 and a $498 life insurance
premium paid in 2016.
(6)
Mr. Samad was OSE's sole executive officer and director prior to the Acquisition and did
not receive any compensation for his services rendered to OSE in 2017 or 2016.
(7)
Pursuant to his offer letter with NeuroOne, Inc., Mr. Bachinski was granted a restricted
                           stock award under the 2016 Plan for 12,666 NeuroOne Shares (215,453 shares, as converted based on the Exchange Ratio), which
                           was subject to certain performance vesting conditions related to product development and was fully vested in 2017. The amount
                           reported reflects the grant date fair value of such restricted stock award. For a description of the assumptions used to
                           determine the compensation cost of the award, see the notes to our financial statements included elsewhere in this
                           prospectus.
(8)
Represents life insurance premium paid in 2017.
(9)
Represents a $500 per month car allowance.
(10)
Represents a $500 per month car allowance and a $498 life insurance premium paid in 2017.
(11)
Represents a $500 per month car allowance, which was received for December 2016, and a $330 life
insurance premium paid in 2016.
103
Narrative to Summary Compensation Table
Our Board sets the annual compensation
for our named executive officers. As we are a development-stage company with only five employees and commenced our operational
efforts in 2016, we have not hired a compensation consultant and do not currently target a specific competitive position or a specific
mix of compensation among base salary, bonus or long-term incentives. Except for car allowances provided to Mr. Rosa and Mr. Christianson
and payment of a portion of the premiums for life, medical and disability insurance for all employees, NeuroOne, Inc. did not,
and we do not, provide perquisites or personal benefits to our named executive officers.
In October 2016, NeuroOne entered into
an employment agreement with Mr. Rosa that governed the terms of his employment with us through August 3, 2017. Pursuant to the
agreement, Mr. Rosa was entitled to an annual base salary of $300,000 per year, and was eligible to earn an annual performance
bonus of up to 40% of his base salary, as determined by our Board. Mr. Rosa was also entitled to an equity award equal to 14% of
the fully diluted equity of NeuroOne.
Following the Acquisition, in August 2017,
the Company entered into a new employment agreement with Mr. Rosa (the "Amended Employment Agreement") that established
his base salary of at least $376,000, which shall be reviewed by the Board at least annually, and an annual performance bonus of
up to 50% of his base salary, as determined by the Board. Mr. Bachinski's and Mr. Christianson's 2017 base salaries
of $231,000 and $200,000, respectively, and annual performance bonuses of up to 25% of base salary were established in offer letters
negotiated in connection with their hiring. Taking into account his contributions to the Company, Mr. Bachinski's annual
performance bonus target was increased from his offer letter to 35% of base salary for 2017.
In connection with the Acquisition, the
named executive officers of NeuroOne were appointed as officers of the Company.
For fiscal 2017, the Board approved payment
of Mr. Rosa's bonus at 70% of target and authorized Mr. Rosa, in his discretion, to approve and pay bonuses to Mr. Bachinski
and Mr. Christianson of up to 70% of target. In approving discretionary bonus payments, the Board considered the achievement of
various corporate objectives related to company financing goals, regulatory submission preparation, research and development, adhering
to budget and establishing an advisory board.
For the calendar year ended 2018, our Board
approved a 2% cost of living increase in the base salaries of our officers and made no adjustment to the officers' annual
performance bonus targets. In March 2018, the Board calendar year set various corporate objectives relating to company financing
goals, regulatory submissions, hiring additional staff and certain research and development milestones through December 31, 2018
that it would consider in approving bonus payments for the 2018 calendar year.
In January 2019, the Board approved the
a bonus payment to Mr. Rosa of $172,584 and the payment to the other senior officers of a bonus pool of up to 90% of the annual
bonus set forth in each officer's offer letter with the Company, with such exact amount to be determined by Mr. Rosa (the
"2018 Performance Bonuses"). In approving the 2018 Performance Bonuses, the Board considered the achievement of various
corporate objectives related to company financing goals, regulatory submission preparation and research and development.
104
Employment Agreements
We have an employment agreement with our
Chief Executive Officer, Mr. Rosa. We have entered into offer letters with each of our other executive officers, as described above.
Each of our named executive officers has also executed our standard form of proprietary information, inventions assignment and
non-competition agreement.
Mr. Rosa's Amended Employment Agreement
was effective on August 4, 2017, continues through the third anniversary and automatically renews for an additional one-year period
at the end of the initial term and each anniversary thereafter, provided that Mr. Rosa notifies the Board of such renewal at least
30 days prior to the expiration of the initial term or any renewal terms and the Board does not notify Mr. Rosa of its intention
not to renew the Amended Employment Agreement.
The Amended Employment Agreement also entitles
Mr. Rosa to, among other benefits, the following compensation: (i) an opportunity to participate in any stock option, performance
share, performance unit or other equity based long-term incentive compensation plan commensurate with the terms and conditions
applicable to other senior executive officers; and (ii) participation in welfare benefit plans, practices, policies and programs
provided by the Company and its affiliated companies (including, without limitation, medical, prescription, dental, disability,
employee life, group life, accidental death and travel accident insurance plans and programs) to the extent available generally
or to our other senior executive officers. Mr. Rosa is entitled to receive a target award value, determined in accordance with
the policies and practices generally available to other senior executive officers, for an annual cash bonus and if determined by
the Board or a committee of the Board, a long-term incentive bonus. Mr. Rosa is entitled to retain all shares of Common Stock he
held as of the commencement date. Mr. Rosa is also additionally entitled to certain severance benefits.
Pursuant to the Amended Employment Agreement,
regardless of the manner in which Mr. Rosa's service terminates, Mr. Rosa is entitled to receive amounts earned during his
term of service, including salary and other benefits.
The Company is permitted to terminate Mr.
Rosa's employment for the following reasons: (i) death or disability, (ii) Termination for Cause (as defined below) or (iii)
for any other reason or no reason.
Mr. Rosa is permitted Termination for Good
Reason (as defined below) of his employment. In addition, he may terminate his employment upon written notice to the Company 30
days prior to the effective date of such termination.
In the event of Mr. Rosa's death
during the employment period or a termination due to his disability, his beneficiaries or legal representatives shall be provided
the sum of (i) any annual base salary earned, but unpaid, for services rendered to the Company on or prior to the date on which
the employment period ends and (ii) certain other benefits provided for in the employment agreement (the
"
Unconditional
Entitlements
"
).
In the event of Mr. Rosa's Termination
for Cause by the Company or the termination of Mr. Rosa's employment as a result of his resignation other than a Termination
for Good Reason, Mr. Rosa shall be provided the Unconditional Entitlements.
In the event of a Termination for Good
Reason by Mr. Rosa or the exercise by the Company of its termination rights to terminate Mr. Rosa other than by Termination for
Cause, death or disability, Mr. Rosa shall be provided the Unconditional Entitlements and, subject to such officer signing and
delivering to the Company and not revoking a general release of claims in favor of the Company and certain related parties, the
Company shall provide Mr. Rosa a severance amount equal to the aggregate annual base salary he would have earned from the day after
his termination date through the end of the employment period and a prorated portion of his cash bonus for the year in which the
termination date occurs, provided, however, in no event would the severance amount be less than 12 months or more than 18 months
of his annual base salary, continued health insurance coverage for 12 months following his termination date, provided that such
coverage shall cease if Mr. Rosa becomes eligible to receive health insurance coverage from another employer group health plan,
vesting of all stock options in accordance with the stock option award documents, subject to the same conditions that would be
applicable to Mr. Rosa if he remained employed through the end of the employment period and continued vesting of equity awards
in accordance with the terms of the award agreements, provided, however, Mr. Rosa would have 90 days from the termination date
to exercise any vested options (the
"
Conditional Benefits
"
).
105
In the event of a change in control during
the employment period or within two years after a change in control, if the Company terminates Mr. Rosa other than due to Mr. Rosa's
death or disability or a Termination for Cause, or Mr. Rosa effects a Termination for Good Reason, the Company will pay to Mr.
Rosa, in a lump sum in cash within 30 days after the termination date, the aggregate of: (i) the Unconditional Entitlements; and
(ii) the amount equal to the product of 1.5 times the sum of (y) Mr. Rosa's annual base salary, and (z) the greater of the
target bonus for the then current fiscal year under the Plans or any successor annual bonus plan and the average annual bonus paid
to or for the benefit of Mr. Rosa for the prior three full years (or any shorter period during which Mr. Rosa had been employed
by the Company). In addition, the Company shall provide Mr. Rosa the Conditional Benefits minus Mr. Rosa's severance amount.
Under the Amended Employment Agreement,
"Termination for Cause" means a termination of Mr. Rosa's employment by the Company due to (A) an act or acts
of dishonesty undertaken by Mr. Rosa and intended to result in substantial gain or personal enrichment to Mr. Rosa at the expense
of the Company, (B) unlawful conduct or gross misconduct that is willful and deliberate on Mr. Rosa's part and that, in either
event, is materially injurious to the Company, (C) the conviction of Mr. Rosa of, or Mr. Rosa's entry of a no contest or
nolo contendere plea to, a felony, (D) breach by Mr. Rosa of his fiduciary obligations as an officer or director of the Company,
(E) a persistent failure by Mr. Rosa to perform his duties and responsibilities of his employment under the Amended Employment
Agreement, which failure is not remedied by Mr. Rosa within 30 days after his receipt of written notice from the Company of such
failure, provided, however, the Company is not obligated to provide written notice and opportunity to cure if the action or conduct
is not reasonably susceptible to cure; or (F) material breach of any terms and conditions of the Amended Employment Agreement,
any contract or agreement between Mr. Rosa and the Company, or of any Company policy, or of any statutory duty he owes to the Company,
which breach has not been cured by Mr. Rosa within ten days after written notice thereof to Mr. Rosa from the Company.
Under the Amended Employment Agreement,
"Termination for Good Reason" means a termination of Mr. Rosa's employment by Mr. Rosa within 30 days of the
Company's failure to cure, in accordance with the procedures set forth below, any of the following events: (A) a reduction
in his annual base salary as in effect immediately prior to such reduction by more than 10% without his written consent, unless
such reduction is made pursuant to an across the board reduction applicable to all senior executives of the Company; (B) a material
reduction in his duties, position and responsibilities as in effect immediately prior to such reduction without his written consent;
provided, however, that a mere change in title or reporting relationship following a Change in Control by itself will not constitute
"Good Reason" for Executive's resignation, and further provided that the acquisition of the Company and subsequent
conversion of the Company to a division or unit of the acquiring entity will not by itself result in a "reduction"
of duties, position or responsibility; or (C) a material breach of any material provision of the Amended Employment Agreement by
the Company. A termination by Mr. Rosa shall not be treated as a Termination for Good Reason if Mr. Rosa consented in writing to
the occurrence of the event giving rise to the claim of Termination for Good Reason or unless Mr. Rosa shall have delivered a written
notice to the Board within 45 days of Mr. Rosa's having actual knowledge of the occurrence of one of such events stating
that Mr. Rosa intends to terminate his employment by Termination for Good Reason and specifying the factual basis for such termination,
and such event, if capable of being cured, shall not have been cured within 21 days of the receipt of such notice.
Outstanding Equity Awards at Fiscal Year-End
None of our named executive officers held
any stock that has not vested, unexercised stock options or other equity incentive plan awards as of September 30, 2018.
2016 Equity Incentive Plan
In October 2016 NeuroOne, Inc.'s
board of directors adopted and its stockholders approved the 2016 Equity Incentive Plan (the "2016 Plan"). In connection
with the Acquisition, we assumed the 2016 Plan. As of September 30, 2018, there were outstanding options to purchase a total of
365,716 shares of Common Stock issued and outstanding under the 2016 Plan and 215,453 restricted shares of Common Stock granted
under the 2016 Plan. We anticipate that no additional awards will be granted under the 2016 Plan, and all awards will be granted
under the 2017 Equity Incentive Plan (the "2017 Plan").
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Description of the 2016 Plan
The 2016 Plan authorizes the Board to provide
incentive compensation in the form of stock options, stock appreciation rights ("SARs") and restricted stock and restricted
stock units ("RSUs"). Under the 2016 Plan, the Board is authorized to issue up to 992,266 shares of Common Stock.
The Board, or a duly authorized committee
thereof, has the authority to administer the 2016 Plan. The Board may also delegate to one or more of its officers the authority
to (i) designate officers and employees to be recipients of certain stock awards, and (ii) determine the number of shares of Common
Stock to be subject to such stock awards. Subject to the terms of the 2016 Plan, the Board or the authorized committee, referred
to therein as the plan administrator, determines recipients, dates of grant, the numbers and types or combination of types of stock
awards to be granted and the terms and conditions of the stock awards, including the vesting schedule applicable to a stock award.
Subject to the limitations set forth below, the plan administrator also determines the exercise price, strike price or purchase
price of awards granted and the types of consideration to be paid for the award.
The plan administrator has the authority
to modify outstanding awards under the 2016 Plan. Subject to the terms of the 2016 Plan, the plan administrator has the authority
to reduce the exercise, purchase or strike price of any outstanding stock award, cancel any outstanding stock award in exchange
for new stock awards, cash or other consideration, or take any other action that is treated as a repricing under generally accepted
accounting principles, with the consent of any adversely affected participant and subject to the requirements of Section 409A of
the Code.
Stock Options and SARs
The plan administrator determines the term
of stock options and SARs granted under the 2016 Plan, up to a maximum of 10 years. Unless the terms of the participant's
award agreement provides otherwise, if a participant's service relationship with the Company, or any of its affiliates, ceases
for any reason other than disability, death or cause, the participant may generally exercise any vested options or SARs for a period
of three months following the cessation of service. The term may be extended in the event that exercise of the option following
such a termination of service is prohibited by applicable securities laws. If a participant's service relationship with the
Company or any of its affiliates ceases due to disability or death, or a participant dies within a certain period following cessation
of service, the participant or a beneficiary may generally exercise his or her options for a period of 12 months in the event of
disability and 18 months in the event of death. In the event of a termination for cause, options and SARs generally terminate upon
the termination date of the individual. In no event may an option or SAR be exercised beyond the expiration of its term.
Acceptable consideration for the purchase
of Common Stock issued upon the exercise of a stock option is determined by the plan administrator and may include (1) cash, check,
bank draft or money order, (2) the tender of shares of Common Stock previously owned by the optionholder, (3) a net exercise of
the option if it is a non-qualified stock option, or NSO, (4) a deferred payment or similar arrangement with the optionholder,
and (5) other legal consideration approved by the plan administrator.
Unless the plan administrator provides
otherwise, options and SARs generally are not transferable except by will, the laws of descent and distribution, or pursuant to
a domestic relations order. A Participant may designate a beneficiary, however, who may exercise the option or SAR following the
participant's death. The Board may also permit transfer of options to a trust provided certain conditions are met.
The aggregate fair market value, determined
at the time of grant, of the Common Stock with respect to Incentive Stock Options, or ISOs, that are exercisable for the first
time by an optionholder during any calendar year under all of the Company's stock plans may not exceed $100,000. Options
or portions thereof that exceed such limit are generally treated as NSOs. No ISO may be granted to any person who, at the time
of the grant, owns or is deemed to own stock possessing more than 10% of the Company's total combined voting power or that
of any of the Company's affiliates unless (i) the option exercise price is at least 110% of the fair market value of the
stock subject to the option on the date of grant, and (ii) the term of the ISO does not exceed five years from the date of grant.
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Restricted Stock Awards and
Restricted Stock Unit Awards
The plan administrator determines the terms
of a restricted stock award or restricted stock unit award as set forth in the applicable award agreement. Shares of Common Stock
that are subject to a restricted stock award may be (i) held in a book entry from until restrictions lapse or (ii) evidenced by
a certificate which shall be held in such form and manner as determined by the Board. Shares of Common Stock awarded under a restricted
stock award may be subject to forfeiture in accordance with a vesting schedule. If a participant's employment is terminated,
the Company may receive through a forfeiture condition or repurchase right, any or all of the shares of Common Stock of the restricted
stock award. Upon the grant of restricted stock unit award, the Board may impose such restrictions and conditions to vesting as
it deems appropriate. A restricted stock unit award may be settled in shares of Common Stock, their cash equivalent, any combination
or such other form of consideration. Upon a participant's termination of employment, any unvested portion of the restricted
stock unit award is forfeited. Dividends and dividend equivalents may be provided under a restricted stock award or restricted
stock unit award, as applicable.
Changes in Capital Structure
In the event that there is a specified
type of change in the Company's capital structure, such as a stock split or recapitalization, appropriate adjustments will
be made to (1) the class and maximum number of shares reserved for issuance under the 2016 Plan, (2) the class and maximum number
of shares that may be issued upon the exercise of ISOs and (3) the class and number of shares and exercise price, strike price,
or purchase price, if applicable, of all outstanding stock awards.
Other Corporate Transactions
In the event of certain specified significant
corporate transactions, the plan administrator has the discretion to take any of the following actions with respect to stock awards:
●
arrange for the assumption, continuation or substitution of stock awards outstanding under the
2016 Plan by a surviving or acquiring entity or parent company;
●
arrange for the reacquisition or repurchase rights held by the Company to the surviving or acquiring
entity or parent company;
●
accelerate the vesting of the stock award and provide for its termination prior to the effective
time of the corporate transaction;
●
terminate unexercised stock awards held by participants no longer employed by the Company and that
have not been assumed, continued or substituted; or
●
make a payment equal to the excess of (i) the value of the property the participant would have
received upon exercise of the stock award over (ii) the exercise price applicable to the stock award.
The Company's plan administrator
is not obligated to treat all stock awards, even those that are of the same type, in the same manner.
Under the 2016 Plan, a corporate transaction
is generally the consummation of (1) a sale or other disposition of all or substantially all of the Company's consolidated
assets, (2) a sale or other disposition of at least 90% of the Company's outstanding securities, (3) a merger, consolidation
or similar transaction following which the Company is not the surviving corporation, or (4) a merger, consolidation or similar
transaction following which the Company is the surviving corporation but the shares of Common Stock outstanding immediately prior
to such transaction are converted or exchanged into other property by virtue of the transaction.
The plan administrator may provide, in
an individual award agreement or in any other written agreement between a participant and the Company that the stock award will
be subject to additional acceleration of vesting and exercisability in the event of a change of control transaction. Under the
2016 Plan, a change of control is generally (1) the acquisition by a person or entity of more than 50% of the Company's combined
voting power other than by merger, consolidation or similar transaction; (2) a consummated merger, consolidation or similar transaction
immediately after which the Company's stockholders cease to own more than 50% of the combined voting power of the surviving
entity; or (3) a consummated sale, lease or license or other disposition of all or substantially of the Company's consolidated
assets.
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The 2017 Plan
In April 2017, the board of directors of
OSE adopted and the stockholders approved the 2017 Plan. The 2017 Plan is designed to provide a vehicle under which a variety of
stock-based and other awards can be granted to the Company's employees, consultants and directors, which will align the interests
of award recipients with those of our stockholders, reinforce key goals and objectives that help drive stockholder value, and attract,
motivate and retain experienced and highly qualified individuals who will contribute to the Company's financial success.
The Board believes that the 2017 Plan will serve a critical role in attracting and retaining high caliber employees, consultants
and directors essential to our success and in motivating these individuals to strive to meet our goals.
Shares Available Under the
Plan
The 2017 Plan authorizes the compensation
committee or Board to provide incentive compensation in the form of stock options, SARs, restricted stock and stock units, performance
shares and units and other stock-based awards. Under the 2017 Plan, the Board is authorized to issue up to 1,300,000 shares, subject
to adjustment as provided below. On January 1, 2019, 498,848 shares were added to 2017 Plan as a result of the evergreen provision.
As of March 31, 2019, 1,881,896 shares
remained available for grant under the 2017 Plan.
Section 162(m) Tax Considerations
Section 162(m) of the Internal Revenue
Code generally denies a corporate tax deduction for annual compensation exceeding $1 million paid to the principal executive officer,
the principal financial officer or to any of the three other most highly compensated officers of a publicly held corporation. Accordingly,
to the extent compensation income recognized by any such individual during a year as a result of an award made under the 2017 Plan
(either alone or when added to other compensation paid to any of such individual during such year) exceeds $1 million, then the
amount in excess of $1 million will not be deductible by us, subject to certain exceptions.
Description of the 2017 Plan
Authorized Shares.
The maximum number
of shares of Common Stock that may be issued under the 2017 Plan is 1,300,000 shares. In addition, the number of shares of Common
Stock reserved for issuance under our 2017 Plan automatically increases on January 1
st
of each calendar year, starting
on January 1, 2018 through January 1, 2027, to an amount equal to 13% of the total number of fully-diluted shares of our Common
Stock as of December 31 of the preceding calendar year, or a lesser number of shares determined by our Board.
Shares subject to awards granted under
the 2017 Plan that expire or terminate without being exercised in full, or that are paid out in cash rather than in shares, do
not reduce the number of shares available for issuance under the 2017 Plan. Additionally, shares become available for future grant
under the 2017 Plan if they were issued under stock awards under the 2017 Plan and if we repurchase them or they are forfeited.
This includes shares used to pay the exercise price of a stock award or to satisfy the tax withholding obligations related to a
stock award.
Plan Administration.
Our Board,
or a duly authorized committee of our Board, will administer the 2017 Plan. Our Board may also delegate to one or more of our officers
the authority to (1) designate employees (other than officers) to receive specified stock awards and (2) determine the number of
shares subject to such stock awards. Under the 2017 Plan, our Board has the authority to determine and amend the terms of awards
and underlying agreements, including:
●
recipients;
●
when and how the stock awards will be granted;
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●
the provisions of each stock award (which need not be identical);
●
the number of shares subject to each stock award; and
●
the vesting schedule applicable to the awards, together with any vesting acceleration.
Under the 2017 Plan, the Board also generally
has the authority to effect, with the consent of any adversely affected participant:
●
the reduction of the exercise, purchase, or strike price of any outstanding award;
●
the cancellation of any outstanding award and the grant in substitution therefore of other awards,
cash, or other consideration; or
●
any other action that is treated as a repricing under generally accepted accounting principles.
Further, under the 2017 Plan, the Board
has the authority to:
●
construe and interpret the 2017 Plan and award agreements;
●
settle all controversies regarding the 2017 Plan and award agreements;
●
suspend or terminate the 2017 Plan at any time;
●
amend the 2017 Plan as deemed necessary or advisable;
●
approve form award agreements; and
●
adopt rules, procedures and subplans related to the operation and administration of the 2017 Plan
as are necessary and appropriate under local laws and regulations to permit participation in the 2017 Plan by employees, directors
or consultants who are foreign nationals or are employed outside of the United States.
Stock Options.
Incentive stock options
and nonstatutory stock options are granted under stock option agreements adopted by the plan administrator. The plan administrator
determines the exercise price for stock options, within the terms and conditions of the 2017 Plan, provided that the exercise price
of a stock option generally cannot be less than 100% of the fair market value of the Common Stock on the date of grant. Options
granted under the 2017 Plan vest at the rate specified in the stock option agreement as determined by the plan administrator. The
exercise price of a stock option may be paid as follows: (i) by cash, check, bank draft or money order, (ii) pursuant to a program
developed under Regulation T that prior to the issuance of shares of Common Stock, results in either the receipt of cash by the
Company or receipt of irrevocable instructions to a broker selling such Common Stock to pay the aggregate exercise price, (iii)
by delivery of share of Common Stock, (iv) if the stock option is a nonstatutory stock option, by net exercise or (iv) any other
form of legal consideration acceptable to the Board and specified in the award agreement. Unless the terms of the participant's
award agreement provides otherwise, if a participant's service relationship with the Company, or any of its affiliates, ceases
for any reason other than disability, death or cause, the participant may generally exercise any vested stock options for a period
of three months following the cessation of service. The term may be extended in the event that exercise of the stock option following
such a termination of service is prohibited by applicable securities laws. If a participant's service relationship with the
Company or any of its affiliates ceases due to disability or death, or a participant dies within a certain period following cessation
of service, the participant or a beneficiary may generally exercise his or her options for a period of 12 months in the event of
disability and 18 months in the event of death. In the event of a termination for cause, stock options generally terminate upon
the termination date of the individual. In no event may a stock option be exercised beyond the expiration of its term.
The aggregate fair market value, determined
at the time of grant, of the Common Stock with respect to incentive stock options that are exercisable for the first time by a
participant during any calendar year under all of the Company's stock plans may not exceed $100,000. No incentive stock option
may be granted to any person who, at the time of the grant, owns or is deemed to own stock possessing more than 10% of the Company's
total combined voting power or that of any of the Company's affiliates unless (i) the option exercise price is at least 110%
of the fair market value of the Common Stock subject to the option on the date of grant, and (ii) the term of the incentive stock
does not exceed five years from the date of grant.
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Restricted Stock Unit Awards.
RSUs
are granted under restricted stock unit award agreements adopted by the plan administrator. RSUs may be granted in consideration
for any form of legal consideration that may be acceptable to our Board and permissible under applicable law. An RSU may be settled
by cash, delivery of stock, a combination of cash and stock as deemed appropriate by the plan administrator, or in any other form
of consideration set forth in the RSU agreement. The Board may impose restrictions or conditions to the vesting of RSUs as it deems
appropriate. Additionally, dividend equivalents may be credited in respect of shares covered by an RSU. Except as otherwise provided
in the applicable award agreement, RSUs that have not vested will be forfeited once the participant's continuous service
ends for any reason.
Restricted Stock Awards.
Restricted
stock awards are granted under restricted stock award agreements adopted by the plan administrator. Shares of Common Stock that
are subject to a restricted stock award may be (i) held in a book entry from until restrictions lapse or (ii) evidenced by a certificate
which shall be held in such form and manner as determined by the Board. A restricted stock award may be awarded in consideration
for cash, check, bank draft or money order, past services to us, or any other form of legal consideration that may be acceptable
to our Board and permissible under applicable law. The plan administrator determines the terms and conditions of restricted stock
awards, including vesting and forfeiture terms. If a participant's service relationship with us ends for any reason, we may
receive any or all of the shares of Common Stock held by the participant that have not vested as of the date the participant terminates
service with us through a forfeiture condition or a repurchase right. Additionally, dividend may be credited in respect of shares
covered by a restricted stock award.
Stock Appreciation Rights.
SARs
are granted under stock appreciation grant agreements adopted by the plan administrator. The plan administrator determines the
purchase price or strike price for a stock appreciation right, which generally cannot be less than 100% of the fair market value
of our Common Stock on the date of grant. A stock appreciation right granted under the 2017 Plan vests at the rate specified in
the stock appreciation right agreement as determined by the plan administrator. A participant may exercise a stock appreciation
right by notifying the Company. Upon exercise, a participant will receive the excess of (i) the aggregate fair market value of
the number of shares of Common Stock over (ii) the aggregate exercise price of such number of shares of Common Stock. Such amounts
will be paid in shares of Common Stock, cash, any combination of both or such other form of consideration as determined by the
Board. Unless the terms of the participant's award agreement provides otherwise, if a participant's service relationship
with the Company, or any of its affiliates, ceases for any reason other than disability, death or cause, the participant may generally
exercise any vested stock appreciate right for a period of three months following the cessation of service. The term may be extended
in the event that exercise of the stock appreciate right following such a termination of service is prohibited by applicable securities
laws. If a participant's service relationship with the Company or any of its affiliates ceases due to disability or death,
or a participant dies within a certain period following cessation of service, the participant or a beneficiary may generally exercise
his or her rights for a period of 12 months in the event of disability and 18 months in the event of death. In the event of a termination
for cause, stock appreciate rights generally terminate upon the termination date of the individual. In no event may a stock appreciation
right be exercised beyond the expiration of its term.
Performance Awards.
The 2017 Plan
permits the grant of performance-based stock and cash awards that may qualify as performance-based compensation that may not be
subject to the $1,000,000 limitation on the income tax deductibility imposed by Section 162(m) of the Code. Our compensation committee
may structure awards so that the stock or cash will be issued or paid only following the achievement of certain pre-established
performance goals during a designated performance period.
111
The performance criteria that may be selected
include one or more of the following: (i) earnings (including earnings per share and net earnings); (ii) earnings before interest,
taxes and depreciation; (iii) earnings before interest, taxes, depreciation and amortization; (iv) earnings before interest, taxes,
depreciation, amortization and legal settlements; (v) earnings before interest, taxes, depreciation, amortization, legal settlements
and other income (expense); (vi) earnings before interest, taxes, depreciation, amortization, legal settlements, other income (expense)
and stock-based compensation; (vii) earnings before interest, taxes, depreciation, amortization, legal settlements, other income
(expense), stock-based compensation and changes in deferred revenue; (viii) earnings before interest, taxes, depreciation, amortization,
legal settlements, other income (expense), stock-based compensation, other non-cash expenses and changes in deferred revenue; (ix)
total stockholder return; (x) return on equity or average stockholder's equity; (xi) return on assets, investment, or capital
employed; (xii) stock price; (xiii) margin (including gross margin); (xiv) income (before or after taxes); (xv) operating income;
(xvi) operating income after taxes; (xvii) pre-tax profit; (xviii) operating cash flow; (xix) sales or revenue targets; (xx) increases
in revenue or product revenue; (xxi) expenses and cost reduction goals; (xxii) improvement in or attainment of working capital
levels; (xxiii) economic value added (or an equivalent metric); (xxiv) market share; (xxv) cash flow; (xxvi) cash flow per share;
(xxvii) cash balance; (xxviii) cash burn; (xxix) cash collections; (xxx) share price performance; (xxxi) debt reduction; (xxxii)
implementation or completion of projects or processes (including, without limitation, clinical trial initiation, new and supplemental
indications for existing products, and product supply); (xxxiii) stockholders' equity; (xxxiv) capital expenditures; (xxxv)
debt levels; (xxxvi) operating profit or net operating profit; (xxxvii) workforce diversity; (xxxviii) growth of net income or
operating income; (xxxix) billings; (xl) bookings; (xli) employee retention; (xlii) initiation of phases of clinical trials and/or
studies by specific dates; (xliii) acquisition of new customers, including institutional accounts; (xliv) customer retention and/or
repeat order rate; (xlv) number of institutional customer accounts; (xlvi) budget management; (xlvii) improvements in sample and
test processing times; (xlviii) regulatory milestones; (xlix) progress of internal research or clinical programs; (l) progress
of partnered programs; (li) partner satisfaction; (lii) milestones related to samples received and/or tests run; (liii) expansion
of sales in additional geographies or markets; (liv) research progress, including the development of programs; (lv) patient samples
processed and billed; (lvi) sample processing operating metrics (including, without limitation, failure rate maximums and reduction
of repeat rates); (lvii) strategic partnerships or transactions (including in-licensing and out-licensing of intellectual property);
and (lviii) and to the extent that an award is not intended to constitute "qualified performance-based compensation"
under Section 162(m) of the Code, other measures of performance selected by the Board.
The performance goals may be based on company-wide
performance or performance of one or more business units, divisions, affiliates, or business segments, and may be either absolute
or relative to the performance of one or more comparable companies or the performance of one or more relevant indices. Unless specified
otherwise by the Board or committee (as applicable) (i) in the award agreement at the time the award is granted or (ii) in such
other document setting forth the performance goals at the time the performance goals are established, the Board or committee (as
applicable) will appropriately make adjustments in the method of calculating the attainment of performance goals for a performance
period as follows: (1) to exclude restructuring and/or other nonrecurring charges; (2) to exclude exchange rate effects; (3) to
exclude the effects of changes to generally accepted accounting principles; (4) to exclude the effects of any statutory adjustments
to corporate tax rates; (5) to exclude the effects of any "extraordinary items" as determined under generally accepted
accounting principles; (6) to exclude the dilutive effects of acquisitions or joint ventures; (7) to assume that any business divested
by the Company achieved performance objectives at targeted levels during the balance of a performance period following such divestiture;
(8) to exclude the effect of any change in the outstanding shares of Common Stock of the Company by reason of any stock dividend
or split, stock repurchase, reorganization, recapitalization, merger, consolidation, spin-off, combination or exchange of shares
or other similar corporate change, or any distributions to common stockholders other than regular cash dividends; (9) to exclude
the effects of stock based compensation and the award of bonuses under the Company's bonus plans; (10) to exclude costs incurred
in connection with potential acquisitions or divestitures that are required to be expensed under generally accepted accounting
principles; (11) to exclude the goodwill and intangible asset impairment charges that are required to be recorded under generally
accepted accounting principles; (12) to exclude the effect of any other unusual, non-recurring gain or loss or other extraordinary
item; and (13) to exclude the effects of the timing of acceptance for review and/or approval of submissions to any regulatory body.
In addition, subject to certain limitations, the Board or committee (as applicable) retains the discretion to reduce or eliminate
the compensation or economic benefit due on attainment of performance goals and to define the manner of calculating the performance
criteria it selects to use for such performance period. Partial achievement of the specified criteria may result in the payment
or vesting corresponding to the degree of achievement as specified in the award agreement or the written terms of a performance
cash award.
Other Stock Awards.
The plan administrator
may grant other awards based in whole or in part by reference to our Common Stock. The plan administrator will set the number of
shares under the stock award and all other terms and conditions of such awards.
Changes to Capital Structure.
In
the event there is a specified type of change in our capital structure, such as a stock split, reverse stock split, or recapitalization,
appropriate adjustments will be made to (1) the class and maximum number of shares reserved for issuance under the 2017 Plan, (2)
the class and maximum number of shares that may be issued on the exercise of incentive stock options, (3) the class and maximum
number of shares subject to stock awards that can be granted to a person in a calendar year (as established under the 2017 Plan
under Section 162(m) of the Code), and (4) the class and number of shares and exercise price, strike price, or purchase price,
if applicable, of all outstanding stock awards.
112
Corporate Transactions.
The 2017
Plan provides that in the event of certain specified significant corporate transactions, including: (1) a sale of all or substantially
all of our assets, (2) the sale or disposition of more than 90% of our outstanding securities, (3) the consummation of a merger
or consolidation where we do not survive the transaction, and (4) the consummation of a merger or consolidation where we do survive
the transaction but the shares of our Common Stock outstanding before such transaction are converted or exchanged into other property
by virtue of the transaction, unless otherwise provided in an award agreement or other written agreement between us and the award
holder, the plan administrator may take one or more of the following actions with respect to such stock awards:
●
arrange for the assumption, continuation, or substitution of a stock award by a successor corporation;
●
arrange for the assignment of any reacquisition or repurchase rights held by us to a successor
corporation;
●
accelerate the vesting, in whole or in part, of the stock award and provide for its termination
before the transaction;
●
arrange for the lapse, in whole or in part, of any reacquisition or repurchase rights held by us;
●
cancel or arrange for the cancellation of the stock award before the transaction in exchange for
a cash payment, or no payment, as determined by the Board; or
●
make a payment, in the form determined by our Board, equal to the excess, if any, of the value
of the property the participant would have received on exercise of the awards before the transaction over any exercise price payable
by the participant in connection with the exercise.
The plan administrator is not obligated
to treat all stock awards or portions of stock awards, even those that are of the same type, in the same manner and is not obligated
to treat all participants in the same manner.
In the event of a change in control, awards
granted under the 2017 Plan will not receive automatic acceleration of vesting and exercisability, although this treatment may
be provided for in an award agreement. Under the 2017 Plan, a change in control is defined to include (1) the acquisition by any
person or company of more than 50% of the combined voting power of our then outstanding stock, (2) a merger, consolidation, or
similar transaction in which our stockholders immediately before the transaction do not own, directly or indirectly, more than
50% of the combined voting power of the surviving entity (or the parent of the surviving entity), (3) a sale, lease, exclusive
license, or other disposition of all or substantially all of our assets other than to an entity more than 50% of the combined voting
power of which is owned by our stockholders, and (4) an unapproved change in the majority of the Board.
Transferability.
A participant may
not transfer stock awards under the 2017 Plan other than by will, the laws of descent and distribution, or as otherwise provided
under the 2017 Plan.
Plan Amendment or Termination
. Our
Board has the authority to amend, suspend, or terminate the 2017 Plan, provided that such action does not materially impair the
existing rights of any participant without such participant's written consent. Certain material amendments also require the
approval of our stockholders. No incentive stock options may be granted after the tenth anniversary of the date our Board adopted
the 2017 Plan. No stock awards may be granted under the 2017 Plan while it is suspended or after it is terminated.
Non-Employee Director Compensation
On March 29, 2018, our Board approved a
Non-Employee Director Compensation Policy effective as of January 1, 2018 whereby our non-employee directors will receive a mix
of cash and share-based compensation intended to encourage non-employee directors to continue to serve on our Board, further align
the interests of the directors and stockholders, and attract new non-employee directors with outstanding qualifications. Directors
who are employees or officers of the Company do not receive any additional compensation for Board service.
113
Pursuant to this policy, each of our non-employee
directors will receive an annual retainer of $50,000, except that our non-executive chairman will receive an annual retainer of
$100,000. Additionally, the chairman and members of our Audit Committee will receive an additional annual payment of $12,500 and
$5,000, respectively, and the chairmen and members of each of our Compensation and Nominating and Corporate Governance Committees,
if any are formed in the future, will receive an additional annual payment of $10,000 and $4,000, respectively. Such annual cash
retainers will be earned beginning on the effective date of the policy but shall not be payable until the last day of the fiscal
quarter in which the Company consummates an equity financing wherein it receives at least $3.0 million in gross cash proceeds.
On the date of each annual stockholder meeting of the Company commencing with the 2019 annual meeting of stockholders, each director
shall receive an annual equity award with an aggregate grant date fair value on the date of grant of $50,000, one third of which
will be in the form of an option and two thirds of which will be in the form of a restricted stock unit award, each of which will
vest in a series of 12 equal monthly installments subject to the director's continued service. Newly appointed directors,
on the date of their appointment, will receive a pro rata equity award, reflecting a reduction for each month prior to the date
of grant that has elapsed since the preceding annual stockholder meeting.
The following table provides compensation
information for the Transition Period for each non-employee member of our Board.
Name
Fees Earned or Paid in Cash
($)(1)
Total
($)(1)
Paul Buckman
78,750
78,750
Suraj Kalia
41,250
41,250
Jeff Mathiesen
46,875
46,875
(1)
These amounts reflect the pro-rated amount earned for the nine months ended September 30, 2018
in which each director provided service. The amounts will not be paid until the last day of the fiscal quarter in which the Company
consummates an equity financing wherein it receives at least $3.0 million in gross cash proceeds.
As of September 30, 2018, each of the non-employee
directors had 34,020 shares underlying outstanding stock options.
As a named executive officer of the Company,
compensation paid to Mr. Rosa for the Transition Period is fully reflected under "Executive Compensation—Summary Compensation
Table."
114
SECURITY OWNERSHIP
OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
The following table sets forth the beneficial
ownership of our Common Stock as of July 1, 2019 for:
●
each person, or group of affiliated persons, who is known by us to beneficially own more than 5%
of our Common Stock;
●
each of our named executive officers;
●
each of our directors; and
●
all of our current executive officers and directors as a group.
The table lists applicable percentage ownership
based on 13,463,765 shares of Common Stock outstanding as of July 1, 2019.
We have determined beneficial ownership
in accordance with the rules of the SEC. These rules generally attribute beneficial ownership of securities to persons who possess
sole or shared voting power or investment power with respect to those securities. Unless otherwise indicated, the persons or entities
identified in this table have sole voting and investment power with respect to all shares shown as beneficially owned by them,
subject to applicable community property laws. In addition, the rules include shares of our Common Stock issuable pursuant to the
exercise of stock options and warrants that are either immediately exercisable or exercisable within 60 days of July 1, 2019.
These shares are deemed to be outstanding and beneficially owned by the person holding those options for the purpose of computing
the percentage ownership of that person, but they are not treated as outstanding for the purpose of computing the percentage ownership
of any other person.
Except as otherwise noted below, the address
for persons listed in the table is c/o NeuroOne Medical Technologies Corporation, c/o David Rosa, 10901 Red Circle Drive, Suite
150, Minnetonka, Minnesota 55343.
Name and address of beneficial owner
Number of shares
of Common Stock beneficially owned
Percentage of Common Stock beneficially owned
(1)
Greater than 5% Stockholders:
Wade Fredrickson
4825 Suburban Drive
Shorewood, Minnesota 55331
2,613,460
(2)
19.4
%
Lifestyle Healthcare LLC
4524 Westway Avenue
Dallas, TX 75205
1,058,435
(3)
7.8
%
Mohammad Jainal Bhuiyan
10605 SW 44
th
CT
Davie, FL 33328
883,629
(4)
6.4
%
Directors and Executive Officers:
David Rosa
793,822
5.9
%
Paul Buckman
84,458
(5)
*
Suraj Kalia
84,458
(5)
*
Jeffrey Mathiesen
84,458
(5)
*
Thomas Bachinski
215,453
1.6
%
Mark Christianson
1,423,206
10.6
%
All Directors and Officers as a Group (8 persons)
2,743,307
(6)
19.9
%
(1)
Based
    on 13,463,765 shares of Common Stock outstanding as of July 1, 2019.
(2)
Based on Schedule 13D/A filed by Mr. Fredrickson on March 5, 2018. Mr. Fredrickson is our former Vice President of Therapy and Product Development.
(3)
Includes
    193,044 shares of Common Stock issuable upon exercise of outstanding warrants. Nickolay Kukekov has voting and dispositive
    power over the shares.
(4)
Includes
    383,113 shares of Common Stock issuable upon exercise of outstanding warrants and 42,525 shares of Common Stock issuable
    upon exercise of outstanding options.
(5)
Consists
    of (i) 79,625 shares of Common Stock issuable upon exercise of outstanding options, (ii) 2,499 shares of Common Stock
    underlying options exercisable within 60 days of July 1, 2019 and (iii) 2,334 restricted stock units that vest within
    60 days of July 1, 2019.
(6)
Includes
    7,002 restricted stock units that vest within 60 days of July 1, 2019 and 303,824 shares of Common Stock underlying
    outstanding     options and options exercisable within 60 days of July 1, 2019.
*
Less than 1%
115
CERTAIN RELATIONSHIPS
AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE
Certain Relationships and Related Transactions
There have been no transactions since January
1, 2017 to which NeuroOne, Inc. or the Company has been a participant in which the amount involved exceeded or will exceed the
lesser of $120,000 or 1% of the average of the Company's total assets at year end for the last two completed fiscal years,
and in which any of our directors, executive officers or holders of more than five percent of our capital stock, or any members
of their immediate family, had or will have a direct or indirect material interest, other than compensation arrangements which
are described under "Executive Compensation" and as described below.
Original Source Entertainment, Inc.
Prior to the 2017 Acquisition, OSE's
administrative functions were operated from the offices of Mr. Samad (the majority owner of OSE), and OSE did not pay Mr. Samad
for the use of such space. Also, prior to the Acquisition, for the year ended December 31, 2017, OSE received an advance of
$11,572 from a related party.
The Acquisition
Pursuant to the Merger Agreement for the Acquisition whereby NeuroOne, Inc. became a wholly-owned subsidiary of the Company, each holder of NeuroOne Shares outstanding
immediately prior to the closing received shares of Common Stock in exchange therefore based on the Exchange Ratio, with all fractional
shares rounded down to the nearest whole share. Accordingly, we issued 793,822, 1,423,206 and 2,840,731 shares of Common Stock
to our officers, Messrs. Rosa, Christianson and Fredrickson, respectively, and options to purchase 34,020 shares of Common Stock
to each of Messrs. Buckman, Kalia and Mathiesen, members of our Board, and 859,976 shares of Common Stock to Mayo, previously a
holder of over 5% of our outstanding Common Stock. The Merger Agreement also provided that Mr. Rosa be appointed as a director
of the Company upon the closing of the Acquisition. Further, pursuant to the Merger Agreement, Mr. Samad (the majority owner
of OSE) tendered for cancellation 3,500,000 shares of Origin Source Entertainment, Inc. held by him as part of the conditions to
closing.
Private Placements
Series 1 Note Issuance
Between November 2016 and June 2017, NeuroOne,
Inc. issued the Series 1 Notes and warrants to investors in a private placement, including, in June 2017, a Series 1 Note for $50,000
and a warrant to
Sean Wambold
, the founder and former sole owner of the LLC. The Company
did not make any payments of principal or interest on the Series 1 Notes following issuance. In June 2017 and November 2017, the
terms of the Series 1 Notes and warrants were amended. In July 2018, the Series 1 Notes were converted as described below.
Series 2 Note Issuance
In August 2017, the Company issued the Series 2 Notes to two investors in a private placement, including
a Series 2 Note for $103,000 to Mohammad Jainal Bhuiyan, a greater than 5% stockholder and a registered representative with Corinthian,
a registered broker-dealer that has acted as a placement agent for private placements by the Company and NeuroOne, Inc. The Company
did not make any payments of principal on the Series 2 Notes following issuance. In November 2017, the Company and each holder
of the Series 2 Notes amended the notes, and in March 2018, the Company and the holders of the Series 2 Notes converted the Series
2 Notes from interest free promissory notes into convertible promissory notes with an interest rate of 8% per year and issued warrants
to the holders. In July 2018, the Series 2 Notes were converted as described below.
116
Series 3 Note Issuance
Between September 2017 and June 2018, the Company issued the Series 3 Notes and warrants to several investors
in a private placement, including (i) in October 2017, a Series 3 Note for $50,000 and a warrant to Sean Wambold, the founder and
former sole owner of the LLC and (ii) in February 2018, a Series 3 Note for $125,000 and a warrant to Lifestyle Healthcare LLC,
a holder of over 5% of our outstanding Common Stock. Additionally, the manager of Lifestyle Healthcare LLC is a registered representative
with Corinthian, a registered broker-dealer that has acted as a placement agent in private placements by the Company and NeuroOne,
Inc. The Company did not make any payments of principal or interest on the Series 3 Notes. In February 2019, the Series 3 Notes
were converted as described below. For a more detailed description of our Series 3 Notes, see "Management's Discussion
and Analysis of Financial Condition and Results of Operations-Liquidity and Capital Resources – Historical Capital Resources."
Conversion of Series 1 Notes and Series
2 Notes
On July 2, 2018,
holders of the Series 1 Notes and Series 2 Notes agreed to convert the outstanding principal and interest on the Series 1
Notes and Series 2 Notes into shares of our Common Stock, at a conversation rate of $1.80 per share; and to amend and restate
the Series 1 Warrants and Series 2 Warrants to make them immediately exercisable. As consideration for the early conversion
of the Series 1 Notes and Series 2 Notes, the Company issued each holder a new warrant. Mr. Wambold, the founder and sole
owner of our predecessor, the LLC, agreed to convert $54,277 of outstanding principal and interest on his Series 1 Notes into
30,154 shares of Common Stock and warrants immediately exercisable for 125,482 shares of Common Stock with an exercise
price of $1.80 per share. Mr. Bhuiyan agreed to convert $105,563 of outstanding principal and interest on his Series 2 Notes
into 58,646 shares of Common Stock and warrants immediately exercisable for 194,542 shares of Common Stock with an exercise
price of $1.80 per share, making him a holder of over 5% of our outstanding Common Stock.
As of July 1, 2019, no principal remains
outstanding on the Series 1 Notes and Series 2 Notes.
Conversion of Series 3 Notes
On February 28, 2019, the Company completed
an equity round of financing resulting in more than $3 million in gross proceeds when it closed on the sale of units, each consisting
of one share of Common Stock and warrants exercisable for one share of Common Stock in connection with the Company's ongoing
private placement. Following such financing, the outstanding principal and interest of the Series 3 Notes of $1,678,361 was automatically
converted in accordance with the terms of the Series 3 Notes into 839,179 units, consisting of 839,179 shares of Common Stock and
839,179 warrants at an exercise price equal to $3.00 per share. Additionally, the previously issued warrants became immediately
exercisable for 839,179 shares of Common Stock, at an exercise price equal to $2.50 per share, and will expire on February 28,
2024. The exercise price and number of the shares of our Common Stock issuable upon exercise of the warrants will be subject to
adjustment in the event of any stock dividends and splits, reverse stock split, recapitalization, reorganization, business combination
or similar transaction. As of July 1, 2019, no principal remains outstanding on the Series 3 Notes.
Mr. Wambold's Series 3 Notes converted into 27,822 shares of Common Stock, and the warrants became
immediately exercisable for 27,822 shares of Common Stock with an exercise price of $3.00 per share, and Lifestyle Healthcare LLC's
Series 3 Notes converted into 67,722 shares of Common Stock, and the warrants became immediately exercisable for 67,622 shares
of Common Stock with an exercise price of $3.00 per share.
2018 Private Placement
Between July 2018 and November 2018, the
Company issued and sold units to investors consisting of Common Stock and warrants for $2.50 per unit, including (i) in July 2018,
the sale of 37,600 Units for $94,000 to each of Lifestyle Healthcare LLC and Mohammad Jainal Bhuiyan and (ii) in September, the
sale of 40,000 Units for $100,000 and 20,000 Units for $50,000 to Faisal Siddiqui and Lifestyle Healthcare LLC, respectively, each
holders of over 5% of our Common Stock at the time of issuance.
2019 Private Placement
Between December 2018 and July 2019, the Company issued and sold units to certain Selling Stockholders
consisting of shares of our Common Stock and warrants for $2.50 per unit, including in March 2019, the sale of 60,000 units for
$150,000, and, in June 2019, the sale of 40,000 units for $100,000 to Mohammad Jainal Bhuiyan, a holder of over 5% of our Common
Stock at the time of issuance.
117
Mayo Development Agreement
Pursuant to the Mayo Development Agreement,
we have agreed to license worldwide (i) certain know how for the development and commercialization of products, methods and processes
related to flexible circuit thin film technology for the recording of tissue and (ii) the products developed therefrom, and to
partner with Mayo to assist the Company in the investigation, research application, development and improvement of such technology.
Mayo has agreed to assist us by providing access to the Mayo Principal Investigators in developing a minimally invasive device/delivery
system and procedure for a minimally invasive approach for the implantation of our cortical thin film flexible circuit technology
developed by the Company, including prototype development, animal testing, protocol development for human and animal use, abstract
development and presentation and access to and license of any intellectual property that the Mayo Principal Investigators develop
relating to the procedure.
Whether or not any such technology, product,
method, process, device or delivery system is developed, we agreed, in consideration for Mayo's efforts under the Mayo Development
Agreement, to pay Mayo a cash payment of approximately $92,000 on the earlier of September 30, 2017 or the date we raise a minimum
amount of financing. We did not make this payment by September 30, 2017 and breached this provision of the Mayo Development Agreement.
Mayo granted us an extension of this deadline to December 31, 2017, and we made this payment within such extended deadline.
On May 25, 2017, NeuroOne issued Mayo 50,556
NeuroOne Shares (859,976 shares, as converted based on the Exchange Ratio) pursuant to a subscription agreement, pursuant to which
Mayo is a holder of over 5% of our outstanding Common Stock. Finally, we have agreed to pay Mayo a royalty equal to a single-digit
percentage of our product sales pursuant to the Mayo Development Agreement. Mayo may purchase any developed products licensed under
the Mayo Development Agreement at the best price offered by us to the end user in the prior year. The Mayo Development Agreement
will expire on May 25, 2037 and may be terminated by Mayo for cause or under certain circumstances.
HRA Capital
HRA Capital's affiliate, Corinthian, has acted as a placement agent for private placements by us
and NeuroOne, Inc. HRA Capital is affiliated with Chromium 24 LLC, which was previously a greater than 5% beneficial owner, and
Lifestyle Healthcare LLC, a current greater than 5% beneficial owner. Pursuant to the engagement letter with HRA Capital, NeuroOne,
Inc. paid the placement agent a cash fee of $113,610 and agreed to issue to the placement agent a warrant to purchase shares of
Common Stock (or common stock equivalents) in an amount equal to 8% of the shares purchased by certain investors in a bridge private
placement transaction. Additionally, the Company agreed to pay HRA Capital 10% of the gross proceeds (the "HRA Fee")
received by the Company in subsequent private placement transactions from investors with whom HRA Capital or Corinthian had material
contact with for purposes of the engagement letter (the "Prospects"), provided such compensation would only be paid
in connection with private placement transactions that closed within 12 months of the expiration of the engagement letter (the
"Tail Period"). The Company agreed to issue to HRA Capital warrants to purchase shares of Common Stock (or common stock
equivalents) in an amount equal to 10% of the shares purchased by Prospects during the Tail Period ("HRA Warrants").
In February 2019, the Company and HRA Capital
agreed (i) to extend the Tail Period until June 30, 2019, (ii) to modify the HRA Fee so that HRA Capital is entitled to receive
a cash fee equal to 8% of the gross proceeds received by the Company from Prospects in all subsequent private placement transactions
and (iii) to modify the HRA Warrants so that they are exercisable to purchase shares of Common Stock (or common stock equivalents)
in an amount equal to 8% of the shares of Common Stock purchased by Prospects in subsequent private placements.
The HRA Warrants were
issued on July 1, 2019. The Company issued Corinthian and its designees warrants exercisable for (i) 17,760 shares of Common Stock
in connection with the 2019 Private Placement, (ii) 36,096 shares of Common Stock in connection with the 2018 Private Placement
and (iii)
135,512 shares of Common Stock in connection
with the Notes transactions. Upon issuance, the HRA Warrants became immediately exercisable and expire on July 1, 2024.
Lock-Up Agreement
On March 1, 2018, Wade Fredrickson, a greater than 5% stockholder of the Company, entered into a lock-up
agreement, which was amended in July 2018, with the Company in which he agreed, subject to certain exceptions, not to offer, sell,
transfer or otherwise dispose of the Company's securities for a period of 18 months following the effective date of the agreement.
Indemnification Agreements
Our certificate of incorporation contains
provisions limiting the liability of directors, and our bylaws provides that we indemnify each of our directors to the fullest
extent permitted under Delaware law. Our certificate of incorporation and bylaws also provide our Board with discretion to indemnify
our officers and employees when determined appropriate by the Board. In addition, we have entered into an indemnification agreement
with our directors and our executive officers.
118
ADDITIONAL INFORMATION
Federal securities laws require us to file information with the SEC concerning our business and operations.
Accordingly, we file proxy statements and annual, quarterly, and special reports, and other information with the Commission.
The SEC maintains a web site (http://www.sec.gov)
at which you can read or download our reports and other information.
We have filed with the SEC a registration
statement on Form S-1 under the Securities Act with respect to the securities being offered hereby. As permitted by the rules and
regulations of the SEC, this prospectus does not contain all the information set forth in the registration statement and the exhibits
and schedules thereto. For further information with respect to the Company and the securities offered hereby, reference is made
to the registration statement, and such exhibits and schedules which may be accessed at the SEC's web site.
119
DISCLOSURE OF COMMISSION
POSITION ON INDEMNIFICATION FOR SECURITIES ACT LIABILITIES
The Company is incorporated under the laws
of the State of Delaware. Section 145 of the Delaware General Corporation Law provides that a Delaware corporation may indemnify
any persons who were, are, or are threatened to be made, parties to any threatened, pending or completed action, suit or proceeding,
whether civil, criminal, administrative or investigative (other than an action by or in the right of such corporation), by reason
of the fact that such person is or was an officer, director, employee or agent of such corporation, or is or was serving at the
request of such corporation as an officer, director, employee or agent of another corporation or enterprise. The indemnity may
include expenses (including attorneys' fees), judgments, fines and amounts paid in settlement actually and reasonably incurred
by such person in connection with such action, suit or proceeding, provided that such person acted in good faith and in a manner
he or she reasonably believed to be in or not opposed to the corporation's best interests and, with respect to any criminal
action or proceeding, had no reasonable cause to believe that his or her conduct was illegal. A Delaware corporation may indemnify
any persons who were, are, or are threatened to be made, a party to any threatened, pending or completed action or suit by or in
the right of the corporation by reason of the fact that such person is or was a director, officer, employee or agent of such corporation,
or is or was serving at the request of such corporation as a director, officer, employee or agent of another corporation or enterprise.
The indemnity may include expenses (including attorneys' fees) actually and reasonably incurred by such person in connection
with the defense or settlement of such action or suit provided such person acted in good faith and in a manner he or she reasonably
believed to be in or not opposed to the corporation's best interests except that no indemnification is permitted without
judicial approval if the officer or director is adjudged to be liable to the corporation. Where an officer or director is successful
on the merits or otherwise in the defense of any action referred to above, the corporation must indemnify him or her against the
expenses (including attorneys' fees) actually and reasonably incurred.
The Company's certificate of incorporation
provides for the indemnification of its directors to the fullest extent permitted under the Delaware General Corporation Law. The
Company's bylaws provide for the indemnification of its directors and officers to the fullest extent permitted under the
Delaware General Corporation Law.
Section 102(b)(7) of the Delaware General
Corporation Law permits a corporation to provide in its certificate of incorporation that a director of the corporation shall not
be personally liable to the corporation or its stockholders for monetary damages for breach of fiduciary duties as a director,
except for liability for any:
●
transaction from which the director derives an improper personal benefit;
●
act or omission not in good faith or that involves intentional misconduct or a knowing violation
of law;
●
unlawful payment of dividends or redemption of shares; or
●
breach of a director's duty of loyalty to the corporation or its stockholders.
The Company's certificate of incorporation
includes such a provision. Under the Company's bylaws, expenses incurred by any director or officers in defending any such
action, suit or proceeding in advance of its final disposition shall be paid by the Company upon delivery to it of an undertaking,
by or on behalf of such director or officer, to repay all amounts so advanced if it shall ultimately be determined that such director
or officer is not entitled to be indemnified by the Company, as long as such undertaking remains required by the Delaware General
Corporation Law.
Section 174 of the Delaware General Corporation
Law provides, among other things, that a director who willfully or negligently approves of an unlawful payment of dividends or
an unlawful stock purchase or redemption, may be held liable for such actions. A director who was either absent when the unlawful
actions were approved or dissented at the time may avoid liability by causing his or her dissent to such actions to be entered
in the books containing minutes of the meetings of the board of directors at the time such action occurred or immediately after
such absent director receives notice of the unlawful acts.
120
As permitted by the Delaware General Corporation
Law, we have entered into indemnity agreements with each of our directors and executive officers, that require us to indemnify
such persons against any and all expenses (including reasonable attorneys' fees), witness fees, damages, judgments, fines,
settlements and other amounts incurred (including expenses of a derivative action) in connection with any action, suit or proceeding,
whether actual or threatened, to which any such person may be made a party by reason of the fact that such person is or was a director,
an officer or an employee of the Company or any of its affiliated enterprises, provided that such person acted in good faith and
in a manner such person reasonably believed to be in or not opposed to our best interests and, with respect to any criminal proceeding,
had no reasonable cause to believe his or her conduct was unlawful. The indemnification agreements also set forth certain procedures
that will apply in the event of a claim for indemnification thereunder.
There is at present no pending litigation
or proceeding involving any of the Registrant's directors or executive officers as to which indemnification is required
or permitted, and the Company is not aware of any threatened litigation or proceeding that may result in a claim for indemnification,
other than the letter received by the Company in May 2017 from the former employer of Mark Christianson and Wade
Fredrickson
claiming, among other things, certain breaches of non-competition obligations and confidentiality and non-disclosure obligations
to such prior employer and federal and state law by virtue of such officers' work for the Company. See "We may be
subject to damages resulting from claims that we, or our employees, have wrongfully used or disclosed alleged trade secrets of
our competitors or are in breach of non-competition or non-solicitation agreements with our competitors" under the "Risk
Factors" section in this prospectus.
The Company has an insurance policy that
covers its officers and directors with respect to certain liabilities, including liabilities arising under the Securities Act or
otherwise.
Insofar as indemnification for liabilities
arising under the Securities Act may be permitted to directors, officers or persons controlling us pursuant to the foregoing provisions,
we have been informed that, in the opinion of the SEC, such indemnification is against public policy as expressed in the Securities
Act and is therefore unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment
by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful
defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities
being registered, we will, unless in the opinion of our counsel the matter has been settled by controlling precedent, submit to
a court of appropriate jurisdiction the question whether such indemnification by us is against public policy as expressed hereby
in the Securities Act and we will be governed by the final adjudication of such issue.
121
LEGAL MATTERS
The validity of the securities offered
hereby have been passed upon for us by Honigman LLP, Kalamazoo, Michigan.
122
EXPERTS
The consolidated financial statements of
NeuroOne Medical Technologies Corporation as of September 30, 2018 and December 31, 2017, and for the nine month transition period
ended September 30, 2018 and for the year ended December 31, 2017 included in this Prospectus and in the Registration Statement
have been so included in reliance on the report of BDO USA, LLP, an independent registered public accounting firm (the report on
the consolidated financial statements contains an explanatory paragraph regarding the Company's ability to continue as a
going concern) appearing elsewhere herein and in the Registration Statement, given on the authority of said firm as experts in
auditing and accounting.
123
NeuroOne Medical Technologies
Corporation
INDEX TO FINANCIAL
STATEMENTS
Audited Consolidated Financial Statements
Report of Independent Registered Public Accounting Firm
F-2
Consolidated Balance Sheets
F-3
Consolidated Statements of Operations
F-4
Consolidated Statements of Changes in Stockholders' Deficit
F-5
Consolidated Statements of Cash Flows
F-6
Notes to Consolidated Financial Statements
F-7
Unaudited Consolidated Financial Statements
Balance Sheets
F-32
Statements of Operations
F-33
Statements of Changes in Stockholders' Equity (Deficit)
F-34
Consolidated Statements of Cash Flows
F-35
Notes to Consolidated Financial Statements
F-36
F-
1
Report of Independent Registered Public Accounting Firm
Stockholders and Board of Directors
NeuroOne Medical Technologies Corporation
Minnetonka, Minnesota
Opinion on the Consolidated Financial
Statements
We have audited the accompanying
consolidated balance sheets of NeuroOne Medical Technologies Corporation (the "Company") as of September 30, 2018
and December 31, 2017, the related consolidated statements of operations, changes in stockholders' deficit, and cash
flows for the nine month transition period ended September 30, 2018 and for the year ended December 31, 2017, and the related
notes (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated
financial statements present fairly, in all material respects, the financial position of the Company at September 30, 2018
and December 31, 2017, and the results of their operations and their cash flows for the nine month transition period ended
September 30, 2018 and for the year ended December 31, 2017, in conformity with accounting principles generally accepted in
the United States of America.
Going Concern
Uncertainty
The accompanying consolidated financial
statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the consolidated
financial statements, the Company has suffered recurring losses from operations and negative cash flows from operations that raise
substantial doubt about its ability to continue as a going concern. Management's plans in regard to these matters are also
described in Note 2 to the consolidated financial statements. The consolidated financial statements do not include any adjustments
that might result from the outcome of this uncertainty.
Basis for Opinion
These consolidated financial statements
are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's consolidated
financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight
Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the
U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with
the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether
the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required
to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are
required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion
on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures
to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing
procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and
disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant
estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe
that our audits provide a reasonable basis for our opinion.
/s/ BDO USA, LLP
We have served as the Company's auditor
since 2016.
Minneapolis,
Minnesota
December 12, 2018
F-
2
NeuroOne Medical Technologies Corporation
Consolidated Balance Sheets
September 30,
December 31,
2018
2017
Assets
Current assets:
Cash
$
13,260
$
26,467
Prepaid expenses
5,378
7,146
Total current assets
18,638
33,613
Intangible assets, net
200,081
216,372
Total assets
$
218,719
$
249,985
Liabilities and Stockholders' Deficit
Current liabilities:
Accounts Payable
$
221,235
$
—
Accrued expenses
1,591,022
1,021,617
Short-term promissory notes and unsecured loans
283,000
253,000
Convertible promissory notes, net and accrued interest
1,393,804
2,168,340
Premium conversion derivatives
308,395
462,174
Total current liabilities
3,797,456
3,905,131
Warrant liability
817,155
1,381,465
Total liabilities
4,614,611
5,286,596
Commitments and contingencies (Note 4)
Stockholders' deficit:
Preferred stock, $0.001 par value; 10,000,000 shares authorized as of
    September 30, 2018 and December 31, 2017; no shares issued or outstanding as of September 30, 2018 and December 31, 2017.
—
—
Common stock, $0.001 par value; 100,000,000 shares authorized as of September 30, 2018 and December 31, 2017; 9,656,505 and 7,864,994 shares issued and outstanding as of September 30, 2018 and December 31, 2017, respectively.
9,657
7,865
Additional paid–in capital
6,052,161
280,320
Accumulated deficit
(10,457,710
)
(5,324,796
)
Total stockholders' deficit
(4,395,892
)
(5,036,611
)
Total liabilities and stockholders' deficit
$
218,719
$
249,985
See accompanying notes to consolidated financial statements
F-
3
NeuroOne Medical Technologies Corporation
Consolidated Statements of Operations
For the nine months ended
September 30,
Year ended
December 31,
2018
2017
2017
(unaudited)
Operating expenses:
General and administrative
$
2,676,872
$
1,798,131
$
2,336,988
Research and development
715,086
500,408
735,333
Total operating expenses
3,391,958
2,298,539
3,072,321
Loss from operations
(3,391,958
)
(2,298,539
)
(3,072,321
)
Interest expense
(763,065
)
(1,057,024
)
(1,395,138
)
Net change in fair value for the warrant liability and premium conversion derivatives
336,596
(77,505
)
(240,053
)
Loss on note extinguishments, net
(1,314,487
)
—
(350,914
)
Net loss
$
(5,132,914
)
$
(3,433,068
)
$
(5,058,426
)
Net loss per share:
Basic and diluted
$
(0.61
)
$
(0.55
)
$
(0.77
)
Number of shares used in per share calculations:
Basic and diluted
8,420,529
6,217,076
6,610,072
See accompanying notes to consolidated financial statements
F-
4
NeuroOne Medical Technologies Corporation
Consolidated Statements of Changes in
Stockholders' Deficit
Additional
Total
Common Stock
Paid–In
Accumulated
Stockholders'
Shares
Amount
Capital
Deficit
Deficit
Balance at December 31, 2016
5,216,565
$
31
$
119
$
(266,370
)
$
(266,220
)
Issuance of stock in connection with intellectual license agreement
859,976
860
22,555
—
23,415
Issuance of restricted stock award
215,453
215
7,005
—
7,220
Transfer of shares in connection with merger
1,573,000
1,573
(1,573
)
—
—
Par value change in connection with merger
—
5,186
(5,186
)
—
—
Stock-based compensation
—
—
69,574
—
69,574
Issuance of warrants
—
—
61,496
—
61,496
Issuance of additional warrants in connection with short-term notes modification
—
—
117,280
—
117,280
Forgiveness of subscription receivable
—
—
9,050
—
9,050
Net loss
—
—
—
(5,058,426
)
(5,058,426
)
Balance at December 31, 2017
7,864,994
7,865
280,320
(5,324,796
)
(5,036,611
)
Issuance of common stock upon short term notes and convertible notes extinguishments
1,146,311
1,147
2,348,790
—
2,349,937
Issuance of warrants and reclassification of warrant liability in connection with short-term notes and
convertible notes extinguishments
—
—
2,008,796
—
2,008,796
Issuance of common stock under 2018 private placement
445,200
445
824,449
—
824,894
Issuance of warrants under 2018 private placement
—
—
288,106
—
288,106
Issuance costs related to 2018 private placement
—
—
(173,067
)
—
(173,067
)
Issuance of common stock for consulting services
200,000
200
469,300
—
469,500
Stock-based compensation
—
—
5,467
—
5,467
Net loss
—
—
—
(5,132,914
)
(5,132,914
)
Balance at September 30, 2018
9,656,505
$
9,657
$
6,052,161
$
(10,457,710
)
$
(4,395,892
)
See accompanying notes to consolidated financial statements
F-
5
NeuroOne Medical Technologies Corporation
Consolidated Statements of Cash Flows
Nine Months Ended
September 30,
Year ended
December 31,
2018
2017
2017
(unaudited)
Operating activities
Net loss
$
(5,132,914
)
$
(3,433,068
)
$
(5,058,426
)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization
16,291
13,368
17,633
Stock-based compensation
486,120
76,794
76,794
Forgiveness of subscription
—
9,051
9,050
Non-cash interest on convertible promissory notes
152,045
76,359
115,867
Non-cash discount amortization on convertible and short-term promissory notes
611,020
943,427
1,242,031
Note issuance costs attributed to warrant liability and to convertible promissory note modification
—
38,119
38,119
Revaluation of premium conversion derivatives
(371,831
)
90,212
(17,962
)
Revaluation of warrant liability
35,235
(12,707
)
258,015
Loss on note extinguishments, net
1,314,487
—
350,914
Change in assets and liabilities:
Prepaid expenses and other assets
1,768
46,677
46,677
Accounts payable
221,235
—
—
Accrued expenses
437,337
642,099
813,215
Net cash used in operating activities
(2,229,207
)
(1,509,669
)
(2,108,073
)
Investing activities
Purchase of intangible assets
(55,000
)
—
(91,709
)
Net cash used in investing activities
(55,000
)
—
(91,709
)
Financing activities
Proceeds from issuance of convertible promissory notes and short-term notes
432,849
675,705
1,004,134
Proceeds from issuance of warrants associated with convertible promissory notes
442,151
440,919
777,490
Proceeds from issuance of warrants associated with short-term notes
—
61,496
61,496
Proceeds from issuance of common stock in connection with private placement
824,894
—
—
Proceeds from issuance of warrants in connection with private placement
288,106
—
—
Proceeds (repayment)  from unsecured loans
283,000
(50,000
)
(50,000
)
Issuance costs related to short-term note
—
(3,030
)
(3,030
)
Issuance costs related to convertible promissory notes
—
(35,689
)
(45,468
)
Issuance costs related to warrants
—
(31,920
)
(40,590
)
Net cash provided by financing activities
2,271,000
1,057,481
1,704,032
Net decrease in cash
(13,207
)
(452,188
)
(495,750
)
Cash at beginning of period
26,467
522,217
522,217
Cash at end of period
$
13,260
$
70,029
$
26,467
Supplemental non-cash financing and investing transactions:
Bifurcation of premium conversion derivatives related to convertible promissory notes
$
168,384
$
213,961
$
342,486
Conversion of short-term notes and convertible promissory notes into common stock
$
2,063,361
$
—
$
—
Issuance of additional warrants in connection with short-term notes and convertible promissory notes modifications
$
829,378
$
—
$
117,280
Purchased intangible assets in accrued liabilities
$
—
$
—
$
30,000
Common stock issued for the purchase of intangible assets
$
—
$
23,115
$
23,415
Accrued issuance costs related to private placement
$
173,067
—
—
Accrued issuance costs attributed to short-term promissory notes and convertible promissory notes
$
2,850
$
42,811
$
57,037
Accrued issuance costs attributed to warrant liability
$
—
$
38,119
$
38,119
See accompanying notes to consolidated financial statements
F-
6
NeuroOne Medical Technologies Corporation
Notes to Consolidated Financial Statements
NOTE 1 - Organization and Nature of Operations
NeuroOne Medical Technologies Corporation
(the "Company"), a Delaware Corporation, was originally incorporated as Original Source Entertainment, Inc. under the
laws of the State of Nevada on August 20, 2009. Prior to the closing of the Acquisition (as defined below), the Company completed
a series of steps contemplated by a Plan of Conversion pursuant to which the Company, among other things, changed its name to NeuroOne
Medical Technologies Corporation, increased its authorized number of shares of common stock from 45,000,000 to 100,000,000, increased
its authorized number of shares of preferred stock from 5,000,000 to 10,000,000 and reincorporated in Delaware. On July 20, 2017,
the Company, through a wholly owned acquisition subsidiary, acquired 100% of the outstanding capital stock of NeuroOne, Inc. ("NeuroOne")
in a reverse triangular merger and reorganization pursuant to Section 368(a) of the Internal Revenue Code (the "Acquisition").
The Acquisition was accounted for as a capital transaction, or reverse recapitalization. NeuroOne was the accounting acquirer in
this transaction. As such, the historical financial statements reflect the operations of NeuroOne for all periods presented prior
to the date of Acquisition. NeuroOne was formed on October 7, 2016. The accompanying consolidated financial statements subsequent
to the Acquisition include those of the Company, as well as those of its wholly owned subsidiary NeuroOne.
Subsequent to the Acquisition, the Company's
operating activities became the same as those of NeuroOne, an early-stage medical technology company developing comprehensive neuromodulation
cEEG and sEEG monitoring, ablation, and brain stimulation solutions to diagnose and treat patients with epilepsy, Parkinson's
disease, essential tremors, and other brain related disorders.
To date, the Company has recorded no product
sales and has a limited expense history. The Company is currently raising capital to fund the development of its proprietary technology
and is seeking regulatory clearances required to initiate commercial activities.
The Company is based in Minnetonka, Minnesota
effective December 1, 2018. The Company was previously based in Eden Prairie, Minnesota.
Acquisition of NeuroOne, Inc.
The Acquisition was consummated on July
20, 2017 (the "Closing") and, pursuant to the terms of the merger agreement, (i) all outstanding shares of common stock
of NeuroOne, par value $0.0001 per share (the "NeuroOne Shares"), were exchanged for shares of the Company's
common stock, par value $0.001 per share (the "Company Shares"), based on the exchange ratio of 17.0103706 Company
Shares for every one NeuroOne Share (the "Exchange Ratio"), resulting in the Company issuing, on July 20, 2017, an
aggregate of 6,291,994 Company Shares for all of the then-outstanding NeuroOne Shares, (ii) all outstanding options of NeuroOne
were replaced with options to purchase Company Shares based on the Exchange Ratio, with corresponding adjustments to their respective
exercise prices, pursuant to which the Company reserved 992,265 Company Shares for issuance upon the exercise of options, (iii)
all warrants of NeuroOne were replaced with warrants to purchase Company Shares and (iv) the Company assumed the outstanding convertible
promissory notes of NeuroOne. NeuroOne options had been issued pursuant to the NeuroOne 2016 Equity Incentive Plan. Pursuant to
the merger agreement, the Company assumed the NeuroOne 2016 Equity Incentive Plan upon the Closing.
Pursuant to the Acquisition, the Company
acquired 100% of NeuroOne Shares in exchange for the issuance of Company Shares and NeuroOne became the Company's wholly-owned
subsidiary. Also at the Closing, Mr. Samad (the majority owner of the Company prior to the Acquisition) tendered for cancellation
3,500,000 Company Shares held by him as part of the conditions to Closing.
All issued and outstanding common stock
share amounts, options for common stock and per share amounts contained in the consolidated financial statements were retroactively
adjusted to reflect the Exchange Ratio for all periods presented.
F-
7
NOTE 2 - Going Concern
The accompanying consolidated
financial statements have been prepared on the basis that the Company will continue as a going concern. The Company has incurred
losses and negative cash flows from operations since inception and had an accumulated deficit of $10,457,710 as of September 30,
2018. In the event the Company is unable to complete an equity round of financing resulting in more than $3 million in gross proceeds
by December 31, 2018, the 2017 Convertible Notes and accrued interest thereon will become due. The Company does not have adequate
liquidity to fund the repayment of the 2017 Convertible Notes if they become due on December 31, 2018 or to fund its operations
throughout fiscal 2019 without raising additional funds. These factors raise substantial doubt about the Company's ability
to continue as a going concern. The consolidated financial statements do not include any adjustments that might result from the
outcome of this condition. If the Company is not able to raise additional working capital, it will have a material adverse effect
on the operations of the Company and the development of its technology.
Through September 30, 2018, since inception,
the Company has completed unsecured loan financings for gross proceeds of $283,000, a $253,000 short-term promissory note financing
(which notes were amended and restated to become convertible promissory notes as described below), a $1,625,120 convertible promissory
note financing and a second $1,540,000 convertible note promissory financing. In addition, the Company entered into a private placement
transaction in July 2018 whereby $1,113,000 in gross proceeds were raised out of a planned $10.0 million maximum subscription amount
(assuming the over-allotment option is not exercised) through September 30, 2018. The Company does not have adequate liquidity
to fund its operations throughout fiscal 2019 without raising additional funds. Management intends to seek additional debt and/or
equity financing to fund operations. However, if the Company is unable to raise additional funds, or the Company's anticipated
operating results are not achieved, management believes planned expenditures may need to be reduced in order to extend the time
period that existing resources can fund the Company's operations. If management is unable to obtain the necessary capital,
it may have to cease operations.
NOTE 3 - Summary of Significant
Accounting Policies
Basis of Presentation and Change in Fiscal Year
The accompanying consolidated financial
statements have been prepared in accordance with accounting standards generally accepted in the United States of America, In September
2018, the Board of Directors of the Company, pursuant to the bylaws and based upon the recommendation of its Audit Committee, approved
a change in the Company's fiscal year end from December 31 to September 30. The Company's fiscal year now begins on
October 1 and ends on September 30 of each year, starting on October 1, 2018. The required transition period of January 1, 2018
to September 30, 2018 is included in the consolidated financial statements. For comparative purposes, the unaudited consolidated
statements of operations and consolidated statements of cash flows for the nine months ended September 30, 2017 are also presented.
Management's Use of Estimates
The preparation of financial statements
in conformity with accounting principles generally accepted in the United States of America requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities
at the date of the financial statements and the reported amounts of expenses during the reporting period. Actual results could
differ from those estimates.
Concentration of Credit Risk
Financial instruments that potentially
subject the Company to a concentration of credit risk consist of cash. The Company's cash is held by one financial institution
in the United States. Amounts on deposit may at times exceed federally insured limits. Management believes that the financial institution
is financially sound, and accordingly, minimal credit risk exists with respect to the financial institution. As of September 30,
2018, the Company did not have any deposits in excess of federally insured amounts.
Common Stock Valuation
Due to the limited market liquidity for
the Company's common stock, the Company utilized methodologies in accordance with the framework of the American Institute
of Certified Public Accountants' Technical Practice Aid, Valuation of Privately-Held Company Equity Securities Issued as
Compensation (the "Practice Aid"), to estimate the fair value of its common stock. The valuation methodology
includes estimates and assumptions that require the Company's judgment. These estimates and assumptions include a number
of objective and subjective factors, including external market conditions affecting the biotechnology industry sector, and the
likelihood of achieving a liquidity event, such as an offering or sale. Significant changes to the key assumptions used in the
valuations may result in different fair values of common stock at each valuation date. Following is a summary of underlying assumptions
used:
F-
8
Prior to the Acquisition
Prior to the Acquisition on July 20, 2017,
NeuroOne was a private company with no active public market for its common stock. Therefore, at the time, NeuroOne determined the
fair value of its common stock using a contemporaneous valuation performed in accordance with the Practice Aid. Within this contemporaneous
valuation performed by NeuroOne included the following significant factors:
●
recent securities transactions;
●
stage of development and business strategy;
●
the likelihood of a liquidity event such as an initial public offering, a merger or the sale of our company;
●
financial condition and operating results, including our projected results; and
●
financial condition and operating results of comparable publicly owned companies
The fair value of NeuroOne's common
stock prior to the Acquisition was determined during a period when there was limited data with regard to value indication other
than convertible notes issued between November 2016 and June 2017. At the time, such convertible notes contained a $1.80 conversion
cap, which was treated as an estimated price of preferred stock into which the notes would convert. A transaction backsolve was
performed that equated the $1.5 million investment in the convertible notes with the resulting equity allocation to the hypothetical
converted shares and warrants expected to be issued upon conversion. The resulting equity value was then used to infer the value
of common stock within the same option-pricing framework. This scenario implicitly assumed 100% likelihood of a stock financing.
In order to account for the possibility of dissolution, the transaction backsolve was used along with a dissolution scenario within
a hybrid Probability Weighted Expected Return Method ("PWERM"). The scenarios were weighted 50/50, and a Discount For
Lack of Marketability ("DLOM") applied, to determine the valuation conclusion.
Following the Acquisition
For valuations following the Acquisition,
including the valuation of common stock on December 31, 2017, the Company estimated our enterprise value on a continuing operations
basis, using the market approach, with certain adjustments relating to the thinly traded status of the Company. The traded price
of the Company was deemed not to be an entirely reliable indication of fair market value given the lack of trading liquidity. Therefore,
in addition to applying partial weighting to the traded price, the Company relied on forward revenue multiples from guideline public
companies ("GPC") for calendar year 2019 and 2020. The resulting equity value from the GPC method was allocated to
common stock using the option pricing method, and a DLOM was applied. Based on the above methodology and weightings, the Company
derived a valuation conclusion of $2.30 and $2.52 per share as of September 30, 2018 and December 31, 2017, respectively.
The significant factors contributing to
the increase in the fair value the Company's common stock following the Acquisition included the following:
●
The successful completion of the reverse merger;
●
Access to new capital as a public company;
●
Improved revenue projections;
●
Improved general economic conditions;
●
Additional issuance of convertible notes; and
●
Important developments relating to achievement of our business objectives
The fair value the Company's
common stock is used as an input into the fair value determination of the warrants, stock option or other equity awards that the
Company has issued or are outstanding liabilities at the reporting date.
F-
9
Fair Value of Financial Instruments
The Company's accounting for fair
value measurements of assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring
or nonrecurring basis adheres to the Financial Accounting Standards Board (FASB) fair value hierarchy that prioritizes the inputs
to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active
markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant
unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows:
●
Level 1 Inputs: Unadjusted quoted prices in active
markets for identical assets or liabilities accessible to the Company at the measurement date.
●
Level 2 Inputs: Other than quoted prices included in
Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term
of the asset or liability.
●
Level 3 Inputs: Unobservable inputs for the asset or
liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in
which there is little, if any, market activity for the asset or liability at measurement date.
As of September 30, 2018 and December 31,
2017, the fair values of cash, accounts payable, accrued expenses and the unsecured loans approximated their carrying
values because of the short-term nature of these assets or liabilities. The estimated fair value of the short-term and convertible
promissory notes of the Company was based on amortized cost which was deemed to approximate fair value. The fair value of the warrant
liability and the premium conversion derivatives associated with the convertible promissory notes of the Company were based on both
the estimated fair value of our common stock of $2.30 and $2.52 as of September 30, 2018 and December 31, 2017, respectively, and
cash flow models discounted at current implied market rates evidenced in recent arms-length transactions representing expected
returns by market participants for similar instruments and are based on Level 3 inputs. There were no transfers between fair
value hierarchy levels during the nine month transition period ended September 30, 2018 or for the year ended December 31, 2017.
The fair value of financial instruments measured on a recurring
basis is as follows:
As of September 30, 2018
Description
Total
Level 1
Level 2
Level 3
Liabilities:
Warrant liability
$
817,155
$
—
$
—
$
817,155
Premium conversion derivatives
308,395
—
—
308,395
Total liabilities at fair value
$
1,125,550
$
—
$
—
$
1,125,550
As of December 31, 2017
Description
Total
Level 1
Level 2
Level 3
Liabilities:
Warrant liability
$
1,381,465
$
—
$
—
$
1,381,465
Premium conversion derivatives
462,174
—
—
462,174
Total liabilities at fair value
$
1,843,639
$
—
$
—
$
1,843,639
F-
10
The following table provides a roll-forward
of the warrant liability and premium debt conversion derivatives measured at fair value on a recurring basis using unobservable
level 3 inputs for the nine month transition period ended September 30, 2018 and for the year ended December 31, 2017:
2018
2017
Warrant liability
Balance as of beginning of period
$
1,381,465
$
345,960
Value assigned to warrants in connection with convertible promissory and short-term notes
579,873
777,490
Reclassification to equity
(1,179,418
)
—
Change in fair value of warrant liability
35,235
258,015
Balance as of end of period
$
817,155
$
1,381,465
2018
2017
Premium debt conversion derivatives
Balance as of beginning of period
$
462,174
$
137,650
Value assigned to the underlying derivatives in connection with convertible promissory and short-term notes
218,052
342,486
Change in fair value of premium debt conversion derivatives
(371,831
)
(17,962
)
Balance as of end of period
$
308,395
$
462,174
Intellectual Property
The Company has entered into two licensing
agreements with major research institutions, which allows for access to certain patented technology and know-how. Payments under
those agreements are capitalized and amortized to general and administrative expense over the expected useful life of the acquired
technology.
Impairment of Long-Lived Assets
The Company evaluates its long-lived assets,
which consists entirely of licensed intellectual property for impairment whenever events or changes in circumstances indicate that
the carrying value of these assets may not be recoverable. The Company assesses the recoverability of long-lived assets by determining
whether or not the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the asset
is considered to be impaired, the amount of any impairment is measured as the difference between the carrying value and the fair
value of the impaired asset. Through September 30, 2018, no milestones triggering possible impairment of the Company's long-lived assets have occurred.
Debt Issuance Costs
Debt issuance costs are recorded as a reduction
of the convertible promissory notes and short-term notes when applicable. Amortization of debt issuance costs is calculated using
the straight-line method over the term of the convertible promissory notes, which approximates the effective interest method, and
is recorded in interest expense in the accompanying consolidated statements of operations.
Research and Development Costs
Research and development costs are charged
to expense as incurred. Research and development expenses may comprise of costs incurred in performing research and development
activities, including clinical trial costs, manufacturing costs for both clinical and pre-clinical materials as well as other contracted
services, license fees, and other external costs. Nonrefundable advance payments for goods and services that will be used in future
research and development activities are expensed when the activity is performed or when the goods have been received, rather than
when payment is made, in accordance with ASC 730,
Research and Development
.
Warrant Liability
The Company issued warrants to purchase
equity securities in connection with the issuance of convertible promissory notes (See Note 7– Short-Term Promissory Notes
and Unsecured Loans and Note 8 – Convertible Promissory Notes and Warrant Agreements). The Company accounts for these warrants
as a liability at fair value when the number of shares is not fixed and determinable in cases where warrant pricing protections
in future equity financings are not available to other common stockholders. Additionally, issuance costs associated with the warrant
liability are expensed as incurred and reflected as interest expense in the accompanying consolidated statements of operations.
The Company adjusts the liability for changes in fair value until the earlier of the exercise or expiration of the warrants for
any period when pricing protections in future equity financings remain in place, or until such time, if any, as the number of shares
to be exercised becomes fixed, at which point the warrants will be classified in stockholders' (deficit) equity provided
that there are sufficient authorized and unissued shares of common stock to settle the warrants and redeem any other contracts
that may require settlement in shares of common stock. Any future change in fair value of the warrant liability, when outstanding,
is recognized in the consolidated statements of operations.
F-
11
Premium Debt Conversion Derivatives
The Company evaluates all conversion and
redemption features contained in a debt instrument to determine if there are any embedded derivatives that require separation from
the host debt instrument. An embedded derivative that requires separation is bifurcated from its host debt instrument and a corresponding
discount to the host debt instrument is recorded. The discount is amortized and recorded to interest expense over the term of the
host debt instrument using the straight-line method which approximates the effective interest method.  The separated embedded
derivatives are accounted for separately on a fair value basis. The Company records the fair value changes of separated embedded
derivatives at each reporting period in the consolidated statements of operations (See Note 7– Short-Term Promissory Notes
and Unsecured Loans and Note 8 – Convertible Promissory Notes and Warrant Agreements). The Company determined that the redemption
features under the convertible promissory notes qualified as embedded derivatives and therefore separated from the debt host with
regard to the convertible promissory notes.
Income Taxes
For the Company, income taxes are accounted
for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable
to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax base
and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected
to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Deferred
tax assets are reduced by a valuation allowance if it is more likely than not that some portion of all of the deferred tax asset
will not be realized.
On December 22, 2017, the Tax Cuts and
Jobs Act of 2017 was signed into law making significant changes to the U.S. tax code. Changes affecting the Company's consolidated
financial statements include, but are not limited to, a U.S federal corporate tax rate decrease from 35% to 21% effective for tax
years beginning after December 31, 2017. The Company has adjusted the disclosure amounts related to deferred tax assets and the
valuation allowance recorded to reflect the new federal corporate tax rates.
Net Loss Per Share
For the Company, basic loss per share of
common stock is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period.
Diluted earnings or loss per share of common
stock is computed similarly to basic earnings or loss per share except the weighted average shares outstanding are increased to
include additional shares from the assumed exercise of any common stock equivalents, if dilutive. The Company's convertible
promissory notes, warrants and stock options are considered common stock equivalents for this purpose. Diluted earnings is computed
utilizing the treasury method for the warrants and stock options. Diluted earnings with respect to the convertible promissory notes
utilizing the if-converted method was not applicable during the nine month transition period ended September 30, 2018 or for the
year ended December 31, 2017 as no conditions required for conversion had occurred during these periods. No incremental common
stock equivalents were included in calculating diluted loss per share because such inclusion would be anti-dilutive given the net
loss reported for the nine month transition period ended September 30, 2018 and for the year ended December 31, 2017.
The following potential common shares were
not considered in the computation of diluted net loss per share as their effect would have been anti-dilutive for the nine month
transition period ended September 30, 2018 and for the year ended December 31, 2017:
2018
2017
Warrants
2,927,572
(1)
189,750
(1)
Stock options
368,216
365,716
(1)
There are additional potential warrants to be included
which will be known, if and when a qualified financing event greater than $3 million occurs in the future related to the 2017
Convertible Notes.
F-
12
Recent Accounting Pronouncements
In May 2017, the FASB issued Accounting
Standards Update (ASU) 2017-09,
Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting (ASU 2016-09)
, which
provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification
accounting in Topic 718. This pronouncement is effective for annual reporting periods beginning after December 15, 2017. The Company
has adopted this standard for the nine month transition period ended September 30, 2018. The adoption of this standard did not
have any impact on the Company's consolidated financial statements.
In July 2017, the FASB issued ASU No. 2017-11,
Earnings Per Share, Distinguishing Liabilities from Equity and Derivatives and Hedging
, which changes the accounting and
earnings per share for certain instruments with down round features. The amendments in this ASU should be applied using a cumulative-effect
adjustment as of the beginning of the fiscal year or retrospective adjustment to each period presented and is effective for annual
periods beginning after December 15, 2018 for public business entities, including interim periods within those fiscal years.
Early adoption is permitted. The Company is currently evaluating the requirements of this new guidance and has not yet determined
its impact on the Company's consolidated financial statements.
In June 2018, the FASB issued ASU 2018-07,
Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting
(ASU 2018-07), which
expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees.
An entity should generally apply the requirements of Topic 718 to nonemployee awards except in circumstances where there is specific
guidance on inputs to an option pricing model and the attribution of cost. ASU 2018-07 specifies that Topic 718 applies to all
share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor's own
operations by issuing share-based payment awards. The guidance also clarifies that Topic 718 does not apply to share-based payments
used to effectively provide (1) financing to the issuer or (2) awards granted in conjunction with selling goods or services to
customers as part of a contract accounted for under ASC 606
, Revenue from Contracts with Customers
(ASC 606)
.
This
guidance is effective for annual reporting periods beginning after December 15, 2018, with early adoption permitted, but no earlier
than an entity's adoption date of ASC 606. The Company is currently evaluating the impact of the new guidance on its consolidated
financial statements.
In August 2018, the FASB issued ASU 2018-13,
Fair
Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement (ASU 2018-13).
The
new guidance modifies the disclosure requirements in Topic 820 as follows:
●
Removals: the amount of and reasons for transfers between
Level 1 and Level 2 of the fair value hierarchy; the policy for timing of transfers between levels; and the valuation processes
for Level 3 fair value measurements.
●
Modifications: for investments in certain entities
that calculate net asset value, an entity is required to disclose the timing of liquidation of an investee's assets and
the date when restrictions from redemption might lapse only if the investee has communicated the timing to the entity or announced
the timing publicly; and the amendments clarify that the measurement uncertainty disclosure is to communicate information about
the uncertainty in measurement as of the reporting date.
●
Additions: the changes in unrealized gains and losses
for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting
period; and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements.
This
guidance is effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December
15, 2019. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable
inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should all be
applied prospectively for only the most recent interim or annual period presented in the initial year of adoption. All other amendments
should be applied retrospectively to all periods presented upon their effective date. Early adoption is permitted. An entity is
permitted to early adopt any removed or modified disclosures upon issuance of ASU 2018-13 and delay adoption of the additional
disclosures until their effective date.
The Company is currently evaluating the impact of the new guidance on its financial
statements.
F-
13
NOTE 4 - Commitments and
Contingencies
WARF License Agreement
On October 1, 2014, NeuroOne LLC (the "LLC"),
NeuroOne's predecessor which was merged with and into NeuroOne on October 27, 2016 (the "Merger"), entered into
an exclusive start-up company license agreement with the Wisconsin Alumni Research Foundation ("WARF") for WARF's
neural probe array and thin film micro electrode technology (the "2014 WARF Agreement"). The license agreement required
the LLC to make $110,000 in milestone payments depending on achievement of certain development and approval milestones or within
twelve months of signing the 2014 WARF Agreement. Additionally, if the LLC was successful in obtaining regulatory approval, the
LLC was to pay royalties to WARF on a percentage of net sales of products of the licensed technology. Under the terms of the 2014
WARF Agreement, amounts that remained unpaid more than 30 days after they were due, accrued interest at 1 percent per month. Milestone
payments due in 2015 were not made to WARF. From October 27, 2016 until the 2014 WARF Agreement was amended as described below,
the LLC was in default under the 2014 WARF Agreement. In addition, the LLC was not able to transfer the rights and obligations
under the 2014 WARF Agreement to NeuroOne at the time of the Merger without the consent of WARF, which was received when the 2014
WARF Agreement was amended in February 2017 as described below. In connection with the Merger and in accordance with ASC 805-50,
NeuroOne estimated the fair value of consideration payable to WARF and recorded an intangible asset of $120,000 with a corresponding
accrued expense.
This agreement was subsequently amended
in February 2017 (as so amended, the "2017 WARF Agreement") whereby WARF consented to the transfer of the rights and
obligations under the license agreement from the LLC to NeuroOne (which are now the Company's rights and obligations, following
the Acquisition). In the 2017 WARF Agreement, the Company agreed to pay WARF $55,000 (representing a license fee) upon the earliest
to occur of the date the Company cumulatively raises at least $3 million in financing, the date of a change of control, or the
Company's revenue reaching a specified threshold amount. The Company met the milestone payment requirement with regard to
the $55,000 license fee which was paid in April 2018. In addition, the Company agreed to pay $65,000 (representing reimbursement
for costs incurred by WARF in maintaining the licensed patents) upon the earliest to occur of the date the Company cumulatively
raises at least $5 million in financing, the date of a change of control, or the Company's revenue reaching a specified threshold
amount. As of September 30, 2018, the Company has not met the requirements for the $65,000 milestone payment and this amount remains
in accrued expenses.
The Company is also obligated to pay royalties
to WARF based on a percentage of net sales of products of licensed technology with minimum royalties of $50,000 and $100,000 for
calendar years 2019 and 2020, respectively, and $150,000 per year beginning in 2021 through the duration of the 2017 WARF Agreement.
Subject to earlier termination, the WARF License otherwise expires by its terms on the date that no valid claims on the patents
licensed thereunder remain. The Company expects the latest expiration of a licensed patent to occur in 2030. The 2017 WARF Agreement
is also subject to certain cancellation provisions with 90 days' notice should the Company elect not to continue to use the
licensed technology.
The Company has agreed to diligently develop,
manufacture, market and sell products under the WARF License in the United States during the term of the agreement and, specifically,
that the Company would submit a business plan to WARF by February 1, 2018, which the Company submitted on January 18, 2018, and
file an application for 510(k) marketing clearance with the FDA by February 1, 2019. WARF may terminate the 2017 WARF Agreement
in the event that the Company fails to meet these milestones on 30 days' written notice, if the Company defaults on the payments
of amounts due to WARF or fails to timely submit development reports, actively pursue the development plan or breaches any other
covenant in the 2017 WARF Agreement and fails to remedy such default in 90 days or in the event of certain bankruptcy events involving
the Company. WARF may also terminate this license (i) on 90 days' notice if the Company fails to have commercial sales of
one or more FDA-approved products under the 2017 WARF Agreement by March 31, 2019 or (ii) if, after royalties earned on sales begin
to be paid, such earned royalties cease for more than four calendar quarters.
F-
14
Mayo Agreement
On October 3, 2014, the LLC entered into
an exclusive license and development agreement with the Mayo Foundation for Medical Education and Research ("Mayo")
related to certain intellectual property and development services for thin film micro electrode technology ("2014 Mayo Agreement").
The LLC was to make milestone payments depending on achievement of certain development and approval milestones and sales targets,
none of which were met as of December 31, 2015. Additionally, if the LLC was successful in obtaining regulatory approval, the LLC
was to pay royalties to Mayo based on a percentage of net sales of products of the licensed technology through the term of the
2014 Mayo Agreement, set to expire May 25, 2037. Also, the LLC was obligated to issue common stock to Mayo if certain events occurred.
Upon the LLC's merger with NeuroOne on October 27, 2016, the rights under the 2014 Mayo Agreement transferred to NeuroOne,
and certain milestones were attained. Therefore, NeuroOne recorded liabilities of $300 related to shares of common stock expected
to be issued to Mayo and $91,709 for the intellectual property to be paid in cash. Under the terms of the 2014 Mayo Agreement,
amounts that remained unpaid accrued interest at 2 percent above the prime rate. Milestone payments due in 2016 were not made to
Mayo. As such, prior to the amendment of the 2014 Mayo Agreement in May 2017, NeuroOne was in default under the 2014 Mayo Agreement.
Mayo and NeuroOne amended and restated the 2014 Mayo Agreement in May 2017 (as so amended and restated, the "2017 Mayo Agreement").
Pursuant to the 2017 Mayo Agreement, NeuroOne issued 859,976 shares of common stock (as converted based on the Exchange Ratio)
to Mayo to settle the amount of common stock NeuroOne was previously obligated to issue under the 2014 Mayo Agreement and as provided
by the terms of the 2017 Mayo Agreement. NeuroOne recorded an additional $23,115 to intangible assets related to the fair value
of the 2017 stock issuance to Mayo. As a part of the 2017 Mayo Agreement, as amended in November 2017, the $91,709 milestone payment
was paid in December 2017.
Legal
From time to time, the Company is subject
to litigation and claims arising in the ordinary course of business.  In May 2017, NeuroOne received a letter from PMT, the
former employer of Mark Christianson and Wade Fredrickson.  PMT claimed that these officers had breached their restrictive
covenant obligations with PMT by virtue of their work for NeuroOne and such officer's prior work during employment with the
prior employer, that these officers had breached their confidentiality and non-disclosure obligations to PMT and federal and state
law by misappropriating confidential and trade secret information, and that the Company is responsible for tortious interference
with the contracts.  The letter demanded that Mr. Fredrickson (who resigned from the Company in June 2017), Mr. Christianson
and NeuroOne cease and desist all competitive activities, that Mr. Fredrickson step down from his position and that Mr. Christianson
and NeuroOne provide the former employer access to NeuroOne's systems to demonstrate that it is not using trade secrets or
proprietary information nor competing with the former employer.
On March 29, 2018, the Company was served
with a complaint filed by PMT adding the Company, NeuroOne and Mr. Christianson to its existing lawsuit against Mr. Fredrickson. 
In the lawsuit, PMT claims that Mr. Fredrickson and Mr. Christianson breached their non-competition, non-solicitation and non-disclosure
obligations, breached their fiduciary duty obligations, were unjustly enriched, engaged in unfair competition, engaged in a civil
conspiracy, tortiously interfered with PMT's contracts and prospective economic advantage, and breached a covenant of good
faith and fair dealing.  Against Mr. Fredrickson, PMT also alleges that he intentionally or negligently spoliated evidence,
made negligent or fraudulent misrepresentations, misappropriated trade secrets in violation of Minnesota law, and committed the
tort of conversion and statutory civil theft.  Against the Company and NeuroOne, PMT alleges that the Company and NeuroOne
were unjustly enriched and engaged in unfair competition.  PMT asked the Court to impose a constructive trust over the shares
held by Mr. Fredrickson and Mr. Christianson and to award compensatory damages, equitable relief, punitive damages, attorneys'
fees, costs and interest.  The Company, NeuroOne and Mr. Christianson (who has not worked for PMT since 2012) intend to defend
themselves vigorously.
On April 18, 2018, Mr. Christianson, the
Company and NeuroOne, Inc. filed a motion for dismissal, which was heard by the Court on October 11, 2018. The Company expects
a ruling on the motion within 90 days of that date. The motion for dismissal states that: the contract claims against Mr. Christianson
fail because his agreement was not supported by consideration; the Minnesota Uniform Trade Secrets Act preempts plaintiff's
claims for unfair competition, civil conspiracy and unjust enrichment; plaintiff fails to state a claim regarding alleged breach
of the duties of loyalty and good faith/fair dealing; plaintiff cannot legally obtain a constructive trust; plaintiff has insufficiently
pled its tortious interference claims; and Plaintiff has not stated a claim for unfair competition.
The outcome and potential loss related
to this matter is unknown as of September 30, 2018 and as of the issuance of these  financial statements.
F-
15
NOTE 5 - Intangibles
Intangible assets rollforward is as follows:
Useful Life
Net Intangibles, December 31, 2016
12-13 years
$
180,890
License agreement amendment
53,115
Less: amortization
(17,633
)
Net Intangibles, December 31, 2017
216,372
Less: amortization
(16,291
)
Net Intangibles, September 30, 2018
$
200,081
The Company anticipates amortization expense
of approximately $21,000 per year for fiscal year 2019 through 2023 based upon the two current license agreements.
NOTE 6 - Accrued Expenses
Accrued expenses consisted of the following
at September 30, 2018 and December 31, 2017:
2018
2017
Accrued license fees
$
65,000
$
120,000
Legal costs
833,470
553,037
Accrued issuance costs
204,000
28,083
Accrued payroll
276,639
223,195
Advances
—
50,000
Other
211,913
47,302
$
1,591,022
$
1,021,617
NOTE 7 - Short-Term Promissory
Notes and Unsecured Loans
As of
September 30,
2018
As of
December 31,
2017
Short-term promissory notes
$
—
$
253,000
Unsecured loans
$
283,000
$
—
Short-Term Promissory Notes
The Company issued short-term unsecured
and interest-free promissory notes (the "Short-Term Notes") for aggregate gross proceeds of $253,000 in August 2017
which included free standing equity warrants. The Short-Term Notes were subsequently amended in November 2017 and March 2018 to
become convertible, extend the maturity date and include additional warrant coverage, new interest payment provisions and new conversion
features described more fully below. Effective July 2, 2018, the Company entered into debt conversion agreements (the "Short-Term
Note Conversion Agreements") with each Short-Term Note subscriber to (i) convert the outstanding principal and accrued and
unpaid interest (the "Outstanding Balance") under the Short-Term Notes into shares of the Company's common stock
based on the Outstanding Balance divided by $1.80 per share (the "Short-Term Note Conversion Shares"); (ii) cancel
and extinguish the Short-Term Notes; and (iii) amend and restate the Replacement Warrants and Additional Warrants, as described
more fully below, to make them immediately exercisable upon the conversion, at a per share exercise price equal to $1.80 per share.
As consideration for the early conversion of the Short-Term Notes, the Company issued each subscriber a new warrant (the "Short-Term
Note Payment Warrants"), exercisable for up to the number of shares of common stock equal to the number of Short-Term Note
Conversion Shares received by such subscriber; at a per share exercise price of $1.80 per share. The Short-Term Note Payment Warrants
became exercisable commencing on July 2, 2018, and expire on November 21, 2021.
F-
16
Pursuant to the Short-Term
Note Conversion Agreements, $259,297 of the outstanding principal and interest of the Short-Term Notes was converted into
144,053 shares of common stock with an additional 477,856 shares issuable upon
exercise of the Replacement Warrants, Additional Warrants and Short-Term Payment Warrants. The conversion of the Short Term
Notes was accounted for as an extinguishment. The difference in the carrying value of the Short-Term Notes coupled with the
fair value of the underlying Replacement Warrants and Additional Warrants on the date of extinguishment relative to the
higher fair value of the underlying common stock and collective Replacement Warrants, Additional Warrants and new Short-Term
Payment Warrants issued was $148,787. The $148,787 differential was recorded as a loss on note extinguishments in the
accompanying consolidated statements of operations during the nine month transition period ended September 30, 2018.
The Replacement Warrants, Additional Warrants and Short-Term
Note Payment Warrants were deemed to be free-standing equity instruments upon execution of the July 2, 2018 Short-Term Note Conversion
Agreements. All of the warrant terms became fixed and have identical provisions. Due to the previously granted warrants now having
fixed terms, the warrant liability value of $148,053 was reclassified to equity. The warrants associated with the Short-Term Notes
became immediately exercisable on July 2, 2018 and expire November 21, 2021. The Black-Scholes model was used to determine the
July 2, 2018 fair value of the warrants associated with the Short-Term Warrants. Input assumptions used were as follows: a risk-free
interest rate of 2.65 percent; expected volatility of 49.8% percent; expected life of 3.39 years; and expected dividend yield of
0 percent. The underlying stock price used in the analysis was on a non-marketable basis and was according to the market approach,
considering both the traded price and forward multiples from guideline public companies, using allocation and marketability-discount
methodologies.
Activity Prior to the July 2, 2018 Cancellation,
Extinguishment and Conversion of the Short-Term Notes
In August 2017, the Company's Board
of Directors (the "Board") authorized, and the Company issued the Short-Term Notes for aggregate gross proceeds of
$253,000 prior to issuance costs of $3,030 which were discounted from the Short-Term Notes and were amortized ratably to interest
expense over the original term of the Short-Term Notes up though November 2017. For the year ended December 31, 2017, discount
amortization charged to interest expense related to the issuance costs was $1,748 through the November 30, 2017 amendment date
as discussed further below.
On November 30, 2017, the Short-Term Notes
were amended to extend the maturity date from February 18, 2018 to July 31, 2018 and to increase warrant coverage to 189,750 common
stock purchase warrants (as amended, the "Original Warrants"). The Original Warrants had a term of 5 years and an exercise
price of $1.80 and would have been immediately exercisable upon maturity of the Short-Term Notes prior to the November 30, 2017
amendment.
The November 30, 2017 amendment resulted
in a substantial modification to the Short-Term Notes and was accounted for under the provisions of extinguishment accounting.
A loss on note extinguishments in the accompanying statements of operations for the year ended December 31, 2017 was recorded
in the amount of $144,577, which represented the difference between the face value of the Short-Term Notes over the combined carrying
values of the Short-Term Notes and warrants on the date of the amendment. The fair value increase of the Short-Term Notes and the
warrants as amended over its adjusted carrying value at the time of the amendment was $117,280 which was recorded as additional
paid-in capital.
Prior to the November 30, 2017 amendment,
the holders were to receive 126,500 common stock purchase warrants upon maturity. A portion of the proceeds from the Short-Term
Notes upon issuance was allocated to the original warrants based on their relative fair value to the underlying Short-Term Notes
in the amount of $61,496 and was recorded in additional paid-in capital in the accompanying consolidated balance sheets and was
discounted from the Short-Term Notes and was being amortized to interest expense ratably over the term of the Short-Term Notes
which amounted to $35,479 during the year ended December 31, 2017. The fair value of the warrants was based on the Black-Scholes
method with the following assumptions: a risk-free interest rate of 2.1 percent; expected volatility of 47.8 percent; expected
life of 5.7 years; and expected dividend yield of 0 percent. The underlying stock price used in the analysis was on a non-marketable
basis and was according to the market approach, considering both the traded price and forward multiples from guideline public companies,
using allocation and marketability-discount methodologies.
F-
17
The Short-Term Notes were subsequently
amended and restated on March 12, 2018 (the "Amended and Restated Short-Term Notes"). The Amended and Restated Short-Term
Notes became convertible promissory notes that had interest assessed at a fixed rate of 8% per annum and would have required the
Company to repay the principal and accrued and unpaid interest thereon on the maturity date of July 31, 2018 (the "Short-Term
Note Maturity Date"). Pursuant to the terms of each Amended and Restated Short-Term Note and a consent signed by the Company
and each holder, the Original Warrants under the Short-Term Notes were modified whereby each subscriber received a replacement
warrant (the "Replacement Warrants") upon the issuance of the Amended and Restated Short-Term Note, in lieu of the
Original Warrant. In addition, each holder was issued an additional warrant (the "Additional Warrants").
Replacement Warrants
Each Replacement Warrant issued on March
12, 2018 granted the holder the option to purchase up to the number of shares of capital stock of the Company equal to the New
Round Stock issued or issuable upon the conversion of the Amended and Restated Short-Term Note held by such holder at a per share
exercise price equal to either (i) the actual per share price of New Round Stock if the Amended and Restated Short-Term Notes converted
in connection with a Short-Term Note Qualified Financing or (ii) the price at which the Amended and Restated Short-Term Notes converted
in connection with a change of control transaction. The Replacement Warrants were exercisable commencing on the Conversion Date
and would have expired on November 21, 2021. The exercise price and number of the shares issuable upon exercising the Replacement
Warrants were subject to adjustment in the event of any stock dividends and splits, reverse stock split, recapitalization, reorganization
or similar transaction, as described therein.
The Replacement Warrants were deemed to
be free-standing instruments and were accounted for as a liability given the variable number of shares issuable in connection with
a possible change of control conversion event. The Company recorded an initial liability of $137,722 upon issuance with an offset
to extinguishment loss described further below. The fair value changes of the warrant liability associated with the Amended and
Restated Short-Term Notes were recorded at each reporting date in the consolidated statements of operations which amounted to an
expense of $10,330 for the nine month transition period ended September 30, 2018. A Monte Carlo simulation model was used to estimate
the aggregate fair value of the Replacement Warrants immediately prior to the July 2, 2018 Short-Term Note Conversion Agreement
amendment. Input assumptions used were as follows: a risk-free interest rate of 2.65 percent; expected volatility of 50 percent;
expected life of 3.39 years; and expected dividend yield of 0 percent. The underlying stock price used in the analysis was on a
non-marketable basis and was according to the market approach, considering both the traded price and forward multiples from guideline
public companies, using allocation and marketability-discount methodologies.
Additional Warrants
Each Additional Warrant issued on March
12, 2018 granted the holder the option to purchase up to the number of shares of capital stock of the Company equal to the product
obtained by multiplying (i) the outstanding principal amount of the Amended and Restated Short-Term Note held by such holder and
(ii) 0.75; at a per share exercise price of $1.80. The Additional Warrants were exercisable commencing on the Conversion Date and
would have expired on November 21, 2021. The exercise price and number of the shares issuable upon exercising the Additional Warrants
were subject to adjustment in the event of any stock dividends and splits, reverse stock split, recapitalization, reorganization
or similar transaction, as described therein.
The Additional Warrants were deemed to
be free-standing instruments and were accounted for as equity as there were no variable terms. 189,750 shares of common stock were
issuable upon exercise of the Additional Warrants as of the March 12, 2018 amendment date with terms that largely paralleled the
provisions of the Original Warrants except that the Additional Warrants were exercisable on the Conversion Date as opposed to the
Short-Term Note Maturity Date and the expiration date was moved up to November 21, 2021 from July 31, 2023. The fair value differential
between the Original Warrants and the Additional Warrants was a reduction of $22,624. The fair value change was recorded as a reduction
to additional paid-in capital in the accompanying condensed balance sheets and was included as part of the extinguishment loss
discussed further below.
F-
18
Premium Conversion Derivative
Upon the March 2018 amendment, the Amended
and Restated Short-Term Notes contained a 125% conversion premium in the event that a Short Term Note Qualified Financing occurred
at a price under $2.25 per share. The Company determined that the redemption feature under the Short-Term Notes qualified as an
embedded derivative and was reflected as a liability in the amount of $49,668 at the time of the March 12, 2018 amendment with
a corresponding offset to extinguishment loss which is described further below. Subsequent to the amendment, the embedded derivative
was accounted for separately on a fair market value basis. The Company recorded the fair value changes of the premium debt conversion
derivative associated with the Short-Term Notes in the consolidated statements of operations for a benefit of $(49,668) for the
nine month transition period ended September 30, 2018.
Other
The March 2018 amendment resulted in a
substantial modification to the Short-Term Notes whereby additional conversion features and warrant coverage were added. The Company
recorded the Short-Term Note amendment under the provisions of extinguishment accounting. A loss on note extinguishments in the
accompanying consolidated statements of operations for the nine month transition period ended September 30, 2018 was recorded in
the amount of $186,220, which represented the difference between the carrying value of the Short-Term Notes and Original Warrants
over the combined fair values of the Short-Term Notes, premium conversion derivative, Replacement Warrant and Additional Warrants
on the date of the amendment. The fair value decrease of the Short-Term Notes (inclusive of principal and interest, non-bifurcated
embedded conversion feature and the Additional Warrants) relative to its adjusted carrying value at the time of the amendment was
$1,170 which was recorded as a reduction to additional paid-in capital on the accompanying consolidated balance sheets.
Unsecured Loans
In May 17, 2018, the Company received cash
proceeds of $168,000 from unsecured loans, represented by two promissory notes from existing stockholders of the Company. The loans
are interest free and require that the Company repay the principal in full on the earlier to occur of (i) May 17, 2019 or (ii)
the closing of an equity round of financing of the Company that raises more than $5 million in gross proceeds. The loans include
customary events of default provisions.
On March 20, 2018, the Company received
cash proceeds from an unsecured loan, represented by a promissory note, for $115,000 from an existing stockholder. The loan is
interest free and requires that the Company repay the principal in full on the earlier to occur of (i) March 20, 2019 or (ii) the
closing of an equity round of financing of the Company that raises more than $3 million in gross proceeds. The loan includes customary
events of default provisions.
NOTE 8 - Convertible Promissory
Notes and Warrant Agreements
As of
September 30,
2018
As of
December 31,
2017
2016 convertible promissory notes, net of discounts
$
—
$
1,543,652
2017 convertible promissory notes, net of discounts
1,306,776
504,465
Accrued interest
87,028
120,223
Total
$
1,393,804
$
2,168,340
F-
19
2016 Convertible Promissory Notes
From November 2016 to June 2017, the Company
issued convertible promissory notes (the "Convertible Notes") and common stock purchase warrants (the "Warrants")
in an aggregate principal amount of $1,625,120 and entered into subscription agreements with subscribers (the "2016 Private
Placement"). Effective July 2, 2018, however, the Company entered into debt conversion agreements (the "2016 Note Conversion
Agreements") with each Convertible Note subscriber to (i) convert the Outstanding Balance under the Convertible Notes into
shares of the Company's common stock based on the Outstanding Balance divided by $1.80 per share (the "2016 Note Conversion
Shares"); (ii) cancel and extinguish the Convertible Notes; and (iii) amend and restate the Warrants as defined below to
make them immediately exercisable upon the conversion, at a per share exercise price equal to $1.80 per share. As consideration
for the early conversion of the Convertible Notes, the Company issued each subscriber an additional new warrant (the "2016
Note Payment Warrants"), exercisable for up to the number of shares of common stock equal to the number of 2016 Note Conversion
Shares received by such subscriber; at a per share exercise price of $1.80 per share. The 2016 Note Payment Warrants became exercisable
commencing on July 2, 2018 and expire on November 21, 2021.
Pursuant to the 2016 Note Conversion Agreements,
$1,804,064 of the outstanding principal and interest of the 2016 Convertible Promissory Notes was converted into 1,002,258 shares
of common stock and an additional 2,004,516 shares of common stock became issuable upon exercise of the Warrants and 2016 Note
Payment Warrants. The conversion of the Convertible Notes was accounted for as an extinguishment. The difference in the carrying
value of the Convertible Notes coupled with the fair value of the underlying Warrants upon conversion relative to the higher fair
value of the underlying common stock and collective Warrants and new 2016 Note Payment Warrants issued was $979,480. The $979,480
differential total, inclusive of the unamortized discount remaining on the Convertible Notes of $11,143 as of July 2, 2018, was
recorded as a loss on note extinguishments in the accompanying consolidated statement of operations during the nine month transition
period ended September 30, 2018.
The Warrants and 2016 Note Payment Warrants were deemed to be free-standing equity instruments upon execution
of the 2016 Note Conversion Agreements. All of the warrant terms became fixed and the terms were identical.
Due
to the previously granted warrants now having fixed terms, the adjusted warrant liability value of $1,031,366 was reclassified
to equity. The warrants associated with the Convertible Notes became immediately exercisable on July 2, 2018 and expire November
21, 2021. The Black-Scholes model was used to determine the July 2, 2018 fair value of the warrants associated with the Convertible
Notes. Input assumptions used were as follows: a risk-free interest rate of 2.65 percent; expected volatility of 49.8% percent;
expected life of 3.39 years; and expected dividend yield of 0 percent. The underlying stock price used in the analysis was on a
non-marketable basis and was according to the market approach, considering both the traded price and forward multiples from guideline
public companies, using allocation and marketability-discount methodologies.
Activity Prior to the July 2, 2018 Cancellation,
Extinguishment and Conversion of the Convertible Notes
The Company amended the Convertible Notes
in December 2016 and November 2017 and the Warrants in June 2017 and November 2017 to, among other things, change the terms of
the underlying Warrants that include the removal of down-round pricing protection provisions as described more fully below.
The Convertible Notes were unsecured. The
Convertible Notes accrued interest at a fixed rate of 8 percent per annum and required the Company to repay the principal and accrued
and unpaid interest thereon at the earlier of July 31, 2018 or the consummation of the next equity or equity-linked round of financing
resulting in more than $3.0 million in gross proceeds (a "Qualified Financing"). If a Qualified Financing had occurred
before July 31, 2018, the outstanding principal and accrued and unpaid interest on the Convertible Notes would have automatically
converted into the securities issued by the Company in such financing based on the greater number of securities resulting from
either the outstanding principal and accrued interest on the Convertible Notes divided by $1.80, or the outstanding principal and
accrued interest on the Convertible Notes multiplied by 1.25, divided by the price paid per security in the Qualified Financing.
If the Company failed to complete a Qualified Financing by July 31, 2018, the Convertible Notes would have been immediately due
and payable on such date.
If a change of control transaction or initial
public offering occurred prior to a Qualified Financing, the Convertible Notes would have, at the election of the holders of a
majority of the outstanding principal of the Convertible Notes, either been payable on demand as of the closing date of such transaction,
or been convertible into shares of common stock immediately prior to such transaction at a price per share equal to the lesser
of the per share value as determined by the Board as if in connection with the granting of stock-based compensation, or in a private
sale to a third party in an arms-length transaction, or at the per share consideration to be paid in such transaction. Change of
control means a merger or consolidation with another entity in which the Company's stockholders do not own more than 50 percent
of the outstanding voting power of the surviving entity or the disposition of all or substantially all of the assets of the Company.
F-
20
Prior to the June 2017 amendment, the Warrants
granted holders the option to purchase either (i) if exercised after conversion of the Convertible Notes, the number of shares
equal to the number of shares received by the holders upon the conversion of the Convertible Notes, or (ii) if exercised prior
to conversion of the Convertible Notes, the number of shares of common stock equal to the outstanding principal and accrued interest
on the Convertible Notes held by such warrant holder divided by $1.80. The Warrants were immediately exercisable on the date of
issuance and would have expired on November 21, 2021. In June 2017, however, the Company amended the terms of the Warrants under
the Convertible Notes to be exercisable only in the event of conversion of the outstanding principal and accrued interest on the
related Convertible Notes. The amount of warrant shares to be issued became contingent and were based on the number of shares of
common stock received by the holder of the Convertible Notes upon conversion of such holder's Convertible Notes, and at an
exercise price equal to the same price per share of the securities issued in the Qualified Financing. The Warrants would have expired
on November 21, 2021 in the event of a Qualified Financing or would have expired unissued if the notes were not converted.
Prior to the July 2018 Convertible Note
extinguishment, the Warrants were deemed to be free-standing instruments and were accounted for as a liability given the variable
number of shares issuable in connection with a possible change of control conversion event. For the December 31, 2017 liability
valuation of the Warrants, a Monte Carlo simulation model was used to estimate the aggregate fair value. Input assumptions used
were as follows: a risk-free interest rate of 2.08 percent; expected volatility of 50 percent; expected life of 3.89 years; and
expected dividend yield of 0 percent. The underlying stock price used in the analysis was on a non-marketable basis and was according
to the market approach, considering both the traded price and forward multiples from guideline public companies, using allocation
and marketability-discount methodologies.  The Convertible Note proceeds assigned to the Warrants were zero and $440,919 during
the nine month transition period ended September 30, 2018 and for the year ended December 31, 2017, respectively, which represented
their fair value at issuance, and were discounted from the Convertible Notes and reflected as a warrant liability. The discount
was amortized to interest expense over the original term of the Convertible Notes using the straight-line method which approximated
the effective interest method and was fully amortized by December 31, 2017; the amortization expense recorded was $759,004 during
the year ended December 31, 2017. The Company also recorded the fair value changes of the warrant liability associated with the
Convertible Notes in the consolidated statements of operations which amounted to a benefit of $(14,865) and an expense of $259,352
for the nine month transition period ended September 30, 2018 and for the year ended December 31, 2017, respectively.
The November 2017 amendment resulted in
a substantial modification to the original Convertible Notes whereby the maturity date was extended, and the terms associated with
the Warrants were revised. The fair value of the underlying convertible notes was $97,223 lower than the carrying value of the
Convertible Notes on the date of the modification. The $97,223 difference was recorded as a gain on note extinguishments in the
accompanying statements of operations with an offsetting discount to the Convertible Notes. The discount was being amortized over
the amended term of the Convertible Notes. The amortization recorded during the nine month transition period ended September 30,
2018 and the year ended December 31, 2017 was $70,324 and $15,756, respectively.
At the time of their issuance, the Convertible
Notes contained a 125% conversion premium in the event that a Qualified Financing occurs at a price under $2.25 per common share.
The Company determined that the redemption feature under the Convertible Notes qualified as an embedded derivative and was separated
from its debt host. The bifurcation of the embedded derivative from its debt host resulted in a discount to the Convertible Notes
in the amount of zero and $213,961 during the nine month transition period ended September 30, 2018 and the year ended December
31, 2017, respectively. The discount was being amortized to interest expense over the original term of the Convertible Notes using
the straight-line method which approximates the effective interest method and was fully amortized by December 31, 2017; the amortization
expense recorded was $340,551 during the year ended December 31, 2017. The embedded derivative was accounted for separately on
a fair market value basis. The Company recorded the fair value changes of the premium debt conversion derivative associated with
the Convertible Notes in the consolidated statements of operations for a benefit of $(333,183) and $(18,428) for the nine month
transition period ended September 30, 2018 and for the year ended December 31, 2017, respectively.
F-
21
In connection with the Convertible Notes,
the Company incurred issuance costs in the amount of $151,915, which included (i) a placement agent cash fee, which was $113,610
for the Convertible Notes issued through June 19, 2017 (ii) the obligation to issue a warrant to the placement agent (the "placement
agent warrant") which would have had an exercise price of $2.00 per share of common stock with a total fair value of $4,855
on date of Convertible Note issuance, and (iii) legal expenses of $33,450. The placement agent warrant was issuable at the time
the private placement transaction was fully subscribed. The placement agent warrant would have been immediately exercisable on
the date of issuance and would have expired five years following the date of issuance. The Company recorded an issuance cost discount
to the Convertible Notes in the amount of zero and $39,781 during the nine month transition period ended September 30, 2018 and
the year ended December 31, 2017, respectively, and was fully amortized by December 31, 2017; the amortization expense recorded
as interest was $74,264 during the year ended December 31, 2017. The balance of the issuance costs in the amount of $38,119 was
attributed to the Warrants and was immediately recorded as interest expense upon issuance during the year ended December 31, 2017.
2017 Convertible Notes
On October 4, 2017, the Company initially
entered into a subscription agreement with certain investors (the "Subscribers"), pursuant to which the Company, in
a private placement (the "Private Placement"), agreed to issue and sell to the Subscribers 8% convertible promissory
notes (the "2017 Convertible Notes") and warrants (the "New Warrants") to purchase shares of the Company's
capital stock in the event of a conversion event. The number of shares and pricing per share of the New Warrants are based on the
underlying conversion event and are exercisable for five years commencing on the triggering conversion event. The subscription
agreement, the 2017 Convertible Notes and New Warrants were amended on December 14, 2017 to move up the maturity date of the 2017
Convertible Notes from October 4, 2022 to December 31, 2018, remove subordination provisions and simplify the conversion provision
of the 2017 Convertible Notes in the event of a qualified financing as described more fully below, to modify the exercise price
of the New Warrants and to increase the authorized subscription amount to $1,500,000. In May 2018, the Board approved an increase
in the authorized subscription amount from $1,500,000 to $2,000,000 and extended the offering period from the five month anniversary
of the initial closing to the eight month anniversary of the initial closing. The initial closing of the Private Placement was
consummated on October 4, 2017, and the Company entered into additional subscription agreements and issued 2017 Convertible Notes
in an aggregate principal amount of $1,540,000 to the Subscribers through June 2018 when the Private Placement expired.
The 2017 Convertible Notes bear interest
at a fixed rate of 8% per annum and require the Company to repay the principal and accrued and unpaid interest thereon on December
31, 2018 (the "2017 Convertible Notes Maturity Date"). If the Company consummates an equity round of financing resulting
in more than $3 million in gross proceeds before December 31, 2018 (the "2017 Convertible Notes Qualified Financing"),
the outstanding principal and accrued and unpaid interest on the 2017 Convertible Notes shall automatically convert into the securities
issued by the Company in the 2017 Convertible Notes Qualified Financing equal to the outstanding principal and accrued interest
on the 2017 Convertible Notes divided by 80% of the price per share of the securities issued by the Company in the 2017 Convertible
Notes Qualified Financing. The New Warrants also become exercisable upon a 2017 Convertible Notes Qualified Financing for an amount
of shares equal to the number of shares received by the holder in the 2017 Convertible Notes Qualified Financing at the same price
per share of the securities issued in the 2017 Convertible Notes Qualified Financing.
Prior to the December 2017 amendment, if
the Company had raised more than $3,000,000 in an equity financing before October 4, 2022, the outstanding principal and accrued
and unpaid interest on the 2017 Convertible Notes would have automatically converted into the securities issued by the Company
in such financing based on the greater number of such securities resulting from either (i) the outstanding principal and accrued
interest on the 2017 Convertible Notes divided by $2.25 or (ii) the outstanding principal and accrued interest on the 2017 Convertible
Notes multiplied by 1.25, divided by the price paid per security in such financing. The New Warrants would have also become exercisable
in conjunction with the 2017 Convertible Notes Qualified Financing.
F-
22
Lastly, if a change of control transaction
occurs prior to the earlier of a 2017 Convertible Notes Qualified Financing or the 2017 Convertible Notes Maturity Date, the 2017
Convertible Notes would, at the election of the holders of a majority of the outstanding principal of the 2017 Convertible Notes,
either become payable on demand as of the closing date of such transaction, or become convertible into shares of common stock immediately
prior to such transaction at a price per share equal to the lesser of (i) the per share value of the shares of common stock as
determined by the Board as if in connection with the granting of stock based compensation or in a private sale to a third party
in an arms-length transaction or (ii) at the per share consideration to be paid in such transaction. Change of control means a
merger or consolidation with another entity in which the Company's stockholders do not own more than 50% of the outstanding
voting power of the surviving entity or the disposition of all or substantially all of the Company's assets. The New Warrants
also become exercisable upon a change of control transaction for an amount of shares equal to the number of shares received by
the holder upon conversion in connection with such transaction at the same price per share that the 2017 Convertible Notes converted
in the change of control transaction.
The December 2017 amendment resulted in
a substantial modification to the original 2017 Convertible Notes. The Company recorded the 2017 Convertible Note amendment under
the provisions of extinguishment accounting. The fair value of the underlying Convertible Notes was $294,615 higher than the carrying
value of the Convertible Notes net of unamortized debt discount on the date of the modification. The $294,615 difference as well
as legal costs associated with the amendment in the amount of $8,945 were recorded as a loss on convertible notes extinguishments
totaling $303,560 in the accompanying statements of operations for the year ended December 31, 2017. After the modification,
there remained a debt discount of $27,371 of which $19,510 and $1,286 was amortized during the nine month transition period ended
September 30, 2018 and for the year ended December 31, 2017, respectively.
The 2017 Convertible Notes contain a conversion
discount in the event of a 2017 Convertible Notes Qualified Financing to equal the outstanding principal and accrued interest on
the 2017 Convertible Notes divided by 80% of the price per share of the securities issued by the Company in the 2017 Convertible
Notes Qualified Financing. The embedded feature qualified as an embedded derivative and was separated from its debt host. The bifurcation
of the embedded derivative from its debt host resulted in a discount to the 2017 Convertible Notes in the amount of $168,384 and
$128,525 for the convertible debt issued during the nine month transition period ended September 30, 2018 and the year ended December
31, 2017, respectively. The discount is being amortized to interest expense over the term of the 2017 Convertible Notes using the
straight-line method which approximates the effective interest method. The amortization expense was $143,166 and $3,815 for the
nine month transition period ended September 30, 2018 and for the year ended December 31, 2017, respectively. The embedded derivative
is accounted for separately on a fair market value basis. The Company recorded the fair value changes of the premium debt conversion
derivative associated with all of the 2017 Convertible Notes in the consolidated statements of operations which amounted to an
expense of $11,020 and $466 for the nine month transition period ended September 30, 2018 and for the year ended December 31, 2017,
respectively.
The New Warrants were deemed to be free-standing
instruments and were accounted for as a liability given the variable number of shares issuable in connection with a change of control
conversion event. A Monte Carlo simulation model was used to estimate the aggregate fair value of the New Warrants. Input assumptions
used were as follows: a risk-free interest rate of 2.94 percent and 2.22 percent as of September 30, 2018 and December 31, 2017,
respectively; expected volatility of 50 percent as of September 30, 2018 and December 31, 2017; expected life of 5.21 years and
5.38 years as of September 30, 2018 and December 31, 2017, respectively; and expected dividend yield of 0 percent as of September
30, 2018 and December 31, 2017. The underlying stock price used in the analysis was on a non-marketable basis and was according
to the market approach, considering both the traded price and forward multiples from guideline public companies, using allocation
and marketability-discount methodologies. The 2017 Convertible Note proceeds assigned to the New Warrants were $442,151 and $336,571
during the nine month transition period ended September 30, 2018 and the year ended December 31, 2017, respectively, which represented
their fair value at issuance and were discounted from the 2017 Convertible Notes and reflected as a warrant liability. The discount
is being amortized to interest expense over the term of the 2017 Convertible Notes using the straight-line method which approximates
the effective interest method. The amortization expense was $375,076 and $9,971 for the nine month transition period ended September
30, 2018 and for the year ended December 31, 2017, respectively. The Company also recorded the fair value changes of the warrant
liability associated with all of the 2017 Convertible Notes in the consolidated statements of operations which amounted to an expense
of $39,770 and a benefit of $(1,337) for the nine month transition period ended September 30, 2018 and for the year ended December
31, 2017, respectively.
F-
23
In connection with the 2017 Convertible
Notes, the Company incurred issuance costs in the amount of $8,133 which consisted of legal costs and was recorded as an issuance
cost discount to the 2017 Convertible Notes, of which $2,944 and $157 was amortized to interest expense during the nine month transition
period ended September 30, 2018 and the year ended December 31, 2017, respectively.
2017 Convertible Note Subscription Agreement
Pursuant to the subscription agreements
entered into in connection with the Private Placement, the Company is entitled to receive notice in the event a holder elects to
sell or receives a bona fide offer for any portion of the 2017 Convertible Notes or New Warrants, as applicable, and the right
to purchase the 2017 Convertible Notes and associated New Warrants on the same terms as the proposed sale or bona fide offer, as
applicable, as long as the Company exercises that right within 15 days of receiving written notice. The Company has granted the
subscribers indemnification rights with respect to its representations, warranties, covenants and agreements under the respective
subscription agreements.
NOTE 9 - Stock-Based
Compensation
During the nine month transition period
ended September 30, 2018 and for the year ended December 31, 2017, stock-based services expense related to the stock options, restricted
stock awards and stock-based award liabilities was included in general and administrative and research and development costs as
follows in the accompanying statements of operations:
2018
2017
General and administrative
$
480,653
$
2,065
Research and development
5,467
74,729
Total stock-based services expense
$
486,120
$
76,794
NeuroOne formally adopted an equity incentive
plan (the "2016 Plan") on October 27, 2016 which was subsequently adopted by the Company upon completion of the Acquisition.
In addition, the Company adopted a 2017 Equity Incentive Plan (the "2017 Plan") on April 17, 2017. The 2016 and 2017
Plans provide for the issuance of restricted shares and stock options to employees, directors, and consultants of the Company.
The Company reserved 2,292,265 shares of common stock (as adjusted for the exchange ratio in connection with the Acquisition) for
issuance under the 2016 and 2017 Plans on a combined basis. The Company began granting stock options and restricted stock awards
in the second quarter of 2017. During the nine month transition period ended September 30, 2018 and for the year ended December
31, 2017, 2,500 and 365,716 stock options were granted to directors and consultants at a weighted average exercise price of $5.34
and $0.035 per share, respectively. The stock options granted during the nine month transition period ended September 30, 2018
and during the year ended December 31, 2017 had a weighted average grant date fair value of $2.48 and $0.014 per share, respectively,
with the vesting period ranging from several weeks upon grant to two months from grant. The options expire ten years from the date
of grant. In addition, the Company issued 215,453 shares of restricted common stock at a grant date fair value of $0.034 with performance
vesting conditions from the 2016 Plan during the year ended December 31, 2017. There were no restricted common stock awards issued
out of the 2016 Plan or 2017 Plan during the nine month transition period ended September 30, 2018. All performance vesting conditions
for the restricted common stock were met and there were no unvested shares as of September 30, 2018 and December 31, 2017. Compensation
expense associated with restricted common stock was zero and $7,220 for the nine month transition period ended September 30, 2018
and for the year ended December 31, 2017, respectively.
F-
24
The following table summarizes the Company's stock option
plan activity for the nine month transition period ended September 30, 2018 and for the year ended December 31, 2017 as follows:
Weighted-
Weighted
Average
Average
Remaining
Aggregate
Number of
Exercise
Contractual
Intrinsic
Options
Price
Term (years)
Value(1)
Outstanding at December 31, 2016
—
—
—
—
Granted
365,716
$
0.03
—
—
Exercised
—
—
—
—
Forfeited/Cancelled
—
—
—
—
Outstanding at December 31, 2017
365,716
$
0.03
9.3
$
908,920
Granted
2,500
$
5.34
—
—
Exercised
—
—
—
—
Forfeited/Cancelled
—
—
—
—
Outstanding at September 30, 2018
368,216
$
0.07
8.6
$
820,862
Vested and exercisable at September 30, 2018
368,216
$
0.07
8.6
$
820,862
(1)
The aggregate intrinsic value is calculated as the difference
between the exercise price of the underlying options and the estimated fair value of our common stock as of September 30, 2018
and December 31, 2017 of $2.30 and $2.52 per share, respectively.
The weighted-average assumptions
used in the Black-Scholes option-pricing model are as follows for the stock options granted during the nine month transition period
ended September 30, 2018 and the year ended December 31, 2017:
2018
2017
Expected stock price volatility
49.8
%
47.8
%
Expected life of options (years)
5.0
5.0
Expected dividend yield
0
%
0
%
Risk free interest rate
2.8
%
1.9
%
During the nine month transition period
ended September 30, 2018, 2,500 stock options vested, and the weighted average grant date fair value per option was $2.48. During
the year ended December 31, 2017, 365,716 stock options and 215,453 restricted stock awards vested. The weighted
average grant date fair value per share of common stock issuable upon exercise of options and of restricted stock awards vesting
during the year ended December 31, 2017 was $0.014 and $0.034, respectively. No stock options were forfeited during the nine month
transition period ended September 30, 2018 or during the year ended December 31, 2017. As of September 30, 2018, 1,708,596 shares
were available for future issuance on a combined basis under the 2016 and 2017 Plans.
F-
25
Other Stock-Based Awards
Up to 250,000 shares of common stock were
reserved in February 2018 as a result of a consulting agreement for investor relations services executed in February 2018. Under
the agreement, 200,000 shares of common stock were awarded during the nine month transactional period ended September 30, 2018.
The shares were awarded based on a performance vesting condition that was met in February 2018 and a time-based vesting condition
that was met in both May 2018 and August 2018. The compensation expense related to the vested common shares was included in the
total stock-based services expense referenced above which totaled $469,500. The expense was based on the fair value of the underlying
common stock at the point of vesting which was $2.52 per share for 100,000 shares that vested in February 2018, $2.30 per share
for the 50,000 shares that vested in May 2018, and $2.05 per share for the 50,000 shares that vested in August 2018. The underlying
stock price used in the analysis was on a non-marketable basis and was according to the market approach, considering both the traded
price and forward multiples from guideline public companies, using allocation and marketability-discount methodologies. The
remaining 50,000 shares of the share commitment under the agreement vested in November 2018.
Additionally, the Company recorded stock-based
services expense related to unissued stock options associated with a second consulting agreement whereby the number of option shares
and pricing will not be set until the occurrence of the award date which is defined as the earlier to occur of a public offering,
qualified financing, or December 31, 2018 (as amended from the originally stated June 30, 2018 date). The number of option shares
under the agreement is based on a $3,000 monthly compensation amount divided by the fair value of the underlying common stock on
the award date. The exercise price will also be set at the fair value of the underlying common stock on the award date. The liability
associated with the unissued options was based on an option share equivalent estimate that reflects the portion of the award where
performance vesting conditions have been met as of September 30, 2018 and was based on the fair value of the Company's common
stock on September 30, 2018 as the award date has not occurred. The common stock fair value on September 30, 2018 was $2.30 per
share and was determined based on a non-marketable basis and was according to the market approach, considering both the traded
price and forward multiples from guideline public companies, using allocation and marketability-discount methodologies.
The stock-based services expense associated with the unissued
stock options was $11,153 during the nine month transition period ended September 30, 2018 and is classified in accrued expenses
at September 30, 2018. The liability for the unissued stock options was based on the following weighted-average assumptions using
the Black-Scholes option-pricing model:
2018
Expected stock price volatility
49.8
%
Expected life of options (years)
5.0
Expected dividend yield
0
%
Risk free interest rate
2.9
%
Upon the issuance of all of the unissued
options associated with the stock-based award liabilities, the estimated number of shares available for future issuance as of September
30, 2018 would be reduced from 1,708,596 to 1,698,161 shares as a result of the remaining stock options to be issued upon vesting
under the second consulting agreement. The 250,000 shares of common stock issuable under the February 2018 consulting agreement
are not eligible for issuance under either the 2016 Plan or 2017 Plan because the 2016 Plan and 2017 Plan limit plan participants
to individuals.
F-
26
NOTE 10 - Stockholders'
Deficit
Private Placement and Corresponding
Issuance of Common Stock and Warrants
From July 9, 2018 through September
28, 2018, the Company entered into subscription agreements (each, a "Purchase Agreement") with certain accredited investors
(the "Purchasers"), pursuant to which the Company, in a private placement (the "2018 Private Placement"),
agreed to issue and sell to the Purchasers units (each, a "Unit"), each consisting of (i) 1 share (each, a "Share")
of the Company's common stock and (ii) a warrant to purchase 1 share of common stock at an initial exercise price of $3.00
per share (the "2018 Warrants"). The initial closing of the 2018 Private Placement was consummated on July 9, 2018.
As of September 30, 2018, the Company has issued and sold an aggregate of 445,200 Units to the Purchasers, for total gross proceeds
to the Company of approximately $1,113,000 before deducting offering expenses.
In connection with the 2018 Private Placement,
the Company has agreed to issue and sell to accredited investors up to a maximum of 4,000,000 Units (the "Maximum Offering")
at a price of $2.50 per Unit for total gross proceeds to the Company of up to $10,000,000. If the 2018 Private Placement is over-subscribed,
the Company may, in its discretion sell up to an additional 600,000 Units (the "Over-Allotment") to cover such over
subscriptions. If the Company issues the Maximum Offering amount, 4,000,000 shares of Common Stock (4,600,000 shares of Common
Stock if the Over-Allotment is exercised) would be issuable upon exercise of the 2018 Warrants. The Company may conduct any number
of additional closings so long as the final closing occurs on or before January 2, 2019. Under the Purchase Agreement, the Company
has agreed to use the net proceeds from the 2018 Private Placement to pay the outstanding principal and accrued interest on its
2017 Convertible Notes if such notes do not convert prior to maturity, to pay the principal on its unsecured term loans, for research
and development, clinical studies, legal fees and sales and marketing expenses, as well as working capital and general corporate
purposes. The Company has granted the Purchasers indemnification rights with respect to its representations, warranties and agreements
under the Purchase Agreement.
The 2018 Warrants are exercisable beginning
on the date of issuance and will expire on July 9, 2023, five years from the date of the first closing. The 2018 Warrants were
accounted for as free standing equity instruments and classified as additional paid-in capital in the accompanying consolidated
balance sheets based on their relative fair value to the underlying common shares issued. The fair value of the 2018 Warrants issued
was $318,759 and was based on the Black-Scholes pricing model. Input assumptions used were as follows: a risk-free interest rate
of 2.82 percent; expected volatility of 49.8 percent; expected life of 4.91 years; and expected dividend yield of 0 percent. The
underlying stock price used in the analysis was on a non-marketable basis and was according to the market approach, considering
both the traded price and forward multiples from guideline public companies, using allocation and marketability-discount methodologies.
In connection with the 2018 Private Placement,
the Company recorded issuance costs in the amount of $173,067 as of September 30, 2018. The issuance costs included commissions
to the brokers equal to 10% of the gross proceeds from the sale of the Units that qualify for the commission and amounted to $83,800.
In addition to the brokers' commission, the issuance costs included the estimated value of the 5-year warrants to be issued
to the brokers to purchase an amount of Common Stock equal to 10% of the total amount of qualifying Shares sold in the 2018 Private
Placement at an exercise price of $3.45 per share upon the close of the 2018 Private Placement. A liability in the amount of $26,878
was recorded as of September 30, 2018 related to the broker warrants. Lastly, third party legal costs in the amount $62,389 comprised
the balance of the issuance costs incurred as of September 30, 2018.
In connection with the 2018 Private Placement,
the Company entered into registration rights agreements with each of the Purchasers pursuant to which the Company has agreed to
file a registration statement with the SEC covering the resale of the shares of common stock sold in the 2018 Private Placement
and the shares of Common Stock issuable upon exercise of the 2018 Warrants. The Company has agreed to file such registration statement
within 75 days of the final closing of the 2018 Private Placement. Each registration rights agreement includes customary indemnification
rights in connection with the registration statement.
F-
27
Warrant Activity and Summary
The following table summarizes warrant
activity during the year ended December 31, 2017 and the nine month transition period ended September 30, 2018:
Exercise Price
Weighted Average
Warrants
Per
Warrant
Exercise
Price
Outstanding at January 1, 2017
—
$
—
$
—
Issued
189,750
$
1.80
$
1.80
Exercised
—
$
—
$
—
Forfeited
—
$
—
$
—
Outstanding and exercisable at December 31, 2017
189,750
$
1.80
$
1.80
Issued
2,737,822
$1.80 - 3.00
$
2.00
Exercised
—
$
—
$
—
Forfeited
—
$
—
$
—
Outstanding and exercisable at September 30, 2018
2,927,572
$1.80 - 3.00
$
1.98
The following table summarizes information
about warrants outstanding at September 30, 2018:
Exercise Price
Number Outstanding
Weighted Average Remaining Contractual life (Years)
Number Exercisable at September 30, 2018
$
1.80
2,482,372
3.1
2,482,372
$
3.00
445,200
4.8
445,200
Total
2,927,572
2,927,572
The July 2017 Acquisition
Pursuant to the Acquisition of NeuroOne
on July 20, 2017, the Company acquired 100% of NeuroOne shares in exchange for the issuance of Company shares and NeuroOne became
the Company's wholly-owned subsidiary. Also, at the closing, Mr. Samad (the majority owner of the Company prior to the Acquisition)
tendered for cancellation 3,500,000 Company shares held by him as part of the conditions to closing resulting in a net exchange
of 1,573,000 shares of common stock (see further details in Note 1 – Organization and Nature of Operations).
F-
28
At the time of Acquisition, the Company
had authorized 100,000,000 shares of common stock with a par value of $0.001 and 10,000,000 shares of preferred stock with a par
value of $0.001.
Predecessor NeuroOne, Inc. Activity
On October 20, 2016, prior to the Merger
with the LLC, NeuroOne issued 5,131,514 shares of common stock (as adjusted for the exchange ratio in connection with the Acquisition)
as founders' shares to seven individuals. Three of those investors were officers of NeuroOne. NeuroOne recorded $9,050 of
share subscription receivable for these stock issuances in 2016, which remained outstanding as of December 31, 2016. The shares
were subscribed at value of $0.03 per share based on a valuation prepared by NeuroOne utilizing a weighted average market value
of invested capital methodology. In June 2017, the purchase price owed by the seven individuals for the founders' shares
of NeuroOne under their respective subscription agreements totaling $9,050 was forgiven by NeuroOne prior to the Acquisition.
NOTE 11 - Income Taxes
On December 22, 2017, the Tax Cuts and
Jobs Act (the TCJA), which significantly modified U.S. corporate income tax law, was signed into law by President Trump. The TCJA
contains significant changes to corporate income taxation, including, but not limited to, the reduction of the corporate income
tax rate from a top marginal rate of 35% to a flat rate of 21%, limitation of the tax deduction for interest expense to 30% of
earnings (except for certain small businesses), limitation of the deduction for net operating losses to 80% of current year taxable
income and generally eliminating net operating loss carrybacks, allowing net operating losses to carryforward without expiration,
one-time taxation of offshore earnings at reduced rates regardless of whether they are repatriated, elimination of U.S. tax on
foreign earnings (subject to certain important exceptions), immediate deductions for certain new investments instead of deductions
for depreciation expense over time, and modifying or repealing many business deductions and credits (including changes to the deductibility
of research and experimental expenditures that will be effective in the future). Notwithstanding the reduction in the corporate
income tax rate, the overall impact of the new federal tax law is uncertain, including to what extent various states will conform
to the newly enacted federal tax law.
The Company has recorded the adjustments
in the consolidated financial statements in accordance with the TCJA and related guidance with a reduction of $420,000 to
its net gross deferred tax assets in December 2017, the period in which the legislation was enacted. The reduction was fully offset
by an equal reduction in the Company's valuation allowance given the Company's historical net losses, resulting in
no net income tax expense being recorded.
The effective tax rate for
the Company for the nine month transition period ended September 30, 2018 and for the year ended December 31, 2017 was zero percent.
A reconciliation of income tax computed at the statutory federal income tax rate to the provision (benefit) for income taxes included
in the accompanying consolidated statements of operations for the Company is as follows:
2018
2017
Income tax benefit at federal statutory rate
(21.0
)%
(34.0
)%
State income tax, net of federal benefit
(7.7
)
(6.5
)
Warrant expense
9.4
10.6
Disqualified interest and other
1.0
0.9
Research credits
(1.5
)
(1.2
)
U.S. tax reform
—
8.3
Valuation allowance
19.8
21.9
Effective tax rate
—
%
—
%
F-
29
Significant components of the Company's
deferred tax assets and liabilities are summarized in the tables below as of September 30, 2018 and December 31, 2017:
2018
2017
Deferred tax assets:
Federal and state operating loss carryforwards
$
1,837,375
$
871,371
Acquired intangibles
10,116
5,433
Accruals
73,763
64,151
Convertible notes
28,863
81,904
Research and development credit carryforwards
140,553
63,197
Stock-based compensation
24,598
19,821
Total deferred tax assets
2,115,268
1,105,877
Valuation allowance
(2,115,268
)
(1,105,877
)
Net deferred tax assets
$
—
$
—
The deferred tax asset for the convertible
notes and the valuation allowance at December 31, 2017 were misstated by $452,845 and have both been revised in the preceding
table.  The effects of this revision also impacted the effective tax rate reconciliation by increasing the warrant expense
percent by 10.6%, decreasing the U.S. tax reform percent by 3.8% and decreasing the valuation allowance percent by 6.8% for the
year ended December 31, 2017. These immaterial adjustments to the 2017 disclosures had no impact on our net loss or reported net
loss per share for the year ended December 31, 2017.
As of September 30, 2018 and December 31,
2017, the Company had gross deferred tax assets of approximately $2,115,000 and $1,106,000, respectively. Realization of the deferred
assets is primarily dependent upon future taxable income, if any, the amount and timing of which are uncertain. The Company has
had significant pre-tax losses since its inception. The Company has not yet generated revenues and faces significant challenges
to becoming profitable. Accordingly, the net deferred tax assets have been fully offset by a valuation allowance of approximately
$2,115,000 and $1,106,000 as of September 30, 2018 and December 31, 2017, respectively. U.S. net deferred tax assets will continue
to require a valuation allowance until the Company can demonstrate their realizability through sustained profitability or another
source of income.
As of September 30, 2018 and December 31,
2017, the Company's federal net operating loss carryforwards were approximately $6,393,000 and $3,032,000, respectively.
The Company had federal research credit carryforwards as of September 30, 2018 and December 31, 2017 of approximately $83,000
and $36,000, respectively. The federal net operating loss incurred prior to January 1, 2018 and tax credit carryforwards will begin
to expire in 2036 if not utilized. Federal net operating losses incurred after December 31, 2017 will not expire. As of September
30, 2018 and December 31, 2017, the Company had state net operating loss carryforwards of approximately $6,393,000 and $3,032,000,
respectively. The Company had state research credit carryforwards of approximately $57,000 and $27,000 as of September 30, 2018
and December 31, 2017, respectively. The state net operating loss carryforwards will begin to expire in 2031, if not utilized,
and the state research credit carryforwards will begin to expire in 2032 if not utilized.
Utilization of the net operating loss carryforwards
and credits may be subject to a substantial annual limitation due to the ownership change limitations provided by Section 382
of the Internal Revenue Code of 1986, as amended, and similar state provisions. Generally, in addition to certain entity reorganizations,
the limitation applies when one or more "5-percent shareholders" increase their ownership, in the aggregate, by more
than 50 percentage points over a 36-month time period testing period or beginning the day after the most recent ownership
change, if shorter. The annual limitation may result in the expiration of net operating losses and credits before utilization.
In accordance with ASC 740,
Income Taxes
("ASC 740"), specifically related to uncertain tax positions, a Company is required to use a recognition threshold
and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken
in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination
by taxing authorities. The Company believes its income tax filing positions and deductions will be sustained upon examination,
and accordingly, no reserves or related accruals for interest and penalties have been recorded at September 30, 2018 and December
31, 2017.
In accordance with this guidance, the Company
has adopted a policy under which, if required to be recognized in the future, interest related to the underpayment of income taxes
will be classified as a component of interest expense and any related penalties will be classified in operating expenses in the
statements of operations.
The Company's corporate returns are
subject to examination for the 2016 and 2017 tax years for federal and subject to examination for the 2016 and 2017 tax years in
one state jurisdiction.
F-
30
NOTE 12 - Defined Contribution
Plan
The Company adopted a 401(k) defined contribution
plan (the "401K Plan") on January 1, 2017, which was amended and restated on March 1, 2018 (the "Restatement"),
for all employees over age 21. Employees can defer up to 100% of their compensation through payroll withholdings into the 401K
Plan subject to federal law limits. The Company began matching in the fourth quarter of 2017 on deferrals at 100% of deferrals
up to 3% of one's contributions and 50% on deferrals over 3%, but not exceeding 5% of one's contributions up through
the Restatement. The Company's matching contributions to employee deferrals became discretionary after the Restatement. The
Company may also make discretionary profit sharing contributions under the 401K Plan in the future, but it has not done so through
September 30, 2018.
Employee contributions and any employer
matching contributions made to satisfy certain non-discrimination tests required by the Internal Revenue Code are 100% vested upon
contribution. Discretionary employer matches to employee deferrals vest over a six year period beginning on the second anniversary
of an employee's date of hire. Discretionary profit sharing contributions vest over a five year period beginning on the first
anniversary of an employee's date of hire. The amount of matching contributions made during the nine month transition period
ended September 30, 2018 and the year ended December 31, 2017 was $7,779 and $27,000, respectively.
NOTE 13 -  Subsequent
Events
2018 Private Placement
Between October 1, 2018 through
November 30, 2018, the Company issued and sold an aggregate of 170,000 additional Units to the Purchasers, for total gross
proceeds to the Company of approximately $425,000 before deducting offering expenses. The additional Units have identical
terms to the 2018 Private Placement disclosed in Note 10 – Stockholders' Deficit.
Unsecured Loans
In November 2018, the Company received
cash gross proceeds from unsecured loans represented by two promissory notes in the amounts of $45,000 and $100,000 from stockholders
who each owned over 5% of the Company's common stock. The loans are interest free and require that we repay the principal
in full on the earlier of the closing of an equity round of financing of the Company resulting in more than $5 million in gross
proceeds or November 14, 2019.
Advisory Board Stock Option Grants
In November 2018 and December 2018 the Board of Directors approved for grant,
to seven scientific advisory board members, a total of 175,000 stock options for the purchase of common stock. The options
when issued will vest monthly over a three year period commencing January 1, 2019.
Office Lease
The Company leased a 5,196 square foot facility for use as its
corporate headquarters location in Minnetonka, Minnesota effective December 1, 2018. The lease expires on October 31, 2019 and
the monthly rent is $4,763.
F-
31
NeuroOne Medical Technologies Corporation
Condensed Consolidated Balance Sheets
March 31,
September 30,
2019
2018
(unaudited)
Assets
Current assets:
Cash
$
2,305,399
$
13,260
Prepaid expenses
79,952
5,378
Total current assets
2,385,351
18,638
Intangible assets, net
189,459
200,081
Total assets
$
2,574,810
$
218,719
Liabilities and Stockholders' Equity (Deficit)
Current liabilities:
Accounts payable
$
687,905
$
221,235
Accrued expenses
1,213,274
1,591,022
Unsecured loans
229,000
283,000
Convertible promissory notes, net and accrued interest
—
1,393,804
Premium conversion derivatives
—
308,395
Total current liabilities
2,130,179
3,797,456
Warrant liability
—
817,155
Total liabilities
2,130,179
4,614,611
Commitments and contingencies (Note 4)
Stockholders' equity (deficit):
Preferred stock, $0.001 par value; 10,000,000 shares authorized as of March 31, 2019 and September 30, 2018; no shares issued or outstanding as of March 31, 2019 and September 30, 2018.
—
—
Common stock, $0.001 par value; 100,000,000 shares authorized as of March 31, 2019 and September 30, 2018; 12,944,514 and 9,656,505 shares issued and outstanding as of March 31, 2019 and September 30, 2018, respectively.
12,945
9,657
Additional paid–in capital
14,454,110
6,052,161
Accumulated deficit
(14,022,424
)
(10,457,710
)
Total stockholders' equity (deficit)
444,631
(4,395,892
)
Total liabilities and stockholders' equity (deficit)
$
2,574,810
$
218,719
See accompanying notes to condensed consolidated financial
statements
F-
32
NeuroOne Medical Technologies Corporation
Condensed Consolidated Statements of
Operations
(unaudited)
For the Three Months Ended
For the Six Months Ended
March 31,
March 31,
2019
2018
2019
2018
Operating expenses:
General and administrative
$
1,084,789
$
992,435
$
1,951,468
$
1,531,294
Research and development
436,311
105,045
645,479
339,970
Total operating expenses
1,521,100
1,097,480
2,596,947
1,871,264
Loss from operations
(1,521,100
)
(1,097,480
)
(2,596,947
)
(1,871,264
)
Interest expense
(20,534
)
(193,034
)
(284,557
)
(531,147
)
Net change in fair value for the warrant liability and premium conversion derivatives
(116,809
)
119,960
(129,763
)
(42,587
)
Loss on notes extinguishment
(553,447
)
(186,220
)
(553,447
)
(537,134
)
Net loss
$
(2,211,890
)
$
(1,356,774
)
$
(3,564,714
)
$
(2,982,132
)
Net loss per share:
Basic and diluted
$
(0.20
)
$
(0.17
)
$
(0.34
)
$
(0.38
)
Number of shares used in per share calculations:
Basic and diluted
10,971,425
7,864,994
10,360,696
7,864,994
See accompanying notes to condensed consolidated financial
statements
F-
33
NeuroOne Medical Technologies Corporation
Condensed Consolidated Statements of
Changes in Stockholders' Equity (Deficit)
(unaudited)
Additional
Total
Common Stock
Paid–In
Accumulated
Stockholders'
Shares
Amount
Capital
Deficit
Equity (Deficit)
Balance at September 30, 2017
7,864,994
$
7,865
$
162,741
$
(3,699,438
)
$
(3,528,832
)
Issuance of additional warrants in connection with short-term notes modification
—
—
117,280
—
117,280
Stock value adjustment associated with intellectual license agreement
—
—
299
—
299
Net loss
—
—
—
(1,625,358
)
(1,625,358
)
Balance at December 31, 2017
7,864,994
7,865
280,320
(5,324,796
)
(5,036,611
)
Warrant value adjustment related to short-term note modification
—
—
(1,170
)
—
(1,170
)
Net loss
—
—
—
(1,356,774
)
(1,356,774
)
Balance at March 31, 2018
7,864,994
$
7,865
$
279,150
$
(6,681,570
)
$
(6,394,555
)
Balance at September 30, 2018
9,656,505
$
9,657
$
6,052,161
$
(10,457,710
)
$
(4,395,892
)
Issuance of common stock under 2018 and 2019 private placements
330,000
330
601,319
—
601,649
Issuance of warrants under 2018 and 2019 private placements
—
—
223,351
—
223,351
Issuance costs related to 2018 and 2019 private placements
—
—
(149,316
)
—
(149,316
)
Issuance of common stock for consulting services
50,000
50
114,950
—
115,000
Net loss
—
—
—
(1,352,824
)
(1,352,824
)
Balance at December 31, 2018
10,036,505
10,037
6,842,465
(11,810,534
)
(4,958,032
)
Issuance of common stock under 2019 private placement
1,743,979
1,744
3,164,640
—
3,166,384
Issuance of warrants under 2019 private placements
—
—
1,193,564
—
1,193,564
Issuance costs related to 2019 and 2018 private placements
—
—
(698,777
)
—
(698,777
)
Issuance of common stock upon conversion of convertible promissory notes
839,179
839
1,920,881
—
1,921,720
Issuance of warrants and reclassification of warrant liability upon conversion of convertible promissory notes
—
—
1,565,402
—
1,565,402
Share–based compensation — employee
—
—
30,085
—
30,085
Share–based compensation — non–employee
—
—
16,569
—
16,569
Exercise of stock options
93,555
94
3,179
—
3,273
Exercise of warrants
231,296
231
416,102
—
416,333
Net loss
—
—
—
(2,211,890
)
(2,211,890
)
Balance at March 31, 2019
12,944,514
$
12,945
$
14,454,110
$
(14,022,424
)
$
444,631
See accompanying notes to condensed consolidated financial
statements
F-
34
NeuroOne Medical Technologies Corporation
Condensed Consolidated Statements of
Cash Flows
(unaudited)
For the Six Months Ended
March 31,
2019
2018
Operating activities
Net loss
$
(3,564,714
)
$
(2,982,132
)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization
10,622
9,217
Stock-based services expense
189,197
254,437
Non-cash interest on convertible notes
51,333
93,623
Non-cash discount amortization on short-term notes and convertible notes
233,224
437,524
Revaluation of premium conversion derivatives
111,195
(104,143
)
Revaluation of warrant liability
18,568
146,730
Loss on notes extinguishments
553,447
537,134
Change in assets and liabilities:
Prepaid expenses
(74,574
)
—
Accounts payable and accrued expenses
(104,578
)
417,937
Net cash used in operating activities
(2,576,280
)
(1,189,673
)
Investing activities
Purchase of intangible assets
(65,000
)
(91,709
)
Net cash used in investing activities
(65,000
)
(91,709
)
Financing activities
Proceeds from issuance of convertible promissory notes
—
564,565
Proceeds from issuance of warrants associated with convertible notes
—
575,435
Issuance costs related to convertible notes
—
(9,779
)
Issuance costs related to warrants
—
(8,670
)
Proceeds from issuance of common stock in connection with private placement
3,768,032
—
Proceeds from issuance of warrants in connection with private placement
1,416,915
—
Issuance costs in connection with private placement
(617,134
)
—
Exercise of warrants
416,333
—
Exercise of stock-options
3,273
—
Proceeds from unsecured loans
245,000
115,000
Repayment of unsecured loans
(299,000
)
—
Net cash provided by financing activities
4,933,419
1,236,551
Net increase (decrease) in cash
2,292,139
(44,831
)
Cash at beginning of period
13,260
70,029
Cash at end of period
$
2,305,399
$
25,198
Supplemental non-cash financing and investing transactions:
Conversion of convertible promissory notes to equity
$
1,678,361
$
—
Exercise of premium conversion derivative liability
$
419,590
$
—
Reclassification of warrant liability to equity
$
835,723
$
—
Bifurcation of premium conversion derivative related to convertible notes
$
—
$
219,825
Issuance of warrants in connection with convertible notes
$
—
$
117,280
Stock value adjustment associated with intellectual license agreement
$
—
$
299
Change in accounts payable and
    accrued     expenses attributed to private placement and convertible note issuance costs
$
230,959
$
14,226
Purchased intangible assets in accrued expenses
$
—
$
30,000
See accompanying notes to condensed
consolidated financial statements
F-
35
NeuroOne Medical Technologies Corporation
Notes to Condensed Consolidated Financial
Statements
(unaudited)
NOTE 1 – Description of Business and Basis of
Presentation
NeuroOne Medical Technologies Corporation
(the "Company"), a Delaware Corporation, is an early-stage medical technology company focused on the development and
commercialization of thin film electrode technology for continuous electroencephalogram (cEEG) and stereoelectroencephalography
(sEEG) recording, brain stimulation and ablation solutions for patients suffering from epilepsy, Parkinson's disease, dystonia,
essential tremors and other related brain related disorders. Additionally, we are investigating the potential applications of
our technology associated with artificial intelligence.
To date, the Company has recorded no product
sales and has a limited expense history. The Company is a development stage company and its activities to date have included raising
capital to fund the development of its proprietary technology and seeking regulatory clearances required to initiate commercial
activities.
The Company is based in Minnetonka, Minnesota.
Basis of presentation
The accompanying condensed consolidated
financial statements have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities
and Exchange Commission (the "SEC"). Certain information and footnote disclosures normally included in financial statements
prepared in accordance with U.S. generally accepted accounting principles (GAAP) have been condensed or omitted pursuant to such
rules and regulations. The condensed consolidated financial statements may not include all disclosures required by U.S. GAAP;
however, the Company believes that the disclosures are adequate to make the information presented not misleading. These unaudited
condensed consolidated financial statements should be read in conjunction with the audited financial statements and the notes
thereto for the nine month transition period ended September 30, 2018 included in the Transition Report on Form 10-KT. The condensed
consolidated balance sheet at September 30, 2018 was derived from the audited financial statements of the Company.
In the opinion of management, all adjustments,
consisting of only normal recurring adjustments that are necessary to present fairly the financial position, results of operations,
and cash flows for the interim periods, have been made. The results of operations for the interim periods are not necessarily
indicative of the operating results for the full fiscal year or any future periods.
NOTE
2 – Going Concern
The accompanying condensed consolidated
financial statements have been prepared on the basis that the Company will continue as a going concern. The Company has incurred
losses since inception and had an accumulated deficit of $14,022,424 as of March 31, 2019. The Company does not have adequate
liquidity to fund its operations throughout fiscal 2019 without raising additional funds. These factors raise substantial doubt
about its ability to continue as a going concern. The condensed consolidated financial statements do not include any adjustments
that might result from the outcome of this condition. Management intends to continue to seek additional financing to fund operations.
If the Company is not able to raise additional working capital, it will have a material adverse effect on the operations of the
Company and the development of its technology.
Through March 31, 2019, the Company
has completed a $528,000 unsecured loan financing, a $253,000 short-term promissory note financing (which notes were amended
and restated to become convertible promissory notes), a $1,625,120 convertible promissory note financing of a planned $2.5
million subscription and a second $1,540,000 convertible promissory note financing of a planned $2 million subscription. All
of the convertible notes were ultimately converted into common stock and warrants. In addition, the Company entered into two
private placement transactions of its common stock and warrants beginning in July 2018 and December 2018, whereby $6.3
million in gross proceeds were raised out of a planned $11.8 million maximum offering under the subscription agreements for
both private placements through March 31, 2019. See Note 13 – Subsequent Events for a description of financings that
have closed after March 31, 2019. The Company does not have adequate liquidity to fund its operations throughout fiscal 2019
without raising additional funds. Management intends to continue to seek additional debt and/or equity financing to fund
operations. However, if the Company is unable to raise additional funds, or the Company's anticipated operating results
are not achieved, management believes planned expenditures may need to be reduced in order to extend the time period that
existing resources can fund the Company's operations. If management is unable to obtain the necessary capital, it may
have to cease operations.
F-
36
NeuroOne Medical Technologies Corporation
Notes to Condensed Consolidated Financial
Statements
(unaudited)
NOTE
3 – Summary of Significant Accounting Policies
Management's Use of Estimates
The preparation of condensed consolidated
financial statements in conformity with accounting principles generally accepted in the United States of America requires management
to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the condensed consolidated financial statements and the reported amounts of expenses during the
reporting period. Actual results could differ from those estimates.
Concentration of Credit Risk
Financial instruments that potentially
subject the Company to a concentration of credit risk consist of cash. The Company's cash is held by one financial institution
in the United States. Amounts on deposit may at times exceed federally insured limits. Management believes that the financial
institution is financially sound, and accordingly, minimal credit risk exists with respect to the financial institution. As of
March 31, 2019, the Company did have deposits in excess of federally insured amounts by $2,075,088.
Common Stock Valuation
Due to the limited market liquidity for
the Company's common stock, the Company utilized methodologies in accordance with the framework of the American Institute
of Certified Public Accountants' Technical Practice Aid, Valuation of Privately-Held Company Equity Securities Issued as
Compensation, to estimate the fair value of its common stock. The valuation methodology includes estimates and assumptions that
require the Company's judgment. These estimates and assumptions include a number of objective and subjective factors, including
external market conditions affecting the biotechnology industry sector, and the likelihood of achieving a liquidity event, such
as an offering or sale. Significant changes to the key assumptions used in the valuations may result in different fair values
of common stock at each valuation date.
The Company estimated its enterprise value
on a continuing operations basis, using the market approach, with certain adjustments relating to the thinly traded status of
the Company. The traded price of the Company was deemed not to be an entirely reliable indication of fair market value given the
lack of trading liquidity. Therefore, in addition to applying partial weighting to the traded price, the Company relied on forward
revenue multiples from guideline public companies ("GPC") for calendar year 2019 and 2020 and on the sales price of
the Company's common stock in recent private placement transactions (see Note 12 – Stockholders' Equity (Deficit)).
The resulting equity value from the GPC method portion was allocated to common stock using the option pricing method, and a discount
for lack of marketability was applied. Based on the above methodology and weightings, the Company derived a valuation conclusion
of $2.38 and $2.30 per common share as of March 31, 2019 and September 30, 2018, respectively.
The fair value the Company's common
stock is used as an input into the fair value determination of the warrants, stock option or other equity awards that the Company
has issued or are outstanding liabilities at the reporting date.
Fair Value of Financial Instruments
The Company's accounting for fair
value measurements of assets and liabilities that are recognized or disclosed at fair value in the condensed consolidated financial
statements on a recurring or nonrecurring basis adheres to the Financial Accounting Standards Board (FASB) fair value hierarchy
that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted
quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements
involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows:
●
Level
1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the Company at the measurement
date.
●
Level
2 Inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly
or indirectly, for substantially the full term of the asset or liability.
●
Level
3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not
available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the
measurement date.
F-
37
NeuroOne Medical Technologies Corporation
Notes to Condensed Consolidated Financial
Statements
(unaudited)
As of March 31, 2019 and September 30,
2018, the fair values of cash, other assets, accounts payable, accrued expenses and the unsecured loans approximated their carrying
values because of the short-term nature of these assets or liabilities. The estimated fair value of the convertible promissory
notes of the Company was based on amortized cost which was deemed to approximate fair value. The fair value of the warrant liability
and the premium conversion derivatives associated with the convertible promissory notes of the Company, while outstanding, were
based on both the estimated fair value of our common stock of $2.29 and $2.30 as of their conversion on February 28, 2019 and
as of September 30, 2018, respectively, and cash flow models discounted at current implied market rates evidenced in recent arms-length
transactions representing expected returns by market participants for similar instruments and are based on Level 3 inputs.
There were no transfers between fair value hierarchy levels during the three and six months ended March 31, 2019 and 2018.
The fair value of financial instruments measured on a recurring
basis is as follows:
As of March 31, 2019
Description
Total
Level 1
Level 2
Level 3
Liabilities:
Warrant liability
$
—
$
—
$
—
$
—
Premium conversion derivatives
—
—
—
—
Total liabilities at fair value
$
—
$
—
$
—
$
—
As of September 30, 2018
Description
Total
Level 1
Level 2
Level 3
Liabilities:
Warrant liability
$
817,155
$
—
$
—
$
817,155
Premium conversion derivatives
308,395
—
—
308,395
Total liabilities at fair value
$
1,125,550
$
—
$
—
$
1,125,550
The following table provides a roll-forward
of the warrant liability and premium debt conversion derivatives measured at fair value on a recurring basis using unobservable
level 3 inputs for the six month periods ended March 31, 2019 and 2018:
2019
2018
Warrant liability
Balance as of beginning of period – October 1
$
817,155
$
774,172
Value assigned to warrants in connection with convertible promissory notes
—
713,157
Change in fair value of warrant liability
18,568
146,730
Reclassification to equity upon conversion of convertible promissory notes
(835,723
)
—
Balance as of end of period – March 31
$
—
$
1,634,059
2019
2018
Premium debt conversion derivatives
Balance as of beginning of period – October 1
$
308,395
$
441,823
Value assigned to the underlying derivatives in connection with convertible promissory notes
—
269,493
Change in fair value of premium debt conversion derivatives
111,195
(104,143
)
Reclassification to equity upon conversion of convertible promissory notes
(419,590
)
—
Balance as of end of period – March 31
$
—
$
607,173
F-
38
NeuroOne Medical Technologies Corporation
Notes to Condensed Consolidated Financial
Statements
(unaudited)
Intellectual Property
The Company has entered into two licensing
agreements with major research institutions, which allows for access to certain patented technology and know-how. Payments under
those agreements are capitalized and amortized to general and administrative expense over the expected useful life of the acquired
technology.
Impairment of Long-Lived Assets
The Company evaluates its long-lived assets,
which consists entirely of licensed intellectual property for impairment whenever events or changes in circumstances indicate
that the carrying value of these assets may not be recoverable. The Company assesses the recoverability of long-lived assets by
determining whether or not the carrying value of such assets will be recovered through undiscounted expected future cash flows.
If the asset is considered to be impaired, the amount of any impairment is measured as the difference between the carrying value
and the fair value of the impaired asset. Through March 31, 2019, the Company has not impaired any long-lived assets.
Debt Issuance Costs
Debt issuance costs are recorded as a
reduction of the convertible promissory notes when applicable. Amortization of debt issuance costs is calculated using the straight-line
method over the term of the convertible promissory notes, which approximates the effective interest method, and is recorded in
interest expense in the accompanying condensed consolidated statements of operations.
Research and Development Costs
Research and development costs are charged
to expense as incurred. Research and development expenses may include costs incurred in performing research and development activities,
including clinical trial costs, manufacturing costs for both clinical and pre-clinical materials as well as other contracted services,
license fees, and other external costs. Nonrefundable advance payments for goods and services that will be used in future research
and development activities are expensed when the activity is performed or when the goods have been received, rather than when
payment is made, in accordance with ASC 730,
Research and Development
.
Warrant Liability
The Company issued warrants to purchase
equity securities in connection with the issuance or amendment of the convertible promissory notes. The Company accounts for these
warrants as a liability at fair value when the number of shares is not fixed and determinable. Additionally, issuance costs associated
with the warrant liability are expensed as incurred and reflected as interest expense in the accompanying condensed consolidated
statements of operations. The Company adjusts the liability for changes in fair value until the earlier of the exercise or expiration
of the warrants for any period when pricing protections in future equity financings remain in place, or until such time, if any,
as the number of shares to be exercised becomes fixed, at which point the warrants will be classified in stockholders' (deficit)
equity provided that there are sufficient authorized and unissued shares of common stock to settle the warrants and redeem any
other contracts that may require settlement in shares of common stock. Any future change in fair value of the warrant liability,
when outstanding, is recognized in the condensed consolidated statements of operations.
F-
39
NeuroOne Medical Technologies Corporation
Notes to Condensed Consolidated Financial
Statements
(unaudited)
Premium Debt Conversion Derivatives
The Company evaluates all conversion and
redemption features contained in a debt instrument to determine if there are any embedded derivatives that require separation
from the host debt instrument. An embedded derivative that requires separation is bifurcated from its host debt instrument and
a corresponding discount to the host debt instrument is recorded. The discount is amortized and recorded to interest expense over
the term of the host debt instrument using the straight-line method which approximates the effective interest method.  The
separated embedded derivative is accounted for separately on a fair market value basis. The Company records the fair value changes
of a separated embedded derivative at each reporting period in the condensed consolidated statements of operations. The Company
determined that the redemption features under the convertible promissory notes qualified as embedded derivatives and were separated
from their debt hosts.
Income Taxes
For the Company, income taxes are accounted
for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable
to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax base
and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected
to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Deferred
tax assets are reduced by a valuation allowance if it is more likely than not that some portion or all of the deferred tax asset
will not be realized.
Net Loss Per Share
For the Company, basic loss per share
of common stock is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the
period.
Diluted earnings or loss per share of
common stock is computed similarly to basic earnings or loss per share except the weighted average shares outstanding are increased
to include additional shares from the assumed exercise of any common stock equivalents, if dilutive. The Company's convertible
promissory notes, warrants, and stock options while outstanding are considered common stock equivalents for this purpose. Diluted
earnings is computed utilizing the treasury method for the warrants and stock options. Diluted earnings with respect to the convertible
promissory notes utilizing the if-converted method was not applicable during the three month periods ended March 31, 2019 and
2018 as no conditions required for conversion had occurred during these periods. No incremental common stock equivalents were
included in calculating diluted loss per share because such inclusion would be anti-dilutive given the net loss reported for the
three and six month periods ended March 31, 2019 and 2018.
The following potential common shares
were not considered in the computation of diluted net loss per share as their effect would have been anti-dilutive for the three
and six month periods ended March 31, 2019 and 2018:
2019
2018
Warrants
6,448,613
189,750
(1)
Stock options
600,209
365,716
(1)
As
of March 31, 2018, there were additional potential warrants to be included which would be known, if and when a qualified financing
event greater than $3 million or a change of control transaction occurs in the future.
Recent Accounting Pronouncements
In February 2016, the FASB issued ASU
2016-02, Leases (Topic 842) and subsequently amended the guidance relating largely to transition considerations under the standard
in January 2017 and July 2018. The objective of this update is to increase transparency and comparability among organizations
by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements.
This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those annual periods.
The Company plans to adopt the standard on October 1, 2019, and will apply the modified retrospective approach to each lease in
existence at the adoption date to the extent a lease is subject to this guidance. As such, the Company would not restate comparative
periods and would recognize any cumulative adjustment to retained earnings on the date of the adoption. The Company also plans
to elect the package of practical expedients provided under the standard. Based on the Company's assessment to date, the
new standard is not expected to have an impact on the Company's consolidated balance sheets, statements of operations or statements
of cash flows. The finalization of our assessment may result in significant changes to our estimates.
F-
40
NeuroOne Medical Technologies Corporation
Notes to Condensed Consolidated Financial
Statements
(unaudited)
In July 2017, the FASB issued ASU No.
2017-11,
Earnings Per Share, Distinguishing Liabilities from Equity and Derivatives and Hedging
, which changes the accounting
and earnings per share for certain instruments with down round features. The amendments in this ASU should be applied using a
cumulative-effect adjustment as of the beginning of the fiscal year or retrospective adjustment to each period presented and is
effective for annual periods beginning after December 15, 2018 for public business entities, including interim periods within
those fiscal years. Early adoption is permitted. The Company is currently evaluating the requirements of this new guidance and
has not yet determined its impact on the Company's consolidated financial statements.
In June 2018, the FASB issued ASU 2018-07,
Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting
(ASU 2018-07), which
expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees.
An entity should generally apply the requirements of Topic 718 to nonemployee awards except in circumstances where there is specific
guidance on inputs to an option pricing model and the attribution of cost. ASU 2018-07 specifies that Topic 718 applies to all
share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor's own
operations by issuing share-based payment awards. The guidance also clarifies that Topic 718 does not apply to share-based payments
used to effectively provide (1) financing to the issuer or (2) awards granted in conjunction with selling goods or services to
customers as part of a contract accounted for under ASC 606
, Revenue from Contracts with Customers
(ASC 606)
.
This
guidance is effective for annual reporting periods beginning after December 15, 2018, with early adoption permitted, but no earlier
than an entity's adoption date of ASC 606. The Company early adopted ASU 2018-07 effective October 1, 2018. The guidance
did not have an impact to the Company's financial statements.
In August 2018, the FASB issued ASU 2018-13,
Fair
Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement
(ASU
2018-13)
.
The new guidance modifies the disclosure requirements in Topic 820 as follows:
●
Removals: the amount
    of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy; the policy for timing of transfers between
    levels; and the valuation processes for Level 3 fair value measurements.
●
Modifications: for
    investments in certain entities that calculate net asset value, an entity is required to disclose the timing of liquidation
    of an investee's assets and the date when restrictions from redemption might lapse only if the investee has communicated
    the timing to the entity or announced the timing publicly; and the amendments clarify that the measurement uncertainty disclosure
    is to communicate information about the uncertainty in measurement as of the reporting date.
●
Additions: the changes
    in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements
    held at the end of the reporting period; and the range and weighted average of significant unobservable inputs used to develop
    Level 3 fair value measurements.
This guidance is effective for all entities
for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The amendments on changes
in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair
value measurements, and the narrative description of measurement uncertainty should all be applied prospectively for only the
most recent interim or annual period presented in the initial year of adoption. All other amendments should be applied retrospectively
to all periods presented upon their effective date. Early adoption is permitted. An entity is permitted to early adopt any removed
or modified disclosures upon issuance of ASU 2018-13 and delay adoption of the additional disclosures until their effective date.
The Company is currently evaluating the impact of the new guidance on its financial statements.
F-
41
NeuroOne Medical Technologies Corporation
Notes to Condensed Consolidated Financial
Statements
(unaudited)
NOTE
4 – Commitments and Contingencies
Legal
From time to time, the Company is subject
to litigation and claims arising in the ordinary course of business.  In May 2017, NeuroOne received a letter from PMT Corporation
("PMT"), the former employer of Mark Christianson and Wade Fredrickson.  PMT claimed that these officers had
breached their restrictive covenant obligations with PMT by virtue of their work for NeuroOne and such officer's prior work
during employment with the prior employer, that these officers had breached their confidentiality and non-disclosure obligations
to PMT and federal and state law by misappropriating confidential and trade secret information, and that the Company is responsible
for tortious interference with contracts.  The letter demanded that Mr. Fredrickson (who resigned from the Company in June
2017), Mr. Christianson and NeuroOne cease and desist all competitive activities, that Mr. Fredrickson step down from his position
and that Mr. Christianson and NeuroOne provide the former employer access to NeuroOne's systems to demonstrate that it is
not using trade secrets or proprietary information nor competing with the former employer.
On March 29, 2018, the Company was served
with a complaint filed by PMT adding the Company, NeuroOne and Mr. Christianson to its existing lawsuit against Mr. Fredrickson
in the Fourth Judicial District Court of the State of Minnesota. In the lawsuit, PMT claims that Mr. Fredrickson and Mr. Christianson
breached their non-competition, non-solicitation and non-disclosure obligations, breached their fiduciary duty obligations, were
unjustly enriched, engaged in unfair competition, engaged in a civil conspiracy, tortiously interfered with PMT's contracts
and prospective economic advantage, and breached a covenant of good faith and fair dealing.  Against Mr. Fredrickson, PMT
also alleges that he intentionally or negligently spoliated evidence, made negligent or fraudulent misrepresentations, misappropriated
trade secrets in violation of Minnesota law, and committed the tort of conversion and statutory civil theft.  Against the
Company and NeuroOne, PMT alleges that the Company and NeuroOne were unjustly enriched and engaged in unfair competition. 
PMT asked the Court to impose a constructive trust over the shares held by Mr. Fredrickson and Mr. Christianson and to award compensatory
damages, equitable relief, punitive damages, attorneys' fees, costs and interest.
On April 18, 2018, Mr. Christianson, the
Company and NeuroOne, Inc. filed a motion for dismissal, which was heard by the Court on October 11, 2018. The motion for dismissal
states that: the contract claims against Mr. Christianson fail because his agreement was not supported by consideration; the Minnesota
Uniform Trade Secrets Act preempts plaintiff's claims for unfair competition, civil conspiracy and unjust enrichment; plaintiff
fails to state a claim regarding alleged breach of the duties of loyalty and good faith/fair dealing; plaintiff cannot legally
obtain a constructive trust; plaintiff has insufficiently pled its tortious interference claims; and Plaintiff has not stated
a claim for unfair competition. On January 7, 2019, the judge granted the motion for dismissal with respect to PMT's claim
for breach of the duty of good faith and fair dealing, and denied the motion for dismissal with respect to the other claims presented.
The Company, NeuroOne, Inc. and Mr. Christianson (who has not worked for PMT since February 2012) intend to continue to defend
themselves vigorously.
The outcome and potential loss related
to this matter is unknown and as of March 31, 2019 and the date of these condensed consolidated financial statements the
Company has not accrued a reserve for this matter.
Facility Lease
The Company entered into a non-cancellable
facility lease for its operations and headquarters for an eleven month term beginning on December 1, 2018. The monthly rent under
the lease is $4,763. During the three and six months ended March 31, 2019, rent expense associated with the facility lease amounted
to $14,289 and $19,052, respectively.
NOTE
5 – Intangibles
Intangible assets consisted of the following
at March 31, 2019:
Useful Life
Net Intangibles, September 30, 2018
12-13 Years
$
200,081
Less: amortization
(10,622
)
Net Intangibles, March 31, 2019
$
189,459
Amortization expense was $5,311and $4,952
for the three months ended March 31, 2019 and 2018, respectively, and $10,622 and $9,217 for the six months ended March 31, 2019
and 2018, respectively.
F-
42
NeuroOne Medical Technologies Corporation
Notes to Condensed Consolidated Financial
Statements
(unaudited)
NOTE
6 – Accrued Expenses
Accrued expenses consisted of the following
at March 31, 2019 and September 30, 2018:
March 31,
2019
September 30,
2018
License fees
$
—
$
65,000
Legal services
456,777
833,470
Accrued issuance costs
277,338
204,000
Accrued payroll
321,361
276,639
Advances
2,977
—
Other
154,821
211,913
$
1,213,274
$
1,591,022
NOTE
7 – Short-Term Promissory Notes and Unsecured Loan
Short-Term Promissory Notes
The Company issued short-term unsecured
and interest-free promissory notes (the "Short-Term Notes") for aggregate gross proceeds of $253,000 in August 2017
which included free standing equity warrants. The Short-Term Notes were subsequently amended in November 2017 to extend the maturity
date and increase the number of shares of Common Stock issuable upon exercise of the related warrants. The Short-Term Notes were
also amended in March 2018 to become convertible, include new interest payment provisions and new conversion features and to provide
for the issuance of a replacement warrant (the "Replacement Warrant") and an additional warrant (the "Additional
Warrant") described more fully below. During the three and six months ended March 31, 2018, interest on the principal was
$1,124.
Effective July 2, 2018, the Company entered
into debt conversion agreements with each Short-Term Note subscriber to (i) convert the outstanding principal and accrued and
unpaid interest (the "Outstanding Balance") under the Short-Term Notes into shares of the Company's common stock
based on the Outstanding Balance divided by $1.80 per share (the "Short-Term Note Conversion Shares"); (ii) cancel
and extinguish the Short-Term Notes; and (iii) amend and restate the Replacement Warrants and Additional Warrants, as described
more fully below, to make them immediately exercisable upon the conversion, at a per share exercise price equal to $1.80 per share.
As consideration for the early conversion of the Short-Term Notes, the Company issued each subscriber a new warrant (the "Short-Term
Note Payment Warrants"), exercisable for up to the number of shares of common stock equal to the number of Short-Term Note
Conversion Shares received by such subscriber; at a per share exercise price of $1.80 per share. The Short-Term Note Payment Warrants
became exercisable commencing on July 2, 2018, and expire on November 21, 2021.
Prior to the debt conversion agreements,
the November 2017 amendment resulted in a substantial modification to the original Short-Term Notes whereby additional warrant
coverage was added and the maturity date of the Short-Term Notes was extended. The Company recorded the November 2017 Short-Term
Note amendment under the provisions of extinguishment accounting. A loss on note extinguishments in the accompanying condensed
consolidated statements of operations for the six months ended March 31, 2018 was recorded in the amount of $144,577, which represented
the difference between the face value of the Short-Term Notes over the combined carrying values of the Short-Term Notes and warrants
on the date of the amendment. The fair value increase of the Short-Term Notes and the warrants as amended over its adjusted carrying
value at the time of the amendment was $117,280 which was recorded as additional paid-in capital. During the three and six months
ended March 31, 2018, interest related to amortization of discounts associated with the separation of the equity warrants and
issuance costs amounted to zero and $21,627, respectively.
F-
43
NeuroOne Medical Technologies Corporation
Notes to Condensed Consolidated Financial
Statements
(unaudited)
The March 2018 amendment also resulted
in a substantial modification to the Short-Term Notes whereby additional conversion features and warrant coverage were added.
The Company recorded the Short-Term Note amendment under the provisions of extinguishment accounting. A loss on Short-Term Notes
extinguishment in the accompanying condensed consolidated statements of operations for the six months ended March 31, 2018 was
recorded in the amount of $186,220, which represented the difference between the carrying value of the Short-Term Notes over the
combined fair values of the Short-Term Notes, premium conversion derivative, Replacement Warrant and Additional Warrants on the
date of the amendment. The fair value decrease of the Short-Term Notes (inclusive of principal and interest, non-bifurcated embedded
conversion feature and the Additional Warrants) relative to its adjusted carrying value at the time of the amendment was $1,170
which was recorded as a reduction to additional paid-in capital on the accompanying condensed balance sheets.
The March 2018 amendment of the Short-Term
Notes contained a 125% conversion premium in the event that a Short Term Note Qualified Financing occurred at a price under $2.25
per common share. The Company determined that the redemption feature under the Short-Term Notes qualified as an embedded derivative
and was reflected as a liability in the amount of $49,668 at the time of the March 2018 amendment with a corresponding offset
to extinguishment loss described above. Subsequent to the amendment, the embedded derivative was accounted for separately on a
fair market value basis. The Company recorded the fair value changes of the premium debt conversion derivative associated with
the Short-Term Notes in the condensed consolidated statements of operations for an expense of $43 for the three and six months
ended March 31, 2018.
In addition, the March 2018 amendment
provided for the issuance of Replacement Warrants that were deemed to be free-standing instruments and were accounted for as a
liability given the variable number of shares issuable in connection with a possible change of control conversion event. The Company
recorded an initial liability of $137,722 upon issuance of the Replacement Warrants with an offset to extinguishment loss as described
above. The fair value changes of the warrant liability associated with the Short-Term Notes are recorded at each reporting date
in the condensed consolidated statements of operations which amounted to a benefit of $(2,370) for the three and six months ended
March 31, 2018. A Monte Carlo simulation model was used to estimate the aggregate fair value of the Replacement Warrants as of
March 31, 2018. Input assumptions used were as follows: a risk-free interest rate of 2.45%; expected volatility of 50%; expected
life of 3.64 years; and expected dividend yield of 0%. The underlying stock price used in the analysis was on a non-marketable
basis and was according to the market approach, considering both the traded price and forward multiples from guideline public
companies, using allocation and marketability-discount methodologies.
As noted above, the Short-Term Notes were
converted into shares of common stock and were not outstanding during the three and six month period ended March 31, 2019.
Unsecured Loans
In December 2018, the Company received
gross proceeds from an unsecured loan represented by one promissory note in the amount of $100,000 from a stockholder owning over
5% of the Company's common stock. The loan is interest free and requires that the Company repay the principal in full on
the earlier of the closing of an equity round of financing of the Company resulting in more than $5 million in gross proceeds
or December 12, 2019.
In November 2018, the Company received
cash gross proceeds from unsecured loans represented by two promissory notes in the amounts of $45,000 and $100,000 from a stockholder
owning or affiliated with stockholders owning over 5% of the Company's common stock. The loans are interest free and require
that the Company repay the principal in full on the earlier of the closing of an equity round of financing of the Company resulting
in more than $5 million in gross proceeds or November 14, 2019. In the second quarter of 2019, $100,000 of principal was repaid
to one of the promissory note holders.
On May 17, 2018, the Company received
cash proceeds of $168,000 from unsecured loans, represented by two promissory notes from a stockholder owning or affiliated with
stockholders owning over 5% of the Company's common stock. The loans are interest free and require that the Company repay
the principal in full on the earlier to occur of (i) May 17, 2019 or (ii) the closing of an equity round of financing of the Company
that raises more than $5 million in gross proceeds. The loans include customary events of default provisions. In the second quarter
of 2019, $84,000 of principal was repaid to one of the promissory note holders.
On March 20, 2018, the Company received
cash proceeds from an unsecured loan, represented by a promissory note, for $115,000 from a stockholder owning over 5% of the
Company's common stock. The loan was interest free and the Company repaid the principal in full in the second quarter of
2019 as required on the earlier to occur of (i) March 20, 2019 or (ii) the closing of an equity round of financing of the Company
that raises more than $3 million in gross proceeds. The loan included customary events of default provisions.
F-
44
NeuroOne Medical Technologies Corporation
Notes to Condensed Consolidated Financial
Statements
(unaudited)
NOTE
8 – Convertible Promissory Notes and Warrant Agreements
As of March 31,
2019
As of
September 30,
2018
2017 convertible promissory notes, net of discounts
$
—
$
1,306,776
Accrued interest
—
87,028
$
—
$
1,393,804
2016 Convertible Promissory Notes
From November 2016 to June 2017, the Company
issued convertible promissory notes (the "Convertible Notes") in an aggregate principal amount of $1,625,120 and common
stock purchase warrants (the "Warrants") and entered into subscription agreements with subscribers. The Company amended
the Convertible Notes in December 2016 and November 2017 and the Warrants in June 2017 and November 2017 to, among other things,
change the terms of the underlying Warrants that included the removal of down round pricing protection.
On July 2, 2018, the Company entered into
debt conversion agreements with each Convertible Note subscriber to (i) convert the Outstanding Balance under the Convertible
Notes into shares of the Company's common stock based on the Outstanding Balance divided by $1.80 per share (the "2016
Note Conversion Shares"); (ii) cancel and extinguish the Convertible Notes; and (iii) amend and restate the Warrants to
make them immediately exercisable upon the conversion, at a per share exercise price equal to $1.80 per share. As consideration
for the early conversion of the Convertible Notes, the Company issued each subscriber an additional new warrant (the "2016
Note Payment Warrants"), exercisable for up to the number of shares of common stock equal to the number of 2016 Note Conversion
Shares received by such subscriber; at a per share exercise price of $1.80 per share. The 2016 Note Payment Warrants became exercisable
commencing on July 2, 2018 and expire on November 21, 2021.
The November 2017 amendment to the notes
resulted in a substantial modification to the original Convertible Notes whereby the maturity date was extended and the terms
associated with the Warrants were revised. The Company recorded the Convertible Note amendment under the provisions of extinguishment
accounting. The fair value of the underlying Convertible Notes was $97,223 lower than the carrying value of the Convertible Notes
on the date of the modification. The $97,223 difference was recorded as a discount to the debt with a gain on convertible note
extinguishments in the accompanying condensed consolidated statements of operations for the six months ended March 31, 2018.
During the three and six months ended
March 31, 2018, interest on the principal was $32,502 and $65,005, respectively, and interest related to amortization of discounts
related to the bifurcation of premium derivative liability, separation of warrants, revaluation discounts and issuance costs amounted
to $34,585 and $296,333, respectively. The fair value changes related to the underlying premium conversion derivative amounted
to an expense of $2,666 and a benefit of ($105,976) during the three and six month periods ended March 31, 2018, respectively.
The fair value changes relating to the warrant liability amounted to a benefit of ($130,976) and an expense of $141,083 during
the three and six month periods ended March 31, 2018, respectively.
As noted above, the Convertible Notes
were converted into shares of common stock and were not outstanding during the three and six month periods ended March 31, 2019.
F-
45
NeuroOne Medical Technologies Corporation
Notes to Condensed Consolidated Financial
Statements
(unaudited)
2017 Convertible Notes
From October 2017 to May 2018, the Company
issued convertible notes (the "2017 Convertible Notes") in an aggregate principal amount of $1,540,000 that bear interest
at a fixed rate of 8% per annum and warrants to purchase shares of the Company's capital stock (the "New Warrants").
During the three and six months ended March 31, 2019, interest on the principal was $20,534 and $51,333, respectively, and $20,489
and $27,494 during the three and six months ended March 31, 2018, respectively.
The Company initially entered into a subscription
agreement with certain accredited investors and closed the initial private placement of the 2017 Convertible Notes in October
2017. In December 2017, the Company and holders of a majority in aggregate principal amount of the 2017 Convertible Notes entered
into an amended and restated subscription agreement to amend the terms of the 2017 Convertible Notes and New Warrants. On December
31, 2018, the 2017 Convertible Notes were amended again to extend the maturity date from December 31, 2018 to June 30, 2019. The
amendment was accounted for as a troubled debt restructuring given the Company's financial condition and given the concession
granted by the lenders with regards to pushing out the maturity date to June 30, 2019 with no corresponding compensation paid
for the extension. The future undiscounted cash flows of the 2017 Convertible Notes as amended exceeded their carrying value as
of December 31, 2018. As such, no gain was recognized on December 31, 2018 and no adjustments were made to the 2017 Convertible
Note carrying value.
The 2017 Convertible Notes required the
Company to repay the principal and accrued and unpaid interest thereon on June 30, 2019 (the "2017 Convertible Notes Maturity
Date"). If the Company consummated an equity round of financing resulting in more than $3 million in gross proceeds before
June 30, 2019 (the "2017 Convertible Notes Qualified Financing"), the outstanding principal and accrued and unpaid
interest on the 2017 Convertible Notes would have automatically converted into the securities issued by the Company in the 2017
Convertible Notes Qualified Financing equal to the outstanding principal and accrued interest on the 2017 Convertible Notes divided
by 80% of the price per share of the securities issued by the Company in the 2017 Convertible Notes Qualified Financing. The New
Warrants also become exercisable upon a 2017 Convertible Notes Qualified Financing for an amount of shares equal to the number
of shares received by the holder in the 2017 Convertible Notes Qualified Financing at the same price per share of the securities
issued in the 2017 Convertible Notes Qualified Financing.
Prior to the December 2017 amendment,
if the Company had raised more than $3,000,000 in an equity financing before October 4, 2022, the outstanding principal and accrued
and unpaid interest on the 2017 Convertible Notes would have automatically converted into the securities issued by the Company
in such financing based on the greater number of such securities resulting from either (i) the outstanding principal and accrued
interest on the 2017 Convertible Notes divided by $2.25 or (ii) the outstanding principal and accrued interest on the 2017 Convertible
Notes multiplied by 1.25, divided by the price paid per security in such financing. The New Warrants would have also become exercisable
in conjunction with the 2017 Convertible Notes Qualified Financing.
Lastly, if a change of control transaction
occurred prior to the earlier of a 2017 Convertible Notes Qualified Financing or the 2017 Convertible Notes Maturity Date, the
2017 Convertible Notes would have, at the election of the holders of a majority of the outstanding principal of the 2017 Convertible
Notes, either become payable on demand as of the closing date of such transaction, or become convertible into shares of common
stock immediately prior to such transaction at a price per share equal to the lesser of (i) the per share value of the common
stock as determined by the Board as if in connection with the granting of stock based compensation or in a private sale to a third
party in an arms-length transaction or (ii) at the per share consideration to be paid in such transaction. Change of control means
a merger or consolidation with another entity in which the Company's stockholders do not own more than 50% of the outstanding
voting power of the surviving entity or the disposition of all or substantially all of the Company's assets. The New Warrants
would have also become exercisable upon a change of control transaction for an amount of shares equal to the number of shares
received by the holder upon conversion in connection with such transaction at the same price per share that the 2017 Convertible
Notes converted in the change of control transaction.
The December 2017 amendment resulted in
a substantial modification to the original 2017 Convertible Notes whereby the maturity date was moved up to December 2018 from
October 2022 and the terms associated with the embedded features were revised as described above. The Company recorded the 2017
Convertible Note amendment under the provisions of extinguishment accounting. The fair value of the underlying Convertible Notes
was $294,615 higher than the carrying value of the Convertible Notes net of unamortized debt discount on the date of the modification.
The $294,615 difference as well as legal costs associated with the amendment in the amount of $8,945 were recorded as a loss on
convertible notes extinguishment totaling $303,560 in the accompanying condensed consolidated statements of operations for the
six months ended March 31, 2018. After the modification, there remained a debt discount of $27,371 of which zero and $6,575 was
amortized during the three and six months ended March 31, 2019, respectively, and $6,432 and $7,718 during the three and six months
ended March 31, 2018, respectively.
F-
46
NeuroOne Medical Technologies Corporation
Notes to Condensed Consolidated Financial
Statements
(unaudited)
The 2017 Convertible Notes contained a
conversion discount in the event of a 2017 Convertible Notes Qualified Financing to equal the outstanding principal and accrued
interest on the 2017 Convertible Notes divided by 80% of the price per share of the securities issued by the Company in the 2017
Convertible Notes Qualified Financing. The embedded feature qualified as an embedded derivative and was separated from its debt
host. The bifurcation of the embedded derivative from its debt host resulted in a discount to the 2017 Convertible Notes in the
amount of $91,298 and $219,823 for the convertible debt issued during the three and six months ended March 31, 2018, respectively;
there were no issuances of 2017 Convertible Notes during the three and six months ended March 31, 2019. The discount was being
amortized to interest expense over the term of the 2017 Convertible Notes through December 31, 2018 using the straight-line method
which approximates the effective interest method. The amortization expense was zero and $62,158 for the three and six months ended
March 31, 2019, respectively, and $27,021 and $30,836 for the three and six months ended March 31, 2018, respectively. The embedded
derivative is accounted for separately on a fair market value basis. The Company recorded the fair value changes of the premium
debt conversion derivative associated with all of the 2017 Convertible Notes in the condensed consolidated statements of operations
which amounted to an expense of $104,930 and $111,195 for the three and six months ended March 31, 2019, respectively, and $1,323
and $1,790 for the three and six months ended March 31, 2018, respectively.
The New Warrants were deemed to be free-standing
instruments and were accounted initially as a liability given the variable number of shares issuable in connection with a change
of control conversion event and ultimately as equity upon conversion of the 2017 Convertible Notes on February 28, 2019 discussed
further below. A Monte Carlo simulation model was used to estimate the aggregate fair value of the New Warrants up to the conversion
date of the 2017 Convertible Notes. Input assumptions used were as follows: risk-free interest rate of 2.52% and 2.94% as of February
28, 2019 and September 30, 2018, respectively; expected volatility of 50% as of February 28, 2019 and September 30, 2018; expected
life of 5.0 and 5.21 years as of February 28, 2019 and September 30, 2018, respectively; and expected dividend yield of 0% as
of February 28, 2019 and September 30, 2018. The underlying stock price used in the analysis was on a non-marketable basis and
was according to the market approach, considering the traded price, forward multiples from guideline public companies and recent
private placement transactions, using allocation and marketability-discount methodologies. The 2017 Convertible Note proceeds
assigned to the New Warrants were $238,864 and $575,435 during the three and six month period ended March 31, 2018, respectively,
and recorded as a warrant liability. There were no proceeds assigned to warrants in connection with issuances of 2017 Convertible
Notes during the three and six month period ended March 31, 2019. The discount was amortized to interest expense over the term
of the 2017 Convertible Notes through December 31, 2018 using the straight-line method which approximated the effective interest
method. The amortization expense was zero and $163,060 for the three and six month periods ended March 31, 2019, respectively,
and $70,505 and $80,477 for the three and six month periods ended March 31, 2018, respectively. The Company also recorded the
fair value changes of the warrant liability associated with all of the 2017 Convertible Notes in the condensed consolidated
statements of operations which amounted to an expense of $11,879 and $18,568 for the three and six months ended March 31, 2019,
respectively, and amounted to an expense of $9,354 and $8,017 for the three and six months ended March 31, 2018, respectively.
In connection with the 2017 Convertible
Notes, the Company incurred original issuance costs in the amount of $8,133 which consisted of legal costs and were recorded as
issuance cost discounts to the 2017 Convertible Notes, of which zero and $1,431 was amortized to interest expense during the three
and six months ended March 31, 2019, respectively, and $376 and $533 was amortized to interest expense during the three and six
months ended March 31, 2018, respectively.
On February 28, 2019 following the 2017
Convertible Notes Qualified Financing, the outstanding principal and interest on the 2017 Convertible Notes were converted into
839,179 shares of common stock and 839,179 common stock purchase warrants with an exercise term of approximately 4.8 years and
an exercise price $3.00 per share. The conversion was accounted for as a debt extinguishment given the bifurcation of the embedded
premium debt conversion feature. The fair value of the newly issued common shares and warrants associated with the 2017 Convertible
Notes conversion relative to the carrying value of the debt and fair value of warrant liability and premium derivative liability
on the conversion date was $553,447 and was recorded as a loss on note extinguishments in the accompanying condensed consolidated
statements of operations for the three and six months ended March 31, 2019. In addition, the previously issued New Warrants became
immediately exercisable for 839,179 shares of common stock.
F-
47
NeuroOne Medical Technologies Corporation
Notes to Condensed Consolidated Financial
Statements
(unaudited)
NOTE
9 – Defined Contribution Plan
The Company adopted a 401(k) defined contribution
plan (the "401K Plan") on January 1, 2017, which was amended and restated on March 1, 2018 (the "Restatement"),
for all employees over age 21. Employees can defer up to 100% of their compensation through payroll withholdings into the 401K
Plan subject to federal law limits. The Company began matching in the fourth quarter of 2017 on deferrals at 100% of deferrals
up to 3% of one's contributions and 50% on deferrals over 3%, but not exceeding 5% of one's contributions up through
the Restatement. The Company's matching contributions to employee deferrals became discretionary after the Restatement.
The Company may also make discretionary profit sharing contributions under the 401K Plan in the future, but it has not done so
through March 31, 2019.
Employee contributions and any employer
matching contributions made to satisfy certain non-discrimination tests required by the Internal Revenue Code are 100% vested
upon contribution. Discretionary employer matches to employee deferrals vest over a six year period beginning on the second anniversary
of an employee's date of hire. Discretionary profit sharing contributions vest over a five year period beginning on the
first anniversary of an employee's date of hire. The amount of matching contributions made during the three and six month
periods ended March 31, 2019 was zero and a benefit reduction of $(4,359), respectively. The amount of matching contributions
made during the three and six month periods ended March 31, 2018 was zero and $27,000, respectively.
NOTE
10 – Stock-Based Compensation
Share-based compensation expense was included in general and
administrative and research and development expenses as follows in the accompanying condensed consolidated statements of operations:
Three Months Ended
Six Months Ended
March 31,
March 31,
2019
2018
2019
2018
General and administrative
$
26,105
$
252,000
$
141,105
$
252,000
Research and development
44,112
2,437
48,092
2,437
Total share-based compensation
$
70,217
$
254,437
$
189,197
$
254,437
Stock Options
During the three and six month period
ended March 31, 2019, under the 2017 Equity Incentive Plan (the "2017 Plan"), the Company granted 150,548 and 325,548
stock options to its employees, consultants and scientific advisory board members where vesting commences upon grant ranging over
a 36 to 48 month period based on a time of service vesting condition. The grant date fair value of grants was $1.11 and $1.12
per share during the three and six month periods ending March 31, 2019, respectively. There were no stock options granted during
the three and six month periods ending March 31, 2018.
F-
48
NeuroOne Medical Technologies Corporation
Notes to Condensed Consolidated Financial
Statements
(unaudited)
The weighted-average assumptions used
in the Black-Scholes option-pricing model are as follows for the stock options granted during the three and six month periods
ended March 31, 2019:
Three
Months
Six
Months
Ended
Ended
Expected stock price volatility
50.7
%
50.2
%
Expected life of options (years)
6.0
5.9
Expected dividend yield
0
%
0
%
Risk free interest rate
2.6
%
2.7
%
See other stock-based awards section below
for stock-based award grants committed, but not formally issued as of March 31, 2019.
During the three and six months ended
March 31, 2019, 39,675 stock options vested and during the three and six months ended March 31, 2018, no stock options vested.
During the three and six months ended March 31, 2019 and 2018, 93,555 and zero stock options were exercised, respectively. No
stock options were forfeited during the three and six months ended March 31, 2019 and 2018.
Evergreen provision
Under the 2017 Plan, the shares reserved
automatically increase on January 1st of each year, for a period of not more than ten years from the date the 2017 Plan is
approved by the stockholders of the Company, commencing on January 1, 2019 and ending on (and including) January 1, 2027, to
an amount equal to 13% of the fully-diluted shares outstanding as of December 31st of the preceding calendar year. Notwithstanding
the foregoing, the Board may act prior to January 1st of a given year to provide that there will be no January 1st increase in
the share reserve for such year or that the increase in the share reserve for such year will be a lesser number of shares of common
stock than would otherwise occur pursuant to the preceding sentence. "Fully Diluted Shares" as of a date means an
amount equal to the number of shares of common stock (i) outstanding and (ii) issuable upon exercise, conversion or settlement
of outstanding Awards under the 2017 Plan and any other outstanding options, warrants or other securities of the Company that
are (directly or indirectly) convertible or exchangeable into or exercisable for shares of common stock, in each case as of the
close of business of the Company on December 31 of the preceding calendar year. On January 1, 2019, 498,848 shares were added
to 2017 Plan as a result of the evergreen provision.
As of March 31, 2019, 1,881,896 shares
were available for future issuance on a combined basis under the 2016 Equity Incentive Plan and 2017 Plan. Unrecognized stock-based
compensation was $319,234 as of March 31, 2019. The unrecognized share-based expense is expected to be recognized over a weighted
average period of 3.2 years.
Other Stock-Based Awards
250,000 shares of common stock were reserved
in February 2018 as a result of a consulting agreement for investor relations services executed in February 2018. Under the agreement,
50,000 and 100,000 shares of common stock were awarded during the six month periods ended March 31, 2019 and 2018, respectively,
subject to time-based vesting conditions. The compensation expense related to the vested common shares was included in the total
stock-based services expense referenced above which totaled $115,000 and $252,000 for the six month periods ended March 31, 2019
and 2018, respectively. The expense was based on the fair value of the underlying common stock at the point of vesting which was
$2.30 and $2.52 per share during the six month periods ending March 31, 2019 and 2018, respectively. The underlying stock price
used in the analysis was on a non-marketable basis and was according to the market approach, considering both the traded price
and forward multiples from guideline public companies, using allocation and marketability-discount methodologies. As of November
2018, all shares under the February 2018 share reserve were issued from the Company's authorized but unissued shares, but
were not eligible to be issued under the 2016 Plan or 2017 Plan reserves.
As of March 31, 2019, the Company had
formal obligations to issue future common stock options relating to several consulting agreements. The estimated liability associated
with the vested portions of these awards was recorded in accrued expenses in the accompanying condensed consolidated balance sheets
as of March 31, 2019. The corresponding stock-based services expense related to the stock-based award liabilities amounted to
$23,563 and $27,543 during the three and six month periods ended March 31, 2019, respectively, and was included in research and
development expense in the accompanying condensed consolidated statements of operations. The corresponding stock-based services
expense relating to the stock-based award liabilities amounted to $2,437 during the three and six month periods ended March 31,
2018 and was included in research and development expense in the accompanying condensed consolidated statements of operations.
F-
49
NeuroOne Medical Technologies Corporation
Notes to Condensed Consolidated Financial
Statements
(unaudited)
The number of option shares and pricing
under the consulting agreement will not be set until the occurrence of the award date which is defined as the earlier to occur
of a public offering, qualified financing, or June 30, 2019. The number of option shares under the agreement is based on a $3,000
monthly compensation amount divided by the fair value of the underlying common stock on the award date. The exercise price will
also be set at the fair value of the underlying common stock on the award date. The liability associated with the unissued options
was based on an option share equivalent estimate that reflects the portion of the award where performance vesting conditions have
been met as of March 31, 2019 and was based on the fair value of the Company's common stock on March 31, 2019 as the award
date has not occurred. The common stock fair value on March 31, 2019 was $2.38 per share and was determined based on a non-marketable
basis and was according to the market approach, considering the traded price, forward multiples from guideline public companies
and recent private placement transactions, using allocation and marketability-discount methodologies. The total accrued liability
for this award at March 31, 2019 was $38,696.
The weighted-average assumptions used
in the Black-Scholes option-pricing model are as follows for the stock- option liability outstanding as of March 31, 2019:
2018
Expected stock price volatility
50.7
%
Expected life of options (years)
5
Expected dividend yield
0
%
Risk free interest rate
2.2
%
Upon the issuance of all of the unissued
options associated with the stock-based award liabilities, the estimated number of shares available for future issuance as of
March 31, 2019 would be reduced from 1,881,896 shares to 1,846,602 shares as a result of the potential stock option issuance under
the second consulting agreement.
NOTE
11 – Income Taxes
The effective tax rate for the three and
six months ended March 31, 2019 and 2018 was zero percent. As a result of the analysis of all available evidence as of March
31, 2019 and September 30, 2018, the Company recorded a full valuation allowance on its net deferred tax assets. Consequently,
the Company reported no income tax benefit during the three and six months ended March 31, 2019 and 2018.
If the Company's assumptions change and the Company believes that it will be able to realize these deferred tax assets,
the tax benefits relating to any reversal of the valuation allowance on deferred tax assets will be recognized as a reduction
of future income tax expense.  If the assumptions do not change, each period the Company could record an additional
valuation allowance on any increases in the deferred tax assets.
NOTE
12 – Stockholders' Equity (Deficit)
2018 Private Placement
From July 9, 2018 through November 30,
2018 (the final closing), the Company entered into subscription agreements (each, a "Purchase Agreement") with certain
accredited investors (the "Purchasers"), pursuant to which the Company, in a private placement (the "2018 Private
Placement"), agreed to issue and sell to the Purchasers units (each, a "Unit"), each consisting of (i) 1 share
(each, a "Share") of common stock and (ii) a warrant to purchase 1 share of common stock at an initial exercise price
of $3.00 per share (the "2018 Warrants"). The initial closing of the 2018 Private Placement was consummated on July
9, 2018. As of the termination of the 2018 Private Placement on December 12, 2018, the Company had issued and sold an aggregate
of 615,200 Units at a price of $2.50 per Unit to the Purchasers, for total gross proceeds to the Company of $1,538,000 before
deducting offering expenses (zero and 170,000 Units were sold during the three and six months ended March 31, 2019, respectively).
F-
50
NeuroOne Medical Technologies Corporation
Notes to Condensed Consolidated Financial
Statements
(unaudited)
Under the Purchase Agreement, the Company
agreed to use the net proceeds from the 2018 Private Placement to pay the outstanding principal and accrued interest on its 2017
Convertible Notes if such notes did not convert prior to maturity, to pay the principal on its unsecured term loans, for research
and development, clinical studies, legal fees and sales and marketing expenses, as well as working capital and general corporate
purposes. The Company granted the Purchasers indemnification rights with respect to its representations, warranties and agreements
under the Purchase Agreement.
The 2018 Warrants are exercisable
beginning on the date of issuance and will expire on July 9, 2023, five years from the date of the first closing. The 2018
Warrants were accounted for as free standing equity instruments and classified as additional paid-in capital in the
accompanying condensed consolidated balance sheets based on their relative fair value to the underlying common shares issued.
The relative fair value of the 2018 Warrants issued during the six month period ended March 31, 2019 was $115,674 and was
based on the Black-Scholes pricing model. Input assumptions used were as follows on a weighted average basis: a risk-free
interest rate of 2.9%; expected volatility of 49.8%; expected life of 4.6 years; and expected dividend yield of 0%. The
underlying stock price used in the analysis was on a non-marketable basis and was according to the market approach,
considering both the traded price and forward multiples from guideline public companies, using allocation and
marketability-discount methodologies.
In February 2019, the Company amended
its engagement letter with one of its placement agents in the 2018 Private Placement, HRA Capital ("HRA"), acting
through its affiliate, Corinthian Partners, LLC, each of which are affiliates of one of the Company's greater than 5% stockholders.
Pursuant to the original agreement (prior to the amendment), the Company agreed to pay HRA 10% of the gross proceeds (the "HRA
Fee") received by the Company in subsequent private placement transactions from investors with whom HRA or Corinthian Partners,
LLC had material contact with for purposes of the engagement letter (the "Prospects"), provided such compensation
would only be paid in connection with private placement transactions that closed within 12 months of the expiration of the engagement
letter (the "Tail Period"). The Company agreed to issue to HRA warrants to purchase shares of Common Stock (or common
stock equivalents) in an amount equal to 10% of the shares purchased by Prospects during the Tail Period ("HRA Warrants").
In February 2019, the Company and HRA
agreed (i) to extend the Tail Period until June 30, 2019, (ii) to modify the HRA Fee so that HRA is entitled to receive a cash
fee equal to 8% of the gross proceeds received by the Company from Prospects in all subsequent private placement transactions
and (iii) to modify the HRA Warrants so that they are exercisable to purchase shares of Common Stock (or common stock equivalents)
in an amount equal to 8% of the shares of Common Stock purchased by Prospects in subsequent private placements (collectively,
the "HRA Amendments"). Upon issuance, the HRA Warrants will be immediately exercisable and expire five years from
the closing of the related transaction.
In connection with the 2018 Private Placement,
the Company recorded issuance costs in the amount of a credit of $(24,029) during the three months ended March 31, 2019 stemming
largely from the February 2019 HRA commission structure change, and an expense of $35,665 during the six month period ended March
31, 2019. The issuance costs included commissions to the brokers equal to 8% of the gross proceeds from the sale of the Units
that qualify for the commission which amounted to $17,240. In addition to the brokers' commission, the issuance costs included
the estimated value of the 5-year warrants to be issued to the brokers to purchase an amount of common stock equal to 8% of the
total amount of qualifying Shares sold in the 2018 Private Placement at an exercise price of $3.00 per share upon the close of
the 2018 Private Placement. A commission liability increase in the amount of $11,085 was recorded during the six month period
ended March 31, 2019 related to the 40,416 broker warrants issuable upon the close of the 2018 Private Placement. Lastly, third
party legal costs in the amount $7,340 comprised the balance of the issuance costs incurred during the six months ended March
31, 2019.
In connection with the 2018 Private Placement,
the Company entered into registration rights agreements with each of the Purchasers pursuant to which the Company agreed to file
a registration statement with the SEC covering the resale of the shares of common stock sold in the 2018 Private Placement and
the shares of common stock issuable upon exercise of the 2018 Warrants. The Company agreed to file such registration statement
within 75 days of the final closing of the 2018 Private Placement. Each registration rights agreement included customary indemnification
rights in connection with the registration statement.
F-
51
NeuroOne Medical Technologies Corporation
Notes to Condensed Consolidated Financial
Statements
(unaudited)
2019 Private Placement
On December 12, 2018, the Board of Directors
of the Company terminated the 2018 Private Placement. From December 28, 2018 through March 31, 2019, the Company entered into
Subscription Agreements (each, a "2019 Purchase Agreement") with certain accredited investors (the "New Purchasers"),
pursuant to which the Company, in a new private placement (the "2019 Private Placement"), agreed to issue and sell
Units (the "2019 Units"), each consisting of (i) 1 share of common stock and (ii) a warrant to purchase 1 share of
common stock at an initial exercise price of $3.00 per share (the "2019 Warrants"), to the New Purchasers. The initial
closing of the 2019 Private Placement was consummated on December 28, 2018. The Company issued and sold an aggregate of 1,903,979
Units at $2.50 per Unit to the New Purchasers, for total gross proceeds to the Company of approximately $4,759,948 before deducting
offering expenses from December 28, 2018 through March 31, 2019 (1,743,979 and 1,903,979 Units were sold during the three and
six months ended March 31, 2019, respectively).
In connection with the 2019 Private Placement, the Company
has agreed to issue and sell to accredited investors up to a maximum of 4,000,000 2019 Units (the "Maximum Offering")
at a price of $2.50 per 2019 Unit for total gross proceeds to the Company of up to $10,000,000. The Maximum Offering may be increased
by the Company in its sole discretion, without notice. If the Company issues the Maximum Offering amount, 4,000,000 shares of
common stock would be issuable upon exercise of the 2019 Warrants. Under the 2019 Purchase Agreement, the Company has agreed to
use the net proceeds from the 2019 Private Placement to pay the outstanding principal and accrued interest on its convertible
promissory notes if such notes do not convert prior to maturity, to pay the principal on its unsecured term loans, for research
and development, clinical studies, legal fees and sales and marketing expenses, as well as working capital and general corporate
purposes. The Company has granted the New Purchasers indemnification rights with respect to its representations, warranties and
agreements under the 2019 Purchase Agreement.
The 2019 Warrants are exercisable beginning on the date of issuance and will expire on December 28, 2023,
five years from the date of the first closing of the 2019 Private Placement. Prior to expiration, subject to the terms and conditions
set forth in the 2019 Warrants, the holders may exercise the 2019 Warrants for shares of common stock by providing notice to the
Company and paying the $3.00 per share exercise price for each share so exercised. The relative fair value of the 2019 Warrants
issued during the three and six month period ended March 31, 2019 was $1,193,564 and $1,301,241, respectively, and was based on
the Black-Scholes pricing model. Input assumptions used were on a weighted average basis as follows: a risk-free interest rate
of 2.5%; expected volatility of 50.6%; expected life of 4.8 years; and expected dividend yield of 0%. The underlying stock price
used in the analysis was on a non-marketable basis and was according to the market approach, considering traded price, forward
multiples from guideline public companies and recent private placement transactions, using allocation and marketability-discount
methodologies.
In connection with the 2019 Private Placement,
Paulson Investment Company, LLC ("Paulson") will receive a cash commission equal to 12% of the gross proceeds from
the sale of the 2019 Units sold by Paulson. In addition to the brokers' commission, the Company will issue 5-year warrants
to Paulson to purchase an amount of Common Stock equal to 10% of the total amount of Shares sold in the 2019 Private Placement
at an exercise price of $2.75 per share. HRA will receive a cash commission equal to 8% of the gross proceeds from the sale of
the 2019 Units sold by HRA. In addition to the brokers' commission, the Company will issue 5-year warrants to HRA to purchase
an amount of Common Stock equal to 8% of the total amount of Shares sold by HRA in the 2019 Private Placement at an exercise price
of $3.00 per share.
The issuance costs incurred during the
three and six month period ending March 31, 2019 under the 2019 Private Placement were $722,806 and $812,428, respectively. Issuance
costs incurred through March 31, 2019 included cash commissions equal to $561,294 and third party legal costs in the amount of
$71,491. In addition, issuance costs included the estimated value of the 5-year warrants in the amount of $179,643 to be issued
to the brokers to purchase an amount of common stock equal to 180,658 shares.
F-
52
NeuroOne Medical Technologies Corporation
Notes to Condensed Consolidated Financial
Statements
(unaudited)
Warrant Activity and Summary
The following table summarizes warrant
activity during the six month period ended March 31, 2019:
Exercise
Price
Weighted Average
Warrants
Per
Warrant
Exercise
Price
Outstanding and exercisable at September 30, 2018
2,927,572
$
1.80 - 3.00
$
1.98
Issued
3,752,337
$
2.50-3.00
$
2.89
Exercised
(231,296
)
$
1.80
$
1.80
Forfeited
—
$
—
$
—
Outstanding and exercisable at March 31, 2019
6,448,613
$
1.80 - $3.00
$
2.52
As of March 31, 2019, 221,074 warrants
were committed to be issued in connection with 2018 Private Placement and 2019 Private Placement at an exercise price ranging
from $2.75 to $3.00 per share.
NOTE
13 – Subsequent Events
2019 Private Placement –
Subsequent Issuances
The Company issued 2019 Units for aggregate
gross proceeds of $453,000 from April 5, 2019 through May 3, 2019.  See Note 12 – Stockholders Equity (Deficit)
for more information on the 2019 Units.
Unsecured Loans
In April 2019 and May 2019, the Company
paid $79,000 and $75,000, respectively, to the holder of its remaining promissory notes. In May 2019, the Company entered into
a letter agreement acknowledging that all of the unsecured loans from such holder were repaid in full, except for $75,000 that
remains outstanding under the December 2018 promissory note. The Letter Agreement also modified the maturity date of the December
promissory note to June 30, 2019. See "Note 7 – Short-Term Promissory Notes and Unsecured Loan –Unsecured Loans" for
a description of the unsecured loans.
F-
53
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
Item 13. Other Expenses of Issuance and Distribution.
The following table sets forth all
costs and expenses, other than underwriting discounts and commissions, payable by NeuroOne Medical Technologies Corporation
(the "Company"), or the Registrant, in connection with the sale of the common stock being registered. The selling
stockholders will not bear any portion of such expenses. All amounts shown are estimates except for the SEC registration
fee.
Nature of Expense
Amount
SEC registration fee
$
3,530
Accounting fees and expenses
15,000
Legal fees and expenses
40,000
Transfer agent's fees and expenses
1,000
Printing and related fees
2,500
Miscellaneous
10,000
Total
$
72,030
Item 14. Indemnification of Directors and Officers.
The Company is incorporated under the laws
of the State of Delaware. Section 145 of the Delaware General Corporation Law provides that a Delaware corporation may indemnify
any persons who were, are, or are threatened to be made, parties to any threatened, pending or completed action, suit or proceeding,
whether civil, criminal, administrative or investigative (other than an action by or in the right of such corporation), by reason
of the fact that such person is or was an officer, director, employee or agent of such corporation, or is or was serving at the
request of such corporation as an officer, director, employee or agent of another corporation or enterprise. The indemnity may
include expenses (including attorneys' fees), judgments, fines and amounts paid in settlement actually and reasonably incurred
by such person in connection with such action, suit or proceeding, provided that such person acted in good faith and in a manner
he or she reasonably believed to be in or not opposed to the corporation's best interests and, with respect to any criminal
action or proceeding, had no reasonable cause to believe that his or her conduct was illegal. A Delaware corporation may indemnify
any persons who were, are, or are threatened to be made, a party to any threatened, pending or completed action or suit by or in
the right of the corporation by reason of the fact that such person is or was a director, officer, employee or agent of such corporation,
or is or was serving at the request of such corporation as a director, officer, employee or agent of another corporation or enterprise.
The indemnity may include expenses (including attorneys' fees) actually and reasonably incurred by such person in connection
with the defense or settlement of such action or suit provided such person acted in good faith and in a manner he or she reasonably
believed to be in or not opposed to the corporation's best interests except that no indemnification is permitted without
judicial approval if the officer or director is adjudged to be liable to the corporation. Where an officer or director is successful
on the merits or otherwise in the defense of any action referred to above, the corporation must indemnify him or her against the
expenses (including attorneys' fees) actually and reasonably incurred.
The Company's certificate of incorporation
provides for the indemnification of its directors to the fullest extent permitted under the Delaware General Corporation Law. The
Company's bylaws provide for the indemnification of its directors and officers to the fullest extent permitted under the
Delaware General Corporation Law.
Section 102(b)(7) of the Delaware General
Corporation Law permits a corporation to provide in its certificate of incorporation that a director of the corporation shall not
be personally liable to the corporation or its stockholders for monetary damages for breach of fiduciary duties as a director,
except for liability for any:
●
transaction from which the director derives an improper personal benefit;
●
act or omission not in good faith or that involves intentional misconduct or a knowing violation
of law;
●
unlawful payment of dividends or redemption of shares; or
●
breach of a director's duty of loyalty to the corporation or its stockholders.
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1
The Company's certificate of incorporation
includes such a provision. Under the Company's bylaws, expenses incurred by any director or officers in defending any such
action, suit or proceeding in advance of its final disposition shall be paid by the Company upon delivery to it of an undertaking,
by or on behalf of such director or officer, to repay all amounts so advanced if it shall ultimately be determined that such director
or officer is not entitled to be indemnified by the Company, as long as such undertaking remains required by the Delaware General
Corporation Law.
Section 174 of the Delaware General Corporation
Law provides, among other things, that a director who willfully or negligently approves of an unlawful payment of dividends or
an unlawful stock purchase or redemption, may be held liable for such actions. A director who was either absent when the unlawful
actions were approved or dissented at the time may avoid liability by causing his or her dissent to such actions to be entered
in the books containing minutes of the meetings of the board of directors at the time such action occurred or immediately after
such absent director receives notice of the unlawful acts.
As permitted by the Delaware General Corporation
Law, we have entered into indemnity agreements with each of our directors and executive officers, that require us to indemnify
such persons against any and all expenses (including reasonable attorneys' fees), witness fees, damages, judgments, fines,
settlements and other amounts incurred (including expenses of a derivative action) in connection with any action, suit or proceeding,
whether actual or threatened, to which any such person may be made a party by reason of the fact that such person is or was a director,
an officer or an employee of the Company or any of its affiliated enterprises, provided that such person acted in good faith and
in a manner such person reasonably believed to be in or not opposed to our best interests and, with respect to any criminal proceeding,
had no reasonable cause to believe his or her conduct was unlawful. The indemnification agreements also set forth certain procedures
that will apply in the event of a claim for indemnification thereunder.
There is at present no pending litigation
or proceeding involving any of the Registrant's directors or executive officers as to which indemnification is required or
permitted, and the Company is not aware of any threatened litigation or proceeding that may result in a claim for indemnification,
other than the letter received by the Company in May 2017 from the former employer of Mark Christianson and Wade Fredrickson claiming,
among other things, certain breaches of non-competition obligations and confidentiality and non-disclosure obligations to such
prior employer and federal and state law by virtue of such officers' work for the Company. See "We may be subject to
damages resulting from claims that we, or our employees, have wrongfully used or disclosed alleged trade secrets of our competitors
or are in breach of non-competition or non-solicitation agreements with our competitors" under the "Risk Factors"
section in the prospectus that is part of this registration statement.
The Company has an insurance policy that
covers its officers and directors with respect to certain liabilities, including liabilities arising under the Securities Act or
otherwise.
Item 15. Recent Sales of Unregistered Securities.
In connection with the 2019
private placement, between December 28, 2018 and July 1,
2019, the Company entered into subscription agreements with accredited investors, pursuant to which the Company  agreed to issue and sell to the purchasers units for $2.50 per unit. Each unit consisted
of (i) one share of Common Stock and (ii) a warrant
to purchase one share of Common Stock at an initial exercise price of $3.00 per share. The warrants are exercisable beginning on
the date of issuance and expire on December 28, 2023. The Company has issued an aggregate of 2,338,179 units, for total gross proceeds
to the Company of approximately $5,845,448 in connection with all closings of the 2019 Private Placement. In connection with the
2019 Private Placement, Paulson  received a cash commission equal to 12% of the
gross proceeds from the sale of the Units to the Paulson Investors, and HRA Capital received
a cash commission equal to 8% of the gross proceeds from the sale of the units to certain investors (the "HRA Investors").
All of the shares of Common Stock (i) issued under the 2019 Private Placement and (ii) issuable pursuant to exercise of the warrants
issued under the 2019 Private Placement are being registered under this Registration Statement. For more information, see "About
this Offering."
In addition, pursuant to placement
agent agreements, on July 1, 2019, the Company issued 5-year warrants to Paulson and its affiliates (the "Paulson
Parties") to purchase 193,417 shares of Common Stock at an exercise price of $2.75 per share, and the Company issued to
Corinthian Partners, LLC and its designees (the "Corinthian Parties") 5-year warrants to purchase 17,760 shares
of Common Stock at an exercise price of $3.00 per share and 5-year warrants to purchase 135,512 shares of Common Stock at an
exercise price of $2.00 per share. All of the shares of Common Stock issuable pursuant to exercise of the warrants issued to
the Corinthian Parties and Paulson Parties are being registered under this Registration Statement. For more information, see
"About this Offering."
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2
In connection with the 2018
private placement, between July 9, 2018 and November 30, 2018, the Company entered into subscription agreements with
accredited investors, pursuant to which the Company
agreed to issue and sell to the purchasers units for $2.50 per unit. Each unit consisted of (i) one share of  Common Stock and (ii) a warrant to purchase one share of Common Stock at an initial
exercise price of $3.00 per share. The Company issued an aggregate of 615,200 units, for total gross proceeds to the Company
of approximately $1,538,000 in connection with all closings of the 2018 Private Placement.
On February 6, 2018, pursuant to a services
agreement with JLS, the Company agreed to issue to JLS an aggregate of 250,000 shares of Common
Stock for investor relations services. The Company issued to JLS 100,000 shares of Common Stock on April 26, 2018, 50,000 shares
of Common Stock on May 7, 2018, 50,000 shares of Common Stock on August 29, 2018, and 50,000 shares of Common Stock on November
2, 2018. All of the shares of Common Stock issued to JLS pursuant to such services agreement are being registered under this Registration
Statement. For more information, see "About this Offering."
From November 2016 through June 2017, NeuroOne,
Inc. entered into subscription agreements with the subscribers (the "Series 1 Subscribers") identified therein (the
"Series 1 Subscription Agreements"). Pursuant to the terms of the Series 1 Subscription Agreements, NeuroOne, Inc.
issued to the Series 1 Subscribers the Series 1 Notes and warrants. The Company and NeuroOne, Inc. consummated the transactions
contemplated by the Agreement and Plan of Merger and Reorganization on July 20, 2017 and the Company assumed the Series 1 Notes
and warrants on such date. The total amount of Series 1 Notes sold pursuant to the Series 1 Subscription Agreements was $1,625,120.
On August 18, 2017, the Company entered
into subscription agreements with the subscribers (the "Series 2 Subscribers", and together with the Series 1 Subscribers,
the "Subscribers") identified therein (the "Series 2 Subscription Agreements"). Pursuant to the terms of
the Series 2 Subscription Agreements, the Company issued to the Series 2 Subscribers the Series 2 Notes (and together with the
Series 1 Notes, the "Notes") and warrants. In addition, in March 2018 the Company issued to the Series 2 Subscribers
additional warrants to purchase shares of the Company's capital stock. The total amount of Series 2 Notes sold pursuant to
the Series 2 Subscription Agreements was $253,000.
Effective as of July 2, 2018, the Company
entered into the Series 1 Notes Debt Conversion Agreement with each Series 1 Subscriber and the Series 2 Notes Debt Conversion
Agreement with each Series 2 Subscriber (the "Conversion Agreements") to (i) convert the outstanding principal and
accrued and unpaid interest (the "Outstanding Balance") under the Notes into shares of the Company's Common Stock
based on the Outstanding Balance divided by $1.80 per share (the "Conversion Shares"); (ii) cancel and extinguish the
Notes; and (iii) amend and restate all of the warrants to make them immediately exercisable upon conversion, at a per share exercise
price equal to $1.80 per share. As consideration for the early conversion of the Notes, the Company issued each Subscriber a new
warrant, exercisable for up to the number of shares of Common Stock equal to the number of Conversion Shares received by such Subscriber;
at a per share exercise price of $1.80 per share. The new warrants are exercisable commencing on July 2, 2018, and expire on November
21, 2021.
Pursuant to the Conversion Agreements,
$1,804,064 of the outstanding principal and interest of the Series 1 Notes was converted into 1,002,258 shares of Common Stock
and $259,297 of the outstanding principal and interest of the Series 2 Notes was converted into 144,053 shares of Common Stock.
Additionally, as of July 2, 2018, 2,482,372 shares of Common Stock were issuable upon exercise of the warrants.
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3
Between October 2017 and May 2018, the
Company issued the Series 3 Notes in an aggregate principal amount of $1.5 million that bear
interest at a fixed rate of 8% per annum and warrants to purchase shares of the Company's capital stock. On February 28,
2019, the Company completed an equity round of financing resulting in more than $3 million in gross proceeds when it closed on
the sale of units in connection with the 2019 Private Placement. Following such financing, the outstanding principal and interest
of the Series 3 Notes of $1,678,361 was automatically converted in accordance with the terms of the Series 3 Notes into 839,179
shares of Common Stock and 839,179 warrants at an exercise price equal to $3.00 per share. Additionally, the previously issued
warrants became immediately exercisable for 839,179 shares of Common Stock, at an exercise price equal to $2.50 per share, and
will expire on February 28, 2024. The exercise price and number of the shares of our Common Stock issuable upon exercise of the
warrants will be subject to adjustment in the event of any stock dividends and splits, reverse stock split, recapitalization, reorganization,
business combination or similar transaction. All of the shares of Common Stock (i) issued upon the conversion of the Series 3 Notes
and (ii) issuable pursuant to exercise of the warrants issued upon conversion of the Series 3 Notes are being registered under
this Registration Statement. For more information, see "About this Offering."
Prior to the Merger, between October 16
and October 20, 2016, NeuroOne, Inc. issued 301,670 NeuroOne Shares of common stock of NeuroOne, Inc. (5,131,514 Company shares
giving effect to the Acquisition) as founders' shares in a private placement to seven individuals (who were all accredited
investors), including three officers of the Company. The value applied was $0.03 per NeuroOne Share based on a valuation utilizing
a weighted average market value of invested capital methodology. In June 2017, the purchase price owed by the seven individuals
for the founders' shares under their respective subscription agreements totaling $9,050 was forgiven by the Company in its
entirety.
In April 2017, NeuroOne, Inc. issued 12,666
restricted NeuroOne Shares (215,453 Company shares giving effect to the Acquisition), subject to vesting, to one of our executive
officers under the 2016 Plan. Between January 2017 and June 2017, NeuroOne, Inc. granted options to purchase NeuroOne, Inc. common
stock ("NeuroOne Options") under the 2016 Plan to purchase an aggregate of 21,500 NeuroOne Shares (365,716 Company
shares giving effect to the Acquisition), each with an exercise price of $0.59 per NeuroOne Share ($0.035 per Company share giving
effect to the Acquisition), to certain of its consultants and directors.
In May 2017, NeuroOne, Inc. issued to Mayo
50,556 NeuroOne Shares (859,976 Company shares giving effect to the Acquisition) pursuant to a Subscription Agreement, as required
by the terms of the Mayo Development Agreement.
At the closing of the Acquisition, pursuant
to and in connection with the Acquisition, we issued
●
6,291,994 Company Shares to the former stockholders of NeuroOne, Inc.;
●
Company Options for the purchase of an aggregate of 365,716 Company shares; and
●
Company Warrants, which are exercisable for Company Shares following conversion of the Notes on
their terms.
In February 2016, a related party loaned
the Company $5,703. The note was interest free until December 31, 2016 after which time it accrued interest at 6% per annum. The
note was convertible at the option of the holder into shares of Original Source Music, Inc. common stock, and matured on March
31, 2017.
In connection with the foregoing, the Company
relied upon the exemption from registration provided by Section 4(a)(2) under the Securities Act or Regulation D promulgated under
the Securities Act for transactions not involving a public offering.
Item 16. Exhibits and Financial Statement Schedules.
(a) Exhibits.
A list of exhibits filed with this registration
statement on Form S-1 is set forth on the Exhibit Index and is incorporated herein by reference.
(b) Financial statement schedule.
All schedules have been omitted because
either they are not required, are not applicable or the information is otherwise set forth in the financial statements and related
notes thereto.
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4
Item 17. Undertakings.
(a) The
undersigned registrant hereby undertakes:
(1) To
file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:
(i)
To include any prospectus required by section 10(a)(3) of the Securities Act;
(ii)
To reflect in the prospectus any facts or events arising after the effective date of the registration
statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental
change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume
of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation
from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission
pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than a 20% change in the maximum
aggregate offering price set forth in the "Calculation of Registration Fee" table in the effective registration statement;
and
(iii)
To include any material information with respect to the plan of distribution not previously disclosed
in the registration statement or any material change to such information in the registration statement.
(2) That,
for the purposes of determining any liability under the Securities Act, each such post-effective amendment shall be deemed to be
a new registration statement relating to the securities offered therein, and the offering of the securities at that time shall
be deemed to be the initial bona fide offering thereof.
(3) To
remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the
termination of the offering.
(4) That,
for the purpose of determining liability under the Securities Act to any purchaser, each prospectus filed pursuant to Rule 424(b)
as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than
prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of the
date it is first used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus
that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration
statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior
to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of
the registration statement or made in any such document immediately prior to such date of first use.
(b) Insofar
as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons
of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the
Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act and is, therefore,
unenforceable. In the event that a claim for indemnification against such liabilities, other than the payment by the registrant
of expenses incurred and paid by a director, officer or controlling person of the registrant in the successful defense of any action,
suit or proceeding, is asserted by such director, officer or controlling person in connection with the securities being registered
hereby, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit
to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in
the Securities Act and will be governed by the final adjudication of such issue.
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5
EXHIBIT INDEX
Exhibit
    No.
Document
2.1
    *
Agreement
    and Plan of Merger and Reorganization by and among NeuroOne Medical Technologies Corporation, OSOK Acquisition Company and
    NeuroOne, Inc. dated as of July 20, 2017 (incorporated by reference to Exhibit 2.1 on the Registrant's Current Report
    on Form 8-K filed on July 20, 2017)
2.2
Plan
    of Conversion of NeuroOne Medical Technologies Corporation dated June 20, 2017 (incorporated by reference to Exhibit 2.1 on
    the Registrant's Current Report on Form 8-K filed on June 29, 2017)
3.1
Certificate
    of Incorporation of NeuroOne Medical Technologies Corporation (incorporated by reference to Exhibit 3.4 on the Registrant's
    Current Report on Form 8-K filed on June, 29, 2017)
3.2
Bylaws
    of NeuroOne Medical Technologies Corporation (incorporated by reference to Exhibit 3.5 on the Registrant's Current Report
    on Form 8-K filed on June 29, 2017)
4.1
Form
    of Common Stock Certificate (incorporated by reference to Exhibit 4.1 on the Registrant's Current Report on Form 8-K
    filed on July 20, 2017)
5.1
Opinion of Honigman LLP
10.1
    #
Exclusive
    Start-Up Company License Agreement; WARF Agreement No. 14-00333 by and between Wisconsin Alumni Research Foundation and Neuro
    One LLC, dated October 1, 2014 (incorporated by reference to Exhibit 10.1 on the Registrant's Current Report on Form
    8-K filed on July 20, 2017)
10.2
    #
Amendment
    to Exclusive Start-Up Company License Agreement by and between Wisconsin Alumni Research Foundation, Neuro One LLC, and NeuroOne,
    Inc. dated as of February 22, 2017 (incorporated by reference to Exhibit 10.2 on the Registrant's Current Report on
    Form 8-K filed on July 20, 2017)
10.3
    #
Mayo
    Foundation for Medical Education and Research Amended and Restated License and Development Agreement by and between Mayo Foundation
    for Medical Education and Research, and NeuroOne LLC dated as of May 25, 2017 (incorporated by reference to Exhibit 10.3 on
    the Registrant's Current Report on Form 8-K filed on July 20, 2017)
10.4
Form
    of October 2016 Common Stock Subscription Agreement (incorporated by reference to Exhibit 10.4 on the Registrant's Current
    Report on Form 8-K filed on July 20, 2017)
10.5
Form
    of November 2016 Promissory Note and Warrant Subscription Agreement (incorporated by reference to Exhibit 10.5 on the Registrant's
    Current Report on Form 8-K filed on July 20, 2017)
10.6
Form
    of Promissory Note issued pursuant to November 2016 Promissory Note and Warrant Subscription Agreement (incorporated by reference
    to Exhibit 10.6 on the Registrant's Current Report on Form 8-K filed on July 20, 2017)
10.7
First
    Amendment to Promissory Note issued pursuant to November 2016 Promissory Note and Warrant Subscription Agreement (incorporated
    by reference to Exhibit 10.7 on the Registrant's Current Report on Form 8-K filed on July 20, 2017)
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6
Exhibit No.
Document
10.8
Form of Second Amendment to Promissory Note issued pursuant to November 2016 Promissory Note and Warrant Subscription Agreement (incorporated by reference to Exhibit 4.3 on the Registrant's Current Report on Form 8-K filed on November 27, 2017)
10.9
Form of Capital Stock Purchase Warrant issued pursuant to November 2016 Promissory Note and Warrant Subscription Agreement (incorporated by reference to Exhibit 10.8 on the Registrant's Current Report on Form 8-K filed on July 20, 2017)
10.10
Form of First Amendment to Capital Stock Purchase Warrant issued pursuant to November 2016 Promissory Note and Warrant Subscription Agreement (incorporated by reference to Exhibit 10.9 on the Registrant's Current Report on Form 8-K filed on July 20, 2017)
10.11
Form of Second Amendment to Capital Stock Purchase Warrant issued pursuant to November 2016 Promissory Note and Warrant Subscription Agreement (incorporated by reference to Exhibit 4.4 on the Registrant's Current Report on Form 8-K filed on November 27, 2017)
10.12
Stockholders Agreement by and among NeuroOne, Inc., and the stockholders party thereto dated as of October 20, 2016 (incorporated by reference to Exhibit 10.10 on the Registrant's Current Report on Form 8-K filed on July 20, 2017)
10.13 +
2016 Equity Incentive Plan of NeuroOne, Inc. (incorporated by reference to Exhibit 10.11 on the Registrant's Current Report on Form 8-K filed on July 20, 2017)
10.14 +
Form of Stock Option Award Agreement pursuant to 2016 Equity Incentive Plan of NeuroOne, Inc. (incorporated by reference to Exhibit 10.12 on the Registrant's Current Report on Form 8-K filed on July 20, 2017)
10.15 +
Restricted Stock Purchase Agreement by and between NeuroOne, Inc. and Thomas Bachinski, dated as of April 10, 2017 (incorporated by reference to Exhibit 10.13 on the Registrant's Current Report on Form 8-K filed on July 20, 2017)
10.16 +
2017 Equity Incentive Plan of the Company (incorporated by reference to Appendix G to Schedule 14C filed on April 20, 2017)
10.17 +
NeuroOne Medical Technologies Corporation 2017 Equity Incentive Plan Option Agreement (incorporated by reference to Exhibit 10.15 on the Registrant's Current Report on Form 8-K filed on July 20, 2017)
10.18 +
NeuroOne Medical Technologies Corporation 2017 Equity Incentive Plan Restricted Stock Unit Agreement (incorporated by reference to Exhibit 10.16 on the Registrant's Current Report on Form 8-K filed on July 20, 2017)
10.19 +
Employment Agreement by and between NeuroOne LLC and Dave Rosa, dated as of October 5, 2016 (incorporated by reference to Exhibit 10.17 on the Registrant's Current Report on Form 8-K filed on July 20, 2017)
10.20 +
Offer Letter to Mark Christianson from NeuroOne, Inc. dated December 1, 2016 (incorporated by reference to Exhibit 10.18 on the Registrant's Current Report on Form 8-K filed on July 20, 2017)
10.21 +
Offer Letter to Thomas Bachinski from NeuroOne, Inc. dated January 9, 2017 (incorporated by reference to Exhibit 10.19 on the Registrant's Current Report on Form 8-K filed on July 20, 2017)
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Exhibit No.
Document
10.22 +
Form of Indemnification Agreement with the Company's Officers and Directors (incorporated by reference to Appendix E to Schedule 14C filed on April 20, 2017)
10.23 +
Release Agreement of Wade Fredrickson dated June 28, 2017 (incorporated by reference to Exhibit 10.23 on the Registrant's Current Report on Form 8-K filed on July 20, 2017)
10.24 +
Employment Agreement by and between NeuroOne Medical Technologies Corporation and David A. Rosa dated August 4, 2017 (incorporated by reference to Exhibit 10.1 on the Registrant's Current Report on Form 8-K filed on August 7, 2017)
10.25
Form of August 2017 Subscription Agreement (incorporated by reference to Exhibit 10.1 on the Registrant's Current Report on Form 8-K filed on August 23, 2017)
10.26
Form of Promissory Note issued pursuant to August 2017 Subscription Agreement (incorporated by reference to Exhibit 4.1 on the Registrant's Current Report on Form 8-K filed on August 23, 2017)
10.27
First Amendment to Promissory Note by and between NeuroOne Medical Technologies Corporation and the Subscribers dated as of November 30 (incorporated by reference to Exhibit 10.1 on the Registrant's Current Report on Form 8-K filed on December 6, 2017)
10.28
Form of Capital Stock Purchase Warrant pursuant to August 2017 Subscription Agreement (incorporated by reference to Exhibit 4.2 on the Registrant's Current Report on Form 8-K filed on August 23, 2017)
10.29
Form of October 2017 Subscription Agreement (incorporated by reference to Exhibit 10.1 on the Registrant's Current Report on Form 8-K filed on October 6, 2017)
10.30
Form of Promissory Note issued pursuant to October 2017 Subscription Agreement (incorporated by reference to Exhibit 4.1 on the Registrant's Current Report on Form 8-K filed on October 6, 2017)
10.31
Form of Capital Stock Purchase Warrant issued pursuant to October 2017 Subscription Agreement (incorporated by reference to Exhibit 4.2 on the Registrant's Current Report on Form 8-K filed on October 6, 2017)
10.32
Form of Amended and Restated Subscription Agreement (incorporated by reference to Exhibit 10.1 on the Registrant's Current Report on Form 8-K filed on December 20, 2017)
10.33
Form of Amended and Restated Promissory Note issued pursuant to Amended and Restated Promissory Note and Warrant Subscription Agreement (incorporated by reference to Exhibit 4.1 on the Registrant's Current Report on Form 8-K filed on December 20, 2017)
10.34
Form of Amended and Restated Capital Stock Purchase Warrant issued pursuant to Amended and Restated Promissory Note and Warrant Subscription Agreement (incorporated by reference to Exhibit 4.2 on the Registrant's Current Report on Form 8-K filed on December 20, 2017)
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8
Exhibit No.
Document
10.35
First Amendment to Convertible Promissory Notes, dated as of December 31, 2018 (incorporated by reference to Exhibit 10.1 on the Registrant's Current Report filed on December 31, 2018).
10.36
Form of Amended and Restated Note issued pursuant to August 2017 Subscription Agreement, as amended (incorporated by reference to Exhibit 4.1 on the Registrant's Current Report on Form 8-K filed on March 16, 2018)
10.37
Form of Replacement Warrant issued pursuant to August 2017 Subscription Agreement, as amended (incorporated by reference to Exhibit 4.2 on the Registrant's Current Report on Form 8-K filed on March 16, 2018)
10.38
Form of Additional Warrant issued pursuant to August 2017 Subscription Agreement, as amended (incorporated by reference to Exhibit 4.3 on the Registrant's Current Report on Form 8-K filed on March 16, 2018)
10.39 +
Non-Employee Director Compensation Policy (incorporated by reference to Exhibit 10.40 on the Registrant's Annual Report on Form 10-K filed April 16, 2018)
10.40
Lock-up Agreement, effective as of March 1, 2018 by and between Wade Fredrickson and the Company (incorporated by reference to Exhibit 10.41 on the Registrant's Annual Report on Form 10-K filed April 16, 2018)
10.41
Form of Series 1 Notes Debt Conversion Agreement (incorporated by reference to Exhibit 10.1 on the Registrant's Current Report on Form 8-K filed July 6, 2018)
10.42
Form of Series 2 Notes Debt Conversion Agreement (incorporated by reference to Exhibit 10.2 on the Registrant's Current Report on Form 8-K filed July 6, 2018)
10.43
Form of Warrant (incorporated by reference to Exhibit 4.1 on the Registrant's Current Report on Form 8-K filed July 13, 2018)
10.44
Form of Purchase Agreement (incorporated by reference to Exhibit 10.1 on the Registrant's Current Report on Form 8-K filed July 13, 2018)
10.45
Form of Registration Rights Agreement (incorporated by reference to Exhibit 10.2 on the Registrant's Current Report on Form 8-K filed July 13, 2018)
10.46
Amendment to Lock-Up Agreement, dated July 17, 2018, between the Company and Wade Fredrickson (incorporated by reference to Exhibit 10.1 on the Registrant's Current Report on Form 8-K filed July 23, 2018)
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9
Exhibit No.
Document
10.47 +
Description of compensatory arrangement with Thomas Bachinski (incorporated by reference to Exhibit 10.50 on the Registrant's Registration Statement on Form S-1/A filed October 30, 2018)
10.48
Sublease Agreement between National American University and NeuroOne Medical Technologies Corporation, dated November 13, 2018 (incorporated by reference to Exhibit 10.51 on the Registrant's Transition Report on Form 10-KT filed December 12, 2018)
10.49 +
Employee Proprietary Information, Inventions, Assignment and Non-Competition Agreement (incorporated by reference to Exhibit 10.52 on the Registrant's Transition Report on Form 10-KT filed December 12, 2018)
10.50
Form of Warrant (incorporated by reference to Exhibit 4.1 on the Registrant's Current Report on Form 8-K filed January 4, 2019)
10.51
Form of Purchase Agreement (incorporated by reference to Exhibit 10.1 on the Registrant's Current Report on Form 8-K filed January 4, 2019)
10.52
Form of Registration Rights Agreement (incorporated by reference to Exhibit 10.2 on the Registrant's Current Report on Form 8-K filed January 4, 2019)
10.53 +
Offer Letter between Scott Heuler and NeuroOne Medical Technologies Corporation, dated December 10, 2018 (incorporated by reference to Exhibit 10.60 on the Registrant's Registration Statement on Form S-1 filed February 11, 2019)
10.54 +
Offer Letter between Steve Mertens and NeuroOne Medical Technologies Corporation, effective April 1, 2019 (incorporated by reference to Exhibit 10.2
on the Registrant's Quarterly Report on Form 10-Q filed May 10, 2019)
10.55
Form of Conversion Warrant (incorporated by reference to Exhibit 4.2 to the Registrant's Current Report on Form 8-K filed on March 6, 2019)
10.56
Form of Paulson Placement Agent Warrant (incorporated by reference to Exhibit 4.2 to the Registrant's Current Report on Form 8-K filed on July 5, 2019)
10.57
Form of HRA Placement Agent Warrant (incorporated by reference to Exhibit 4.3 to the Registrant's Current Report on Form 8-K filed on July 5, 2019)
16.1
Letter from Pritchett, Siler & Hardy, P.C., dated July 11, 2017 (incorporated by reference to Exhibit 16.2 on the Registrant's Current Report on Form 8-K filed on July 20, 2017)
21.1
Subsidiaries of the Registrant (incorporated by reference to Exhibit 21.1 on the Registrant's Annual Report on Form 10-K filed April 16, 2018)
23.1
Consent of BDO USA, LLP
23.2
Consent of Honigman LLP (included in Exhibit 5.1 hereto)
24.1
Power of Attorney (included in signature page hereto)
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Exhibit No.
Document
101.INS
XBRL Instance Document
101.SCH
XBRL Taxonomy Extension Schema Document
101.CAL
XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF
XBRL Taxonomy Extension Definition Linkbase Document
101.LAB
XBRL Taxonomy Extension Label Linkbase Document
101.PRE
XBRL Taxonomy Extension Presentation Linkbase Document
*
Pursuant to Item 601(b)(2) of Regulation S-K, the Registrant agrees to furnish supplementally a
copy of any omitted schedule or exhibit to the Agreement and Plan of Merger to the Securities and Exchange Commission upon request.
#
Portions of this exhibit have been omitted pursuant to a request for confidential treatment and
have been separately filed with the Securities and Exchange Commission.
+
Indicates management contract or compensatory plan.
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SIGNATURES
Pursuant to the requirements of the Securities
Act of 1933, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto
duly authorized in the City of Minnetonka, State of Minnesota, on July 15, 2019.
NeuroOne Medical Technologies Corporation
By:
/s/ David Rosa
David Rosa
Its:
Chief Executive Officer
Each person whose signature appears below constitutes and appoints David Rosa his true and lawful attorney
in fact and agent, with full power of substitution and resubstitution, for him and in his name, place and stead, in any and all
capacities, to sign any or all amendments (including post effective amendments) to the Registration Statement, and to sign any
registration statement for the same offering covered by this Registration Statement that is to be effective upon filing pursuant
to Rule 462(b) under the Securities Act of 1933, as amended, and all post effective amendments thereto, and to file the same, with
all exhibits thereto, and all documents in connection therewith, with the Securities and Exchange Commission, granting unto said
attorney-in-fact and agent, full power and authority to do and perform each and every act and thing requisite and necessary to
be done in and about the premises, as fully to all intents and purposes as he or she might or could do in person, hereby ratifying
and confirming all that said attorney-in-fact and agent, each acting alone, or his or her substitute or substitutes, may lawfully
do or cause to be done by virtue hereof.
Pursuant to the requirements of the Securities
Act of 1933, this registration statement has been signed by the following persons in the capacities and on the dates indicated.
/s/ David Rosa
July 15, 2019
David Rosa
Chief Executive Officer and Director
(Principal Executive Officer,
Principal Financial Officer and
Principal Accounting Officer)
/s/ Paul Buckman
July 15, 2019
Paul Buckman
Director
/s/ Suraj Kalia
July 15, 2019
Suraj Kalia
Director
/s/ Jeffrey Mathiesen
July 15, 2019
Jeffrey Mathiesen
Director
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