Cancer Genetics, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Warrants

Warrants

6 Months Ended

Jun. 30, 2016

We have issued certain warrants which contain an exercise price adjustment feature in the event we issue additional equity instruments at a price lower than the exercise price of the warrant. The warrants are described herein as derivative warrants. As of June 30, 2016 all derivative warrants have either expired or have been exercised.

On May 25, 2016, we issued 1,357,301 warrants to purchase shares of our common stock as part of our 2016 Offering. Subject to certain ownership limitations, the warrants will be initially exercisable commencing six months from the issuance date at an exercise price equal to $2.25 per share of common stock. The warrants are exercisable for five years from the initial exercise date.

The following table summarizes the warrant activity for the six months ended June 30, 2016 (in thousands, except exercise price):



Issued With / For	Exercise Price			Warrants Outstanding January 1, 2016	2016 Warrants Issued	2016 Warrants Expired		Warrants Outstanding June 30, 2016
Non-Derivative Warrants:
Financing	$	10.00		243	—	—		243
Financing	15.00			436	—	—		436
Debt guarantee	15.00			233	—	(87	)	146
Consulting	10.00			10	—	(10	)	—
2015 Offering	5.00			3,450	—	—		3,450
2016 Offering	2.25			—	1,357	—		1,357
Total non-derivative warrants	$	5.59	B	4,372	1,357	(97	)	5,632
Derivative Warrants:
Financing	4.00		A	60	—	(60	)	—
Total derivative warrants	—		B	60	—	(60	)	—
Total	$	5.59	B	4,432	1,357	(157	)	5,632


A	These warrants were subject to fair value accounting and contained an exercise price adjustment feature.


B	Weighted-average exercise prices are as of June 30, 2016.