Exhibit 4.2


 


DESCRIPTION OF THE REGISTRANT’S
SECURITIES REGISTERED PURSUANT TO SECTION 12


 


OF THE SECURITIES EXCHANGE ACT OF 1934


 


The following description summarizes the
material terms of our capital stock. Because it is only a summary, it does not contain all the information that may be important
to you. For a complete description of our capital stock, you should refer to our Restated Articles of Incorporation and our Amended
and Restated Bylaws, and to the provisions of applicable North Carolina law.


 


General 


 


Our authorized capital stock consists of
100,000,000 shares of common stock with no par value, of which 13,830,351 shares were issued and outstanding as of December 31,
2020. Our common stock may be issued from time to time without prior approval by our shareholders. Our common stock may be issued
for such consideration as may be fixed from time to time by our Board.


 


Common Stock 


 


Our company, a North Carolina corporation,
is authorized to issue 100,000,000 shares of common stock with no par value per share. Each share of common stock shall have one
vote per share for all purposes. The holders of a majority of the shares entitled to vote, present in person or represented by
proxy shall constitute a quorum at all meetings of our shareholders. Our common stock does not provide preemptive, subscription
or conversion rights and there are no redemption or sinking fund provisions or rights. Our common stock holders are not entitled
to cumulative voting for election of our Board. In the event of a liquidation, dissolution or winding up of our Company, holders
of common stock are entitled to share ratably in all of our assets remaining after payment of liabilities. Holders of common stock
are entitled to receive ratably such dividends as may be declared by our Board out of funds legally available therefor as well
as any distributions to the security holder. We have never paid cash dividends on our common stock, and do not expect to pay such
dividends in the foreseeable future.


 


Options 


 


As of December 31, 2020, we had outstanding
options to purchase an aggregate of 47,332 shares of our common stock, with a weighted average exercise price of $8.03 per share,
under our 2017 Stock Plan and 2019 Stock Plan.


 


Charter, Bylaw and Statutory Provisions Having Potential
 “Anti-takeover” Effects 


 


The following paragraphs summarize certain
provisions of our articles of incorporation, bylaws and North Carolina law that may have the effect, or be used as a means, of
delaying or preventing attempts to acquire us take control of our company, or to remove or replace incumbent directors, that are
not first approved by our Board, even if those proposed actions are favored by our shareholders.


 


		·	Authorized Shares. Our amended and restated articles of incorporation
currently authorize the issuance of 100,000,000 shares of common stock. Our Board is authorized to approve the issuance of shares
of our common stock from time to time. This provision gives our Board flexibility to effect, among other transactions, financings,
acquisitions, stock dividends, stock splits and grants of stock options. However, our Board’s authority also could be used,
consistent with our Board’s fiduciary duty, to deter future attempts to gain control of the Company by issuing additional
common stock to persons friendly to management in order to attempt to block a tender offer, merger or other transaction by which
a third party seeks to gain control.



 


		·	Advance Notice of Director Nominations. Our amended and restated
bylaws provide for advance notice procedures with respect to shareholder proposals and the nomination of candidates for election
as directors. Pursuant to these provisions, to be timely, a shareholder’s notice must meet certain requirements with respect
to its content and be received at our principal executive offices, addressed to the secretary of our Company, within the proscribed
time periods. These provisions may have the effect of precluding the conduct of certain business at a meeting if the proper procedures
are not followed. These provisions may also discourage or deter a potential acquirer from conducting a solicitation of proxies
to elect the acquirer’s own slate of directors or otherwise attempting to obtain control of our company.



 






    


     


    

 


		·	Special Meetings of Shareholders. Our bylaws provide that special
meetings of our shareholders may be called only by or at the direction of (a) our Board, (b) the Chairman of our Board, (c) our
President of the Company or (d) shareholders holding a majority of outstanding common stock. 



 


		·	Amendment of Bylaws. Subject to certain limitations under North
Carolina law, our bylaws may be amended or repealed by either our Board or our shareholders. Therefore, our Board is authorized
to amend or repeal bylaws without the approval of our shareholders. However, a bylaw adopted, amended or repealed by our shareholders
might not be readopted, amended or repealed by our Board alone unless our articles of incorporation or a bylaw adopted by our shareholders
authorizes our Board to adopt, amend or repeal that particular bylaw or the bylaws generally. 



 


		·	Action by Written Consent. No action by written consent of
our shareholders can be taken without a meeting.



 


Choice of Forum


 


Our amended and restated bylaws provide
that, unless we consent in writing to the selection of an alternative forum, North Carolina state court is, to the fullest extent
permitted by law, the sole and exclusive forum for:


 


		·	any derivative action or proceeding brought on behalf of the Company;




 


		·	any action asserting a claim of breach of a fiduciary duty owed by
any director or officer or other employee of the Company to the Company or the Company’s shareholders; 



 


		·	any action asserting a claim against the Company or any director or
officer or other employee of the Company arising pursuant to any provision of the North Carolina Business Corporation Act or the
Company’s articles of incorporation or bylaws (as either may be amended from time to time); or 



 


		·	any action asserting a claim against the Company or any director or
officer or other employee of the Company governed by the internal affairs doctrine. 



 


The enforceability of similar choice of
forum provisions in other companies’ organizational documents has been challenged in legal proceedings, and it is possible
that, in connection with any action, a court could find the choice of forum provisions contained in our bylaws to be inapplicable
or unenforceable in such action. These provisions would not apply to suits brought to enforce a duty or liability created by the
Exchange Act, Securities Act or any other claim for which the federal courts have exclusive or concurrent jurisdiction. Any person
or entity purchasing or otherwise acquiring any interest in our securities shall be deemed to have notice of and consented to these
provisions. Our exclusive forum provision will not relieve us of our duties to comply with the federal securities laws and the
rules and regulations thereunder, and our shareholders will not be deemed to have waived our compliance with these laws, rules
and regulations.


 


This provision of our bylaws could have
the effect of discouraging others from attempting hostile takeovers and may also have the effect of preventing changes in our management.
It is possible that these provisions could make it more difficult to accomplish transactions that shareholders may otherwise deem
to be in their best interests.


 






    


     


    

 


Trading Market 


 


Our shares are listed on The NASDAQ Capital
Market under the symbol “FTHM”.


 


Transfer Agent 


 


The transfer agent of our common stock is
Continental Stock Transfer & Trust Company. Their address is 1 State Street Plaza, 30th Floor, New York, NY 10004.