Note 2 - Related Party Transactions

3 Months Ended

Dec. 31, 2020

Notes to Financial Statements

Related Party Transactions Disclosure [Text Block]

2.

Related Party Transactions

During the

three

months ended

December 31, 2020

, the Company incurred fees of

$32

thousand to a law firm, a partner of which is a director and stockholder of the Company. The Company incurred similar fees of

$110

thousand during the 

three

months ended

December 31, 2019

. The Company had accrued liabilities of

$10

thousand and

$36

thousand for unbilled services to the same law firm at

December 31, 2020

and

September 30, 2020,

respectively.

On

May 13, 2020,

the Company entered into a debt conversion agreement with Mr. Burish to convert all outstanding debt owed to Mr. Burish into common stock at a conversion price of

$5.00

per share. The total debt amount, including accrued interest and fees, of

$5.6

million was converted into

1,114,723

shares of common stock. The transaction was recommended by the Company's Special Committee of Independent and Disinterested Directors, unanimously approved by all disinterested directors of the Company, and ratified by shareholders at the Company's most recent shareholder meeting. Silverwood Partners, the Special Committee's financial advisor, issued a fairness opinion in connection with the transaction.

Mr. Burish beneficially owns more than

5%

of the Company's common stock. Mr. Burish also serves as the Chairman of the Board of Directors. An affiliated party beneficially owns more than

5%

of the Company's common stock. All transactions with Mr. Burish and with the affiliated party were approved by a Special Committee of Disinterested and Independent Directors.