Note 9 - Susbequent Events

9 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Subsequent Events [Text Block]

Note 

9

– Subsequent Events

On

November 15, 2019

and again on

December 6, 2019,

the Company issued

12%

senior secured promissory notes to individual investors in an aggregate principal amount of

$305,000.

The notes have a maturity date of

June 30, 2020

and accrue interest at the rate of

12%

per annum. In conjunction with the issuance of the notes, the Company issued a total of

457,500

warrants to the note investors. In conjunction with issuance of the notes, the Company granted a

first

-priority security interest in all the assets of the Company but fundamentally consisting of the Aurix asset, including all regulatory files and approvals and relevant intellectual property.   The

second

issuance of the note on

December 6, 2019

required the proceeds (subject to a cap) to be used to repay the convertible notes (see below).

On

December 10, 2019,

the Company entered into

fifth

amendments to the convertible notes. The amendments provided for the settlement of all obligations under the convertible notes and their extinguishment upon the (i) payment of an aggregate

$220,000

to the Investors and (ii) issuance of an aggregate

350,000

shares of common stock to the Investors on or before

February 10, 2020.   

Issuance of the common shares is expected to occur shortly after the filing of the Company’s Quarterly Report on Form

10

-Q for the period ended

September 30, 2019.