Note 16 - Related Party Transactions

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Related Party Transactions Disclosure [Text Block]

1

6

.

Related Party Transactions

On

August 16, 2017,

the Company and Tony Chung, the Company’s former Chief Financial Officer, entered into a Separation Agreement and General Release pursuant to which Mr. Chung resigned as an officer and employee of the Company (the “Chung Separation Agreement”). Concurrently, Mr. Chung was elected to serve as a director of the Company. The Chung Separation Agreement provided for the payment of severance compensation to Mr. Chung in the form of a continuation of his base annual salary of

$240

(subject to tax withholdings) for a period of

12

months and reimbursement for COBRA healthcare coverage for a period of

12

months. In addition, it provided for the accelerated vesting of

247,650

of the unvested stock options held by Mr. Chung as of the separation date and the extension of the exercise period of his options until the

first

anniversary of the date of the Chung Separation Agreement. This resulted in a total of

2,889,749

stock options being exercisable by Mr. Chung as of the separation date and resulted in an additional

$89

of stock-based compensation expense during the year ended

December 31, 2017.

In connection with the Chung Separation Agreement, Mr. Chung and the Company granted each other mutual general releases subject to customary exceptions. Subsequently, the Company extended the exercise period of Mr. Chung's options to the

second

anniversary of the date of the Chung Separation Agreement. This resulted in an additional

$48

of stock-based compensation expense during the quarter ended

June 30, 2018.

As of

June 30, 2018

and

December 31, 2017,

the Company had accrued liabilities totaling

$35

and

$164,

respectively, relating to the Chung Separation Agreement.

On

March 10, 2016,

the Company entered into the

2016

Purchase Agreement with Liquidmetal Technology Limited, providing for the purchase of

405,000,000

shares of the Company’s common stock for an aggregate purchase price of

$63,400.

Liquidmetal Technology Limited is a company owned by Professor Li that was formed in

2016

in contemplation of the

2016

Purchase Agreement. In connection with the

2016

Purchase Agreement and also on

March 10, 2016,

the Company and Eontec, entered into a license agreement pursuant to which the Company and Eontec entered into a cross-license of their respective technologies. Eontec is a publicly held Hong Kong corporation of which Professor Li is the Chairman and major shareholder. As of

June 30, 2018,

Professor Li is a greater-than

5%

beneficial owner of the Company’s common stock and served (and currently serves) as the Company’s Chairman, President, and Chief Executive Officer. Equipment and services procured from Eontec were

$48

and

$53

during the

three

and

six

months ended

June 30, 2018,

respectively. Equipment and services procured from Eontec were

$105

and

$729

during the

three

and

six

months ended

June 30, 2017,

respectively.