Note 12 - Related Party Transactions

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Related Party Transactions Disclosure [Text Block]

Note

1

2

– Related Party Transactions

We have

$945,000

principal outstanding at

December 31, 2019

in promissory notes payable to MHW, net of remaining discount of

$53,000.

Per the terms of the notes, we paid interest of approximately

$128,000

and

$120,000

during the years ended

December 31, 2019

and

2018,

respectively. We have

$650,000

principal outstanding at

December 31, 2019

in promissory notes payable to MHW Partners, net of remaining discount of

$55,000.

Per the terms of the notes, we paid interest of approximately

$87,000

and

$82,000

during the years ended

December 31, 2019

and

2018,

respectively. Peter H. Woodward, the Chairman of our Board of Directors, is a principal of MHW Capital Management, LLC which is the investment manager of MHW and MHW Partners. MHW Capital Management LLC is entitled to a performance-related fee tied to appreciation in the valuation of the common stock in excess of the applicable strike price under the warrant issued to MHW and MHW Partners.