Note 7 - Debt Financing	3 Months Ended
Mar. 31, 2018
Notes to Financial Statements
Debt Disclosure [Text Block]	NOTE 7 – DEBT FINANCING January 2014 Debt In January 2014, the Company borrowed $3,500,000 under a loan and security agreement with a financial institution which matures in July 2017. Interest was paid monthly on the principal amount at 7.34% per annum. A fee of $271,250 was due at maturity, which was being accrued over the term of the loan. The loan was paid in full at maturity in July 2017. No amounts are available to borrow under the agreement . The Company recorded $13,000 to interest expense related to amortization of the debt discount and issuance costs for the three months ended March 31, 2017. The Company recorded $ 33,000 of interest expense for the three months ended March 31, 2017 . August 2018 Debt In August 2018, the Company borrowed $15,000,000 under a loan and security agreement with a financial institution which matures in August 2022. Interest is paid monthly on the principal amount at a variable rate equal to the greater of (a) the thirty day LIBOR rate, or (b) 0.99%, plus 7.26% per annum. The loan is secured by substantially all of our assets, excluding intellectual property, which intellectual property is subject to a negative pledge in favor of the financial institution. Under the terms of the agreement, interest-only payments are due monthly through September 2019, with principal payments commencing in October 2019, due in 35 equal monthly installments. If we are in compliance with certain financial milestones, the interest-only payments can be extended by twelve months through September 2020, in which case the principal payments would commence in October 2020, due in 23 equal monthly installments. A final fee of $1,200,000 is due at maturity (or acceleration or prepayment). Subject to a prepayment fee equal to between 0.5% to 2.0% of the principal amount of the prepaid amount, we can prepay the entire loan amount by providing a written five -day notice prior to such prepayment and paying all outstanding principal, interest, final payment fees and prepayment fees plus any default fees and all other sums that shall have become due and payable. Under the loan and security agreement the Company is required to maintain a certain minimum level of revenues on a trailing six -month basis, subject to quarterly measurement through 2018, and monthly thereafter, in addition to complying with certain other covenants. The loan and security agreement also includes events of default, the occurrence and continuation of any of which provides the financial institution with the right to exercise remedies against us and the collateral securing the loans, including cash. These events of default include, among other things, the failure to pay amounts due under the credit facilities, insolvency, the occurrence of a material adverse event, which includes a material adverse change in our business, operations or properties (financial or otherwise) or a material impairment of the prospect of repayment of any portion of the obligations. A violation of any of these covenants or the occurrence of a material adverse change could result in a default under the loan and security, which would result in termination of all commitments and loans under the agreement and all amounts owing under the agreement to become immediately due and payable. As of March 31, 2018, the Company was in violation of one of these covenants. On November 9, 2018, the Company and the financial institution entered into the waiver and first amendment to the loan and security agreement, pursuant to which it received a waiver of the event of default for the March 31, 2018 noncompliance with a financial covenant, and modified certain financial covenants. In connection with the loan and security agreement, the Company issued warrants to the financial institution for the purchase of 277,778 shares of its Common Stock with an exercise price of $1.62 per share. The fair value of the warrants of $227,000 on the date of issuance was recorded as additional debt discount. The Company recorded $40,000 to interest expense related to amortization of the debt discount and issuance costs for the three months ended March 31, 2018 . As of March 31, 2018 , the unamortized discount and issuance cost is $0.5 million. The Company recorded $ 0.4 million of interest expense on the loans for the three months ended March 31, 2018 . At March 31, 2018, $15.0 million was outstanding under this loan and security agreement.

NOTE

– DEBT FINANCING

January 2014

Debt

January 2014,

the Company borrowed

$3,500,000

under a loan and security agreement with a financial institution which matures in

July 2017.

Interest was paid monthly on the principal amount at

7.34%

per annum.

A fee of

$271,250

was due at maturity, which was being accrued over the term of the loan. The loan was paid in full at maturity in

July 2017.

amounts are available to borrow under the agreement

The Company recorded

$13,000

to interest expense related to amortization of the debt discount and issuance costs for the

three

months ended

March 31, 2017.

The Company recorded $

33,000

of interest expense for the

three

months ended

March 31, 2017

August 2018

Debt

August 2018,

the Company

borrowed

$15,000,000

under a loan and security agreement with a financial institution which matures in

August 2022.

Interest is paid monthly on the principal amount at a variable rate equal to the greater of (a) the

thirty

day LIBOR rate, or (b)

0.99%,

plus

7.26%

per annum. The loan is secured by substantially all of our

assets, excluding intellectual property, which intellectual property is subject to a negative pledge in favor of the financial institution. Under the terms of the agreement, interest-only payments are due monthly through

September

2019,

with principal payments commencing in

October

2019,

due in

equal monthly installments. If we are in compliance with certain financial milestones, the interest-only payments can be extended by

twelve

months through

September 2020,

in which case the principal payments would commence in

October 2020,

due in

equal monthly installments. A final fee of

$1,200,000

is due at maturity (or acceleration or prepayment). Subject to a prepayment fee equal to between

0.5%

2.0%

of the principal amount of the prepaid amount, we can prepay the entire loan amount by providing a written

five

-day notice prior to such prepayment and paying all outstanding principal, interest, final payment fees and prepayment fees plus any default fees and all other sums that shall have become due and payable.

Under the loan and security agreement the Company is required to maintain a certain minimum level of revenues on a trailing

six

-month basis, subject to quarterly measurement through

2018,

and monthly thereafter, in addition to complying with certain other

covenants. The loan and security agreement also includes events of default, the occurrence and continuation of any of which provides the financial institution with the right to exercise remedies against us and the collateral securing the loans, including cash. These events of default include, among other things, the failure to pay amounts due under the credit facilities, insolvency, the occurrence of a material adverse event, which includes a material adverse change in our business, operations or properties (financial or otherwise) or a material impairment of the prospect of repayment of any portion of the obligations. A violation of any of these covenants or the occurrence of a material adverse change could result in a default under the loan and security, which would result in termination of all commitments and loans under the agreement and all amounts owing under the agreement to become immediately due and payable. As of

March 31, 2018,

the Company was in violation of

one

of these covenants. On

November 9, 2018,

the Company and the financial institution entered into the waiver and

first

amendment to the loan and security agreement, pursuant to which it received a waiver of the event of default for the

March 31, 2018

noncompliance with a financial covenant, and modified certain financial covenants.

In connection with the loan and security agreement, the Company issued warrants to the financial institution for the purchase of

277,778

shares of its Common Stock with an exercise price of

$1.62

per share.

The fair value of the warrants of

$227,000

on the date of issuance was recorded as additional debt discount.

The Company recorded

$40,000

to interest expense related to amortization of the debt discount and issuance costs for the

three

months ended

March 31, 2018

. As of

March 31, 2018

, the unamortized discount and issuance cost is

$0.5

million.

The Company recorded $

0.4

million of interest expense on the loans for the

three

months ended

March 31, 2018

. At

March 31, 2018,

$15.0

million was outstanding under this loan and security agreement.