Note 13 - Subsequent Events

6 Months Ended

Jun. 30, 2020

Notes to Financial Statements

Subsequent Events [Text Block]

NOTE

13

– SUBSEQUENT EVENTS

Acquisition of Quantitative Medicine

On

July 1, 2020,

the Company entered into an Asset Purchase Agreement with Quantitative Medicine LLC (“QM), a Delaware limited liability company and its owners (collectively, the “Selling Parties”) and simultaneously completed the acquisition of substantially all of QM's assets owned by Seller. QM is a biomedical analytics and computational biology company that developed a novel, computational drug discovery platform called CoRE. CoRE is designed to dramatically reduce the time, cost, and financial risk of discovering new therapeutic drugs by predicting the main effects of drugs on target molecules that mediate disease. In exchange for QM's assets, including CoRE, the Company provided consideration in the form of

954,719

shares of common stock, which, when issued, had a market value of

$1,750,000.

477,359

shares, representing half of the shares issued, were deposited and held in escrow upon issuance, while

207,144

of the remaining shares were issued to Carnegie Mellon University (“CMU”) in satisfaction of all pre-closing amounts owed to CMU under a technology licensing agreement that was assumed by the Company on the closing date. Half of the shares held in escrow will be released on the

six

month anniversary of the closing date, and the other half will be released on the

one

year anniversary of the closing date; provided, however, that all or some of the escrow shares

may

be released and returned to the Company for reimbursement in the event that the Company suffers a loss against which the Selling Parties have indemnified the Company pursuant to the Agreement.

Amendments to and Extensions of Promissory Notes

. Effective

July 15, 2020,

the Company entered into amendments to promissory notes with a total principal amount of

$4,152,609,

under which the maturity of the notes was extended to

September 30, 2020.

The notes previously had maturity dates of

July 15, 2020,

August 5, 2020,

September 5, 2020

and

October 5, 2020.

In exchange for such extension, the outstanding principal amount of the First Oasis Note was increased by

$345,000,

such that, as of the effective date of the amendment, the outstanding principal amount owed under the First Oasis Note was

$1,280,833

and the outstanding principal amount of the Second Oasis Note was increased by

$172,500,

such that, as of the effective date of the amendment, the outstanding principal amount owed under the Second Oasis Note was

$1,622,500.