Note 6 - Warrants

9 Months Ended

Sep. 30, 2017

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

Note

6

.

     

Warrants

The Company conducted its public stock offering through the sale of units. Each unit was sold for

$1,000

and consisted of

200

shares of common stock and a warrant to purchase an additional

200

shares of common stock at

$6.00

per share. The warrants were originally scheduled to expire, if

not

exercised, on 

February 24, 2016.

The board of directors of the Company extended the warrant expiration date to

April 1, 2016.

As of

December 31, 2014

warrant-holders had the right to purchase

2,532,400

shares of common stock. On

February 24, 2015,

the Company registered a warrant exercise offering with the Kansas Securities Commissioner. During

2015,

warrant-holders exercised warrants for the purchase of

944,845

shares of common stock. As of

December 31, 2015

warrant-holders had the right to purchase

1,587,555

shares of common stock. During

2016,

warrant-holders exercised their rights to purchase an additional

372,003

shares of common stock.

Management engaged the services of an experienced valuation firm to value the warrants as of

February 24, 2013.

The valuation performed valued the warrants to be worth

$0.01

per share of common stock and management has allocated this amount from additional paid-in capital to the outstanding warrants. As the warrants have been exercised, the value allocated to the warrants exercised has been restored to additional paid-in capital. The value of outstanding warrants was reduced to

zero

at

March 31, 2016.