Note 10 - Stockholders Equity

6 Months Ended

Jun. 30, 2017

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

Note

10

– Stockholders

’

Equity

Warrants

In conjunction with a private placement transaction and subordinated debt conversion in

November 2012,

the Com

pany granted warrants to purchase shares of the Company’s common stock, exercisable at

$0.55

per share for a

five

year term. Each of the warrants

may

be exercised on a cashless basis. The warrants also provide that subject to various conditions, the holders have piggy-back registration rights with respect to the shares of common stock that

may

be acquired upon the exercise of the warrants. As of

June 30, 2017,

150,001

of these warrants remain outstanding.

In

June 2016,

the Company granted a principal of the Company’s existing investor relations firm warrants to acquire

30,000

shares of the Company’s common stock in connection with a reduction of the firms ongoing monthly cash service fees. The warrants had a grant-date fair value of

$0.36

per share and vest over a

one

year period,

15,000

on

December 21, 2016

and

15,000

on

June 21, 2017.

As of

June 30, 2017,

30,000

of these warrants remain outstanding.

In

June 2017,

in connection with a subordinated loan agreement described in more detail in Note

2

and Note

5,

the Company granted Cross River

two five

-year warrants to buy an aggregate total of

1,612,902

shares of the Company’s common stock at an exercise price of

$0.31

per share, the average closing price of the Company’s common stock for the

20

day period ended

May 11, 2017.

The warrants had a grant-date fair value of

$0.19

per share and vested in full on

June 28, 2017.

These warrants are accounted for as a liability in the accompanying balance sheet. As of

June 30, 2017,

all of these warrants remain outstanding.

A summary of warrant activity for the

six

months ended

June 30, 2017

is as follows:

					Weighted
			Weighted		Average
			Average		Remaining		Aggregate
			Exercise		Contractual		Intrinsic
Warrants	Shares		Price		Life (Years)		Value
Outstanding at December 31, 2016		180,001	$	0.57		1.51	$	-
Issued		1,612,902		0.31		5.00		-
Exercised		-		-
Forfeited/Cancelled		-		-
Outstanding at June 30, 2017		1,792,903	$	0.34		4.60		-
Exercisable at June 30, 2017		1,792,903	$	0.34		4.60		-

Stock Issued for Services

During the

six

months ended

June 30, 2016,

the Company issued

3,031

shares of common stock to a consultant as partial compensation for services provided to the Company. The shares were granted under the

2010

Stock Incentive Plan and were fully vested and unrestricted at the time of issuance. During the

six

months ended

June 30, 2016,

the Company recorded

$1,700

of consulting expense for these services.