Note 10 - Stockholders Equity

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

Note

10

 

– Stockholders Equity

Warrants

In

June 2016,

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

30,000

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

$0.36

per share and vested over a

one

-year period,

15,000

on

December 21, 2016

and

15,000

on

June 21, 2017.

As of

December 31, 2019,

all of these warrants remain outstanding and are exercisable until

June 21, 2021

at

$0.70

per share.

In

June 2017,

in connection with a subordinated loan agreement, 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.

On

June 29, 2018

Cross River exercised both warrants and acquired

1,612,902

shares of our

$0.005

par value common stock. Proceeds from the exercise of the warrants in the amount of

$500,000

were used to reduce the subordinated debt balance. The warrants exercised had a total intrinsic value of approximately

$1.4

million at the time of exercise. 

On

November 11, 2019,

in connection with a subordinated loan agreement, the Company granted Cross River

one five

year warrant to buy an aggregate total of

625,000

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

$0.20

per share. The warrants had a grant-date fair value

$0.16

and were fully vested upon issuance and remain outstanding and exercisable until

November 11, 2024.

A summary of warrant activity for the years ended

December 31, 2019 

and

2018

 is as follows (amounts in thousands):

						Weighted
				Weighted		Average
				Average		Remaining		Aggregate
				Exercise		Contractual		Intrinsic
Warrants	Shares			Price		Life (Years)		Value
Outstanding at January 1, 2018		1,642,903		$	0.32		4.5	$	539
Issued		-			-		-		-
Exercised		(1,612,903	)		0.31		-		-
Forfeited/Cancelled		-			-		-		-
Outstan ding at December 31, 2018		30,000		$	0.70		2.5	$	-
Issued		625,000			0.20		4.9		-
Exercised		-			-		-		-
Forfeited/Cancelled		-			-		-		-
Outstanding at December 31, 2019		655,000		$	0.22		4.7	$	-
Exercisable at December 31, 2019		655,000		$	0.22		4.7	$	-