Note 9 - Stockholders' Equity

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

Note

9

– Stockholders

' Equity

Warrants

In

June 2016,

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

2

,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

$5.40

per share and vested over a

one

-year period,

1,000

on

December 21, 2016

and

1,000

on

June 21, 2017.

As of

March 31, 2021

,

all of these warrants remain outstanding and are exercisable until

June 21, 2021

at

$10.50

per share.

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

41,667

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

$3.00

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

$2.40

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

November 11, 2024.

On

September 23, 2020,

in connection with the Fifth Amendment, the Company granted East West Bank 

one

five

-year warrant to buy an aggregate total of

1,000,000

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

$3.75

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

$1.42,

were fully vested upon issuance and remain outstanding and are exercisable beginning

one

-year from the issuance date on

September 23, 2021

and until

September 23, 2025.

On

February 11, 2021,

in connection with the conversion of the subordinated loan agreement to Company common stock, the Company granted Cross River

one

five

-year warrant to buy an aggregate total of

150,418

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

$2.507

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

$2.02

and are exercisable beginning

one

-year from the issuance date on

February 11, 2022

until

February 11, 2026.

All warrants granted to Cross River were reviewed and approved by the independent directors of the Company.

On

April 12, 2021,

the SEC issued a Staff Statement on Accounting and Reporting Considerations for Warrants Issued by Special Purpose Acquisition Companies ("SPACs")(the "Staff Statement"). The SEC highlighted accounting considerations which could, in certain circumstances, indicate that warrants should be accounted for as liabilities rather than equity instruments, in which case the warrants would be subject to fair value adjustments during each reporting period. Although the Staff Statement focused on SPACs, the same accounting considerations

may

apply to warrants issued by non-SPAC entities. Upon issuance of the Staff Statement, the Company performed further analysis on its population of warrants, which are listed above, giving consideration to the areas of concern noted in the Staff Statement. Upon this further review of its warrant agreements, the Company determined that it has correctly accounted for its warrants as equity instruments.

A summary of warrant activity for the

three

 

months ended

March 

31, 2021

is as follows (amounts in thousands): 

					Weighted
			Weighted		Average
			Average		Remaining
			Exercise		Contractual
Warrants	Shares		Price		Life (Years)
Outstanding at December 31, 2020		1,043,667	$	3.73		4.7
Issued		150,418		2.51		4.9
Outstanding at March 31, 2021		1,194,085	$	3.58		4.5
Exercisable at March 31, 2021		43,667	$	3.34		3.5