Note 7 - Subsequent Events

9 Months Ended

Sep. 30, 2017

Notes to Financial Statements

Subsequent Events [Text Block]

NOTE

7

– SUBSEQUENT EVENTS

On

October 2, 2017,

the Company agreed to issue an aggregate of

264,096

shares (the “

Shares”) of the Company’s common stock with an aggregate value of

$3.3

million in connection with a Payoff Agreement the Company entered into with prior lenders on

May 24, 2017. 

Effective upon the delivery of the Shares, the

2016

Warrants, pursuant to which the prior lenders had a right to purchase up to

357,500

shares of the Company’s common stock,

may

not

be exercised and have been deemed cancelled.  The derivative liability of

$4.5

million recorded by the Company as of

September 30, 2017

related to the

2016

Warrants will be eliminated during the

fourth

quarter of

2017,

resulting in a

$1.2

million gain.  In connection with the issuance of the Shares, the Company increased the number of shares of common stock issuable upon exercise of the

2017

Warrant, from

357,500

to

362,500

shares.  The

2017

Warrant has a term of

five

years from its issue date of

May 25, 2017,

and an exercise price of

$14.94

per share, subject to adjustment.