Note 16 - Subsequent Events

9 Months Ended

Sep. 30, 2017

Notes to Financial Statements

Subsequent Events [Text Block]

Note 1 6 . Subsequent Events

October 2017

Warrant Exercises

On

October 4, 2017,

the Company entered into letter agreements (the “Exercise Agreements”) with the holders of the Series AAA and Series BBB Warrants issued in the

July 6, 2017

Common Stock Offering (the “Exercising Holders”)

(Note

10

). The Exercise Agreements amended the Series AAA Warrants to permit their immediate exercise. Prior to the execution of the Exercise Agreements, the Series AAA Warrants were

not

exercisable until

January 11, 2018.

Pursuant to the Exercise Agreements, the Exercising Holders and the Company agreed that the Exercising Holders would exercise all of their Existing Warrants with respect to

4,665,000

shares of Common Stock underlying such Existing Warrants. The Series AAA Warrants and Series BBB Warrants were exercised at a price of

$2.07

per share and

$4.75

per share, respectively, which were their respective original exercise prices.

The Exercise Agreements also provide for the issuance of

1,166,250

Series DDD Warrants, each to purchase

one

share of Common Stock (the “Series DDD Warrants”). The Series DDD Warrants are initially exercisable

no

sooner than

six

months following issuance, and terminate

six

months following when the Series DDD Warrants are initially exercisable. The Series DDD Warrants have an exercise price

no

than less than

$6.20.

The Series DDD Warrants and the shares of Common Stock issuable upon the exercise of the Series DDD Warrants are

not

being registered under the Securities Act of

1933,

as amended (the “Securities Act”), and are being offered pursuant to the exemption provided in Section

4

(a)(

2

) under the Securities Act or Rule

506

(b) promulgated thereunder. Pursuant to the Exercise Agreements, the Series DDD Warrants shall be substantially in the form of the Existing Warrants and the Company will be required to register for resale the shares of Common Stock underlying the Series DDD Warrants.

In early

October 2017,

certain holders of the other

205,000

Series BBB Warrants and

108,455

Series AA Warrants from the

February 14, 2017

Public Offering (Note

10

) were exercised and, together with the exercise of the

4,665,000

Series AAA and Series BBB Warrants exercised by the Exercising Holders, the Company received aggregate gross proceeds of approximately

$20.0

million in

October 2017.

October 2017

Underwritten Offering

On

October 27, 2017,

the Company entered into an underwriting agreement (the “Underwriting Agreement”) with Oppenheimer & Co. Inc. (the “Underwriter”), relating to the issuance and sale (the “Offering”) of

2,640,000

shares (the “Shares”) of the Company’s common stock,

$0.01

par value per share (the “Common Stock”), and warrants to purchase an aggregate of

1,320,000

shares of Common Stock. Each share of Common Stock is being sold together with

0.5

warrants (the “Investor Warrants”), each whole Investor Warrant being exercisable for

one

share of Common Stock, at an offering price of

$2.50

per share and related Investor Warrants.

Pursuant to the terms of the Underwriting Agreement, the Underwriter has agreed to purchase the Shares and related

Investor Warrants from the Company at a price of

$2.325

per share and related Investor Warrants. Each Investor Warrant is exercisable

six

months from the date of issuance. The Investor Warrants have an exercise price of

$3.00

per whole share, and expire

five

years from the date

first

exercisable.

The

Company received

$6.6

million of gross proceeds from the sale of the Shares and Investor Warrant. The Offering closed on

October 31, 2017.

This Offering was made pursuant to the Company’s effective shelf registration statement on Form S-

3

(File

No.

333

-

206789

) filed with the Securities and Exchange Commission on

September 4, 2015,

and declared effective on

September 25, 2015,

including the base prospectus dated

September 25, 2017

included therein and the related prospectus supplement.

The Underwriting Agreement contains customary representations, warranties and agreements by the Company, customary conditions to closing, indemnification obligations of the Company and the Underwriters, including for liabilities under the Securities Act, other obligations of the parties, and termination provisions.

The Company also agreed to issue to the Underwriter warrants to purchase up to

66,000

shares of the Company’s common stock, such issuance being exempt from registration pursuant to Section

4

(a)(

2

) of the Securities Act.