Note 9 - Stockholders' Equity

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

Note

9

– Stockholders’ Equity

On

June

14,

2016,

upon receiving approval from the majority of the Company’s shareholders at the

2016

Annual Meeting, the Company filed with the Secretary of State of the State of California a Certificate of Amendment of Restated Articles of Incorporation to implement a

one

-for-

six

reverse stock split (the “Reverse Split”) of all outstanding shares of common stock, effective as of the close of business on

June

14,

2016.

Upon the effectiveness of the Reverse Split, each

six

shares of common stock issued and outstanding immediately prior to the effective time automatically were combined, reclassified and converted into

one

fully paid and non-assessable share of common stock, subject to the treatment of fractional share interests, as determined by each beneficial owner

. Shareholders who otherwise would have been entitled to receive fractional shares as a result of the reverse split instead received a cash payment in lieu thereof equal to the fraction to which such shareholder otherwise would have been entitled multiplied by

$2.52,

which represents the last sale price of the common stock as reported on The NASDAQ Capital Market (as adjusted to reflect the reverse split) on

June

13,

2016,

the last trading day preceding the effective date of the reverse split. In addition, the aggregate number of equity-based awards that remain available to be granted under the Company’s equity incentive plans and other benefit plans were reduced proportionately to reflect the reverse split, and all outstanding options, warrants, notes, debentures and other securities convertible into Common Stock will be adjusted as a result of the reverse split, as required by the terms of these securities.

The reverse split decreased the number of outstanding shares of common stock from

12,253,117

to approximately

2,042,020

as of

June

14,

2016.

The Company’s authorized number of shares of common stock remains at

50,000,000

and the authorized number of shares of preferred stock of the Company remains at

5,000,000.

On

November

11,

2016,

the board of directors approved a stock repurchase program (the “Stock Repurchase Program”) to repurchase shares of the Company’s common stock. The program will seek open market or privately negotiated purchases of up to a maximum aggregate purchase price of

$750,000,

such Stock Repurchase Program to be conducted in compliance with all existing credit and other agreements to which the Company is a party and all federal and state securities laws and regulations promulgated under the Exchange Act.