Note 5 - Note Payable

12 Months Ended

Dec. 31, 2018

Notes to Financial Statements

Debt Disclosure [Text Block]

5 . Notes Payable

On

February 28, 2018,

we entered into a Senior Note Purchase Agreement with Georgia Research Alliance, Inc. (GRA) pursuant to which we issued a

five

-year Senior Promissory Note (the “GRA Note”) to GRA in exchange for

$50,000.

The GRA Note bears an annual interest rate of

5%,

payable monthly, with principal repayments beginning in the

second

year. Principal repayments are expected to be

$10,420

in

2019,

$

12,500

in

2020,

2021

and

2022,

and

$2,080

in

2023.

In connection with the GRA Note, we also issued to GRA a

five

-year warrant to purchase

178,571

shares of our common stock. Interest expense related to the GRA Note for

2018

was

$2,083.

On

December 27, 2018,

we issued short-term non-interest-bearing Term Promissory Notes (the “Term Notes”) to

two

current investors in exchange for an aggregate of

$250,000.

These notes are presented as current liabilities on the consolidated balance sheet. In connection with the Term Notes, we also issued to the investors

three

-year warrants to purchase an aggregate of

10,000,000

shares of our common stock. In

February 2019,

the Term Notes were cancelled in exchange for shares of our convertible preferred stock (see Note

12

).