Note 5 - Notes Payable

12 Months Ended

Dec. 31, 2019

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. Future principal repayments are expected to be

$

12,500

in

2020,

2021

and

2022,

and

$2,243

in

2023.

Interest expense related to the GRA Note was

$2,097

and

$2,083

for the years ended

December 31, 2019

and

2018,

respectively.

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 at

December 31, 2018.

In

February 2019,

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

7

).