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Note 5 - Convertible Debt (PIK Notes)
 9 Months Ended
Sep. 30, 2017
Notes to Financial Statements  
Convertible Debt [Text Block]
NOTE
5
– CONVERTIBLE DEBT (PIK NOTES)
 
As of
September 30, 2017,
the liability components of the PIK Notes on the Company’s balance sheet are listed in the following table:
 
   
Series 2023 Notes
    
Series A Notes
    
Total
  
PIK Note Payable, Gross
   $
15,513,290
     $
25,388,513
     $
40,901,803
  
Less: Discount
    
(1,598,654
 )    
(9,759,558
 )    
(11,358,212
 )
Less: Deferred Financing Cost
    
(2,992
 )    
(5,133
 )    
(8,125
 )
PIK Note Payable, Net
   $
13,911,644
     $
15,623,822
     $
29,535,466
  
                         
PIK Note Derivative Liability
   $
68,041
     $
1,074,133
     $
1,142,174
  
 
 
As of
December 31,
2016,
the liability components of the PIK Notes on the Company’s balance sheet are listed in the following table:
 
   
Series 2023 Notes
    
Series A Notes
    
Total
  
PIK Note Payable, Gross
   $
14,071,008
     $
24,125,958
     $
38,196,966
  
Less: Discount
    
(1,721,898
 )    
(13,421,225
 )    
(15,143,123
 )
Less: Deferred Financing Cost
    
(5,064
 )    
(8,686
 )    
(13,750
 )
PIK Note Payable, Net
   $
12,344,046
     $
10,696,047
     $
23,040,093
  
                         
PIK Note Derivative Liability
   $
142,909
     $
2,033,643
     $
2,176,552
  
 
As of
September 30, 2017,
the conversion price of the Series
2023
Notes was
$1.14
and the conversion price of the Series A Notes was
$0.66.
These conversion prices were adjusted per the terms of the Series
2023
Notes and Series A Notes, respectively after
the Company’s capital raise closed on
August 29, 2017.