Note 8 - Subsequent Events

9 Months Ended

Sep. 30, 2018

Notes to Financial Statements

Subsequent Events [Text Block]

8.

SUBSEQUENT EVENTS

On

October 2, 2018,

we announced certain leadership changes including the resignations of our former Chief Executive Officer and our former President, both of whom also resigned their positions from the Company’s Board of Directors.  The resignations were

not

the result of any dispute or disagreement with the Company related to our operations, policies or practices.  On that same day, we announced the appointment of Janet Carr, as our new Chief Executive Officer who also became a member of our Board of Directors.  In connection with these leadership changes, we incurred approximately

$304,000

of legal and advisory costs, recorded as operating expenses in the accompanying income statement, during the

three

and

nine

months ended

September 30, 2018. 

In addition,  Ms. Carr received (i) a time-based equity grant of

460,000

restricted stock units (“RSU”) that vest over

five

years; (ii) a performance-based equity grant of

92,000

RSUs that vest if/when the Company’s operating income exceeds

$12

million dollars

two

fiscal years in a row; and (iii) a performance-based equity grant of

92,000

RSUs that vest if/when the Company’s operating income exceeds

$14

million dollars in

one

fiscal year.  We will begin accounting for these RSU’s in the

fourth

quarter of

2018.