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Note 6 - Indebtedness
9 Months Ended
Sep. 30, 2019
Notes to Financial Statements  
Debt Disclosure [Text Block]
6.
Indebtedness
 
Notes
 
On
June 30, 2019,
all
$2.2
million aggregate principal balance of Notes outstanding plus
$105,000
of accrued interest was converted at a conversion rate of
$3.50
per share of common stock into
651,758
shares of common stock per the terms of the Notes. The Notes were issued in
December 2018
and
January 2019
and bore interest at a rate of
10.0%
per year. Both the relative value of the Warrants and the beneficial conversion feature of the Notes were recorded as a debt discount at the times the Notes were sold which was presented as a direct deduction from the carrying value of the Notes. The discount was fully amortized through interest expense immediately prior to the conversion on
June 30, 2019.
 
Term debt
 
Effective
April 5, 2019
the terms of our unsecured loan (the “Term Debt”) payable to the Institute for Commercialization of Public Research, Inc. (the “Institute”) were amended to extend the maturity date from
May 1, 2019
to
December 31, 2019.
The Institute agreed to the amendment in exchange for a warrant to purchase
5,555
shares of common stock at an exercise price of
$4.50.
The warrant expires
five
years from issuance. The fair market value of the warrant was nominal and as such has
not
been given any accounting treatment. The amendment requires the continuation of monthly payments of principal and interest totaling
$10,000.
The unpaid principal balance at
September 30, 2019
was
$204,000.
 
Unsecured Promissory Notes
 
On
May 17, 2019
the Company executed an unsecured promissory note with a vendor that relieved the Company’s immediate obligation to pay the outstanding vendor invoices. The outstanding vendor invoices totaling approximately
$742,000
were removed from the Company’s accounts payable as consideration for the promissory note. The promissory note is unsecured, does
not
bear interest and the balance is payable in full on the earlier of (
1
)
December 31, 2020
or (
2
) the date the Company’s stock is registered on a national exchange.