Note 5 - Long-Term Debt

6 Months Ended

Jun. 30, 2015

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

Note 5— Long-Term Debt

The components of the Company’s total indebtedness were as follows:

	June 30,			December 31,
	2015			2014
Senior Loans Payable:
Term Loan	$	1,804,028		$	2,809,806
Less: unamortized discount		(70,582	)		(184,868	)
Total long-term debt, net		1,733,446			2,624,938
Less current portion		(1,733,446	)		(2,068,326	)
Total long-term debt, less current portion, net	$	-		$	556,612

Senior Loans Payable

Term Loan

On April 29, 2013, the Company entered into an $8.0 million loan and security agreement with Venture Lending & Leasing VI, Inc. and Venture Lending & Leasing VII, Inc., at an 11% fixed interest rate, maturing in 36 months, and which may be drawn in three tranches (the “Loan”). On April 29, 2013, the Company drew $5.0 million on the facility. Interest is payable monthly for the first six months of the loan term, and monthly principal and interest payments are due thereafter through the maturity date. The Company issued warrants to each of the lenders in conjunction with the loan facility with an initial aggregate exercise price of $800,000, which increased by $200,000 with the first tranche and would increase by $300,000 with the second and third tranche draw down of the Loan. The Loan payable is net of the initial value of the warrants. The initial value of the warrants has been capitalized within the other assets section of the consolidated balance sheets and is being amortized utilizing the effective interest method over the term of the loan. Amortization expense for the three months ended June 30, 2015 and 2014 was $50,664 and $100,431, respectively, and is included on the statement of operations and comprehensive loss in interest expense. Amortization expense for the six months ended June 30, 2015 and 2014 was $114,286 and $357,370, respectively, and is included on the statement of operations and comprehensive income (loss) in interest expense.

The lenders have a priority first security lien on substantially all assets of the Company.