Note 14 - Shareholders' Equity

12 Months Ended

Dec. 31, 2017

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

1

4

.

S

hare

holders’

Equity

Common stock

In

June 2012,

the Company issued

30,000,000

shares of common stock to

Visse

r in connection with the

Visse

r MTA (see note

3

).

Pursuant to the terms of the

Company’s Senior Convertible Notes issued in the

July 2012

Private Placement, the Company opted to pay the

twelve

monthly installment payments prior to the

September 1, 2013

maturity date with shares of the Company’s common stock. Upon final settlement, the Company had issued

163,641,547

shares of common stock at a weighted average conversion price of

$0.0774,

for the

twelve

installment payments due under the notes, consisting of

$12,000

principal and

$680

of interest

(see note

3

).

During the

year ended

December 31, 2013,

the holders of the Company’s Series A Preferred Stock converted all of the outstanding

506,936

shares of preferred stock into

16,896,070

shares of the Company’s common stock (see “Preferred stock” below). After giving effect to such conversion, the Company has

no

shares of preferred stock outstanding.

O

n

February 28, 2013,

the Company’s shareholders approved an amendment to the Certificate of Incorporation of the Company increasing the number of authorized shares of common stock from

400

million shares to

500

million shares.

O

n

October 24, 2013,

the Company’s shareholders approved an amendment to the Company’s Certificate of Incorporation increasing the number of authorized shares of common stock from

500

million shares to

700

million shares

.

In connection

with the execution of the

2013

Purchase Agreement, the Company issued to certain investors

2,666,667

shares of the Company’s common stock. As of

December 31, 2014,

the Company had received an aggregate of

$16,000

under the

2013

Purchase Agreement through the issuance of

85,355,615

shares of its common stock at a weighted average price of

$0.19

per share. On

August 22, 2014,

the Company voluntarily terminated the

2013

Purchase Agreement, effective

August 25, 2014 (

see Note

3

).

On

September 9, 2014,

an initial registration statement covering

75,000,000

shares issued and issuable pursuant to the

2014

Purchase Agreement was declared effective by the SEC. As of

September 30, 2015,

the Company had received an aggregate of

$1,568

under the

2014

Purchase Agreement through the issuance of

12,500,000

shares of its common stock at a weighted average price of

$0.13

per share. On

March 8, 2016,

the Company voluntarily terminated the

2014

Purchase Agreement, effective

March 9, 2016 (

see Note

3

).

In connection with the execution of the

2016

Purchase Agreement

, on

March 10, 2016,

the Company issued

105,000,000

shares of the Company’s common stock, at a price of

$0.08

per share, for gross proceeds of

$8,400.

On

May 19, 2016,

the Company’s shareholders approved an amendment to the Company’s Certificate of Incorporation increasing the number of authorized shares of common stock from

700

million shares to

1,100

million shares.

On

October 26, 2016,

the Company issued and sold to the Investor

of the

2016

Purchase Agreement an aggregate of

300,000,000

shares of Company’s common stock for an aggregate purchase price of

$55,000,

comprised of

200,000,000

shares at a price of

$0.15

per share and

100,000,000

shares at a price of

$0.25

per share.

In

2012,

the Company entered into

a non-exclusive engagement agreement with an investment banking firm. The services provided by the firm did

not

result in the identification of any practicable investment transactions and the agreement was considered effectively terminated by the Company in

2013.

During

2016,

the Company was notified by a representative of the firm stipulating that it did

not

consider the engagement agreement to be terminated and that previous financings and other funding transactions completed by the Company

may

be subject to success fees. In

November 2016,

the Company reached a settlement with respect to any and all amounts allegedly due under the engagement agreement in the amount of

$750.

Such amounts were reflected as a reduction of proceeds from stock issuances during the year ended

December 31, 2016

and a corresponding reduction to additional paid in capital.

Warrants

In connection with the Series A

Preferred Stock issuances in

2009,

warrants to purchase

29,779,557

shares of the Company’s common stock, valued at

$18,179,

were outstanding through

July 15, 2015.

Due to extension of the expiration date of these warrants during

2010,

they

no

longer contained anti-dilution provisions and were reflected as equity as they did

not

meet the criteria under FASB ASC

815

for liability treatment. Such warrants had exercise prices ranging between

$0.48

and

$0.49

and expired on

July 15, 2015.