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Note 6 - Warrants and Registration Rights Agreements
3 Months Ended
Mar. 31, 2021
Notes to Financial Statements  
Warrants Disclosure [Text Block]
Note
6
Warrants and Registration Rights Agreements
 
 
The following table presents a summary of the status of our issued warrants as of
March 31, 2021,
and changes during the
three
months then ended:
 
   
Shares Underlying
Warrants
   
 
Weighted
Average
Exercise
Price
 
                 
Outstanding, December 31, 2020
   
6,034,702
    $
0.07
 
Granted
   
-
     
-
 
Canceled / Expired
   
-
     
-
 
Exercised
   
(1,034,702
)    
-
 
                 
Outstanding, March 31, 2021
   
5,000,000
    $
0.09
 
 
 
Midcap Warrant
 
The line of credit agreement with MidCap described in Note
6
has been amended from time to time and when it was necessary under the terms of the agreement to obtain MidCap's consent to the transactions contemplated by the above mentioned GH Notes and Golisano LLC Notes. On
April 22, 2019
subsequent to entering into the MidCap Seventeenth Amendment, the Company issued a warrant to MidCap exercisable for up to
500,000
shares of Company common stock at an exercise price of
$0.76
per share. The Company has reserved
500,000
shares of Company common stock for issuance. The warrant expires on
April 22, 2021.
 
GH Warrants
 
In connection with the
July 2018
GH Note, we issued GH a warrant to purchase an aggregate of
2,500,000
shares of the Company's common stock at an exercise price of
$0.01
per share (the
"July 2018
GH Warrant"). The Company has reserved
2,500,000
shares of the Company's common stock for issuance under the
July 2018
GH Warrant. The
July 2018
GH Warrant expires on
July 27, 2024.
The
July 2018
GH Warrant is also subject to customary adjustments upon any recapitalization, reorganization, stock split, combination of shares, merger or consolidation. The Company estimated the value of the warrant using the Black-Scholes option pricing model and recorded a debt discount of
$1,479,
which is being amortized over the term of the
July 2018
GH Note.
 
In connection with the
November 2018
GH Note, we issued GH a warrant to purchase an aggregate of
2,000,000
shares of the Company's common stock at an exercise price of
$0.01
per share (the
"November 2018
GH Warrant"). The Company has reserved
2,000,000
shares of the Company's common stock for issuance under the
November 2018
GH Warrant. The
November 2018
GH Warrant expires on
November 5, 2024.
The
November 2018
GH Warrant is also subject to customary adjustments upon any recapitalization, reorganization, stock split, combination of shares, merger or consolidation. The Company estimated the value of the warrant using the Black-Scholes option pricing model and recorded a debt discount of
$1,214
which is being amortized over the term of the
November 2018
GH Note.
 
Warrants Issued into Escrow
 
 
At
March 31, 2021,
there were
21,730,287
outstanding warrants held in escrow (“Escrow Warrants”). These Escrow Warrants are held in escrow and are
not
exercisable unless the Company defaults on the related debt. These Escrow Warrants are as follows:         
 
Golisano Escrow Warrants
 
In connection with the Golisano LLC
January 2016
Note, we issued into escrow in the name of Golisano LLC a warrant to purchase an aggregate of
1,136,363
shares of the Company's common stock at an exercise price of
$0.01
per share (the
“January 2016
Golisano Warrant”). The
January 2016
Golisano Warrant will
not
be released from escrow or be exercisable unless and until we fail to pay Golisano LLC the entire unamortized principal amount of the related promissory note and any accrued and unpaid interest thereon as of
January 28, 2019 (
which has been extended to
October 22, 2021 –
See Note
5
) or such earlier date as is required pursuant to an Acceleration Notice (as defined in the related note agreement). We have reserved
1,136,363
shares of the Company's common stock for issuance under the
January 2016
Golisano Warrant. The
January 2016
Golisano Warrant, if exercisable, expires on
February 28, 2022.
The
January 2016
Golisano Warrant is also subject to customary adjustments upon any recapitalization, capital reorganization or reclassification, consolidation, merger or transfer of all or substantially all of our assets.
 
In connection with the Golisano LLC
March 2016
Note, we issued into escrow in the name of Golisano LLC a warrant to purchase an aggregate of
3,181,816
shares of the Company's common stock at an exercise price of
$0.01
per share (the
“March 2016
Golisano Warrant”). The
March 2016
Golisano Warrant will
not
be released from escrow or be exercisable unless and until we fail to pay Golisano LLC the entire unamortized principal amount of the related promissory note and any accrued and unpaid interest thereon as of
March 21, 2019 (
which has been extended to
October 22, 2021 –
See Note
5
) or such earlier date as is required pursuant to an Acceleration Notice (as defined in the related note agreement). We have reserved
3,181,816
shares of the Company's common stock for issuance under the
March 2016
Golisano Warrant. The
March 2016
Golisano Warrant, if exercisable, expires on
March 21, 2022.
The
March 2016
Golisano Warrant is also subject to customary adjustments upon any recapitalization, capital reorganization or reclassification, consolidation, merger or transfer of all or substantially all of our assets.
 
In connection with the Golisano LLC
July 2016
Note, we issued into escrow in the name of Golisano LLC a warrant to purchase an aggregate of
2,168,178
shares of the Company's common stock, at an exercise price of
$0.01
per share (the “Golisano
July 2016
Warrant”). The Golisano
July 2016
Warrant will
not
be released from escrow or be exercisable unless and until we fail to pay Golisano LLC the entire unamortized principal amount of the Golisano LLC
July 2016
Note and any accrued and unpaid interest thereon as of
July 21, 2019   (
which has been extended to
October 22, 2021 –
See Note
5
) or such earlier date as is required pursuant to an Acceleration Notice (as defined in the Golisano LLC
July 2016
Note). We have reserved
2,168,178
shares of the Company's common stock for issuance under the Golisano
July 2016
Warrant. The Golisano
July 2016
Warrant, if exercisable, expires on
July 21, 2022.
The Golisano
July 2016
Warrant is also subject to customary adjustments upon any recapitalization, capital reorganization or reclassification, consolidation, merger or transfer of all or substantially all of our assets.
 
In connection with the Golisano LLC
December 2016
Note, we issued into escrow in the name of Golisano LLC a warrant to purchase an aggregate of
1,136,363
shares of the Company's common stock, at an exercise price of
$0.01
per share (the “Golisano
December 2016
Warrant”). The Golisano
December 2016
Warrant will
not
be released from escrow or be exercisable unless and until we fail to pay Golisano LLC the entire unamortized principal amount of the Golisano LLC
December 2016
Note and any accrued and unpaid interest thereon as of
December 31, 2019, (
which has been extended to
October 22, 2021 –
See Note
5
) or such earlier date as is required pursuant to an Acceleration Notice (as defined in the Golisano LLC
December 2016
note). We have reserved
1,136,363
shares of the Company's common stock for issuance under the Golisano
December 2016
Warrant. The Golisano
December 2016
Warrant, if exercisable, expires on
December 30, 2022.
The Golisano
December 2016
Warrant is also subject to customary adjustments upon any recapitalization, capital reorganization or reclassification, consolidation, merger or transfer of all or substantially all of our assets.
 
In connection with the Golisano LLC
March 2017
Note, we issued into escrow in the name of Golisano LLC a warrant to purchase an aggregate of
1,484,847
shares of the Company's common stock, at an exercise price of
$0.01
per share (the “Golisano
March 2017
Warrant”). The Golisano
March 2017
Warrant will
not
be released from escrow or be exercisable unless and until we fail to pay Golisano LLC the entire unamortized principal amount of the Golisano LLC
March 2017
Note and any accrued and unpaid interest thereon as of
December 31, 2019 (
which has been extended to
October 22, 2021 –
See Note
5
) or such earlier date as is required pursuant to an Acceleration Notice (as defined in the Golisano LLC
March 2017
Note). We have reserved
1,484,847
shares of the Company's common stock for issuance under the Golisano
March 2017
Warrant. The Golisano
March 2017
Warrant, if exercisable, expires on
March 14, 2023.
The Golisano
March 2017
Warrant is also subject to customary adjustments upon any recapitalization, capital reorganization or reclassification, consolidation, merger or transfer of all or substantially all of our assets.
 
In connection with the Golisano LLC
February 2018
Note, we issued into escrow in the name of Golisano LLC a warrant to purchase an aggregate of
1,818,182
shares of the Company's common stock at an exercise price of
$0.01
per share (the "Golisano
2018
Warrant"). The Golisano
2018
Warrant will
not
be released from escrow or be exercisable unless and until the Company fails to pay Golisano LLC the entire unamortized principal amount of the Golisano LLC
February 2018
Note and any accrued and unpaid interest thereon as of
February 6, 2021, (
which has been extended to
October 22, 2021 –
See Note
6
) or such earlier date as is required pursuant to an acceleration notice. The Company has reserved
1,818,182
shares of the Company's common stock for issuance under the Golisano
2018
Warrant. The Golisano
February 2018
Warrant expires on
February 6, 2024. 
 
We previously entered into a registration rights agreement with Golisano LLC, dated as of
October 5, 2015 (
the “Registration Rights Agreement”), granting Golisano LLC certain registration rights for certain shares of the Company's common stock. The shares of common stock issuable pursuant to the above Golisano LLC warrants are also entitled to the benefits of the Registration Rights Agreement.
 
GH Escrow Warrants
 
In connection with a
January 2016
GH Note, we issued into escrow in the name of GH a warrant to purchase an aggregate of
1,136,363
shares of the Company's common stock at an exercise price of
$0.01
per share (the
“January 2016
GH Warrant”). The
January 2016
GH Warrant will
not
be released from escrow or be exercisable unless and until we fail to pay GH the entire unamortized principal amount of the
January 2016
GH Note and any accrued and unpaid interest thereon as of
January 28, 2019 (
which has been extended to
October 22, 2021 –
See Note
5
) or such earlier date as is required pursuant to an Acceleration Notice (as defined in the
January 2016
GH Note). We have reserved
1,136,363
shares of the Company's common stock for issuance under the
January 2016
GH Warrant. The
January 2016
GH Warrant, if exercisable, expires on
February 28, 2022.
The
January 2016
GH Warrant is also subject to customary adjustments upon any recapitalization, capital reorganization or reclassification, consolidation, merger or transfer of all or substantially all of our assets.
 
In connection with a
March 2016
GH Note, we issued into escrow in the name of GH a warrant to purchase an aggregate of
3,181,816
shares of the Company's common stock at an exercise price of
$0.01
per share (the
“March 2016
GH Warrant”). The
March 2016
GH Warrant will
not
be released from escrow or be exercisable unless and until we fail to pay GH the entire unamortized principal amount of the
March 2016
GH Note and any accrued and unpaid interest thereon as of
March 21, 2019 (
which has been extended to
October 22, 2021 –
See Note
5
) or such earlier date as is required pursuant to an Acceleration Notice (as defined in the
March 2016
GH Note). We have reserved
3,181,816
shares of the Company's common stock for issuance under the
March 2016
GH Warrant. The
March 2016
GH Warrant, if exercisable, expires on
March 21, 2022.
The
March 2016
GH Warrant is also subject to customary adjustments upon any recapitalization, capital reorganization or reclassification, consolidation, merger or transfer of all or substantially all of our assets. 
 
In connection with the
December 2016
GH Note, we issued into escrow in the name of GH a warrant to purchase an aggregate of
1,136,363
shares of the Company's common stock, at an exercise price of
$0.01
per share (the
“December 2016
GH Warrant”). The
December 2016
GH Warrant will
not
be released from escrow or be exercisable unless and until we fail to pay GH the entire unamortized principal amount of the
December 2016
GH Note and any accrued and unpaid interest thereon as of
December 31, 2019 (
which has been extended to
October 22, 2021 –
See Note
5
) or such earlier date as is required pursuant to an Acceleration Notice (as defined in the
December 2016
GH Note). We have reserved
1,136,363
shares of common stock for issuance under the
December 2016
GH Warrant. The
December 2016
GH Warrant, if exercisable, expires on
December 30, 2022.
The
December 2016
GH Warrant is also subject to customary adjustments upon any recapitalization, capital reorganization or reclassification, consolidation, merger or transfer of all or substantially all of our assets.
 
In connection with the
August 2017
GH Note, we issued into escrow in the name of GH a warrant to purchase an aggregate of
1,363,636
shares of the Company's common stock, at an exercise price of
$0.01
per share (the
“August 2017
GH Warrant”). The
August 2017
GH Warrant will
not
be released from escrow or be exercisable unless and until we fail to pay GH the entire unamortized principal amount of the
August 2017
GH Note and any accrued and unpaid interest thereon as of
August 29, 2020 (
which has been extended to
October 22, 2021 –
See Note
5
) or such earlier date as is required pursuant to an Acceleration Notice (as defined in the
August 2017
GH Note). We have reserved
1,363,636
shares of common stock for issuance under the
August 2017
GH Warrant. The
August 2017
GH Warrant, if exercisable, expires on
August 30, 2023.
The
August 2017
GH Warrant is also subject to customary adjustments upon any recapitalization, capital reorganization or reclassification, consolidation, merger or transfer of all or substantially all of our assets.
 
In connection with the
February 2018
GH Note, we issued into escrow in the name of GH a warrant to purchase an aggregate of
1,818,182
shares of the Company's common stock at an exercise price of
$0.01
per share (the
"February 2018
GH Warrant"). The
February 2018
GH Warrant will
not
be released from escrow or be exercisable unless and until the Company fails to pay GH the entire unamortized principal amount of the note and any accrued and unpaid interest thereon as of
February 6, 2021, (
which has been extended to
October 22, 2021 –
See Note
5
) or such earlier date as is required pursuant to an acceleration notice. The Company has reserved
1,818,182
shares of the Company's common stock for issuance under the
February 2018
GH Warrant. The
February 2018
GH Warrant expires on
February 6, 2024.  
 
Little Harbor Escrow Warrant
 
The Little Harbor Delayed Draw Note required that we issue into escrow in the name of Little Harbor a warrant to purchase an aggregate of
2,168,178
shares of common stock at an exercise price of
$0.01
per share (the “Little Harbor
July 2016
Warrant”). The Little Harbor
July 2016
Warrant will
not
be released from escrow or be exercisable unless and until we fail to pay Little Harbor the entire unamortized principal amount of the Little Harbor Delayed Draw Note and any accrued and unpaid interest thereon as of
January 28, 2019 (
which has been extended to
October 22, 2021 –
See Note
5
) or such earlier date as is required pursuant to an acceleration notice (as defined in the Little Harbor Delayed Draw Note). We have reserved
2,168,178
shares of the Company's common stock for issuance under the Little Harbor
July 2016
Warrant. The Little Harbor
July 2016
Warrant, if exercisable, expires on
July 21, 2022.
The Little Harbor
July 2016
Warrant is also subject to customary adjustments upon any recapitalization, capital reorganization or reclassification, consolidation, merger or transfer of all or substantially all of our assets. The Little Harbor
July 2016
Warrant grants Little Harbor certain registration rights for the shares of the Company's common stock issuable upon exercise of the Little Harbor
July 2016
Warrant.