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Note 9 - Convertible Promissory Notes, Related Parties
12 Months Ended
Dec. 31, 2020
Notes to Financial Statements  
Convertible Promissory Notes, Related Party [Text Block]
NOTE
9.
  Convertible Promissory Notes, Related Parties
 
On
December 
10,
2014,
the Company entered into a note purchase agreement with certain existing preferred stockholders under which the Company issued convertible promissory notes during
December 
2014
for total proceeds of
$18.4
 million.
 
On
November 
20,
2015,
the Company entered into a
second
note purchase agreement with certain existing preferred stockholders under which the Company issued convertible promissory notes during
November 
and
December 
2015
for total proceeds of
$11.0
 million. These notes were issued with the same terms as the notes issued in
2014.
 
As the holders of the convertible promissory notes each had an equity ownership in the Company, the convertible promissory notes were considered to be a related-party transaction.
 
The convertible promissory notes bore interest at a rate of
8.0%
per annum.
 
As of
December 31, 2017,
the balance of the convertible promissory notes was
$35.3
million, comprising principal of
$29.4
million plus accrued interest associated with the convertible promissory notes of
$6.3
 million, offset by unamortized debt discount of
$0.4
million. Interest expense related to the convertible promissory notes, including amortization of debt discount, totaled
$0.3
million in the year ended
December 31, 2018,
all related to the
43
days prior to the Merger.
 
On
February 
13,
2018,
the balance of the convertible promissory notes was
$35.6
million, comprising principal of
$29.4
million plus accrued interest of
$6.6
 million, offset by the unamortized debt discount to
$0.4
million. On that date, in conjunction with the Merger, the convertible promissory notes were exchanged for
1,571,702
shares of the Company's common stock which, based on the closing stock price of
$9.05,
had a value of
$14.2
million. The difference of
$21.4
million was recorded as a capital contribution.