Note 9 - Subsequent Event

3 Months Ended

Mar. 31, 2018

ubsequent Events

April 16, 2018,

the Company entered into an amendment to its Credit Agreement (Amended Note) and related convertible promissory note. The amendments contained the following provisions:

●

The Lender was granted the right to convert, at any time, outstanding principal and accrued but unpaid interest under the Credit Agreement into shares of Company common stock at a conversion price equal to

$1.61

per share, subject to customary adjustments for stock splits, reverse stock splits, and the like (the “Fixed Conversion Price”). Notwithstanding the foregoing, if the Amended Note is converted after the Maturity Date, the conversion price of the Amended Note will be the lower of the Fixed Conversion Price or an amount equal to

90%

of the average volume-weighted average price of our common stock during the

trading days immediately prior to the Maturity Date. Prior to the

April 2018

amendment, the principle and accrued interest was convertible by the Lender only upon maturity of the obligation.

●

If the Company in the future issues shares of common stock, or is deemed to issue shares of common stock, prior to the full payment or conversion of the Amended Note for a price per share lower than the Fixed Conversion Price then in effect, the Fixed Conversion Price will be reduced to the price per share paid in the future issuance, with certain customary exceptions for equity plan issuances and issuances pursuant to certain strategic transactions.

●

The Company has been granted the right to defer payment of the

$657,000

interest payment that was originally due on

December 31, 2017

until

December 31, 2018,

or if earlier, the date on which the Company completes a debt or equity financing transaction resulting in gross proceeds of

$5.0

million or more.

May 7, 2018,

the Company entered into an Amendment

No.

to its First Amended and Restated Credit Agreement with Boyalife Asset Holding II, Inc. The Amendment

No.

amends the Company’s revolving line of credit facility by adding a provision securing it with a security interest in the shares of common stock of ThermoGenesis Corp.