Note 9 - Equity Distribution Agreement and Sale of Common Stock

9 Months Ended

Jun. 30, 2020

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

Note

9

– Equity Distribution Agreement

and Sale of Common Stock

On

April 24, 2020,

the Company entered into an Equity Distribution Agreement (the “Sales Agreement”) with Northland Securities, Inc., as agent (“Northland”), pursuant to which the Company

may

offer and sell, from time to time, through Northland, shares of the Company's common stock, par value

$0.01

per share (the “Common Stock”), having an aggregate offering price of up to

$13,850,000

(the “Shares”).

The offer and sale of the Shares will be made pursuant to a shelf registration statement on Form S-

3

and the related prospectus filed by the Company with the Securities and Exchange Commission (the “SEC”) on

March 3, 2020,

as amended on

March 23, 2020,

and declared effective by the SEC on

April 1, 2020.

Pursuant to the Sales Agreement, Northland

may

sell the Shares by any method permitted by law deemed to be an “at the market offering” as defined in Rule

415

of the Securities Act of

1933

(the “Securities Act”), including sales made by means of ordinary brokers' transactions, including on The Nasdaq Global Market, at market prices or as otherwise agreed with Northland. Northland will use commercially reasonable efforts consistent with its normal trading and sales practices to sell the Shares from time to time, based upon instructions from the Company, including any price or size limits or other customary parameters or conditions the Company

may

impose. The sales agreement

may

be terminated without prior notice at any time prior to the fulfillment of the Sales Agreement if additional sales are deemed

not

warranted.

The Company will pay Northland a commission rate equal to an aggregate of

3.0%

of the aggregate gross proceeds from each sale of Shares and have agreed to provide Northland with customary indemnification and contribution rights. The Company will also reimburse Northland for certain specified expenses in connection with entering into the Sales Agreement. The Sales Agreement contains customary representations and warranties and conditions to the placements of the Shares pursuant thereto.

During the

three

months ended

June 30, 2020,

573,199

shares were sold by Northland on behalf of the Company with gross proceeds of

$2.2

million, and net proceeds after commissions and fees of

$2.1

million. Of the

573,199

shares sold,

80,043

shares were sold by

June 30, 2020,

but were settled in

July 2020,

resulting in a receivable of

$0.3

million net of commissions and fees, which is reflected in Other current assets.