Note 15 - Subsequent Events

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Subsequent Events [Text Block]

1 5 . Subsequent Events

On

April 24, 2020,

Viveve, Inc. (“Viveve”), a wholly-owned subsidiary of the Company, entered into a promissory note (the “Promissory Note”) evidencing an unsecured loan in the amount of

$1,343,400

made to Viveve under the Paycheck Protection Program (the “Loan”). The Paycheck Protection Program (or “PPP”) was established under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) and is administered by the U.S. Small Business Administration. The Loan to Viveve is being made through Western Alliance Bank, an Arizona corporation (the “Lender”). The interest rate on the Loan is

1.00%

and the term of the Loan is

two

years. Beginning

seven

months from the date of the Loan, Viveve is required monthly payments of principal and interest. The promissory note evidencing the Loan contains customary events of default relating to, among other things, payment defaults or breaching the terms of the Loan documents. The occurrence of an event of default

may

result in the repayment of all amounts outstanding, collection of all amounts owing from Viveve, or filing suit and obtaining judgment against Viveve. Under the terms of the CARES Act, PPP loan recipients can apply for and be granted forgiveness for all or a portion of loan granted under the PPP. Such forgiveness will be determined, subject to limitations, based on the use of loan proceeds for payment of payroll costs and any payments of mortgage interest, rent, and utilities.

No

assurance is provided that Viveve will obtain forgiveness of the Loan in whole or in part.

On

April 15, 2020,

the Company reduced the exercise price of the outstanding Series A warrants and Series B warrants from

$1.55

per share to

$0.61

per share. On

April 16, 2020,

the Company entered into inducement letter agreements with certain institutional and accredited holders of Series A warrants and Series B warrants pursuant to which such holders agreed to exercise Series A warrants to purchase

4,820,584

shares of common stock and Series B warrants to purchase

242,790

shares of common stock for aggregate exercise proceeds to the Company of approximately

$3.1

million. In conjunction, the Company also agreed to issue new Series A-

2

warrants to purchase up to

4,820,584

shares of common stock as an inducement for the exercise of Series A warrants, and new Series B-

2

warrants to purchase up to

242,790

shares of common stock as an inducement for the exercise of Series B warrants, in each case at an exercise price of

$0.6371

per share and for a term of

five

years. The transaction closed on

April 20, 2020.