Note 7 - Accounts Payable and Accrued Expenses

3 Months Ended

12 Months Ended

Mar. 31, 2017

Dec. 31, 2016

Notes to Financial Statements

Accounts Payable and Accrued Liabilities Disclosure [Text Block]

Note

7.

Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses included the following:

	December 31,		March 31 ,
	2016		2017
Accounts payable and accrued expenses	$	22,231	$	57,363
Payroll tax liability		137,500		137,500
Officer bonus		80,000		—
Accrued interest		40,372		41,836
Total accounts payable and accrued expenses	$	280,103	$	236,699

The payroll tax liability is our estimate of payroll taxes due on the past services of independent contractors. We are currently attempting to reduce the liability to approximately

$5,000

through the IRS Voluntary Classification Settlement Program.

On

September

27,

2016,

the board approved a

$60,000

bonus for each of our Chief Executive and Chief Science Officers,

$20,000

of which was paid to each immediately. In

January

2017,

the remaining

$40,000

was paid to each.

During the

three

months ended

March

31,

2016

and

2017,

we issued

192,214

and

144,545

shares of common stock in lieu of fees for service provided by consultants, resulting in a grant date fair value of

$73,658

and

$82,480,

respectively, and recorded in selling general and administrative expense

.

During the

three

months ended

March

31,

2016

and

2017

we issued

282,240

and

310,404

shares of common stock resulting in a grant date fair value of

$99,492

and

$178,929,

respectively. The shares were issued to settle our accrued interest liability, which is

recorded as interest expense in our consolidated statement of operations.

Note

7.

Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses included the following:

	December 31,		December 31,
	2015		2016
Accounts payable	$	174,539	$	22,231
Payroll tax liability		137,500		137,500
Officer bonus		—		80,000
Accrued interest		12,944		40,372
Total Accounts Payable and Accrued Expenses	$	324,983	$	280,103

The payroll tax liability is our estimate of payroll taxes due on the past services of independent contractors. We are currently attempting to reduce the liability to approximately

$5,000

through the IRS Voluntary Classification Settlement Program.

On

September

27,

2016,

the board approved a

$60,000

bonus for each of our Chief Executive and Chief Science Officers. As of

December

31,

2016,

$80,000

of this bonus remains to be paid. In

January

2017,

$

40,000

was paid to each of our Chief Executive and Chief Science Officer.

Issuance of Common Stock in exchange for payment of payables

Payment of Officer Salaries

During

2015

we issued

738,837

shares of our common stock at a range of

$0.35

-

$0.36

per share in lieu of

$309,975

of accrued and unpaid obligations to our officers. During

2016

we did not issue stock for service to our officers as their salaries were paid in cash.

Payment of Consultant Fees and Accrued Interest

During

2016,

we issued

2,342,264

shares of our common stock at a range of

$0.25

-

$0.83

per share in lieu of

$993,078

of accrued interest and accrued and unpaid obligations to consultants.

During

2015

we issued

631,643

shares of our common stock at a range of

$0.35

-

$0.36

per share in lieu of

$360,364

of accrued interest and accrued and unpaid obligations to consultants.

All of these offerings and sales were made in reliance on the exemption from registration contained in Section 

4(2)

of the Securities Exchange Act and/or Regulation D promulgated thereunder as not involving a public offering of securities.