Note 7 - Subsequent Events

3 Months Ended

Mar. 31, 2015

7.	SUBSEQUENT EVENTS

In April 2015, warrants to purchase 88,097 shares of common stock were exercised at $3.5043 per share for total proceeds of $309,000.

On April 29, 2015, the Company amended its existing Royalty Agreement and License with BHS and also entered into an additional Royalty Agreement and License with BHS in regards to a different product. See Note 6.

n May 4, 2015, the Board of Directors declared a cash dividend of $0.03 on each share of common stock outstanding. Such dividends are payable on May 29, 2015 to stockholders of record on May 19, 2015. Payment of any future dividends on shares of common stock will be at the discretion of the Company’s Board of Directors.

Also on May 4, 2015, the Board of Directors approved a stock repurchase program of up to $5.0 million of the Company’s outstanding shares of common stock. Such repurchases are expected to begin soon and be made in accordance with all applicable securities laws and regulations, including Rule 10b-18 of the Securities Exchange Act of 1934 (the “Exchange Act”). For all or a portion of the authorized repurchase amount, the Company may enter into a plan that is compliant with Rule 10b5-1 of the Exchange Act that is designed to facilitate these purchases. The repurchase program does not require the Company to acquire a specific number of shares, and may be suspended from time to time or discontinued. The share repurchases will be funded from available working capital. The Company anticipates that George K. Broady, its largest shareholder and a member of its Board of Directors will participate in the Company’s repurchase program on a basis at least proportional to his ownership interest. To that end, the Company and Mr. Broady are in discussions regarding the terms of a mutually agreeable stock purchase agreement.