Note 3 - Equity Transactions

9 Months Ended

Sep. 30, 2018

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

 

(

3

) EQUITY TRANSACTIONS:

The Company expensed

$22,360

and

$50,310

in employee and board member stock compensation for the

three

and

nine

months ended

September 30, 2018,

respectively. The Company expensed

$61,720

and

$107,140

in employee and board member stock compensation for the

three

and

nine

months ended

September 30, 2017,

respectively. The Company accrues stock compensation expense over the period earned for employees and board members.

In 

April 2018,

the Company completed a private placement of

20,100

Units, at a price of

$100

per Unit, resulting in gross proceeds to the Company of

$2,010,000.

Each Unit consisted of

one

share of Series B Convertible Preferred Stock (“Series B Preferred Stock”) convertible into

400

shares of Common Stock, and

seven

-year warrants to purchase

400

shares of Common Stock at an exercise price of

$0.25

per share. Prior to

March 31, 2018,

the Company received

$74,983

in advance from these investors. Scarsdale Equities, LLC (“Scarsdale”) acted as financial advisor to the Company in connection with the private placement and was paid a cash fee of

$50,000.

  We have an agreement with Scarsdale to act as our financial advisor and exclusive placement agent for which we pay a fee for investors identified by Scarsdale. N. Scott Fine, a director of the Company, was a principal of Scarsdale at the time we initially retained Scarsdale as our financial advisor, and his son is currently employed by Scarsdale, is active on our account and serves as our secretary.

In

October 2017,

the Company completed a private placement of

15,500

Units at a purchase price of

$100

per Unit, each Unit consisting of

one

share of Series B Preferred Stock, and

seven

-year warrants to purchase

400

shares of Common Stock at an exercise price of

$0.25

per share. Scarsdale acted as financial advisor to the Company in connection with the private placement and was paid a cash fee of

$60,000,

and it and its designees were issued

seven

-year warrants to purchase

600

Units at an exercise price of

$100

per Unit. 

On

February 23, 2017,

the Company issued

5,754,832

Units at a purchase price of

$0.35

per Unit in a private placement, each Unit consisting of

one

share of its common stock, and a

seven

-year warrant to purchase an additional share of common stock at an exercise price of

$0.35,

for aggregate gross proceeds to the Company of

$2

million. Scarsdale Equities LLC acted as financial advisor to the Company in connection with the private placement and was paid a cash fee of approximately

$153,000,

and it and its designees were issued

seven

-year warrants to purchase

164,074

Units at an exercise price of

$0.35

per Unit.

On

May 23, 2018,

at a special meeting of shareholders, the Company’s shareholders approved amendments to the Company’s Articles of Incorporation increasing the number of authorized shares of Common Stock from

100,000,000

shares to

500,000,000

shares, and deleting references to the Series A Preferred Stock, which was

no

longer outstanding. Following the meeting, the Company filed Articles of Amendment to its Article of Incorporation which resulted in the automatic conversion of each outstanding share of Series B Preferred Stock into

400

shares of Common Stock, increasing the number of outstanding shares of Common Stock by

14,240,000.

As of

September 30, 2018,

the Company had warrants outstanding to purchase

28,672,331

shares of common stock at exercise prices of

$0.25

-

$1.00

per share that expire in various years until

2025.

  In addition, at

September 30, 2018,

an additional

1,768,147

shares of common stock

may

be issued under warrants outstanding to purchase

480,000

Units sold in the Company’s

May 2016

private placement at an exercise price of

$0.25

per Unit,

164,074

Units sold in the Company’s

February 2017

private placement at an exercise price of

$0.35

per Unit, and

600

Units sold in the Company’s

October 2017

private placement at an exercise price of

$100

per Unit.