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Note 3 - Equity Transactions
9 Months Ended
Sep. 30, 2019
Notes to Financial Statements  
Stockholders' Equity Note Disclosure [Text Block]
(
3
) EQUITY TRANSACTIONS:
 
The Company expensed
$97,250
and
$159,380
in employee and board member stock compensation for the
three
and
nine
months ended
September 30, 2019,
respectively, which included
$87,750
in compensation expense related to
450,000
shares of common stock awarded to employees in
September 2019
that will be issued in
November 2019
and fully vested at time of issuance. 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 accrues stock compensation expense over the period earned for employees and board members. During the quarter ended
September 30, 2019,
the Company issued
585,666
shares of common stock to service providers for which it had accrued compensation expense of
$268,579
in prior periods.
 
On
May 31, 2019,
the Company completed a private placement of its securities to a group of accredited investors that included several directors of the Company and members of management, pursuant to a Securities Purchase Agreement between the Company and the investors, dated as of
May 30, 2019.
Investors in the private placement purchased a total of
29,770,000
units at a price per unit of
$0.25,
each unit consisting of
one
share of common stock and
one
warrant to purchase a share of common stock, resulting in gross proceeds to the Company of
$7,442,500,
before deducting placement agent fees and offering expenses. The warrants are exercisable immediately upon issuance at an exercise price of
$0.30
per share and expire on the
66
th
 month anniversary of the issuance date.  The Company paid a cash fee to its placement agent of
$452,900
and issued warrants to its placement agent and its designees to purchase an aggregate of
1,359,000
shares of common stock with the same terms as the warrants issued to the investors.  The Company filed a registration statement with the Securities and Exchange Commission to register the resale of the outstanding common stock and the shares of common stock underlying the warrants and the warrants issued to the placement agent which was declared effective on
July 12, 2019.
In addition, the Company’s directors and officers entered into Lock-Up Agreements at the closing under which they have agreed
not
to sell any of their securities of the Company until the earliest of (i)
270
days after the effective date of the Registration Statement, (ii)
365
days after the closing, and (iii)
120
days after the listing of Company’s common stock on a national securities exchange.
 
In
April 2018,
the Company completed a private placement resulting in gross proceeds to the Company of
$2,010,000.
Prior to
March 31, 2018,
the Company received
$74,983
in advance from these investors, which has been recorded as an advance -- private placement in the accompanying statement of cash flows.
 
As of
September 30, 2019,
the Company had warrants outstanding to purchase
63,321,294
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, 2019,
there are 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.