Note 6 - Equity Transactions

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

(

6

) EQUITY TRANSACTIONS:

On

December 8, 2020,

the Company effected a

1

-for-

100

reverse split of its authorized and issued and outstanding shares of common stock. All share references have been restated for this reverse split to the earliest period presented. As a result of the split, the authorized shares of the Company's common stock decreased to

10,000,000

shares.

The Company expensed

$0

and

$7,220

 in employee and board member stock compensation for the

three

months ended

March 31, 2021

and

2020,

respectively. These shares were valued using quoted market values. The Company accrues stock compensation expense over the period earned for employees and board members. Stock compensation expense for board members is included in “Board of Directors fees and costs” on our statement of operations, and stock compensation expense for officers and employees that are

not

board members is included in “Personnel” on our statement of operations. In

2020,

the Company did

not

issue shares of common stock for compensation. The Company issued

53,938

shares to employees in

January 2021

with a value of

$271,308

at the time of issuance, with respect to which compensation expense in that amount had been accrued as of

December 31, 2020.

On

April 24, 2020,

the Company completed a private placement of common stock to a group of accredited investors that included several directors of the Company and members of management. Investors in the private placement purchased a total of

200,000

shares of common stock at a price of

$10

per share, resulting in gross proceeds to the Company of

$2,000,000.

On

August 27, 2020,

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. Investors in the private placement purchased a total of

283,111

units at a price of

$10

per unit, resulting in gross proceeds to the Company of

$2,831,114.

Each unit consisted of

one

share of common stock and a

seven

-year warrant to purchase

one

share of common stock at an exercise price of

$15

per share.

On

December 11, 2020,

the Company sold an aggregate of

2,500,000

units at a price to the public of

$5.00

per unit (the “Public Offering”), each unit consisting of

one

share of common stock, and a warrant to purchase

one

share of common stock at an exercise price of

$5.00

per share (the “Warrants”), pursuant to an Underwriting Agreement we entered into with Maxim Group LLC (“Maxim”). In addition, pursuant to the Underwriting Agreement, the Company granted Maxim a

45

-day option to purchase up to

375,000

additional shares of common stock, and/or

375,000

additional Warrants, to cover over-allotments in connection with the Offering, which Maxim partially exercised to purchase

375,000

Warrants on the closing date.

The Company received gross proceeds of

$12,503,750

upon the initial closing of the Public Offering, before deducting underwriting discounts and commissions of

eight

percent (

8%

), and expenses. On

December 22, 2020,

the Company sold an additional

375,000

shares of common stock to Maxim upon its exercise of the balance of its over-allotment option, and received additional gross proceeds of

$1,871,250

from such sale, bringing the total gross proceeds of the Public Offering to

$14,375,000.

The total expenses of the Public Offering were approximately

$1,703,000

which included Maxim's expenses relating to the offering.

Pursuant to the Underwriting Agreement, we issued warrants (the “Underwriter's Warrants”) to Maxim to purchase

57,500

shares of common stock (

2%

of the shares of common stock sold in the Public Offering). The Underwriter's Warrants are exercisable at

$6.25

per share of common stock and have a term of

five

years.

Subsequent to the closing of the Public Offering through

December 31, 2020,

Warrants to purchase an aggregate of

197,000

shares of common stock were exercised, resulting in gross proceeds to the Company of

$985,000.

In

January 2021,

10,000

shares of common stock with a value of

$50,300

were issued to a nonemployee for services.

In

February

and

March 2021

warrants issued in our

December 2020

Public Offering were exercised to purchase an aggregate of

1,519,984

shares of common stock, resulting in gross proceeds to the Company of

$7,599,920.

 

In

March 2021,

warrants totaling

9,436

were exercised in a net share settlement. This resulted in the issuance of

2,913

shares of common stock and the expiration of

6,523

in warrants.

As of

March 31, 2021,

the Company had warrants outstanding to purchase

2,130,268

shares of common stock at exercise prices of

$5.00

-

$100.00

per share that expire at various dates through

2027.

 In addition, there are

seven

-year warrants outstanding at

March 31, 2021

to purchase

4,800

Units sold in our

May 2016

private placement at an exercise price of

$25.00

per Unit,

1,641

Units sold in our

February 2017

private placement at an exercise price of

$35.00

per Unit, and

2,400

Units sold in our

October 2017

private placement at an exercise price of

$25.00

per Unit.