Note 10 - Sales of Unregistered Securities

12 Months Ended

Dec. 31, 2018

Notes to Financial Statements

Restricted Stock Shares Activity [Text Block]

( 10 ) Sales of Unregistered Securities

On

December 24, 2018,

the Company entered into a Securities Purchase Agreement (the “Securities Purchase Agreement”) with entities affiliated with its existing investors (the “Investors”), relating to an offering and sale (the “Offering”) of an aggregate of

5,333,332

shares of the Company’s common stock at a purchase price of

$0.75

per share, and warrants to purchase up to

one

-half of the number of shares of common stock sold to an Investor, up to an aggregate for all Investors of

2,666,666

shares of Common Stock (the “Warrant Shares”) at an exercise price of

$0.75

per share, for aggregate net proceeds of

$3.8

 million net of

$200,000

expenses. Both the common stock and the common stock warrants are classified as equity and recorded on a relative fair value basis. The warrants will expire on

December 24, 2023.

The warrants contain customary adjustments and are exercisable immediately for cash and after

six

months will also be exercisable on a cashless basis if there is

no

effective registration statement registering the resale of the Warrant Shares. The Investors do

not

have registration rights in connection with any securities purchased in the Offering. The closing of the Offering took place on

December 24, 2018.