Annual report pursuant to Section 13 and 15(d)

Note 10 - Subsequent Events

v3.19.1
Note 10 - Subsequent Events
12 Months Ended
Dec. 31, 2018
Notes to Financial Statements  
Subsequent Events [Text Block]
Note
10
 - Subsequent Events
 
 In
January 2019,
Mr. Klemp, Dr. Capelli, Mr. Tanner, Ms. Bisson and
one
other individual agreed to the extinguishment of about
$484,000
in deferred compensation which had been earned through
September 30, 2018,
and which was to be repaid out of the proceeds from the Company's IPO. In recognition of this extinguishment, on
February 5, 2019,
the Company granted the same parties an aggregate of
401,750
options to purchase common stock with an exercise price of
$1.75
per share and a term of
10
years. These options vest in
four
installments over the next year.
 
In
January
and
February 2019,
the Company issued
$300,000
10%
non-convertible promissory notes. For each dollar in principal amount of notes, the Company issued a
five
-year warrant to purchase
one
share of the Company's common stock at an exercise price of
$1.75.
These notes were paid in full after the Company’s IPO.
 
On
February 19, 2019,
the Company consummated its IPO, see Note
1.
 
On
February 19, 2019,
the Company amended its articles of incorporation to
no
longer have preferred shares authorized and increased the authorized shares of common stock to
100,000,000.
 
On
February 26, 2019,
our Board established a compensation policy for non-employee directors,
2019,
that compensated each independent director, a
one
-time cash payment of
$25,000
for their services.
 
On
March 4, 2019,
we submitted our filing for premarket clearance approval with the FDA. On
March 18, 2019,
the FDA notified us that the administrative acceptance review had been conducted on our premarket notification (
510
(k)).
 
On
March 12, 2019,
the Compensation Committee of the Board approved the following bonus payments to its named executive officers: Christopher Capelli, Chief Executive Officer and President, and Walter V. Klemp, Executive Chairman, each received a cash bonus of
$
60,000
;
Lori Bisson, Chief Financial Officer, received a cash bonus of
$70,000;
and Joe Tanner, Chief Operating Officer, received a cash bonus of
$30,000.
 
On
March 20, 2019,
the Company issued a
$200,000
letter of credit, as a security deposit, to a supplier. This letter of credit is secured by a pledged certificate of deposit and will expire on
March 20, 2020.
As of
March 29, 2019,
this letter of credit remained unused.