Note 15 - Subsequent Events
|3 Months Ended|
Mar. 31, 2020
|Notes to Financial Statements|
|Subsequent Events [Text Block]||
April 24, 2020,Viveve, Inc. (“Viveve”), a wholly-owned subsidiary of the Company, entered into a promissory note (the “Promissory Note”) evidencing an unsecured loan in the amount of
$1,343,400made to Viveve under the Paycheck Protection Program (the “Loan”). The Paycheck Protection Program (or “PPP”) was established under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) and is administered by the U.S. Small Business Administration. The Loan to Viveve is being made through Western Alliance Bank, an Arizona corporation (the “Lender”). The interest rate on the Loan is
1.00%and the term of the Loan is
sevenmonths from the date of the Loan, Viveve is required monthly payments of principal and interest. The promissory note evidencing the Loan contains customary events of default relating to, among other things, payment defaults or breaching the terms of the Loan documents. The occurrence of an event of default
mayresult in the repayment of all amounts outstanding, collection of all amounts owing from Viveve, or filing suit and obtaining judgment against Viveve. Under the terms of the CARES Act, PPP loan recipients can apply for and be granted forgiveness for all or a portion of loan granted under the PPP. Such forgiveness will be determined, subject to limitations, based on the use of loan proceeds for payment of payroll costs and any payments of mortgage interest, rent, and utilities.
Noassurance is provided that Viveve will obtain forgiveness of the Loan in whole or in part.
April 15, 2020,the Company reduced the exercise price of the outstanding Series A warrants and Series B warrants from
$1.55per share to
$0.61per share. On
April 16, 2020,the Company entered into inducement letter agreements with certain institutional and accredited holders of Series A warrants and Series B warrants pursuant to which such holders agreed to exercise Series A warrants to purchase
4,820,584shares of common stock and Series B warrants to purchase
242,790shares of common stock for aggregate exercise proceeds to the Company of approximately
$3.1million. In conjunction, the Company also agreed to issue new Series A-
2warrants to purchase up to
4,820,584shares of common stock as an inducement for the exercise of Series A warrants, and new Series B-
2warrants to purchase up to
242,790shares of common stock as an inducement for the exercise of Series B warrants, in each case at an exercise price of
$0.6371per share and for a term of
fiveyears. The transaction closed on
April 20, 2020.
The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef