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Note 11 - Related Party Transactions
12 Months Ended
Dec. 31, 2017
Notes to Financial Statements  
Related Party Transactions Disclosure [Text Block]
Note
11
– Related Party Transactions
 
During
2016
we leased our facility in Columbia, Maryland from an entity that is
50%
owned by Gerard Gallagher, a director and our senior technical advisor. This lease was terminated in
November 2016.
Rents paid under this agreement were
$253,000
during the year ended
December 31, 2016.
 
We have
$945,000
principal outstanding at
December 31, 2017
in promissory notes payable to MHW, net of remaining discount of
$84,000.
Per the terms of the notes, we paid interest of approximately $
114,000
during each of the years ended
December 31, 2017
and
2016,
respectively. We have
$650,000
principal outstanding at
December 31, 2017
in promissory notes payable to MHW Partners, net of remaining discount of
$88,000.
Per the terms of the notes, we paid interest of approximately
$36,000
during the year ended
December 31, 2017.
Peter H. Woodward, the Chairman of our Board of Directors, is a principal of MHW Capital Management, LLC which is the investment manager of MHW and MHW Partners. MHW Capital Management LLC is entitled to a performance-related fee tied to appreciation in the valuation of the common stock in excess of the applicable strike price under the warrant issued to MHW and MHW Partners.
 
We have
$300,000
in principal outstanding at
December 31, 2017
in promissory notes payable to Mr. Glen Ikeda, a shareholder in the Company. The loan matures
July 19, 2022
and bears
no
interest. We are permitted to make optional payments at any time without penalty. We issued Mr. Ikeda a warrant to purchase up to
954,231
shares of our common stock in connection with entering into the promissory notes.