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Note 9 - Line of Credit
 12 Months Ended
Dec. 31, 2021
Notes to Financial Statements  
Debt Disclosure [Text Block]

NOTE 12. CONVERTIBLE NOTE

 

On March 26, 2019, the Company entered into a Securities Purchase Agreement with Iliad Research and Trading, L.P. (the “Lender”), pursuant to which the Company issued a Secured Convertible Promissory Note (the “Convertible Note”) to the Lender dated as of March 26, 2019. The Convertible Note had an original principal amount of $2.2 million, beared interest at a rate of 10% per annum and matured on September 26, 2020, unless earlier paid, redeemed or converted in accordance with its terms. The Company received net proceeds of $2.0 million after deducting an original issue discount of $0.2 million and debt issuance cost of Lender’s transaction fees of $15 thousand. The Company recognized an additional $0.2 million of debt issuance costs associated with the issuance of the Convertible Note. The Convertible Note was repaid in full during the third quarter of 2020. Upon full repayment, the Company was released from the Convertible Note.

 

During the year ended December 31, 2020, the effective interest rate on the Convertible Note was 20%. Interest expense recognized, including amortization of the issuance costs and debt discount, was $0.2 million during the year ended December 31, 2020. 

 
Line of Credit [Member]  
Notes to Financial Statements  
Debt Disclosure [Text Block]

NOTE 9. LINE OF CREDIT

 

At the time of the DERMAdoctor Acquisition, DERMAdoctor had a line of credit agreement with Bank Midwest for $500 thousand. There was no balance outstanding on the line of credit at the time of Acquisition Closing. The agreement was terminated and repaid in full subsequent to December 31, 2021 on January 6, 2022. The line had an interest rate equal to the Wall Street Journal Prime Rate plus 1.50% with a floor of 5.00% on December 31, 2021. All borrowings were collateralized by substantially all assets of DERMAdoctor. As of December 31, 2021, the Company had $105 thousand outstanding on the line of credit.