Note 10 - Subsequent Events	12 Months Ended
Dec. 31, 2020
Notes to Financial Statements
Note 10 - Subsequent Events	NOTE 10 — Subsequent Events On January 29, 2021, the Company entered into an Amended and Restated Business Financing Agreement with Western Alliance Bank, an Arizona corporation which increased the Domestic Line of Credit to $3.0 million that includes $2.0 million revolving facility and $1.0 million nonformula loan. The $1.0 million Nonformula loan was enrolled in the CalCAP Collateral Support Program and advanced at closing. The Company will make a principal reduction payment of $125,000, plus all accrued but unpaid interest on the 30th day of each April, July, October, and January. The Financing Agreement also extended the maturity date of both Domestic and EXIM Line of Credit to January 31, 2023. On February 1, 2021, 285,950 restricted stocks at a price of $2.58 per share have been granted from the 2004 Equity Incentive Plan subsequent to December 31, 2020. The shares include annual refresher grants to all continuing employees with a weighting reflecting the level of responsibility and performance of the employee and initial grants to two newly hired employees. On February 26, 2021, the Company entered into the 2021 Technology Transfer Agreement with SpringCard SAS (the “SAS”). Under the new agreement, the Company acquired a perpetual, royalty-free license to SAS’ core contactless technology for use in the Company’s DuraScan D600 and SocketScan S550 Contactless Reader/Writer products. SAS received: (i) $2,000,000 in shares of the Company’s common stock (“Common Stock”) valued at $10.85 per share or 184,332 shares, subject to a collar whereby, if SAS sells any such shares, up to an aggregate of 92,166 shares, within 14 days following the stock transfer date (as defined in the Agreement) at a gross sale price less than $10.00 per share, the Company will pay SAS in cash the lesser of $350,000 or a collar payment equal to the difference between such gross sale price and $10.00 per share; and (ii) a 10-year warrant to purchase up to an aggregate of 50,000 shares of Common Stock at the price of $10.85 per share (the “Warrant”). The Warrant is divided into four equal lots of 12,500 shares each, with each lot exercisable on or after each of the following dates until the expiration date of warrant: January 1, 2022, January 1, 2023, January 1, 2024, and January 1, 2025. As of March 19, 2021, the Company has issued 712,919 shares of common stock for the exercise of stock options and 89,400 shares for conversion of the convertible notes.

Note 10 - Subsequent Events

12 Months Ended

Dec. 31, 2020

NOTE 10 — Subsequent Events

On January 29, 2021, the Company entered into an Amended and Restated Business Financing Agreement with Western Alliance Bank, an Arizona corporation which increased the Domestic Line of Credit to $3.0 million that includes $2.0 million revolving facility and $1.0 million nonformula loan. The $1.0 million Nonformula loan was enrolled in the CalCAP Collateral Support Program and advanced at closing. The Company will make a principal reduction payment of $125,000, plus all accrued but unpaid interest on the 30th day of each April, July, October, and January. The Financing Agreement also extended the maturity date of both Domestic and EXIM Line of Credit to January 31, 2023.

On February 1, 2021, 285,950 restricted stocks at a price of $2.58 per share have been granted from the 2004 Equity Incentive Plan subsequent to December 31, 2020. The shares include annual refresher grants to all continuing employees with a weighting reflecting the level of responsibility and performance of the employee and initial grants to two newly hired employees.

On February 26, 2021, the Company entered into the 2021 Technology Transfer Agreement with SpringCard SAS (the “SAS”). Under the new agreement, the Company acquired a perpetual, royalty-free license to SAS’ core contactless technology for use in the Company’s DuraScan D600 and SocketScan S550 Contactless Reader/Writer products. SAS received: (i) $2,000,000 in shares of the Company’s common stock (“Common Stock”) valued at $10.85 per share or 184,332 shares, subject to a collar whereby, if SAS sells any such shares, up to an aggregate of 92,166 shares, within 14 days following the stock transfer date (as defined in the Agreement) at a gross sale price less than $10.00 per share, the Company will pay SAS in cash the lesser of $350,000 or a collar payment equal to the difference between such gross sale price and $10.00 per share; and (ii) a 10-year warrant to purchase up to an aggregate of 50,000 shares of Common Stock at the price of $10.85 per share (the “Warrant”). The Warrant is divided into four equal lots of 12,500 shares each, with each lot exercisable on or after each of the following dates until the expiration date of warrant: January 1, 2022, January 1, 2023, January 1, 2024, and January 1, 2025.

As of March 19, 2021, the Company has issued 712,919 shares of common stock for the exercise of stock options and 89,400 shares for conversion of the convertible notes.