Note 13 - Subsequent Events

3 Months Ended

Mar. 31, 2017

13.	SUBSEQUENT EVENTS

April

10,

2017,

the Company issued options to purchase

10,000

shares of the Company’s common stock to the newly appointed Director. The options have a

three

year vesting period,

seven

year term, and exercise price of

$2.64.

April

28,

2017,

the Company issued to Wong Kwok Fong, a director and executive officer of the Company,

277,778

shares of common stock at a purchase price of

$3.60

per share for gross cash proceeds of

$1,000,000.

May

2017,

the Company entered into a committed equity facility pursuant to which it

may

issue and sell up to

$5.0

million worth of shares of common stock, subject to certain limitations and satisfaction of certain conditions, over a

-month term following the effectiveness of a registration statement covering the public resale of the shares of common stock issued under the facility. From time to time over the term of the facility, the Company

may

issue requests to the investor to purchase a specified dollar amount of shares up to a maximum of

$100,000

over a

five

trading day period based on the daily volume weighted average price of the Company’s common stock (VWAP)

to the extent the VWAP equals or exceeds the greater of a formula amount or

$3.83

per share

. The per share purchase price for the shares issued under the facility will be equal to

94%

of the lowest VWAP that equals or exceeds

$3.83

per share. Aggregate sales under the facility are limited to

19.99%

of the total outstanding shares of the Company’s common stock as of

May

2017,

unless stockholder approval is obtained, and sales under the facility are prohibited if such a sale would result in beneficial ownership by the investor of more than

9.99%

of the Company’s common stock. The Company issued

55,000

shares of common stock as a commitment fee.

May

11,

2017,

the Company issued

1,925

shares of common stock to its directors in payment of board fees.