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Note 13 - Commitment
 6 Months Ended
Jun. 30, 2021
Notes to Financial Statements  
Commitments Disclosure [Text Block]

13.

COMMITMENT

 

Sales Incentive Agreement with TTI

 

On March 25, 2020, the Company entered into a sales incentive agreement with TTI. Terms of the agreement include the following:

 

 

1.

The original term of the agreement was one year unless notice to terminate (as defined) was given.  The agreement is automatically extended for additional one-year terms unless terminated.

 

 

2.

For each $5,000,000 in revenue (up to a maximum of $20,000,000) TTI generates during the first year that generates net income of at least 20% (as defined), the Company will pay TTI a sales incentive fee of $500,000 payable by the issuance of 62,500 shares of common stock.

 

 

3.

In the event that TTI generates revenue in excess of $20,000,000 during the first year, the Company will issue TTI a five-year warrant to purchase 12,500 shares of Common Stock at an exercise price of $12.00 per share for each $1,000,000 of revenue in excess of $20,000,000 (up to a maximum of $25,000,000).

 

In no event will the Company be obligated to issue more than 250,000 shares of common stock or warrants to purchase more than 62,500 shares of common stock pursuant to this agreement.

 

There has been no revenue generated or sales incentive fees paid during the six months ended June 30, 2021 and 2020.