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

13.

COMMITMENT

 

Sales Incentive Agreement with Technology Transfer Institute (“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 and has been automatically extended for an additional one-year term.

 

 

2.

For each $5,000,000 in revenue (up to a maximum of $20,000,000) the Company generates from contracts sourced by TTI which are executed during the original term and generate net income of at least 20% (as defined) within eighteen months after the date such contract is executed, 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 the Company generates revenue in excess of $20,000,000 from contracts sourced by TTI which are executed  during the original term and generate net income of at least 20% (as defined) within eighteen months after the date such contract is executed, 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 nine months ended September 30, 2021 and 2020.