Ontrak (OTRK) 10-Q 15 May 17 2017 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2017	May 12, 2017
Document Information [Line Items]
Entity Registrant Name	CATASYS, INC.
Entity Central Index Key	1,136,174
Trading Symbol	cats
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		15,874,678
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Current assets
Cash and cash equivalents	$ 291	$ 851
Receivables, net of allowance for doubtful accounts of $149 and $0, respectively	1,263	1,052
Prepaids and other current assets	596	420
Total current assets	2,150	2,323
Long-term assets
Property and equipment, net of accumulated depreciation of $1,660 and $1,620, respectively	419	410
Deposits and other assets	371	371
Total Assets	2,940	3,104
Current liabilities
Accounts payable	1,221	870
Accrued compensation and benefits	2,020	2,089
Deferred revenue	1,943	1,525
Other accrued liabilities	582	575
Short term debt, related party, net of discount $0 and $216, respectively	10,046	9,796
Derivative liability	18,718	8,122
Total current liabilities	34,530	22,977
Long-term liabilities
Deferred rent and other long-term liabilities	95	117
Capital leases	22	31
Warrant Liabilities, Noncurrent	12,893	5,307
Total Liabilities	47,540	28,432
Stockholders' deficit
Preferred stock, $0.0001 par value; 50,000,000 shares authorized; no shares issued and outstanding	0	0
Common stock, $0.0001 par value; 500,000,000 shares authorized; 9,443,749 and 9,214,743 shares issued and outstanding at March 31, 2017 and December 31, 2016, respectively	6	6
Additional paid-in-capital	256,881	254,385
Accumulated deficit	(301,487)	(279,719)
Total Stockholders' Deficit	(44,600)	(25,328)
Total Liabilities and Stockholders' Deficit	$ 2,940	$ 3,104

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Receivables, allowance for doubtful accounts	$ 149	$ 0
Property and equipment, accumulated dereciation	1,660	1,620
Short term debt, net of discount	$ 0	$ 216
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized (in shares)	50,000,000	50,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	500,000,000	500,000,000
Common stock, shares issued (in shares)	9,443,749	9,214,743
Common stock, shares outstanding (in shares)	9,443,749	9,214,743

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Revenues:
Healthcare services revenues	$ 1,822,000	$ 728,000
Operating expenses
Cost of healthcare services	1,365,000	966,000
General and administrative	2,629,000	2,187,000
Depreciation and amortization	39,000	32,000
Total operating expenses	4,033,000	3,185,000
Loss from operations	(2,211,000)	(2,457,000)
Other income	(14,000)	(65,000)
Interest expense	(2,867,000)	(333,000)
Loss on conversion of note	(926,000)
Change in fair value of warrant liability	(5,181,000)	(228,000)
Change in fair value of derivative liability	(10,596,000)	(1,337,000)
Loss from operations before provision for income taxes	(21,767,000)	(4,290,000)
Provision for income taxes	0	2,000
Net Loss	$ (21,768,000)	$ (4,292,000)
Basic and diluted net loss from operations per share: (in dollars per share)	$ (2.35)	$ (0.47)
Basic and diluted weighted number of shares outstanding (in shares)	9,246	9,168

Condensed Consolidated Stateme5

Condensed Consolidated Statement of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Operating activities:
Net loss	$ (21,768)	$ (4,292)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	39	32
Issuance costs included in interest expense	2,622	216
Provision for doubtful accounts	149	7
Deferred rent	(20)	(23)
Share-based compensation expense	127	174
Fair value adjustment on derivative liability	10,596	1,337
Fair value adjustment on warrant liability	5,181	228
Shares issued for services	117
Loss on conversion of note	926
Changes in current assets and liabilities:
Receivables	(360)	(27)
Prepaids and other current assets	(176)	141
Deferred revenue	418	593
Accounts payable and other accrued liabilities	534	96
Net cash used in operating activities	(1,615)	(1,518)
Investing activities:
Purchases of property and equipment	(49)	(10)
Deposits and other assets		16
Net cash provided by/(used in) investing activities	(49)	6
Financing activities:
Proceeds from bridge loan	1,115	900
Capital lease obligations	(11)	(42)
Net cash provided by financing activities	1,104	858
Net decrease in cash and cash equivalents	(560)	(654)
Cash and cash equivalents at beginning of period	851	916
Cash and cash equivalents at end of period	291	262
Supplemental disclosure of cash paid
Income taxes	39	26
Supplemental disclosure of non-cash activity
Common stock issued for investor relations services	$ 117

Note 1 - Basis of Consolidation

Note 1 - Basis of Consolidation, Presentation and Going Concern	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	Note 1. The accompanying unaudited condensed consolidated financial statements for Catasys, Inc. and its subsidiaries have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and instructions to Form 10 may 10 December 31, 2016, December 31, 2016, Our financial statements have been prepared on the basis that we will continue as a going concern. At March 31, 2017, $291,000 $32.4 three March 31, 2017, $1.6 twelve March 31, 2017, April 2017, $16.5 twelve

Note 2 - Summary of Significant

Note 2 - Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Significant Accounting Policies [Text Block]	Note 2. Revenue Recognition Our Catasys contracts are generally designed to provide cash fees to us on a monthly basis or an upfront case rate based on enrolled members. To the extent our contracts may may twelve Cost of Services Cost of healthcare services consists primarily of salaries related to our care coaches, outreach specialists and other staff directly involved in member care, healthcare provider claims payments, and fees charged by our third third Trak TM Cash Equivalents and Concentration of Credit Risk We consider all highly liquid investments with an original maturity of three may March 31, 2017, $115,038. For the three March 31, 2017, three 94% two 79% Basic and Diluted Income (Loss) per Share Basic income (loss) per share is computed by dividing the net income (loss) to common stockholders for the period by the weighted average number of common stock outstanding during the period. Diluted income (loss) per share is computed by dividing the net income (loss) for the period by the weighted average number of common stock and dilutive common equivalent shares outstanding during the period. Common equivalent shares, consisting of 1,928,431 620,119 three March 31, 2017 2016, Share-Based Compensation Our 2017 “2017 2,333,334 422A ten three five March 31, 2017, 243,853 50,774 Total share-based compensation expense on a consolidated basis was $127,000 $174,000 three March 31, 2017 2016, Stock Options – Employees and Directors We measure and recognize compensation expense for all share-based payment awards made to employees and directors based on estimated fair values on the date of grant. We estimate the fair value of share-based payment awards using the Black-Scholes option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in the consolidated statements of operations. Share-based compensation expense recognized for employees and directors for the three March 31, 2017 2016 $127,000 $174,000, For share-based awards issued to employees and directors, share-based compensation is attributed to expense using the straight-line single option method. Share-based compensation expense recognized in our consolidated statements of operations for the three March 31, 2017 2016, There were no three March 31, 2017 2016, 2017 three March 31, 2017 Weighted Avg. Shares Exercise Price Balance December 31, 2016 244,000 $ 39.06 Granted - $ - Cancelled - $ - Balance March 31, 2017 244,000 $ 38.90 The expected volatility assumptions have been based on the historical and expected volatility of our stock, measured over a period generally commensurate with the expected term. The weighted average expected option term for the three March 31, 2017 2016, 107 110), As of March 31, 2017, $191,000 1.52 Stock Options and Warrants – Non-employees We account for the issuance of options and warrants for services from non-employees by estimating the fair value of warrants issued using the Black-Scholes pricing model. This model’s calculations include the option or warrant exercise price, the market price of shares on grant date, the weighted average risk-free interest rate, the expected life of the option or warrant, and the expected volatility of our stock and the expected dividends. For options and warrants issued as compensation to non-employees for services that are fully vested and non-forfeitable at the time of issuance, the estimated value is recorded in equity and expensed when the services are performed and benefit is received. For unvested shares, the change in fair value during the period is recognized in expense using the graded vesting method. There were no three March 31, 2017 2016, no three March 31, 2017 2016, Common Stock There were 14,492 0 three March 31, 2017 2016, There were 214,514 a Company owned by David E. Smith, a member of our board of directors for the conversion of their December 2016 Income Taxes We have recorded a full valuation allowance against our otherwise recognizable deferred tax assets as of March 31, 2017. not March 31, 2017. 740, We assess our income tax positions and record tax benefits for all years subject to examination based upon our evaluation of the facts, circumstances and information available at the reporting date. For those tax positions where there is greater than 50% may 50% March 31, 2017 Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Assets and liabilities recorded at fair value in the condensed consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure fair value. The fair value hierarchy distinguishes between (1) (2) three three Level Input: Input Definition: Level I Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date. Level II Inputs, other than quoted prices included in Level I, that are observable for the asset or liability through corroboration with market data at the measurement date. Level III Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. The following table summarizes fair value measurements by level at March 31, 2017 Balance at March 31, 2017 (Amounts in thousands) Level I Level II Level III Total Certificates of deposit 106 - - 106 Total assets 106 - - 106 Warrant liabilities - - 12,893 12,893 Derivative Liability 18,718 18,718 Total liabilities - - 31,611 31,611 Carrying amounts reported in the condensed consolidated balance sheets of cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses approximate fair value due to their relatively short maturity. The fair value of borrowings is not considered to be significantly different from its carrying amount because stated rates for such debt reflect current market rates and conditions. Financial instruments classified as Level III in the fair value hierarchy as of March 31, 2017, Warrant Liabilities The following table summarizes our fair value measurements using significant Level III inputs, and changes therein, for the three March 31, 2017: Level III Level III Warrant Derivative (Dollars in thousands) Liabilities (Dollars in thousands) Liabilities Balance as of December 31, 2016 $ 5,307 Balance as of December 31, 2016 $ 8,122 Issuance of warrants 2,405 Issuance of warrants - Change in fair value 5,181 Change in fair value 10,596 Balance as of March 31, 2017 $ 12,893 Balance as of March 31, 2017 $ 18,718 Issuance (exercise) of warrants, net - Issuance (exercise) of warrants, net - Change in fair value - Change in fair value - Balance as of June 30, 2016 $ 12,893 Balance as of June 30, 2016 $ 18,718 Issuance (exercise) of warrants, net - Issuance (exercise) of warrants, net - Expiration of warrants - Expiration of warrants - Change in fair value - Change in fair value - Balance as of September 30, 2016 $ 12,893 Balance as of September 30, 2016 $ 18,718 Property and Equipment Property and equipment are stated at cost, less accumulated depreciation. Additions and improvements to property and equipment are capitalized at cost. Expenditures for maintenance and repairs are charged to expense as incurred. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets, which range from two seven five seven Warrant Liabilities In January 2017, one (100%) $1,300,000 8% March 31, 2017 “January 2017 five one (100%) January 2017 $5.10 “January 2017 March 31, 2017, March 31, 2017 $1,115,000. December 2016 25% 137,883 January 2017 April 30, 2017 first. The January 2017 January 2017 January 2017 January 2017 January 2017 In connection with the Subscription Agreement described above, the number of Shamus warrants issued as part of the December 2016 75% 100% 58,824 The warrant liabilities were calculated using the Black-Scholes model based upon the following assumptions: March 31, 201 7 Expected volatility 93.56% Risk-free interest rate 1.27 - 1.93% Weighted average expected lives in years 2 - 5 Expected dividend 0% We have issued warrants to purchase common stock in February 2012, April 2015, July 2015, August 2016, December 2016, January 2017, February 2017 March 2017. For the three March 31, 2017 2016, $5.2 $228,000, Derivative Liability In July 2015, $3.55 12% January 18, 2016 “July 2015 July 2015 $11.40 may October 2015, July 2015 July 2015 January 18, 2016 January 18, 2017. July 2015 $1.80 July 2015 12% July 2015 April 30, 2017 first. July 2015 March 31, 201 7 Expected volatility 93.56 % Risk-free interest rate 0.74 % Weighted average expected lives in years 0.08 Expected dividend 0 % For the three March 31, 2017 2016, $10.6 $1.3 Recently Issued or Newly Adopted Accounting Standards In April 2016, 2016 10, Revenue from Contracts with Customers (Topic 606) 2014 09, 2014 09, December 15, 2017. In March 2016, 2016 09, Compensation — Stock Compensation (Topic 718): 2016 09”), December 15, 2016, 2016 09 In February 2015, Consolidation (Topic 810): 2015 02”). 2015 02 2015 02 December 15, 2015, 2015 02 In August 2014, 2014 15, Presentation of Financial Statements—Going Concern (Subtopic 205 40): 2014 15”) . 2014 15 may one one 2014 15 December 15, 2016. 2014 15

Note 3 - Related Party Disclosu

Note 3 - Related Party Disclosure	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Related Party Transactions Disclosure [Text Block]	Note 3. In January 2017, $1,300,000 January 2017 January 2017 March 31, 2017, March 31, 2017 $1,115,000. December 2016 25% 137,883 In addition, we have accounts payable outstanding with Mr. Peizer for travel and expenses of $204,000 March 31, 2017 $1.1 March 31, 2017. In January 2017, December 2016 75% 100% 14,706 In March 2017, $1.3 December 2016 214,514

Note 4 - Short-term Debt

Note 4 - Short-term Debt	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Debt Disclosure [Text Block]	Note 4. In January 2017, $1,300,000 8% March 31, 2017 “January 2017 five one (100%) January 2017 $5.10 “January 2017 March 31, 2017, March 31, 2017 $1,115,000. December 2016 25% 137,883 January 2017 April 30, 2017 first.

Note 5 - Restatement of Financi

Note 5 - Restatement of Financial Statements	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Accounting Changes and Error Corrections [Text Block]	Note 5. The financial statements have been retroactively restated to reflect the 1 6 April 25, 2017.

Note 6 - Subsequent Event

Note 6 - Subsequent Event	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Subsequent Events [Text Block]	Note 6. Amendments to Outstanding Warrants and Extension of Existing Debentures In March 2017, April 17, 2015 July 30, 2015 $12.8 March 31, 2017. April 28, 2017. .2 11,049 Additionally, in March 2017, $10 April 28, 2017. Reverse Stock Split On April 21, 2017, 1 6 six one 1 6 5:00 April 24, 2017, April 25, 2017. 149049 504. All stock options and warrants to purchase common stock outstanding and our Common Stock reserved for issuance under the Company's equity incentive plans immediately prior to the reverse stock split were appropriately adjusted by dividing the number of affected shares of common stock by six six Public Offering On April 25, 2017, 3,125,000 $4.80 $4.464 April 28, 2017. $14.8 Pursuant to the underwriting agreement, we issued to the underwriter a warrant for the purchase of an aggregate of 156,250 $100. 125% $6.00 NASDAQ Uplisting In connection with the public offering, our Common Stock began trading on the NASDAQ Capital Market under the symbol “CATS” beginning on April 26, 2017. Exercise of Over-Allotment Option Pursuant to the underwriting with Joseph Gunnar & Co., LLC dated April 25, 2017, 45 468,750 May 2, 2017, 303,750

Significant Accounting Policies

Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Revenue Recognition, Policy [Policy Text Block]	Revenue Recognition Our Catasys contracts are generally designed to provide cash fees to us on a monthly basis or an upfront case rate based on enrolled members. To the extent our contracts may may twelve
Cost of Sales, Policy [Policy Text Block]	Cost of Services Cost of healthcare services consists primarily of salaries related to our care coaches, outreach specialists and other staff directly involved in member care, healthcare provider claims payments, and fees charged by our third third Trak TM
Cash and Cash Equivalents, Policy [Policy Text Block]	Cash Equivalents and Concentration of Credit Risk We consider all highly liquid investments with an original maturity of three may March 31, 2017, $115,038. For the three March 31, 2017, three 94% two 79%
Earnings Per Share, Policy [Policy Text Block]	Basic and Diluted Income (Loss) per Share Basic income (loss) per share is computed by dividing the net income (loss) to common stockholders for the period by the weighted average number of common stock outstanding during the period. Diluted income (loss) per share is computed by dividing the net income (loss) for the period by the weighted average number of common stock and dilutive common equivalent shares outstanding during the period. Common equivalent shares, consisting of 1,928,431 620,119 three March 31, 2017 2016,
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]	Share-Based Compensation Our 2017 “2017 2,333,334 422A ten three five March 31, 2017, 243,853 50,774 Total share-based compensation expense on a consolidated basis was $127,000 $174,000 three March 31, 2017 2016, Stock Options – Employees and Directors We measure and recognize compensation expense for all share-based payment awards made to employees and directors based on estimated fair values on the date of grant. We estimate the fair value of share-based payment awards using the Black-Scholes option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in the consolidated statements of operations. Share-based compensation expense recognized for employees and directors for the three March 31, 2017 2016 $127,000 $174,000, For share-based awards issued to employees and directors, share-based compensation is attributed to expense using the straight-line single option method. Share-based compensation expense recognized in our consolidated statements of operations for the three March 31, 2017 2016, There were no options granted to employees and directors during the three March 31, 2017 2016, 2017 three March 31, 2017 Weighted Avg. Shares Exercise Price Balance December 31, 2016 244,000 $ 39.06 Granted - $ - Cancelled - $ - Balance March 31, 2017 244,000 $ 38.90 The expected volatility assumptions have been based on the historical and expected volatility of our stock, measured over a period generally commensurate with the expected term. The weighted average expected option term for the three March 31, 2017 2016, 107 110), As of March 31, 2017, $191,000 1.52 Stock Options and Warrants – Non-employees We account for the issuance of options and warrants for services from non-employees by estimating the fair value of warrants issued using the Black-Scholes pricing model. This model’s calculations include the option or warrant exercise price, the market price of shares on grant date, the weighted average risk-free interest rate, the expected life of the option or warrant, and the expected volatility of our stock and the expected dividends. For options and warrants issued as compensation to non-employees for services that are fully vested and non-forfeitable at the time of issuance, the estimated value is recorded in equity and expensed when the services are performed and benefit is received. For unvested shares, the change in fair value during the period is recognized in expense using the graded vesting method. There were no options issued to non-employees for the three March 31, 2017 2016, three March 31, 2017 2016,
Stockholders' Equity, Policy [Policy Text Block]	Common Stock There were 14,492 0 three March 31, 2017 2016, There were 214,514 a Company owned by David E. Smith, a member of our board of directors for the conversion of their December 2016
Income Tax, Policy [Policy Text Block]	Income Taxes We have recorded a full valuation allowance against our otherwise recognizable deferred tax assets as of March 31, 2017. March 31, 2017. 740, We assess our income tax positions and record tax benefits for all years subject to examination based upon our evaluation of the facts, circumstances and information available at the reporting date. For those tax positions where there is greater than 50% may 50% March 31, 2017
Fair Value of Financial Instruments, Policy [Policy Text Block]	Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Assets and liabilities recorded at fair value in the condensed consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure fair value. The fair value hierarchy distinguishes between (1) (2) three three Level Input: Input Definition: Level I Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date. Level II Inputs, other than quoted prices included in Level I, that are observable for the asset or liability through corroboration with market data at the measurement date. Level III Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. The following table summarizes fair value measurements by level at March 31, 2017 Balance at March 31, 2017 (Amounts in thousands) Level I Level II Level III Total Certificates of deposit 106 - - 106 Total assets 106 - - 106 Warrant liabilities - - 12,893 12,893 Derivative Liability 18,718 18,718 Total liabilities - - 31,611 31,611 Carrying amounts reported in the condensed consolidated balance sheets of cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses approximate fair value due to their relatively short maturity. The fair value of borrowings is not considered to be significantly different from its carrying amount because stated rates for such debt reflect current market rates and conditions. Financial instruments classified as Level III in the fair value hierarchy as of March 31, 2017, Warrant Liabilities The following table summarizes our fair value measurements using significant Level III inputs, and changes therein, for the three March 31, 2017: Level III Level III Warrant Derivative (Dollars in thousands) Liabilities (Dollars in thousands) Liabilities Balance as of December 31, 2016 $ 5,307 Balance as of December 31, 2016 $ 8,122 Issuance of warrants 2,405 Issuance of warrants - Change in fair value 5,181 Change in fair value 10,596 Balance as of March 31, 2017 $ 12,893 Balance as of March 31, 2017 $ 18,718 Issuance (exercise) of warrants, net - Issuance (exercise) of warrants, net - Change in fair value - Change in fair value - Balance as of June 30, 2016 $ 12,893 Balance as of June 30, 2016 $ 18,718 Issuance (exercise) of warrants, net - Issuance (exercise) of warrants, net - Expiration of warrants - Expiration of warrants - Change in fair value - Change in fair value - Balance as of September 30, 2016 $ 12,893 Balance as of September 30, 2016 $ 18,718
Property, Plant and Equipment, Policy [Policy Text Block]	Property and Equipment Property and equipment are stated at cost, less accumulated depreciation. Additions and improvements to property and equipment are capitalized at cost. Expenditures for maintenance and repairs are charged to expense as incurred. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets, which range from two seven five seven
Warrant Liabilities, Policy [Policy Text Block]	Warrant Liabilities In January 2017, one (100%) $1,300,000 8% March 31, 2017 “January 2017 five one (100%) January 2017 $5.10 “January 2017 March 31, 2017, March 31, 2017 $1,115,000. December 2016 25% 137,883 January 2017 April 30, 2017 first. The January 2017 January 2017 January 2017 January 2017 January 2017 In connection with the Subscription Agreement described above, the number of Shamus warrants issued as part of the December 2016 75% 100% 58,824 The warrant liabilities were calculated using the Black-Scholes model based upon the following assumptions: March 31, 201 7 Expected volatility 93.56% Risk-free interest rate 1.27 - 1.93% Weighted average expected lives in years 2 - 5 Expected dividend 0% We have issued warrants to purchase common stock in February 2012, April 2015, July 2015, August 2016, December 2016, January 2017, February 2017 March 2017. For the three March 31, 2017 2016, $5.2 $228,000,
Derivatives, Policy [Policy Text Block]	Derivative Liability In July 2015, $3.55 12% January 18, 2016 “July 2015 July 2015 $11.40 may October 2015, July 2015 July 2015 January 18, 2016 January 18, 2017. July 2015 $1.80 July 2015 12% July 2015 April 30, 2017 first. July 2015 March 31, 201 7 Expected volatility 93.56 % Risk-free interest rate 0.74 % Weighted average expected lives in years 0.08 Expected dividend 0 % For the three March 31, 2017 2016, $10.6 $1.3
New Accounting Pronouncements, Policy [Policy Text Block]	Recently Issued or Newly Adopted Accounting Standards In April 2016, 2016 10, Revenue from Contracts with Customers (Topic 606) 2014 09, 2014 09, December 15, 2017. In March 2016, 2016 09, Compensation — Stock Compensation (Topic 718): 2016 09”), December 15, 2016, 2016 09 In February 2015, Consolidation (Topic 810): 2015 02”). 2015 02 2015 02 December 15, 2015, 2015 02 In August 2014, 2014 15, Presentation of Financial Statements—Going Concern (Subtopic 205 40): 2014 15”) . 2014 15 may one one 2014 15 December 15, 2016. 2014 15

Note 2 - Summary of Significa13

Note 2 - Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2017
Notes Tables
Share-based Compensation, Stock Options, Activity [Table Text Block]	Weighted Avg. Shares Exercise Price Balance December 31, 2016 244,000 $ 39.06 Granted - $ - Cancelled - $ - Balance March 31, 2017 244,000 $ 38.90
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]	Balance at March 31, 2017 (Amounts in thousands) Level I Level II Level III Total Certificates of deposit 106 - - 106 Total assets 106 - - 106 Warrant liabilities - - 12,893 12,893 Derivative Liability 18,718 18,718 Total liabilities - - 31,611 31,611
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]	Level III Level III Warrant Derivative (Dollars in thousands) Liabilities (Dollars in thousands) Liabilities Balance as of December 31, 2016 $ 5,307 Balance as of December 31, 2016 $ 8,122 Issuance of warrants 2,405 Issuance of warrants - Change in fair value 5,181 Change in fair value 10,596 Balance as of March 31, 2017 $ 12,893 Balance as of March 31, 2017 $ 18,718 Issuance (exercise) of warrants, net - Issuance (exercise) of warrants, net - Change in fair value - Change in fair value - Balance as of June 30, 2016 $ 12,893 Balance as of June 30, 2016 $ 18,718 Issuance (exercise) of warrants, net - Issuance (exercise) of warrants, net - Expiration of warrants - Expiration of warrants - Change in fair value - Change in fair value - Balance as of September 30, 2016 $ 12,893 Balance as of September 30, 2016 $ 18,718
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block]	March 31, 201 7 Expected volatility 93.56% Risk-free interest rate 1.27 - 1.93% Weighted average expected lives in years 2 - 5 Expected dividend 0% March 31, 201 7 Expected volatility 93.56 % Risk-free interest rate 0.74 % Weighted average expected lives in years 0.08 Expected dividend 0 %

Note 1 - Basis of Consolidati14

Note 1 - Basis of Consolidation, Presentation and Going Concern (Details Textual) - USD ($)	1 Months Ended	3 Months Ended
	Apr. 30, 2017	Mar. 31, 2017	Mar. 31, 2016
Cash Equivalents, at Carrying Value		$ 291,000
Working Capital Deficit		32,400,000
Net Cash Provided by (Used in) Operating Activities, Continuing Operations		$ (1,615,000)	$ (1,518,000)
Subsequent Event [Member]
Proceeds from Issuance of Common Stock	$ 16,500,000

Note 2 - Summary of Significa15

Note 2 - Summary of Significant Accounting Policies (Details Textual)	1 Months Ended	3 Months Ended
	Jan. 31, 2017USD ($)$ / sharesshares	Mar. 31, 2017USD ($)shares	Mar. 31, 2016USD ($)shares	Dec. 31, 2016	Oct. 31, 2015$ / shares	Jul. 31, 2015USD ($)$ / shares
Cash, Uninsured Amount		$ 115,038
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | shares		1,928,431	620,119
Share-based Compensation		$ 127,000	$ 174,000
Derivative, Gain (Loss) on Derivative, Net		(5,200,000)	(228,000)
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Earnings		$ 10,600,000	$ 1,300,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares		0	0
Income Tax Expense (Benefit)		$ 0	$ 2,000
Acuitas [Member] | July 2015 Convertible Debenture [Member]
Debt Instrument, Interest Rate, Stated Percentage						12.00%
Debt Instrument, Face Amount						$ 3,550,000
Debt Instrument, Convertible, Conversion Price | $ / shares					$ 1.80	$ 11.40
Acuitas [Member] | January 2017 Warrants [Member]
Warrant Term	5 years
Class of Warrant or Right, Percent of Securities Called by Warrants or Rights Upon Conversion	100.00%
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares	$ 5.10
Acuitas [Member] | December 2016 Warrants [Member]
Class of Warrant or Right, Percent of Securities Called by Warrants or Rights Upon Conversion				25.00%
Class of Warrant or Right, Additional Percent of Securities Called by Warrants or Rights Upon Conversion	25.00%
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | shares	137,883
Acuitas [Member] | January 2017 Convertible Debenture [Member]
Proceeds from Issuance of Debt	$ 1,300,000	$ 1,115,000
Debt Instrument, Interest Rate, Stated Percentage	8.00%
Conversion Of December 2016 Convertible Debentures Into Common Stock [Member] | Shamus [Member]
Debt Conversion, Converted Instrument, Shares Issued | shares		214,514
Common Stock Issued for Investor Relation Services [Member]
Stock Issued During Period, Shares, Issued for Services | shares		14,492	0
Shamus Warrants [Member] | Shamus [Member]
Class of Warrant or Right, Percent of Securities Called by Warrants or Rights Upon Conversion				75.00%
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | shares	58,824
Employees and Directors [Member]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized		$ 191,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition		1 year 189 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares		0	0
Minimum [Member] | Furniture and Equipment [Member]
Property, Plant and Equipment, Useful Life		2 years
Minimum [Member] | Leasehold Improvements [Member]
Property, Plant and Equipment, Useful Life		5 years
Maximum [Member] | Furniture and Equipment [Member]
Property, Plant and Equipment, Useful Life		7 years
Maximum [Member] | Leasehold Improvements [Member]
Property, Plant and Equipment, Useful Life		7 years
Twenty Seventeen Stock Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | shares		2,333,334
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period		10 years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | shares		243,853
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | shares		50,774
Share-based Compensation		$ 127,000	$ 174,000
Twenty Seventeen Stock Incentive Plan [Member] | Employees and Directors [Member]
Share-based Compensation		127,000	174,000
Twenty Seventeen Stock Incentive Plan [Member] | Nonemployees [Member]
Share-based Compensation		$ 0	$ 0
Twenty Seventeen Stock Incentive Plan [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period		3 years
Twenty Seventeen Stock Incentive Plan [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period		5 years
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Three Customers [Member]
Concentration Risk, Number of Customers		3
Concentration Risk, Percentage		94.00%
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Two Customers [Member]
Concentration Risk, Number of Customers		2
Concentration Risk, Percentage		79.00%

Note 2 - Summary of Significa16

Note 2 - Summary of Significant Accounting Policies - Employee and Director Stock Option Activity (Details) - $ / shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Granted (in shares)	0	0
Employees and Directors [Member]
Balance (in shares)	244,000
Balance (in dollars per share)	$ 39.06
Granted (in shares)	0	0
Granted (in dollars per share)
Cancelled (in shares)
Cancelled (in dollars per share)
Balance (in shares)	244,000
Balance (in dollars per share)	$ 38.90

Note 2 - Summary of Significa17

Note 2 - Summary of Significant Accounting Policies - Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Certificates of deposit	$ 106
Total assets	106
Warrant liabilities	12,893	$ 5,307
Derivative Liability	18,718
Total liabilities	31,611
Fair Value, Inputs, Level 1 [Member]
Certificates of deposit	106
Total assets	106
Warrant liabilities
Derivative Liability
Total liabilities
Fair Value, Inputs, Level 2 [Member]
Certificates of deposit
Total assets
Warrant liabilities
Derivative Liability
Total liabilities
Fair Value, Inputs, Level 3 [Member]
Certificates of deposit
Total assets
Warrant liabilities	12,893
Derivative Liability	18,718
Total liabilities	$ 31,611

Note 2 - Summary of Significa18

Note 2 - Summary of Significant Accounting Policies - Fair Value Measurements Using Significant Level III Inputs (Details) - Fair Value, Inputs, Level 3 [Member] - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Sep. 30, 2016
Warrants [Member]
Balance	$ 5,307	$ 12,893
Issuance (exercise) of warrants, net	2,405
Change in fair value	5,181
Balance	12,893	12,893
Derivative Financial Instruments, Liabilities [Member]
Balance	8,122	18,718
Issuance (exercise) of warrants, net
Change in fair value	10,596
Balance	$ 18,718	$ 18,718

Note 2 - Summary of Significa19

Note 2 - Summary of Significant Accounting Policies - Fair Value Assumptions (Details)	3 Months Ended
	Mar. 31, 2017
Derivative Liability [Member]
Expected volatility	93.56%
Risk-free interest rate	0.74%
Weighted average expected lives in years (Year)	29 days
Expected dividend	0.00%
Warrant Liability [Member]
Expected volatility	93.56%
Expected dividend	0.00%
Warrant Liability [Member] | Minimum [Member]
Risk-free interest rate	1.27%
Weighted average expected lives in years (Year)	2 years
Warrant Liability [Member] | Maximum [Member]
Risk-free interest rate	1.93%
Weighted average expected lives in years (Year)	5 years

Note 3 - Related Party Disclo20

Note 3 - Related Party Disclosure (Details Textual) - USD ($)	1 Months Ended	3 Months Ended
	Jan. 31, 2017	Mar. 31, 2017	Dec. 31, 2016
Due to Related Parties, Current		$ 10,046,000	$ 9,796,000
Chairman and Chief Executive Officer [Member]
Due to Related Parties, Current		204,000
Chairman and Chief Executive Officer [Member] | Deferred Salaries [Member]
Due to Related Parties, Current		1,100,000
Shamus [Member] | Conversion Of December 2016 Convertible Debentures Into Common Stock [Member]
Debt Conversion, Original Debt, Amount		$ 1,300,000
Debt Conversion, Converted Instrument, Shares Issued		214,514
Shamus Warrants [Member] | Shamus [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	14,706
Class of Warrant or Right, Percent of Securities Called by Warrants or Rights Upon Conversion	100.00%		75.00%
Acuitas [Member] | December 2016 Warrants [Member]
Class of Warrant or Right, Additional Percent of Securities Called by Warrants or Rights Upon Conversion	25.00%
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	137,883
Acuitas [Member] | January 2017 Convertible Debenture [Member]
Proceeds from Issuance of Debt	$ 1,300,000	$ 1,115,000

Note 4 - Short-term Debt (Detai

Note 4 - Short-term Debt (Details Textual) - Acuitas [Member] - USD ($)	1 Months Ended	3 Months Ended
	Jan. 31, 2017	Mar. 31, 2017	Dec. 31, 2016
January 2017 Warrants [Member]
Warrant Term	5 years
Class of Warrant or Right, Percent of Securities Called by Warrants or Rights Upon Conversion	100.00%
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 5.10
December 2016 Warrants [Member]
Class of Warrant or Right, Percent of Securities Called by Warrants or Rights Upon Conversion			25.00%
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	137,883
January 2017 Convertible Debenture [Member]
Proceeds from Issuance of Debt	$ 1,300,000	$ 1,115,000
Debt Instrument, Interest Rate, Stated Percentage	8.00%

Note 5 - Restatement of Finan22

Note 5 - Restatement of Financial Statements (Details Textual)	Apr. 25, 2017
Subsequent Event [Member] | Reverse Stock Split [Member]
Stockholders' Equity Note, Stock Split, Conversion Ratio	6

Note 6 - Subsequent Event (Deta

Note 6 - Subsequent Event (Details Textual)	Apr. 25, 2017USD ($)$ / sharesshares	Mar. 31, 2017USD ($)$ / sharesshares	Dec. 31, 2016USD ($)
Warrant Liabilities, Noncurrent | $		$ 12,893,000	$ 5,307,000
Subsequent Event [Member] | Public Offering [Member] | Joseph Gunner & Co. LLC [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	156,250
Stock Issued During Period, Shares, New Issues	3,125,000
Shares Issued, Price Per Share | $ / shares	$ 4.80
Shares Issued, Price Per Share, Net | $ / shares	$ 4.464
Net Proceeds from Issuance or Sale of Equity | $	$ 14,800,000
Class of Warrant or Right, Value of Securities Called | $	$ 100
Class of Warrant or Right, Exercise Price of Warrants or Rights, Percent of Share Price	125.00%
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares	$ 6
Subsequent Event [Member] | Over-Allotment Option [Member] | Joseph Gunner & Co. LLC [Member]
Stock Issued During Period, Shares, New Issues	303,750
Additional Shares Available for Purchase	468,750
Subsequent Event [Member] | Reverse Stock Split [Member]
Stockholders' Equity Note, Stock Split, Conversion Ratio	6
Convertible Debentures [Member]
Debt Instrument, Extended Maturity | $		$ 10,000,000
Amended Warrants [Member]
Class of Warrant or Right, Number of Additional Securities Called by Each Warrant or Right | $ / shares		$ 0.20
Warrants not Subject to Amendment [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights		11,049