Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Aug. 10, 2016 | |
Document Information [Line Items] | ||
Entity Registrant Name | SANUWAVE Health, Inc. | |
Entity Central Index Key | 1,417,663 | |
Trading Symbol | snwv | |
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) | 105,013,421 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Series A Convertible Preferred Stock [Member] | ||
STOCKHOLDERS' DEFICIT | ||
PREFERRED STOCK | ||
Series B Convertible Preferred Stock [Member] | ||
STOCKHOLDERS' DEFICIT | ||
PREFERRED STOCK | ||
Undesignated Preferred Stock [Member] | ||
STOCKHOLDERS' DEFICIT | ||
PREFERRED STOCK | ||
Cash and cash equivalents | 122,948 | 152,930 |
Accounts receivable, net of allowance for doubtful accounts of $14,576 in 2016 and $8,963 in 2015 | 97,154 | 74,454 |
Inventory | 230,906 | 284,908 |
Prepaid expenses | 97,823 | 123,988 |
TOTAL CURRENT ASSETS | 548,831 | 636,280 |
PROPERTY AND EQUIPMENT, at cost, less accumulated depreciation | 2,555 | 4,228 |
OTHER ASSETS | 11,141 | 11,097 |
INTANGIBLE ASSETS, at cost, less accumulated amortization (Note 4) | 153,378 | 306,756 |
TOTAL ASSETS | 715,905 | 958,361 |
Accounts payable | 458,277 | 509,266 |
Accrued expenses (Note 5) | 295,823 | 359,374 |
Accrued employee compensation | 408,939 | 241,542 |
Interest payable, related parties (Note 6) | 108,224 | 239,803 |
Promissory notes payable (Note 7) | 115,933 | |
Warrant liability (Note 11) | 119,900 | 138,100 |
TOTAL CURRENT LIABILITIES | 1,507,096 | 1,488,085 |
Notes payable, related parties (Note 6) | 5,334,234 | 5,348,112 |
TOTAL LIABILITIES | 6,841,330 | 6,836,197 |
COMMITMENTS AND CONTINGENCIES (Note 12) | 0 | 0 |
COMMON STOCK, par value $0.001, 350,000,000 shares authorized; 104,178,421 and 63,056,519 issued and outstanding in 2016 and 2015, respectively (Note 9) | 104,178 | 63,057 |
ADDITIONAL PAID-IN CAPITAL | 89,647,379 | 87,086,677 |
ACCUMULATED DEFICIT | (95,841,107) | (92,994,408) |
ACCUMULATED OTHER COMPREHENSIVE LOSS | (35,875) | (33,162) |
TOTAL STOCKHOLDERS' DEFICIT | (6,125,425) | (5,877,836) |
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $ 715,905 | $ 958,361 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Series A Convertible Preferred Stock [Member] | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 6,175 | 6,175 |
Preferred stock, shares issued (in shares) | 6,175 | 6,175 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Series B Convertible Preferred Stock [Member] | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 293 | 293 |
Preferred stock, shares issued (in shares) | 293 | 293 |
Preferred stock, shares outstanding (in shares) | 293 | 0 |
Undesignated Preferred Stock [Member] | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 4,993,532 | 4,993,532 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Accounts receivable, allowance for doubtful accounts | $ 14,576 | $ 8,963 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 350,000,000 | 350,000,000 |
Common stock, shares issued (in shares) | 104,178,421 | 63,056,519 |
Common stock, outstanding (in shares) | 104,178,421 | 63,056,519 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
REVENUES | $ 203,406 | $ 239,983 | $ 472,730 | $ 450,435 |
COST OF REVENUES | 77,988 | 75,779 | 151,169 | 134,597 |
GROSS PROFIT | 125,418 | 164,204 | 321,561 | 315,838 |
OPERATING EXPENSES | ||||
Research and development | 476,167 | 456,789 | 786,122 | 1,091,412 |
General and administrative | 589,896 | 636,570 | 1,089,028 | 1,202,862 |
Depreciation | 837 | 925 | 1,673 | 1,850 |
Amortization of Intangible Assets | 76,689 | 76,689 | 153,378 | 153,378 |
TOTAL OPERATING EXPENSES | 1,143,589 | 1,170,973 | 2,030,201 | 2,449,502 |
OPERATING LOSS | (1,018,171) | (1,006,769) | (1,708,640) | (2,133,664) |
OTHER INCOME (EXPENSE) | ||||
Gain on sale of assets | 1,000 | |||
Gain(loss) on warrant valuation adjustment (Note 11) | 28,250 | (429,311) | (769,447) | (373,285) |
Interest expense, net | (110,557) | (81,636) | (264,744) | (160,980) |
Amortization of debt issuance costs | (12,999) | (87,548) | ||
Amortization of debt discount | (5,778) | (11,472) | (951) | |
Loss on foreign currency exchange | (2,868) | (3,817) | (5,848) | (12,719) |
TOTAL OTHER EXPENSE | (103,952) | (514,764) | (1,138,059) | (546,984) |
NET LOSS | (1,122,123) | (1,521,533) | (2,846,699) | (2,680,648) |
OTHER COMPREHENSIVE INCOME (LOSS) | ||||
Foreign currency translation adjustments | (5,684) | (768) | (2,713) | (13,486) |
TOTAL COMPREHENSIVE LOSS | $ (1,127,807) | $ (1,522,301) | $ (2,849,412) | $ (2,694,134) |
LOSS PER SHARE: | ||||
Net loss - basic and diluted (in dollars per share) | $ (0.01) | $ (0.02) | $ (0.03) | $ (0.04) |
Weighted average shares outstanding - basic and diluted (in shares) | 102,645,697 | 63,056,519 | 88,933,089 | 62,993,885 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net Income (Loss) Attributable to Parent | $ (2,846,699) | $ (2,680,648) |
Adjustments to reconcile loss from continuing operations to net cash used by operating activities | ||
Amortization of Intangible Assets | 153,378 | 153,378 |
Depreciation | 1,673 | 1,850 |
Change in allowance for doubtful accounts | 5,613 | (3,099) |
Stock-based compensation - employees, directors and advisors | 116,550 | 50,062 |
Loss on warrant valuation adjustment | 769,447 | 373,285 |
Loss on conversion option of promissory notes payable | 75,422 | |
Gain on sale of property and equipment | (1,000) | |
Amortization of debt issuance costs | 87,548 | |
Amortization of debt discount | 11,472 | 951 |
Changes in assets - (increase)/decrease | ||
Accounts receivable - trade | (28,313) | 40,995 |
Inventory | 54,002 | 3,731 |
Prepaid expenses | 26,165 | (16,904) |
Other | (44) | (180) |
Changes in liabilities - increase/(decrease) | ||
Accounts payable | (50,989) | 53,688 |
Accrued expenses | (63,551) | (19,654) |
Accrued employee compensation | 167,397 | 125,583 |
Interest payable, related parties | (131,579) | (896) |
Promissory notes payable - accrued interest | (77,615) | |
NET CASH USED BY OPERATING ACTIVITIES | (1,731,124) | (1,917,858) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Proceeds from sale of property and equipment | 1,000 | |
NET CASH PROVIDED BY INVESTING ACTIVITIES | 1,000 | |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from 2016 Equity Offering, net | 1,596,855 | |
Proceeds from Convertible Debt | 106,000 | |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 1,702,855 | |
EFFECT OF EXCHANGE RATES ON CASH | (2,713) | (13,486) |
NET DECREASE IN CASH AND CASH EQUIVALENTS | (29,982) | (1,931,344) |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 152,930 | 3,547,071 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 122,948 | 1,615,727 |
SUPPLEMENTAL INFORMATION | ||
Cash paid for interest, related parties | $ 392,516 | $ 161,936 |
Note 1 - Nature of the Business
Note 1 - Nature of the Business | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Nature of Operations [Text Block] | 1. Nature of the Business SANUWAVE Health, Inc. and subsidiaries (the “Company”) is an acoustic pressure shock wave technology company using a patented system of noninvasive, high-energy, acoustic pressure shock waves for indications such as regenerative medicine and other applications. The Company’s initial focus is regenerative medicine – utilizing noninvasive (extracorporeal), acoustic pressure shock waves to produce a biological response resulting in the body healing itself through the repair and regeneration of skin, musculoskeletal tissue and vascular structures. The Company’s lead regenerative product in the United States is the dermaPACE ® de novo The Company’s portfolio of healthcare products and product candidates activate biologic signaling and angiogenic responses, including new vascularization and microcirculatory improvement, helping to restore the body’s normal healing processes and regeneration. The Company intends to apply its Pulsed Acoustic Cellular Expression (PACE ® In addition to healthcare uses, our high-energy, acoustic pressure shock waves, due to their powerful pressure gradients and localized cavitational effects, may have applications in secondary and tertiary oil exploitation, for cleaning industrial waters, for sterilizing food liquids and finally for maintenance of industrial installations by disrupting biofilms formation. Our business approach will be through licensing and/or partnership opportunities. |
Note 2 - Going Concern
Note 2 - Going Concern | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 2. Going Concern The Company does not currently generate significant recurring revenue and will require additional capital during the second and third quarter of 2016. As of June 30, 2016, the Company had an accumulated deficit of $95,841,107 and cash and cash equivalents of $122,948 . For the six months ended June 30, 2016 and 2015, the net cash used by operating activities was $1,731,124 and $1,917,858, respectively. The Company incurred a net loss of $2,846,699 for the six months ended June 30, 2016 and a net loss of $4,810,285 for the year ended December 31, 2015. The operating losses create an uncertainty about the Company’s ability to continue as a going concern. The continuation of the Company’s business is dependent upon raising additional capital during the third quarter of 2016 to fund operations. Management’s plans are to obtain additional capital in 2016 through investments by strategic partners for market opportunities, which may include strategic partnerships or licensing arrangements, or raise capital through the conversion of outstanding warrants, the issuance of common or preferred stock, securities convertible into common stock, or secured or unsecured debt. These possibilities, to the extent available, may be on terms that result in significant dilution to the Company’s existing shareholders. Although no assurances can be given, management of the Company believes that potential additional issuances of equity or other potential financing transactions as discussed above should provide the necessary funding for the Company to continue as a going concern. If these efforts are unsuccessful, the Company may be forced to seek relief through a filing under the U.S. Bankruptcy Code. The consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. |
Note 3 - Summary of Significant
Note 3 - Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | 3 Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with United States generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 8-03 of Regulation S-X. Accordingly, these condensed consolidated financial statements do not include all the information and footnotes required by United States generally accepted accounting principles for complete financial statements. The financial information as of June 30, 2016 and for the three and six months ended June 30, 2016 and 2015 is unaudited; however, in the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six month periods ended June 30, 2016 are not necessarily indicative of the results that may be expected for any other interim period or for the year ending December 31, 2016. The condensed consolidated balance sheet at December 31, 2015 has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by United States generally accepted accounting principles for complete financial statements. Significant Accounting Policies For further information and a summary of significant accounting policies, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, filed with the SEC on March 30, 2016. Recently Issued Accounting Standards New accounting pronouncements are issued by the Financial Standards Board (“FASB”) or other standards setting bodies that the Company adopts according to the various timetables the FASB specifies. The Company does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company’s results of operations, financial position or cash flow. In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers Revenue from Contracts with Customers (Topic 606) In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern In April 2015, the FASB issued ASU 2015-03, Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs In July 2015, the FASB issued Accounting Standards Update No. 2015-11, Simplifying the Measurement of Inventory In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In March 2016, the FASB issued guidance to simplify several aspects of the accounting for share-based payments transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The guidance is effective for annual and interim periods beginning after December 31, 2016. Early adoption is permitted for an entity in an interim or annual period. We are currently evaluating the effect that the updated standard will have on our financial statements, but expect the guidance will add modest volatility in our equity-based compensation expense, provision for income taxes, and net income (loss). |
Note 4 - Intangible Assets
Note 4 - Intangible Assets | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Intangible Assets Disclosure [Text Block] | 4 . Intangible assets Intangible assets consist of the following: June 30, 2016 December 31, 2015 Patents, at cost $ 3,502,135 $ 3,502,135 Less accumulated amortization (3,348,757 ) (3,195,379 ) Net intangible assets $ 153,378 $ 306,756 The aggregate amortization charged to operations was $76,689 for the three months ended June 30, 2016 and 2015 and $153,378 for the six months ended June 30, 2016 and 2015. |
Note 5 - Accrued Expenses
Note 5 - Accrued Expenses | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | 5 . Accrued expenses Accrued expenses consist of the following: June 30, 2016 December 31, 2015 Accrued former executive payment $ 100,000 $ 100,000 Accrued audit and tax preparation 46,752 93,500 Accrued directors and advisors fees 45,333 - Accrued outside services 43,105 58,813 Accrued legal professional fees 30,500 76,500 Accrued clinical study expenses 13,650 22,777 Accrued other 16,483 7,784 $ 295,823 $ 359,374 |
Note 6 - Notes Payable, Related
Note 6 - Notes Payable, Related Parties | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | 6 . Notes payable, related parties The notes payable, related parties were issued in conjunction with the Company’s purchase of the orthopedic division of HealthTronics, Inc. on August 1, 2005. The notes payable, related parties bear interest at 6% per annum. Quarterly interest through June 30, 2010, was accrued and added to the principal balance. Interest is paid quarterly in arrears beginning September 30, 2010. All remaining unpaid accrued interest and principal was due August 1, 2015. On June 15, 2015, the Company and HealthTronics, Inc. entered into an amendment (the “Note Amendment”) to amend certain provisions of the notes payable, related parties. The Note Amendment provides for the extension of the due date to January 31, 2017. In the period ending March, 31, 2016, the Company reclassified the outstanding principal balance from non-current liabilities to current liabilities. I n connection with the Note Amendment, the Company entered into a security agreement with HealthTronics, Inc. to provide a first security interest in the assets of the Company. The notes payable, related parties will bear interest at 8% per annum effective August 1, 2015 and during any period when an Event of Default occurs, the applicable interest rate shall increase by 2% per annum. The Company will be required to make mandatory prepayments of principal on the notes payable, related parties equal to 20% of the proceeds received by the Company through the issuance or sale of any equity securities in cash or through the licensing of the Company’s patents or other intellectual property rights. On June 28, 2016, the Company and HealthTronics, Inc. entered into a second amendment (the “Second Amendment”) to amend certain provisions of the notes payable, related parties. The Second Amendment provides for the extension of the due date to January 31, 2018. The notes payable, related parties had an aggregate outstanding principal balance of $5,334,234, net of $38,509 debt discount at June 30, 2016 and $5,348,112, net of $24,631 debt discount at December 31, 2015, respectively. In addition, the Company, in connection with the Note Amendment, issued to HealthTronics, Inc. on June 15, 2015, an aggregate total of 3,310,000 warrants (the “Class K Warrants”) to purchase shares of the Company’s common stock, $0.001 par value (the “Common Stock”), at an exercise price of $0.55 per share, subject to certain anti-dilution protection. Each Class K Warrant represents the right to purchase one share of Common Stock. The warrants vested upon issuance and expire after ten years. In addition, the Company, in connection with the Second Amendment, issued to HealthTronics, Inc. on June 28, 2016, an additional 1,890,000 Class K Warrants to purchase shares of the Company’s Common Stock at an exercise price of $0.08 per share, subject to certain anti-dilution protection. The exercise price of the 3,310,000 Class K Warrants issued on June 15, 2015 was decreased to $0.08 per share. Accrued interest currently payable totaled $108,224 and $239,803 at June 30, 2016 and December 31, 2015, respectively. Interest expense on notes payable, related parties totaled $108,224 and $80,968 for the three months ended June 30, 2016 and 2015, respectively, and $260,937 and $161,039 for the six months ended June 30, 2016 and 2015, respectively. |
Note 7 - Promissory Notes Payab
Note 7 - Promissory Notes Payable | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 7. Promissory notes payable On February 1, 2016, the Company entered into a financing transaction for the sale of an 8% Convertible Promissory Note (the “$58,300 Convertible Note”) and warrants (the “Class M Warrants”) in the principal amount of $58,300 each, with gross proceeds of $50,000 to the Company after payment of a 10% original issue discount and related professional expenses. The offering was conducted pursuant to the exemption from registration provided by Section 4(a)(2) of the Act and Rule 506 of Regulation D thereunder. The Company did not utilize any form of general solicitation or general advertising in connection with the offering. The $58,300 Convertible Note was offered and sold to two accredited investors, with gross proceeds of $106,000 to the Company. The $58,300 Convertible Note and Class M Warrants were issued pursuant to the terms of a purchase agreement among the Company and the Investors. The convertible note is an unsecured obligation of the Company and, unless earlier redeemed, matures on August 1, 2016. The Company has the right to prepay the convertible note and accrued interest during the first sixty (60) days following the date of issuance. During that time, the amount of any prepayment during the first sixty (60) days is 120% of the outstanding amounts owed, and the amount of the prepayment increases every subsequent thirty (30) days. Each Class M Warrant represents the right to purchase one share of Common Stock. The warrants vested upon issuance and expire on February 21, 2021. The $58,300 Convertible Note is convertible, at any time from the issuance date, in whole or in part, at the option of the investor, into shares of Company common stock at a conversion price of 30% of the lowest reported sale price of the Company’s common stock for the 20 trading days immediately prior to (i) the date of the purchase agreement or (ii) the voluntary conversion date. The $58,300 Convertible Note contained put options that may require the Company to repay the debt before its maturity. The $58,300 Convertible Note holder has rights to demand repayment in the event of defaults. However, since the put is contingent on an event of default, and no principal is due until maturity, the likelihood of the other default provision is considered to be very remote especially given the term of the $58,300 Convertible Note is six months. The promissory notes payable had an aggregate outstanding principal balance of $115,933, net of $4,473 debt issuance costs at June 30, 2016. |
Note 8 - Income Taxes
Note 8 - Income Taxes | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 8 . Income taxes The Company files income tax returns in the United States federal jurisdiction and various state and foreign jurisdictions. The Company is no longer subject to United States federal and state and non-United States income tax examinations by tax authorities for years before 2006. At June 30, 2016, the Company had federal net operating loss (“NOL”) carryforwards of $70,096,802 for tax years through the year ended December 31, 2015, that will begin to expire in 2025. The use of deferred tax assets, including federal net operating losses, is limited to future taxable earnings. Based on the required analysis of future taxable income under the provisions of ASC 740, Income Taxes The Company’s ability to use its NOL carryforwards could be limited and subject to annual limitations. In connection with future offerings, the Company may realize a “more than 50% change in ownership” which could further limit its ability to use its NOL carryforwards accumulated to date to reduce future taxable income and tax liabilities. Additionally, because United States tax laws limit the time during which NOL carryforwards may be applied against future taxable income and tax liabilities, the Company may not be able to take advantage of all or portions of its NOL carryforwards for federal income tax purposes. |
Note 9 - Equity Transactions
Note 9 - Equity Transactions | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 9 . Equity transactions 2016 Equity Offering On March 11, 2016, April 6, 2016, and April 15, 2016 in conjunction with an equity offering of securities (the “2016 Equity Offering”) with select accredited investors, the Company issued an aggregate of 25,495,835, 3,083,334 and 1,437,501, respectively, shares of common stock for an aggregate purchase price of $1,529,750, $185,000, and $86,200, respectively. The mandatory prepayment of principal on the notes payable, related parties equal to 20% of the proceeds received by the Company was waived by HealthTronics, Inc. for this 2016 Equity Offering. The Company, in connection with the 2016 Equity Offering, issued to the investors an aggregate of 30,016,670 warrants (the “Class L Warrants”) to purchase shares of common stock at an exercise price of $0.08 per share. Each Class L Warrant represents the right to purchase one share of Common Stock. The warrants vested upon issuance and expire on March 17, 2019. Pursuant to the terms of a Registration Rights Agreement that the Company entered with the investors in connection with the 2016 Equity Offering, the Company is required to file a registration statement that covers the shares of common stock and the shares of common stock issuable upon exercise of the Class L Warrants. The registration statement was declared effective by the SEC on February 16, 2016. Michael N. Nemelka, the brother of a member of the Company’s board of directors and an existing shareholder of the Company, was a purchaser in the 2016 Equity Offering of $100,000. At the closing of the 2016 Equity Offering , the Company paid Newport Coast Securities, Inc., the placement agent for the equity offering, cash compensation based on the gross proceeds of the private placement and 3,001,667 Class L Warrants. Series A Warrant Conversion On January 13, 2016, the Company entered into an Exchange Agreement (the “Exchange Agreement”) with certain beneficial owners (the “Investors”) of Series A warrants (the “Warrants”) to purchase shares of the Company’s common stock, $0.001 par value per share (the “Common Stock”), pursuant to which the Investors exchanged (the “Exchange”) all of their respective Warrants for either (i) shares of Common Stock or (ii) shares of Common Stock and shares of the Company’s Series B Convertible Preferred Stock, $0.001 par value (the “Preferred Stock”). The Exchange was based on the following exchange ratio (the “Exchange Ratio”): 1 Series A Warrant = 0.4685 shares of capital stock. Investors who, as a result of the Exchange, owned in excess of 9.99% (the “Ownership Threshold”) of the outstanding Common Stock, received a mixture of Common Stock and shares of Preferred Stock. They received Common Stock up to the Ownership Threshold, and received shares of Preferred Stock beyond the Ownership Threshold (but the total shares of Common Stock and Preferred Stock issued to such holders was still based on the same Exchange Ratio). The relative rights, preferences, privileges and limitations of the Preferred Stock are as set forth in the Company’s Certificate of Designation of Series B Convertible Preferred Stock, which was filed with the Secretary of State of the State of Nevada on January 12, 2016 (the “Series B Certificate of Designation”). In the Exchange an aggregate number of 23,701,428 Warrants were exchanged for 7,447,954 shares of Common Stock and 293 shares of Preferred Stock. Pursuant to the Series B Certificate of Designation, each of the Preferred Stock shares is convertible into shares of Common Stock at an initial rate of 1 Preferred Stock share for 12,500 Common Stock shares, which conversion rate is subject to further adjustment as set forth in the Series B Certificate of Designation. Pursuant to the terms of the Series B Certificate of Designation, the holders of the Preferred Stock shares will generally be entitled to that number of votes as is equal to the number of shares of Common Stock into which the Preferred Stock may be converted as of the record date of such vote or consent, subject to the Beneficial Ownership Limitation. In connection with entering into the Exchange Agreement, the Company also entered into a Registration Rights Agreement, dated January 13, 2016, with the Investors. The Registration Rights Agreement requires that the Company file with the SEC a registration statement to register for resale the shares of the Common Stock issued in connection with the Exchange and the Common Stock issuable upon conversion of the Preferred Stock shares (the “Preferred Stock Conversion Shares”). The registration statement was declared effective by the SEC on February 16, 2016. |
Note 10 - Preferred Stock
Note 10 - Preferred Stock | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Preferred Stock [Text Block] | 10 . Preferred Stock The Company’s Articles of Incorporation authorize the issuance of up to 5,000,000 shares of “blank check” preferred stock with designations, rights and preferences as may be determined from time to time by the board of directors. On January 12, 2016, the Company filed a Certificate of Designation of Preferences, Rights and Limitations for Series B Convertible Preferred Stock of the Company (the “Certificate of Designation”) with the Nevada Secretary of State. The Certificate of Designation amends the Company’s Articles of Incorporation to designate 293 shares of preferred stock, par value $0.001 per share, as Series B Convertible Preferred Stock. The Series B Convertible Preferred Stock has a stated value of $1,000 per share. On January 13, 2016, in connection with the Series A Warrant Conversion, the Company issued 293 shares of Series B Convertible Preferred Stock (for a more detailed discussion regarding the Series A Warrant Conversion, see Note 9). Under the Certificate of Designation, holders of Series B Convertible Preferred Stock are entitled to receive dividends equal (on an as-if-converted-to-common-stock basis) to and in the same form as dividends (other than dividends in the form of common stock) actually paid on shares of the common stock when, as and if such dividends are paid. Such holders will participate on an equal basis per-share with holders of common stock in any distribution upon winding up, dissolution, or liquidation of the Company. Holders of Series B Convertible Preferred Stock are entitled to convert each share of Series A Convertible Preferred Stock into 2,000 shares of common stock, provided that after giving effect to such conversion, such holder, together with its affiliates, shall not beneficially own in excess of 9.99% of the number of shares of common stock outstanding (the “Beneficial Ownership Limitation”). Holders of the Series B Convertible Preferred Stock are entitled to vote on all matters affecting the holders of the common stock on an “as converted” basis, provided that such holder shall only vote such shares of Series B Convertible Preferred Stock eligible for conversion without exceeding the Beneficial Ownership Limitation. On April 29, 2016, the holders of Series B Convertible Preferred Stock converted the outstanding 293 shares of Series B Convertible Preferred Stock into 3,657,278 shares of common stock. As of April 29, 2016, there were no outstanding shares of Series B Convertible Preferred Stock. On March 14, 2014, the Company filed a Certificate of Designation of Preferences, Rights and Limitations for Series A Convertible Preferred Stock of the Company (the “Certificate of Designation”) with the Nevada Secretary of State. The Certificate of Designation amends the Company’s Articles of Incorporation to designate 6,175 shares of preferred stock, par value $0.001 per share, as Series A Convertible Preferred Stock. The Series A Convertible Preferred Stock has a stated value of $1,000 per share. On March 17, 2014, in connection with a Private Placement, the Company issued 6,175 shares of Series A Convertible Preferred Stock. As of January 6, 2015 there were no outstanding shares of Series A Convertible Preferred Stock. |
Note 11 - Warrants
Note 11 - Warrants | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Warrants [Text Block] | 11 . Warrants A summary of the warrant activity as of June 30, 2016 and December 31, 2015, and the changes during the six months ended June 30, 2016, is presented as follows: Warrant class Outstanding as of December 31, 2015 Issued Exercised Converted Expired Outstanding as of June 30, 2016 Class E Warrants 3,576,737 - - - (3,576,737 ) - Class F Warrants 300,000 - - - - 300,000 Class G Warrants 1,503,409 - - - - 1,503,409 Class H Warrants 1,988,095 - - - - 1,988,095 Class I Warrants 1,043,646 - - - - 1,043,646 Class J Warrants 629,378 4,012,289 - - - 4,641,667 Class K Warrants 3,310,000 1,890,000 - - - 5,200,000 Class L Warrants - 33,018,337 - - - 33,018,337 Class M Warrants - 1,943,333 - - - 1,943,333 Series A Warrants 25,951,421 - - (23,701,427 ) - 2,249,994 38,302,686 40,863,959 - (23,701,427 ) (3,576,737 ) 51,888,481 SANUWAVE HEALTH, INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS June 30, 2016 11 . Warrants (continued) A summary of the warrant exercise price per share and expiration date is presented as follows: Exercise price/share Expiration date Class E Warrants $ 4.00 April 2016 Class F Warrants $ 0.35 February 2018 Class G Warrants $ 0.80 July 2018 Class H Warrants $ 0.80 July 2018 Class I Warrants $ 0.85 September 2018 Class J Warrants $ 0.06 February 2019 Class K Warrants $ 0.08 June 2025 Class L Warrants $ 0.08 March 2019 Class M Warrants $ 0.06 February 2021 Series A Warrants $ 0.06 March 2019 The exercise price and the number of shares covered by the warrants will be adjusted if the Company has a stock split, if there is a recapitalization of the Company’s common stock, or if the Company consolidates with or merges into another company. The exercise price of the Class J Warrants, Class K Warrants, Class M and the Series A Warrants are subject to a “down-round” anti-dilution adjustment if the Company issues or is deemed to have issued certain securities at a price lower than the then applicable exercise price of the warrants. The exercise price of the Series A, Class J and Class M Warrants was adjusted to $0.06 due to the 2016 Equity Offering (see Note 9). The Class J Warrants and Class K Warrants may be exercised on a physical settlement or on a cashless basis. The Series A Warrants may be exercised on a physical settlement basis if a registration statement underlying the warrants is effective. If a registration statement is not effective (or the prospectus contained therein is not available for use) for the resale by the holder of the Series A Warrants, then the holder may exercise the warrants on a cashless basis. The Class J Warrants, the Class K Warrants, the Class M Warrants, the Series A Warrants and the Series B Warrants are derivative financial instruments. The estimated fair value of the Class J Warrants at the date of grant was $12,776. The related debt discount was accreted to interest expense through the maturity date of the related note. The estimated fair value of the Class K Warrants at the date of grant was $36,989 and recorded as debt discount, which will be accreted to interest expense through the maturity date of the related notes payable, related parties. The estimated fair value of the Class M Warrants at the date of grant was $9,091 and the estimated value of the conversion option of the note at the date of grant was $66,331. The related debt discount was accreted to interest expense through the maturity date of the related note. The estimated fair values of the Series A Warrants and the Series B Warrants at the date of grant were $557,733 for the warrants issued in conjunction with the 2014 Private Placement and $47,974 for the warrants issued in conjunction with the 18% Convertible Promissory Notes. The fair value of the Series A Warrants and Series B Warrants were recorded as equity issuance costs in 2014, a reduction of additional paid-in capital. The Series B Warrants expired unexercised in March 2015. SANUWAVE HEALTH, INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS June 30, 2016 11 . Warrants (continued) The estimated fair values were determined using a binomial option pricing model based on various assumptions. The Company’s derivative liabilities are adjusted to reflect estimated fair value at each period end, with any decrease or increase in the estimated fair value being recorded in other income or expense accordingly, as adjustments to the fair value of derivative liabilities. Various factors are considered in the pricing models the Company uses to value the warrants, including the Company’s current common stock price, the remaining life of the warrants, the volatility of the Company’s common stock price, and the risk-free interest rate. In addition, as of the valuation dates, management assessed the probabilities of future financing and other re-pricing events in the binominal valuation models. A summary of the changes in the warrant liability as of June 30, 2016 and December 31, 2015, and the changes during the three and six months ended June 30, 2016, is presented as follows: Class J Warrants Class K Warrants Class M Warrants Series A Warrants Total Warrant liability as of December 31, 2015 $ 2,900 $ 22,700 $ - $ 112,500 $ 138,100 Issued - - 75,422 - 75,422 Change in fair value 17,600 (6,600 ) 878 (102,600 ) (90,722 ) Warrant liability as of March 31, 2016 $ 20,500 $ 16,100 $ 76,300 $ 9,900 $ 122,800 Issued - 25,350 - - 25,350 Change in fair value (6,600 ) (16,150 ) (2,400 ) (3,100 ) (28,250 ) Warrant liability as of June 30, 2016 $ 13,900 $ 25,300 $ 73,900 $ 6,800 $ 119,900 |
Note 12 - Commitments and Conti
Note 12 - Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 12 . Commitments and contingencies Operating Leases Rent expense for the three months ended June 30, 2016 and 2015, was $40,455 and $38,505, respectively and for the six months ended June 30, 2016 and 2015, was $82,974 and $71,912, respectively. Litigation The Company is involved in various legal matters that have arisen in the ordinary course of business. While the ultimate outcome of these matters is not presently determinable, it is the opinion of management that the resolution will not have a material adverse effect on the financial position or results of operations of the Company. |
Note 13 - Stock-based Compensat
Note 13 - Stock-based Compensation | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 13 . Stoc k-based compensation On June 16, 2016, the Company granted to the active employees, members of the board of directors and two members of the Company’s Medical Advisory Board options to purchase 3,300,000 shares each of the Company’s common stock at an exercise price of $0.04 per share and vested upon issuance. Using the Black-Scholes option pricing model, management has determined that the options had a fair value per share of $0.0335 resulting in compensation expense of $110,550. Compensation cost was recognized upon grant. The fair value of each option award is estimated on the date of grant using the Black-Scholes option pricing model using the following weighted average assumptions for the six months ended June 30, 2016 and 2015: 2016 2015 Weighted average expected life in years 5.0 5.5 Weighted average risk free interest rate 1.10 % 2.41 % Weighted average volatility 140.0 % 136.1 % Forfeiture rate 0.0 % 0.0 % Expected dividend yield 0.0 % 0.0 % T he Company recognized as compensation cost for all outstanding stock options granted to employees, directors and advisors, $112,050 and $22,235 for the three months ended June 30, 2016 and 2015, respectively and $116,550 and $50,062 for the six months ended June 30, 2016 and 2015, respectively. A summary of option activity as of June 30, 2016 and December 31, 2015, and the changes during the three and six months ended June 30, 2016, is presented as follows: Options Weighted Average Exercise Price per share Outstanding as of December 31, 2015 10,073,385 $ 0.62 Granted - $ - Exercised - $ - Cancelled - $ - Forfeited or expired - $ - Outstanding as of March 31, 2016 10,073,385 $ 0.55 Granted 3,300,000 $ 0.04 Exercised - $ - Cancelled - $ - Forfeited or expired - $ - Outstanding as of June 30, 2016 13,373,385 $ - Exercisable 13,273,385 $ 0.43 The range of exercise prices for options was $0.04 to $2.00 for options outstanding at June 30, 2016 and December 31, 2015. The aggregate intrinsic value for all vested and exercisable options was $0 at June 30, 2016 and December 31, 2015. The weighted average remaining contractual term for outstanding exercisable stock options was 7.63 and 7.46 years as of June 30, 2016 and December 31, 2015, respectively. A summary of the Company’s nonvested options as of June 30, 2016 and December 31, 2015, and changes during the three and six months ended June 30, 2016, is presented as follows: Options Weighted Average Exercise Price per share Outstanding as of December 31, 2015 175,002 $ 0.36 Granted - $ - Vested - $ - Cancelled - $ - Forfeited or expired - $ - Outstanding as of March 31, 2016 175,002 $ 0.36 Granted 3,300,000 $ 0.04 Vested (3,375,002 ) $ 0.05 Cancelled - $ - Forfeited or expired - $ - Outstanding as of June 30, 2016 100,000 $ 0.21 |
Note 14 - Earnings (Loss) Per S
Note 14 - Earnings (Loss) Per Share | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 14 . Earnings (loss) per share The Company calculates net income (loss) per share in accordance with ASC 260, Earnings Per Share To the extent that securities are “anti-dilutive,” they are excluded from the calculation of diluted net income (loss) per share. As a result of the net loss for the six months ended June 30, 2016 and 2015, respectively, all potentially dilutive shares were anti-dilutive and therefore excluded from the computation of diluted net loss per share. The anti-dilutive equity securities totaled 65,261,866 shares and 45,609,516 shares at June 30, 2016 and 2015, respectively. |
Note 15 - Subsequent Events
Note 15 - Subsequent Events | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 15. Subsequent events Convertible Debentures On July 29, 2016, the Company entered into a financing transaction for the sale of a Convertible Debenture (the “Debenture”) in the principal amount of up to $500,000, with gross proceeds of $450,000 to the Company after payment of a 10% original issue discount. The offering was conducted pursuant to the exemption from registration provided by Section 4(a)(2) of the Act and Rule 506 of Regulation D thereunder. The Company did not utilize any form of general solicitation or general advertising in connection with the offering. The Debenture was offered and sold to one accredited investor. The Debenture was issued pursuant to the terms of a purchase agreement among the Company and the Investor. The Debenture is secured by the accounts receivable of the Company and, unless earlier redeemed, matures on the third anniversary date of issuance. The Company shall pay to Investor a non-accountable fee (the “Commitment Fee”) of (i) Two Thousand Five Hundred and 00/100 Dollars ($2,500.00) and (ii) Eight Hundred Thirty Five Thousand (835,000) shares of Restricted Stock for Investor’s expenses and analysis performed in connection with the analysis of the Company and the propriety of the Investor’s making the contemplated investment. The Commitment Fee shall be paid on the signing closing date immediately upon receipt of the signing purchase price if Investory does not withhold such amounts from the signing purchase price. The Investor is entitled to, at any time or from time to time, commencing on the date that is one hundred fifty one (151) days from the issuance date set forth to convert the Conversion Amount (as defined below) into Conversion Shares, at a conversion price for each share of Common Stock (the “Conversion Price”) equal to either (i) if the Company is DWAC Operational at the time of conversion, Seventy percent (70%) of the lowest closing bid price (as reported by Bloomberg LP) of Common Stock for the twenty (20) Trading Days immediately preceding the date of the date of conversion of the Debentures, or (ii) if either the Company is not DWAC Operational or the Common Stock is traded on the bottom tier OTC Pink (or, “pink sheets”) at the time of conversion, Sixty Five percent (65%) of the lowest closing bid price (as reported by Bloomberg LP) of the Common Stock for the twenty (20) Trading Days immediately preceding the date of conversion of the Debentures, subject in each case to equitable adjustments resulting from any stock splits, stock dividends, recapitalizations or similar events. The Company shall issue irrevocable instructions to its Transfer Agent regarding conversions such that the transfer agent shall be authorized and instructed to issue Conversion Shares upon its receipt of a Notice of Conversion without further approval or authorization from the Company. For purposes of this Debenture, the “Conversion Amount” shall mean the sum of (A) all or any portion of the outstanding Principal Amount of this Debenture, as designated by the Holder upon exercise of its right of conversion plus (B) any interest, pursuant to Section 10 or otherwise, that has accrued on the portion of the Principal Amount that has been designated for payment pursuant to (A). The Debenture may be called for redemption by the Company, upon not more than two (2) days written notice, for an amount (the “Redemption Price”) equal to: (i) if the Redemption Date (as defined below) is ninety (90) days or less from the date of issuance of this Debenture, One Hundred Five percent (105%) of the sum of the Principal Amount so redeemed plus accrued interest, if any; (ii) if the Redemption Date is greater than or equal to ninety one (91) days from the date of issuance of this Debenture and less than or equal to one hundred twenty (120) days from the date of issuance of this Debenture, One Hundred Fifteen percent (115%) of the sum of the Principal Amount so redeemed plus accrued interest, if any; (iii) if the Redemption Date is greater than or equal to one hundred twenty one (121) days from the date of issuance of this Debenture and less than or equal to one hundred fifty (150) days from the date of issuance of this Debenture, One Hundred Twenty percent (120%) of the sum of the Principal Amount so redeemed plus accrued interest, if any; (iv) if the Redemption Date is greater than or equal to one hundred fifty one (151) days from the date of issuance of this Debenture and less than or equal to one hundred eighty (180) days from the date of issuance of this Debenture, One Hundred Thirty percent (130%) of the sum of the Principal Amount so redeemed plus accrued interest, if any; and (v) if either (1) the Debentures are in default but the Holder consents to the redemption notwithstanding such default or (2) the Redemption Date is greater than or equal to one hundred eighty one (181) days from the date of issuance of this Debenture, one hundred forty percent (140%) of the sum of the Principal Amount so redeemed plus accrued interest, if any. The date upon which the Debentures are redeemed and paid shall be referred to as the “Redemption Date” (and, in the case of multiple redemptions of less than the entire outstanding Principal Amount, each such date shall be a Redemption Date with respect to the corresponding redemption). On July 29, 2016, the Company received gross proceeds of $175,000 from the Convertible Debenture, which is the first tranche of principal amount of $200,000, net of the $20,000 original debt discount, the $2,500 Commitment Fee and $2,500 in legal fees. $58,300 Convertible Note Repayment In August 2016, the Company repaid the $58,300 Convertible Note to both accredited investors in full, with accrued interest and a prepayment penalty of 140% of the total outstanding balance. 2016 Private Placement On August 11, 2016, opened a private placement of securities (the “2016 Private Placement”) with select accredited investors. The 2016 Private Placement is offering Units (the “Units”) at a purchase price of $0.06 per Unit, with each Unit consisting of (i) one (1) share of our common stock, $0.001 par value (the “Common Stock”) and, (ii) one (1) detachable warrant (the “Warrants”) to purchase one (1) share of our Common Stock at an exercise price of $0.08 per share. The Company and the accredited investors are executing and delivering this 2016 Private Placement in reliance upon the exemption from securities registration afforded by Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”), and Rule 506 of Regulation D (“Regulation D”) as promulgated by the United States Securities and Exchange Commission (the “Commission”) under the Securities Act Pursuant to the terms of a Registration Rights Agreement that the Company entered with the accredited investors in connection with the 2016 Private Placement, the Company is required to file a registration statement that covers the shares of Common Stock and the shares of common stock issuable upon exercise of the Warrants. The failure on the part of the Company to satisfy certain deadlines described in the Registration Rights Agreement may subject the Company to payment of certain monetary penalties. The Company has collected $130,000 to date from accredited investors. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with United States generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 8-03 of Regulation S-X. Accordingly, these condensed consolidated financial statements do not include all the information and footnotes required by United States generally accepted accounting principles for complete financial statements. The financial information as of June 30, 2016 and for the three and six months ended June 30, 2016 and 2015 is unaudited; however, in the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six month periods ended June 30, 2016 are not necessarily indicative of the results that may be expected for any other interim period or for the year ending December 31, 2016. The condensed consolidated balance sheet at December 31, 2015 has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by United States generally accepted accounting principles for complete financial statements. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Accounting Standards New accounting pronouncements are issued by the Financial Standards Board (“FASB”) or other standards setting bodies that the Company adopts according to the various timetables the FASB specifies. The Company does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company’s results of operations, financial position or cash flow. In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers Revenue from Contracts with Customers (Topic 606) In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern In April 2015, the FASB issued ASU 2015-03, Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs In July 2015, the FASB issued Accounting Standards Update No. 2015-11, Simplifying the Measurement of Inventory In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In March 2016, the FASB issued guidance to simplify several aspects of the accounting for share-based payments transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The guidance is effective for annual and interim periods beginning after December 31, 2016. Early adoption is permitted for an entity in an interim or annual period. We are currently evaluating the effect that the updated standard will have on our financial statements, but expect the guidance will add modest volatility in our equity-based compensation expense, provision for income taxes, and net income (loss). |
Note 4 - Intangible Assets (Tab
Note 4 - Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | June 30, 2016 December 31, 2015 Patents, at cost $ 3,502,135 $ 3,502,135 Less accumulated amortization (3,348,757 ) (3,195,379 ) Net intangible assets $ 153,378 $ 306,756 |
Note 5 - Accrued Expenses (Tabl
Note 5 - Accrued Expenses (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | June 30, 2016 December 31, 2015 Accrued former executive payment $ 100,000 $ 100,000 Accrued audit and tax preparation 46,752 93,500 Accrued directors and advisors fees 45,333 - Accrued outside services 43,105 58,813 Accrued legal professional fees 30,500 76,500 Accrued clinical study expenses 13,650 22,777 Accrued other 16,483 7,784 $ 295,823 $ 359,374 |
Note 11 - Warrants (Tables)
Note 11 - Warrants (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block] | Warrant class Outstanding as of December 31, 2015 Issued Exercised Converted Expired Outstanding as of June 30, 2016 Class E Warrants 3,576,737 - - - (3,576,737 ) - Class F Warrants 300,000 - - - - 300,000 Class G Warrants 1,503,409 - - - - 1,503,409 Class H Warrants 1,988,095 - - - - 1,988,095 Class I Warrants 1,043,646 - - - - 1,043,646 Class J Warrants 629,378 4,012,289 - - - 4,641,667 Class K Warrants 3,310,000 1,890,000 - - - 5,200,000 Class L Warrants - 33,018,337 - - - 33,018,337 Class M Warrants - 1,943,333 - - - 1,943,333 Series A Warrants 25,951,421 - - (23,701,427 ) - 2,249,994 38,302,686 40,863,959 - (23,701,427 ) (3,576,737 ) 51,888,481 |
Schedule Of Warrant Exercise Price And Expiration Date [Table Text Block] | Exercise price/share Expiration date Class E Warrants $ 4.00 April 2016 Class F Warrants $ 0.35 February 2018 Class G Warrants $ 0.80 July 2018 Class H Warrants $ 0.80 July 2018 Class I Warrants $ 0.85 September 2018 Class J Warrants $ 0.06 February 2019 Class K Warrants $ 0.08 June 2025 Class L Warrants $ 0.08 March 2019 Class M Warrants $ 0.06 February 2021 Series A Warrants $ 0.06 March 2019 |
Schedule of Derivative Liabilities at Fair Value [Table Text Block] | Class J Warrants Class K Warrants Class M Warrants Series A Warrants Total Warrant liability as of December 31, 2015 $ 2,900 $ 22,700 $ - $ 112,500 $ 138,100 Issued - - 75,422 - 75,422 Change in fair value 17,600 (6,600 ) 878 (102,600 ) (90,722 ) Warrant liability as of March 31, 2016 $ 20,500 $ 16,100 $ 76,300 $ 9,900 $ 122,800 Issued - 25,350 - - 25,350 Change in fair value (6,600 ) (16,150 ) (2,400 ) (3,100 ) (28,250 ) Warrant liability as of June 30, 2016 $ 13,900 $ 25,300 $ 73,900 $ 6,800 $ 119,900 |
Note 13 - Stock-based Compens25
Note 13 - Stock-based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | 2016 2015 Weighted average expected life in years 5.0 5.5 Weighted average risk free interest rate 1.10 % 2.41 % Weighted average volatility 140.0 % 136.1 % Forfeiture rate 0.0 % 0.0 % Expected dividend yield 0.0 % 0.0 % |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Options Weighted Average Exercise Price per share Outstanding as of December 31, 2015 10,073,385 $ 0.62 Granted - $ - Exercised - $ - Cancelled - $ - Forfeited or expired - $ - Outstanding as of March 31, 2016 10,073,385 $ 0.55 Granted 3,300,000 $ 0.04 Exercised - $ - Cancelled - $ - Forfeited or expired - $ - Outstanding as of June 30, 2016 13,373,385 $ - Exercisable 13,273,385 $ 0.43 |
Schedule of Other Share-based Compensation, Activity [Table Text Block] | Options Weighted Average Exercise Price per share Outstanding as of December 31, 2015 175,002 $ 0.36 Granted - $ - Vested - $ - Cancelled - $ - Forfeited or expired - $ - Outstanding as of March 31, 2016 175,002 $ 0.36 Granted 3,300,000 $ 0.04 Vested (3,375,002 ) $ 0.05 Cancelled - $ - Forfeited or expired - $ - Outstanding as of June 30, 2016 100,000 $ 0.21 |
Note 2 - Going Concern (Details
Note 2 - Going Concern (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Retained Earnings (Accumulated Deficit) | $ (95,841,107) | $ (95,841,107) | $ (92,994,408) | |||
Cash and Cash Equivalents, at Carrying Value | 122,948 | $ 1,615,727 | 122,948 | $ 1,615,727 | 152,930 | $ 3,547,071 |
Net Cash Provided by (Used in) Operating Activities | (1,731,124) | (1,917,858) | ||||
Net Income (Loss) Attributable to Parent | $ (1,122,123) | $ (1,521,533) | $ (2,846,699) | $ (2,680,648) | $ (4,810,285) |
Note 4 - Intangible Assets (Det
Note 4 - Intangible Assets (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Amortization of Intangible Assets | $ 76,689 | $ 76,689 | $ 153,378 | $ 153,378 |
Note 4 - Summary of Intangible
Note 4 - Summary of Intangible Assets (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Patents, at cost | $ 3,502,135 | $ 3,502,135 |
Less accumulated amortization | (3,348,757) | (3,195,379) |
Net intangible assets | $ 153,378 | $ 306,756 |
Note 5 - Summary of Accrued Exp
Note 5 - Summary of Accrued Expenses (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Accrued former executive payment | $ 100,000 | $ 100,000 |
Accrued audit and tax preparation | 46,752 | 93,500 |
Accrued directors and advisors fees | 45,333 | |
Accrued outside services | 43,105 | 58,813 |
Accrued legal professional fees | 30,500 | 76,500 |
Accrued clinical study expenses | 13,650 | 22,777 |
Accrued other | 16,483 | 7,784 |
$ 295,823 | $ 359,374 |
Note 6 - Notes Payable, Relat30
Note 6 - Notes Payable, Related Parties (Details Textual) - USD ($) | Jun. 28, 2016 | Aug. 01, 2015 | Jun. 15, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Jan. 13, 2016 | Dec. 31, 2015 |
Health Tronics, Inc [Member] | Note Amendment [Member] | |||||||||
Related Party Transaction, Rate | 2.00% | 8.00% | |||||||
Related Party, Notes Payable Manditory Prepayment Rate | 20.00% | ||||||||
Health Tronics, Inc [Member] | Class K Warrants [Member] | |||||||||
Class of Warrant or Right, Issued During Period | 1,890,000 | 3,310,000 | |||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.08 | $ 0.55 | |||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 1 | ||||||||
Class of Warrant or Right, Expiration Period | 10 years | ||||||||
Health Tronics, Inc [Member] | |||||||||
Related Party Transaction, Rate | 6.00% | ||||||||
Notes Payable, Related Parties, Noncurrent | $ 5,334,234 | $ 5,334,234 | $ 5,348,112 | ||||||
Debt Instrument, Unamortized Discount | 38,509 | 38,509 | 24,631 | ||||||
Common Stock, Par or Stated Value Per Share | $ 0.001 | ||||||||
Interest Payable, Current | 108,224 | 108,224 | $ 239,803 | ||||||
Interest Expense, Related Party | $ 108,224 | $ 80,968 | $ 260,937 | $ 161,039 | |||||
Class K Warrants [Member] | |||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.08 | $ 0.08 | |||||||
Class of Warrant or Right, Issued During Period | 40,863,959 | ||||||||
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 |
Note 7 - Promissory Notes Pay31
Note 7 - Promissory Notes Payable (Details Textual) | Feb. 01, 2016USD ($)shares | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) |
8% Convertible Promissory Notes [Member] | During First Sixty Days [Member] | ||||
Debt Instrument, Prepayment Amount as a Percentage of Outstanding Balance | 120.00% | |||
8% Convertible Promissory Notes [Member] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | |||
Debt Instrument, Face Amount | $ 58,300 | |||
Proceeds from Each Convertible Debt, Gross | $ 53,000 | |||
Debt Instrument, Original Issuance Discount Percent | 10.00% | |||
Number Of Investors | 2 | |||
Proceeds from Convertible Debt | $ 106,000 | |||
Debt Instrument, Prepayment Term | 60 days | |||
Debt Instrument, Convertible, Threshold Percentage of Stock Price Trigger | 30.00% | |||
Debt Instrument, Convertible, Threshold Trading Days | 20 | |||
Debt Instrument, Term | 180 days | |||
Notes Payable, Current | $ 115,933 | |||
Debt Issuance Costs, Net | 4,473 | |||
Class M Warrants [Member] | ||||
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right | shares | 1 | |||
Proceeds from Convertible Debt | 106,000 | |||
Notes Payable, Current | $ 115,933 |
Note 8 - Income Taxes (Details
Note 8 - Income Taxes (Details Textual) | Jun. 30, 2016USD ($) |
Operating Loss Carryforwards | $ 70,096,802 |
Note 9 - Equity Transactions (D
Note 9 - Equity Transactions (Details Textual) | Apr. 15, 2016USD ($)shares | Apr. 06, 2016USD ($)shares | Mar. 11, 2016USD ($)$ / sharesshares | Jan. 13, 2016$ / sharesshares | Jun. 30, 2016$ / sharesshares | Dec. 31, 2015$ / shares | Jun. 15, 2015$ / shares |
The 2016 Equity Offering [Member] | Health Tronics, Inc [Member] | |||||||
Related Party, Notes Payable Manditory Prepayment Rate | 20.00% | ||||||
The 2016 Equity Offering [Member] | Class L Warrants [Member] | Common Stock [Member] | |||||||
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right | 1 | ||||||
The 2016 Equity Offering [Member] | Class L Warrants [Member] | |||||||
Class of Warrant or Right, Issued During Period | 30,016,670 | ||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 0.08 | ||||||
The 2016 Equity Offering [Member] | |||||||
Stock Issued During Period, Shares, New Issues | 1,437,501 | 3,083,334 | 25,495,835 | ||||
Proceeds from Issuance of Private Placement Gross | $ | $ 86,200 | $ 185,000 | $ 1,529,750 | ||||
Health Tronics, Inc [Member] | |||||||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.001 | ||||||
Class L Warrants [Member] | Newport Coast Securities, Inc. and Oppenheimer & Co. Inc. [Member] | The 2016 Equity Offering [Member] | |||||||
Class of Warrant or Right, Issued During Period | 3,001,667 | ||||||
Class L Warrants [Member] | |||||||
Class of Warrant or Right, Issued During Period | 33,018,337 | ||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 0.08 | ||||||
Series A Warrants [Member] | Convertible Common Stock [Member] | |||||||
Stock Issued During Period, Shares, New Issues | 7,447,954 | ||||||
Warrants Converted During Period | 23,701,428 | ||||||
Convertible Preferred Stock, Shares Issued upon Conversion | 12,500 | ||||||
Series A Warrants [Member] | Convertible Preferred Stock [Member] | |||||||
Stock Issued During Period, Shares, New Issues | 293 | ||||||
Series A Warrants [Member] | |||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 0.06 | $ 0.06 | |||||
Class of Warrant or Right, Exchange Ratio | 0.4685 | ||||||
Common Stock, Ownership Threshold | 9.99% | ||||||
Subscription Agreement [Member] | On or before May 27, 2014 [Member] | |||||||
Minimum Installment Amount Of Purchase Price | $ | $ 100,000 | ||||||
Class of Warrant or Right, Issued During Period | 40,863,959 | ||||||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | ||||
Preferred Stock, Par or Stated Value Per Share | $ / shares | $ 0.001 |
Note 10 - Preferred Stock (Deta
Note 10 - Preferred Stock (Details Textual) - USD ($) | Apr. 29, 2016 | Jan. 13, 2016 | Mar. 17, 2014 | Jun. 30, 2016 | Jan. 12, 2016 | Jan. 06, 2016 | Dec. 31, 2015 | Mar. 14, 2014 |
Series B Convertible Preferred Stock [Member] | ||||||||
Preferred Stock, Shares Outstanding | 0 | 293 | 0 | |||||
Preferred Stock, Shares Authorized | 293 | 293 | ||||||
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | ||||||
Conversion of Stock, Shares Converted | 293 | |||||||
Series A Preferred Stock [Member] | ||||||||
Preferred Stock, Shares Outstanding | 0 | |||||||
Preferred Stock, Shares Authorized | 6,175 | |||||||
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | |||||||
Preferred Stock, Stated Value Per Share | $ 1,000 | |||||||
Stock Issued During Period, Shares, New Issues | 6,175 | |||||||
Undesignated Preferred Stock [Member] | Maximum [Member] | ||||||||
Preferred Stock, Shares Authorized | 5,000,000 | |||||||
Undesignated Preferred Stock [Member] | ||||||||
Preferred Stock, Shares Outstanding | 0 | 0 | ||||||
Preferred Stock, Shares Authorized | 4,993,532 | 4,993,532 | ||||||
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | ||||||
Series B Convertible Preferred Stock [Member] | ||||||||
Preferred Stock, Shares Authorized | 293 | |||||||
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | |||||||
Preferred Stock, Stated Value Per Share | $ 1,000 | |||||||
Stock Issued During Period, Shares, New Issues | 293 | |||||||
Convertible Preferred Stock, Shares Issued upon Conversion | 2,000 | |||||||
Convertible Preferred Stock Beneficial Ownership Limitation Conversion Percentage | 9.99% | |||||||
Common Stock [Member] | ||||||||
Conversion of Stock, Shares Issued | 3,657,278 | |||||||
Preferred Stock, Par or Stated Value Per Share | $ 0.001 |
Note 11 - Warrants (Details Tex
Note 11 - Warrants (Details Textual) - USD ($) | Jun. 30, 2016 | Mar. 31, 2016 | Mar. 11, 2016 | Feb. 01, 2016 | Dec. 31, 2015 | Jun. 15, 2015 | Mar. 17, 2014 | Feb. 10, 2014 |
Series A Warrants [Member] | ||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.06 | $ 0.06 | ||||||
Warrants and Rights Outstanding | $ 9,900 | $ 112,500 | ||||||
Class J Warrants [Member] | ||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.06 | |||||||
Warrants and Rights Outstanding | $ 13,900 | 20,500 | 2,900 | $ 12,776 | ||||
Class K Warrants [Member] | ||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.08 | |||||||
Warrants and Rights Outstanding | $ 25,300 | 16,100 | 22,700 | $ 36,989 | ||||
Class M Warrants [Member] | ||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.06 | |||||||
Warrants and Rights Outstanding | $ 73,900 | 76,300 | $ 9,091 | |||||
Series A and B Warrants [Member] | 18% Convertible Promissory Notes [Member] | ||||||||
Warrants and Rights Outstanding | $ 47,974 | |||||||
Series A and B Warrants [Member] | Private Placement [Member] | ||||||||
Warrants and Rights Outstanding | $ 557,733 | |||||||
8% Convertible Promissory Notes [Member] | ||||||||
Conversion Option of Debt Issued, Fair Value Disclosure | $ 66,331 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | |||||||
18% Convertible Promissory Notes [Member] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 18.00% | |||||||
Warrants and Rights Outstanding | $ 119,900 | $ 122,800 | $ 138,100 |
Note 11 - Warrant Activity (Det
Note 11 - Warrant Activity (Details) | 6 Months Ended |
Jun. 30, 2016shares | |
Class E Warrants [Member] | |
Warrants Outstanding (in shares) | 3,576,737 |
Warrants Expired (in shares) | (3,576,737) |
Warrants Outstanding (in shares) | |
Class F Warrants [Member] | |
Warrants Outstanding (in shares) | 300,000 |
Warrants Outstanding (in shares) | 300,000 |
Class G Warrants [Member] | |
Warrants Outstanding (in shares) | 1,503,409 |
Warrants Outstanding (in shares) | 1,503,409 |
Class H Warrants [Member] | |
Warrants Outstanding (in shares) | 1,988,095 |
Warrants Outstanding (in shares) | 1,988,095 |
Class I Warrants [Member] | |
Warrants Outstanding (in shares) | 1,043,646 |
Warrants Outstanding (in shares) | 1,043,646 |
Class J Warrants [Member] | |
Warrants Outstanding (in shares) | 629,378 |
Warrants Outstanding (in shares) | 4,641,667 |
Warrants Issued (in shares) | 4,012,289 |
Class K Warrants [Member] | |
Warrants Outstanding (in shares) | 3,310,000 |
Warrants Outstanding (in shares) | 5,200,000 |
Class L Warrants [Member] | |
Warrants Outstanding (in shares) | 33,018,337 |
Warrants Issued (in shares) | 33,018,337 |
Class M Warrants [Member] | |
Warrants Outstanding (in shares) | 1,943,333 |
Warrants Issued (in shares) | 1,943,333 |
Series A Warrants [Member] | |
Warrants Outstanding (in shares) | 25,951,421 |
Warrants Outstanding (in shares) | 2,249,994 |
Warrants Converted (in shares) | (23,701,427) |
Warrants Outstanding (in shares) | 38,302,686 |
Warrants Expired (in shares) | (3,576,737) |
Warrants Outstanding (in shares) | 51,888,481 |
Warrants Issued (in shares) | 40,863,959 |
Warrants Converted (in shares) | (23,701,427) |
Note 11 - Warrant Exercise Pric
Note 11 - Warrant Exercise Price Per Share and Expiration Date (Details) - $ / shares | 6 Months Ended | |
Jun. 30, 2016 | Mar. 11, 2016 | |
Class E Warrants [Member] | ||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 4 | |
Expiration date | April 2,016 | |
Class F Warrants [Member] | ||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.35 | |
Expiration date | February 2,018 | |
Class G Warrants [Member] | ||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.80 | |
Expiration date | July 2,018 | |
Class H Warrants [Member] | ||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.80 | |
Expiration date | July 2,018 | |
Class I Warrants [Member] | ||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.85 | |
Expiration date | September 2,018 | |
Class J Warrants [Member] | ||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.06 | |
Expiration date | February 2,019 | |
Class K Warrants [Member] | ||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.08 | |
Expiration date | June 2,025 | |
Class L Warrants [Member] | ||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.08 | |
Expiration date | March 2,019 | |
Class M Warrants [Member] | ||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.06 | |
Expiration date | February 2,021 | |
Series A Warrants [Member] | ||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.06 | $ 0.06 |
Expiration date | March 2,019 |
Note 11 - Changes in the Warran
Note 11 - Changes in the Warrant Liability (Details) - USD ($) | 3 Months Ended | ||||
Jun. 30, 2016 | Mar. 31, 2016 | Feb. 01, 2016 | Jun. 15, 2015 | Feb. 10, 2014 | |
Class J Warrants [Member] | |||||
Warrant liability | $ 20,500 | $ 2,900 | |||
Issued | |||||
Change in fair value | (6,600) | 17,600 | |||
Warrants and Rights Outstanding | 20,500 | 2,900 | $ 12,776 | ||
Warrant liability | 13,900 | 20,500 | |||
Class K Warrants [Member] | |||||
Warrant liability | 16,100 | 22,700 | |||
Issued | 25,350 | ||||
Change in fair value | (16,150) | (6,600) | |||
Warrants and Rights Outstanding | 16,100 | 22,700 | $ 36,989 | ||
Warrant liability | 25,300 | 16,100 | |||
Class M Warrants [Member] | |||||
Warrant liability | 76,300 | ||||
Issued | 75,422 | ||||
Change in fair value | (2,400) | 878 | |||
Warrants and Rights Outstanding | 76,300 | $ 9,091 | |||
Warrant liability | 73,900 | 76,300 | |||
Series A Warrants [Member] | |||||
Warrant liability | 9,900 | 112,500 | |||
Issued | |||||
Change in fair value | (102,600) | ||||
Warrants and Rights Outstanding | 9,900 | 112,500 | |||
Warrant liability | 9,900 | ||||
Class A Warrants [Member] | |||||
Issued | |||||
Change in fair value | (3,100) | ||||
Warrants and Rights Outstanding | 6,800 | ||||
Warrant liability | 6,800 | ||||
Warrant liability | 122,800 | 138,100 | |||
Issued | 25,350 | 75,422 | |||
Change in fair value | (28,250) | (90,722) | |||
Warrants and Rights Outstanding | 122,800 | 138,100 | |||
Warrant liability | $ 119,900 | $ 122,800 |
Note 12 - Commitments and Con39
Note 12 - Commitments and Contingencies (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Operating Leases, Rent Expense, Net | $ 40,455 | $ 38,505 | $ 82,974 | $ 71,912 |
Note 13 - Stock-based Compens40
Note 13 - Stock-based Compensation (Details Textual) - USD ($) | Jun. 16, 2016 | Nov. 01, 2010 | Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 |
Stock Incentive Plan [Member] | Employee Stock Option [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |||||||
Stock Incentive Plan [Member] | Two Medical Advisory Board Members [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 3,300,000 | |||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 0.04 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 0.0335 | |||||||
Allocated Share-based Compensation Expense | $ 110,550 | |||||||
Stock Incentive Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 12,500,000 | 12,500,000 | 12,500,000 | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $ 0.04 | $ 0.04 | ||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $ 2 | $ 2 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 0 | $ 0 | $ 0 | |||||
Allocated Share-based Compensation Expense | $ 112,050 | $ 22,235 | $ 116,550 | $ 50,062 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Remaining Contractual Term | 7 years 229 days | 7 years 167 days | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 3,300,000 | |||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 0.04 |
Note 13 - Fair Value Assumption
Note 13 - Fair Value Assumptions (Details) | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Weighted average expected life in years | 5 years | 5 years 182 days |
Weighted average risk free interest rate | 1.10% | 2.41% |
Weighted average volatility | 140.00% | 136.10% |
Forfeiture rate | 0.00% | 0.00% |
Expected dividend yield | 0.00% | 0.00% |
Note 13 - Summary of Options Ac
Note 13 - Summary of Options Activity (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2016 | Mar. 31, 2016 | |
Outstanding, number (in shares) | 10,073,385 | 10,073,385 |
Outstanding, weighted average exercise price per share (in dollars per share) | $ 0.55 | $ 0.62 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 0.04 | |
Forfeited or expired, number (in shares) | ||
Forfeited or expired, weighted average exercise price per share | ||
Outstanding, number (in shares) | 13,373,385 | 10,073,385 |
Outstanding, weighted average exercise price per share (in dollars per share) | $ 0.55 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 3,300,000 | |
Exercisable, number (in shares) | 13,273,385 | |
Exercisable (in dollars per share) | $ 0.43 |
Note 13 - Nonvested Options Act
Note 13 - Nonvested Options Activity (Details) - $ / shares | 3 Months Ended | |
Jun. 30, 2016 | Mar. 31, 2016 | |
Outstanding, number (in shares) | 175,002 | 175,002 |
Outstanding, weighted average exercise price per share (in dollars per share) | $ 0.36 | $ 0.36 |
Granted, number (in shares) | 3,300,000 | |
Vested, number (in shares) | 3,375,002 | |
Outstanding, number (in shares) | 100,000 | 175,002 |
Outstanding, weighted average exercise price per share (in dollars per share) | $ 0.21 | $ 0.36 |
Granted, weighted average exercise price per share (in dollars per share) | $ 0.04 | |
Vested, number (in shares) | (3,375,002) | |
Vested, weighted average exercise price per share (in dollars per share) | $ 0.05 |
Note 14 - Earnings (Loss) Per44
Note 14 - Earnings (Loss) Per Share (Details Textual) - shares | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 65,261,866 | 45,609,516 |
Note 15 - Subsequent Events (De
Note 15 - Subsequent Events (Details Textual) | Aug. 15, 2016USD ($) | Aug. 09, 2016USD ($)$ / sharesshares | Jul. 29, 2016USD ($)shares | Feb. 01, 2016USD ($) | Jun. 30, 2016USD ($)$ / sharesshares | Jun. 30, 2015USD ($) | Aug. 11, 2016$ / shares$ / itemshares | Jan. 13, 2016$ / shares | Dec. 31, 2015$ / shares |
Convertible Debentures [Member] | Subsequent Event [Member] | Debt Conversion if Company is DWAC Operational [Member] | |||||||||
Conversion Price, Percentage from Lowest Closing Price of Common Stock | 70.00% | ||||||||
Number of Trading Days Preceding the Debentures Conversion Date | 20 days | ||||||||
Convertible Debentures [Member] | Subsequent Event [Member] | Debt Conversion if not DWAC Operational or Common Stock Trades on Bottom Tier OTC Pink [Member] | |||||||||
Conversion Price, Percentage from Lowest Closing Price of Common Stock | 65.00% | ||||||||
Number of Trading Days Preceding the Debentures Conversion Date | 20 days | ||||||||
Convertible Debentures [Member] | Subsequent Event [Member] | Debt Instrument, Redemption, Period One [Member] | Maximum [Member] | |||||||||
Number of Days from Debt Debentures Issuance Date | 90 days | ||||||||
Convertible Debentures [Member] | Subsequent Event [Member] | Debt Instrument, Redemption, Period One [Member] | |||||||||
Redemption Price, Percentage from Sum of Principal Amount Redeemed Plus Accrued Interest | 105.00% | ||||||||
Convertible Debentures [Member] | Subsequent Event [Member] | Debt Instrument, Redemption, Period Two [Member] | Maximum [Member] | |||||||||
Number of Days from Debt Debentures Issuance Date | 120 days | ||||||||
Convertible Debentures [Member] | Subsequent Event [Member] | Debt Instrument, Redemption, Period Two [Member] | Minimum [Member] | |||||||||
Number of Days from Debt Debentures Issuance Date | 91 days | ||||||||
Convertible Debentures [Member] | Subsequent Event [Member] | Debt Instrument, Redemption, Period Two [Member] | |||||||||
Redemption Price, Percentage from Sum of Principal Amount Redeemed Plus Accrued Interest | 115.00% | ||||||||
Convertible Debentures [Member] | Subsequent Event [Member] | Debt Instrument, Redemption, Period Three [Member] | Maximum [Member] | |||||||||
Number of Days from Debt Debentures Issuance Date | 150 days | ||||||||
Convertible Debentures [Member] | Subsequent Event [Member] | Debt Instrument, Redemption, Period Three [Member] | Minimum [Member] | |||||||||
Number of Days from Debt Debentures Issuance Date | 121 days | ||||||||
Convertible Debentures [Member] | Subsequent Event [Member] | Debt Instrument, Redemption, Period Three [Member] | |||||||||
Redemption Price, Percentage from Sum of Principal Amount Redeemed Plus Accrued Interest | 120.00% | ||||||||
Convertible Debentures [Member] | Subsequent Event [Member] | Debt Instrument, Redemption, Period Four [Member] | Maximum [Member] | |||||||||
Number of Days from Debt Debentures Issuance Date | 180 days | ||||||||
Convertible Debentures [Member] | Subsequent Event [Member] | Debt Instrument, Redemption, Period Four [Member] | Minimum [Member] | |||||||||
Number of Days from Debt Debentures Issuance Date | 151 days | ||||||||
Convertible Debentures [Member] | Subsequent Event [Member] | Debt Instrument, Redemption, Period Four [Member] | |||||||||
Redemption Price, Percentage from Sum of Principal Amount Redeemed Plus Accrued Interest | 130.00% | ||||||||
Convertible Debentures [Member] | Subsequent Event [Member] | Debt Instrument, Redemption, Period Five [Member] | Minimum [Member] | |||||||||
Number of Days from Debt Debentures Issuance Date | 181 days | ||||||||
Convertible Debentures [Member] | Subsequent Event [Member] | Debt Instrument, Redemption, Period Five [Member] | |||||||||
Redemption Price, Percentage from Sum of Principal Amount Redeemed Plus Accrued Interest | 140.00% | ||||||||
Convertible Debentures [Member] | Subsequent Event [Member] | |||||||||
Debt Instrument, Face Amount | $ 500,000 | ||||||||
Proceeds from Convertible Debt | $ 450,000 | ||||||||
Original Issue Discount, Percentage | 10.00% | ||||||||
Number of Accredited Investors | 1 | ||||||||
Debt Instrument, Fee Amount | $ 2,500 | ||||||||
Debt Instrument, Shares, Commitment Fee | shares | 835,000 | ||||||||
Number of Days from Debt Debentures Issuance Date | 151 days | ||||||||
Maximum Number of Days of Written Notice to Call Debt | 2 days | ||||||||
Convertible Debentures, Tranche One [Member] | Subsequent Event [Member] | |||||||||
Debt Instrument, Face Amount | $ 200,000 | ||||||||
Proceeds from Convertible Debt | 175,000 | ||||||||
Debt Instrument, Fee Amount | 2,500 | ||||||||
Debt Instrument, Unamortized Discount | 20,000 | ||||||||
Debt Issuance Costs, Gross | $ 2,500 | ||||||||
Convertible Promissory Note [Member] | Subsequent Event [Member] | |||||||||
Repayments of Notes Payable | $ 58,300 | ||||||||
8% Convertible Promissory Notes [Member] | Subsequent Event [Member] | |||||||||
Prepayment Penalty Percentage | 140.00% | ||||||||
8% Convertible Promissory Notes [Member] | |||||||||
Debt Instrument, Face Amount | $ 58,300 | ||||||||
Proceeds from Convertible Debt | $ 106,000 | ||||||||
Subsequent Event [Member] | Private Placement [Member] | Class L Warrants [Member] | |||||||||
Class of Warrant or Right, Issued During Period | shares | 0 | ||||||||
Subsequent Event [Member] | Private Placement [Member] | |||||||||
Stock Issued During Period, Shares, New Issues | shares | 0 | ||||||||
Stock Issued During Period, Value, New Issues | $ 0 | ||||||||
Subsequent Event [Member] | Placement Agent [Member] | Class L Warrants [Member] | |||||||||
Class of Warrant or Right, Issued During Period | shares | 0 | ||||||||
Class of Warrant or Right, Issued During Period, Exercise Price | $ / shares | $ 130,000 | ||||||||
Subsequent Event [Member] | 2016 Private Placement [Member] | |||||||||
Purchase Price of Unit | $ / item | 0.06 | ||||||||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.001 | ||||||||
Common Stock Per Unit | shares | 1 | ||||||||
Warrant Per Unit | shares | 1 | ||||||||
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right | shares | 1 | ||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 0.08 | ||||||||
Class L Warrants [Member] | |||||||||
Class of Warrant or Right, Issued During Period | shares | 33,018,337 | ||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 0.08 | ||||||||
Proceeds from Convertible Debt | $ 106,000 | ||||||||
Class of Warrant or Right, Issued During Period | shares | 40,863,959 | ||||||||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 |