Note 8 - Investment in Macrophage Therapeutics, Inc.
|9 Months Ended|
Sep. 30, 2017
|Notes to Financial Statements|
|Investments in and Advances to Affiliates, Schedule of Investments [Text Block]||
Platinum and Dr. Goldberg (collectively, the “MT Investors”) invested
$200,000,respectively, in MT in exchange for shares of MT’s Series A Convertible Preferred Stock (“MT Preferred Stock”) and warrants to purchase common shares of MT (“MT Common Stock”). The MT Preferred Stock and warrants are convertible into, and exercisable for, MT Common Stock.
made additional investments in MT totaling
notobligated to provide anything in return, although it was considered likely that the MT Board of Directors would ultimately authorize some form of compensation to Platinum. During the year ended
December 31, 2016,the Company recorded the entire additional
$200,000investment as a current liability pending determination of the form of compensation.
’s Board of Directors authorized modification of the original MT Preferred Stock to a convertible preferred stock with a
10%paid-in-kind (“PIK”) coupon retroactive to the time the initial investments were made. The conversion price of the MT Preferred Stock will remain at the
$500million initial market cap but a full ratchet was added to enable the adjustment of conversion price, warrant number and exercise price based on the valuation of the
firstinstitutional investment round. In addition, the MT Board of Directors authorized issuance of additional MT Preferred Stock with the same terms to Platinum as compensation for the additional
$200,000of investments made in
May 2016.Based on the decision to issue equity for the additional
$200,000of investments made by Platinum, the liability was reclassified to additional paid-in-capital in
January 2017.As of the date of filing of this Quarterly Report on Form
10-Q, final documents related to the above transactions authorized by the MT Board have
The entire disclosure for the information summarizing investments in and advances to majority-owned subsidiaries, other controlled companies, and other affiliates. It reflects specified information about ownership, financial results from, and financial position in such entities.
Reference 1: http://www.xbrl.org/2003/role/presentationRef