Quarterly report pursuant to Section 13 or 15(d)

Note 13 - Stock Warrants

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Note 13 - Stock Warrants
 9 Months Ended
Sep. 30, 2018
Notes to Financial Statements  
Stock Warrants Disclosure [Text Block]
1
3
.
Stock Warrants
 
In
January 2017,
Dr. Michael Goldberg, then the Company’s President and CEO, exercised
5,411,850
of his Series LL warrants in exchange for
5,411,850
shares of our common stock, resulting in proceeds to the Company of
$54,119.
 
In
March 2017,
in connection with the Asset Sale, the Company granted to each of Cardinal Health
414
and UCSD, a
five
-year Series NN warrant to purchase up to
10
million shares and
1
million shares, respectively, of the Company’s common stock at an exercise price of
$1.50
per share, each of which warrant is subject to anti-dilution and other customary terms and conditions. The fair value of the Series NN warrants was calculated using the Black-Scholes model using our
five
-year historical weekly volatility of
77%
and a risk-free rate equal to the
five
-year treasury constant maturity rate of
2%.
The Series NN warrants granted to Cardinal Health
414
had an estimated fair value of
$3.3
million, which was recorded as a reduction of the gain on sale in the consolidated statement of operations for the
nine
-month period ended
September 30, 2017.
The Series NN warrants granted to UCSD had an estimated fair value of
$334,000,
which was recorded as an intangible asset related to the UCSD license in the consolidated balance sheet during the
nine
-month period ended
September 30, 2017.
 
At
September 30, 2018,
there are
16.4
million warrants outstanding to purchase Navidea's common stock. The warrants are exercisable at prices ranging from
$0.01
to
$2.50
per share with a weighted average exercise price of
$1.15
per share. The warrants have remaining outstanding terms ranging from
one
to
17
years.
 
In addition, at
September 30, 2018,
there are
300
warrants outstanding to purchase MT Common Stock. The warrants are exercisable at
$2,000
per share.