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Note 18 - Subsequent Events
6 Months Ended
Jun. 30, 2025
Notes to Financial Statements  
Subsequent Events [Text Block]

Note 18. Subsequent Events

 

Issuance of Short Term Promissory Notes by KardioNav

 

On July 11, 2025, two short term promissory notes of $150 thousand each were issued by KardioNav to the Company's Chief Executive Officer and Lifestim, Inc., a company controlled by the Company's Chief Executive Officer in exchange for an aggregate loan of $300 thousand. The promissory notes have a maturity date of July 11, 2026, and interest rates of 4.2% per annum, payable upon maturity.

 

Enactment of U.S. Tax Legislation

 

On July 4, 2025, the One Big Beautiful Bill was enacted (“OBBBA”), introducing significant and wide-ranging changes to the U.S. federal tax system. Significant components include restoration of 100% accelerated tax depreciation on qualifying property including expansion to cover qualified production property.   Another major aspect incudes the return to immediate expensing of domestic research and experimental expenditures (“R&E”) which in some cases may include retroactive application back to 2021 for businesses with gross receipts of less than $31 million or accelerated tax deductions of R&E that was previously capitalized for larger businesses.  The legislation also reinstates EBITDA-based interest deductions for tax purposes and makes several business tax incentives permanent.  Less favorable business provisions include limitations on tax deductions for charitable contributions. The Company is currently assessing the potential impact of this legislation on its future financial position, results of operations, and cash flows. In accordance with U.S. GAAP, the effects will be recognized in the period of enactment.

 

Amendment to the Amended and Restated Certificate of Incorporation

 

On July 25, 2025, at the annual meeting of stockholders of the Company, the stockholders approved an amendment to the Amended and Restated Certificate of Incorporation of the Company (the “Amendment”) to effect a reverse stock split within specified parameters. The Board approved the Amendment and set the ratio of the reverse stock split at 1-for-19.  The Amendment will be effective at 12:01 AM Eastern Standard Time on  August 15, 2025,  effecting a reverse stock split in which each nineteen (19) shares of the Company’s common stock issued and outstanding, par value $0.0001, immediately prior to the effective time will automatically be combined into one (1) validly issued, fully paid and non-assessable share of common stock, without any action on the part of the holders.

 

No fractional shares will be issued as a result of the reverse stock split and all fractional shares will be settled in cash. The reverse stock split will affect all stockholders uniformly and will not alter any stockholder’s percentage interest in the Company’s equity (other than as a result of the settlement in cash of fractional shares). The Company’s authorized capital stock, consisting of 60 million shares of common stock and 10 million shares of preferred stock, will remain unchanged.

 

The reverse stock split will decrease the number of issued and outstanding shares at the time, from approximately 18,861,579 to approximately 992,714 as of June 30, 2025. Common stock issuable upon conversion of outstanding shares of Series X convertible preferred stock will decrease from 1,265,601 to approximately 66,610, common stock issuable upon conversion of outstanding shares of Series B convertible preferred stock will decrease from 6,369,063 to approximately 335,213, common stock issuable upon exercise of outstanding warrants will decrease from 20,502,073 to approximately 1,079,051, and common stock issuable upon exercise of outstanding stock options will decrease from 2,415,435 to approximately 127,128 as of June 30,2025. 

 

  

For the Three Months Ended

  

For the Six Months Ended

 
  

June 30,

  

June 30,

 
  

2025

  

2024

  

2025

  

2024

 

Net loss per share attributable to Catheter Precision, Inc., basic and diluted - pro forma

 $(7.28) $(105.87) $(14.09) $(174.58)

Weighted-average common shares used in computing net loss per share, basic and diluted - pro forma

  701,896   39,860   649,556   39,495