v3.25.2
Subsequent Events
6 Months Ended
Jun. 30, 2025
Subsequent Events [Abstract]  
Subsequent Events

(14) Subsequent Events

 

Management evaluated events that occurred subsequent to June 30, 2025, through August 19, 2025, which is the date the interim financial statements were issued.

 

Subsequent to June 30, 2025, the Company entered into five separate agreements with Lender to exchange an aggregate of $1,225,000 in principal for 268,738 shares of common stock, thereby extinguishing that portion of the Promissory Note. See Note 7 for additional information regarding the Promissory Note.

 

On July 21, 2025, the Company entered into a new purchase agreement with Lincoln Park (2025 LP Purchase Agreement), pursuant to which Lincoln Park has agreed to purchase from the Company up to an aggregate of $25.0 million of common stock (subject to certain limitations and satisfaction of the conditions set forth in the 2025 LP Purchase Agreement) from time to time and at the Company’s sole discretion over the 36-month term of the 2025 LP Purchase Agreement. Pursuant to the terms of the 2025 LP Purchase Agreement, on July 21, 2025, the Company issued 120,424 shares of common stock to Lincoln Park as consideration for its commitment to purchase shares of common stock under the 2025 LP Purchase Agreement. In August 2025, the Company sold 69,389 shares of common stock under the 2025 LP Purchase Agreement, for net proceeds of $349,998.

 

On July 31, 2025, the Company submitted the New Drug Application for CTx-1301 to the FDA.

 

Subsequent to June 30, 2025, the Company sold 64,682 shares of common stock under the ATM Agreement, for net proceeds of $340,253.

 

On August 7, 2025, the employment of Laurie A. Myers, the Company’s former Executive Vice President and Chief Operating Officer, terminated.

 

On August 14, 2025, the Board (i) placed Shane Schaffer, Chairman and Chief Executive Officer, on administrative leave pending the resolution of personal legal proceedings, (ii) appointed Jennifer Callahan, the Company’s current Chief Financial Officer, to serve as interim Chief Executive Officer, effective immediately and (iii) appointed John A. Roberts, a current member of the Board, to serve as Executive Chairman of the Board, effective immediately. Ms. Callahan will continue to serve as Chief Financial Officer while serving as interim Chief Executive Officer until further action by the Board. In his role as Executive Chairman, Mr. Roberts will among other services, provide operational support to the Company’s executive management team.

 

On July 4, 2025, the U.S. President signed into law the “One Big Beautiful Bill Act” (“OBBBA”). The OBBBA imposes various changes to U.S. federal income tax regulation, including restoring bonus depreciation, removing the requirement to capitalize and amortize domestic research and development expenditures, increasing interest deductibility and reducing certain international deductions. The OBBBA also included certain modifications to the Inflation Reduction Act of 2022, including extending the clean fuel production tax credit from 2027 through 2029. Effects of changes in tax laws, including retroactive changes, are recognized in the financial statements in the period that the changes are enacted. The Company is currently evaluating the potential impact of the OBBBA on its deferred tax balances and other changes required to its financial statements, which will be reflected in the third quarter 10-Q as the enactment date was after period end.