NOTE
11: SUBSEQUENT EVENTS
The
Company evaluated subsequent events from December 31, 2025, the date of these consolidated financial statements, through March 17, 2026,
which represents the date the consolidated financial statements were issued, for events requiring recognition or disclosure in the consolidated
financial statements for the year ended December 31, 2025. The Company concluded that no events have occurred that would require recognition
or disclosure in the consolidated financial statements, except for the following:
| a. | On
February 11, 2026, the Company entered into warrant repricing agreements with certain holders of warrants to purchase an aggregate
of 913,638
shares of the Company’s common stock that were issued in financing transactions during 2024 and 2025. Pursuant to these
agreements, the exercise price of such warrants was reduced to $1.75
per share. As a condition to the repricing, the
participating holders agreed to enter into a voting agreement pursuant to which they agreed to vote all shares of common stock held
by them in favor of the proposals that were presented at the Company’s special stockholder meeting scheduled for February 26,
2026. In addition, on February 11, 2026, the Company’s board of directors approved
a reduction of the exercise price to $1.75
per share for the remaining warrants and placement agent warrants to purchase an aggregate of 762,787
shares of common stock issued in the same financing transactions. Other than the reduction in the exercise price, all other terms
and provisions of the warrants remain unchanged. |
| | | |
| b. | On
February 26, 2026, the Company’s stockholders voted to approve, among other things, the issuance of shares
of the Company’s common stock issuable upon the conversion of the Series AA Preferred
Stock and Series AAA Preferred Stock in accordance with Nasdaq Listing Rules 5635(b) and
5635(d). For more details see Note 6(e). |
|