Changes in Stockholders’ Equity |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Changes in Stockholders’ Equity | Note 11 – Changes in Stockholders’ Equity
Class A Common Stock
The Company has authorized shares of $ par value Class A common stock, and shares were issued and outstanding as of March 31, 2026, and December 31, 2025.
During the three months ended March 31, 2025, two investors exercised warrants to purchase Class A Common stock pursuant to which the Company received cash proceeds of $14,800.
On January 15, 2025, a total of shares of Class B Common Stock previously held by the Company’s Executive Chairman and President, Sandeep Allam, upon his passing, automatically converted into shares of Class A common stock according to the terms of the Company’s Certificate of Incorporation.
On June 16, 2025, the Board of Directors of the Company appointed Priya Prasad, the Company’s CFO and COO, as interim CEO. The Company agreed to pay Ms. Prasad an interim CEO allowance of $6,100 per month, and award shares of Class A common stock, which vest upon milestones being met as determined by the Board, including appointment of a permanent CEO, retention of key staff, stabilization of client relationships and adoption of an updated strategic plan for the Company. As of March 31, 2026, the Board has not approved the milestones being met, and accordingly, no stock-based compensation expense has been recognized related to this award.
On July 1, 2025, the Company entered into a consulting agreement with a former member of the Board of Directors for services related to developing a new strategic plan for the Company and identifying and hiring a new CEO. The agreement was in effect through December 31, 2025, and the Company awarded restricted stock units (“RSU’s”) of the Company’s Class A common stock to the consultant. As of December 31, 2025, the Board determined that achievement of the milestones was completed, however, no options were issued and stock-based compensation expense has been recognized related to this award.
On August 13, 2025, the Company appointed a new director to the Board of Directors of the Company.. As of December 31, 2025, a grant date had not been established as the terms of the award had not been finalized.
During the three months ended March 31, 2026, the Company recognized stock-based compensation expense of $ related to the amortization of restricted stock unit awards granted to employees and consultants.
Additionally, the Company recognized $497 of stock-based compensation expense related to the amortization of Class A common stock options issued for services.
During the three months ended March 31, 2025, the Company issued shares of Class A common stock to several employees in exchange for services rendered. The Company recognized stock-based compensation expense equal to the fair value of the shares on the grant date.
During the three months ended March 31, 2025, the Company recognized expense of $16,275 related to common stock options. Additionally, the Company recognized $ of stock-based compensation expense related to the amortization of Class A common stock options issued for services.
Class A Common Stock Warrants
The following is a summary of activity of outstanding stock warrants:
The warrants had a weighted average remaining life of years and intrinsic value as of March 31, 2026.
Convertible Class B Common Stock
The Company has authorized shares of $ par value convertible Class B common stock and had shares issued and outstanding as of December 31, 2025, as retrospectively applied, pursuant to the Company’s subsequent recapitalization in 2022 and effective as of May 3, 2022, whereby the founders exchanged their Founders Shares for shares of convertible Class B common stock.
On January 15, 2025, a total of shares of Class B Common Stock previously held by the Company’s Executive Chairman and President, Sandeep Allam, automatically converted into shares of Class A common stock according to the terms of the Company’s Certificate of Incorporation
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