v3.26.1
Stockholders' Equity
3 Months Ended
Mar. 31, 2026
Equity [Abstract]  
Stockholders' Equity

NOTE 9: STOCKHOLDERS’ EQUITY

Common Stock

On June 27, 2024, the Company's stockholders approved an amendment of the Company's Amended and Restated Certificate of Incorporation to increase the number of authorized shares of the Company's common stock, par value $0.18 per share, from 175,000,000 to 350,000,000.

Preferred Stock

The Company is authorized to issue a total of 10,000,000 shares of preferred stock, par value $0.001 per share. The Company has designated 750,000 shares of Series A junior participating preferred stock, par value $0.001 per share, 4,000 shares of Series A convertible preferred stock, par value $0.001 per share, 25,000 shares of Series B convertible preferred stock, par value $0.001 per share, and 20,000 shares of Series C convertible preferred stock, par value $0.001 per share, through the filings of certificates of designation with the Delaware Secretary of State. No shares of Series A junior participating preferred stock, Series A convertible preferred stock, or Series C convertible preferred stock, were outstanding as of March 31, 2026 and December 31, 2025.

Series B Convertible Preferred Stock

Conversion. Each share of Series B convertible preferred stock is convertible at the Company's option at any time, or at the option of the holder at any time, into the number of shares of the Company's common stock determined by dividing the $1,000 stated value per share of the Series B convertible preferred stock by a conversion price of $52.80 per share. In addition, the conversion price per share is subject to adjustment for stock dividends, distributions, subdivisions, combinations, or reclassifications. Subject to limited exceptions, a holder of the Series B convertible preferred stock will not have the right to convert any portion of the Series B convertible preferred stock to the extent that, after giving effect to the conversion, the holder, together with its affiliates, would beneficially own in excess of 9.99% of the number of shares of the Company's common stock outstanding immediately after giving effect to its conversion.

Rights. Holders of the Series B convertible preferred stock have certain rights should certain future events occur, such as the right to receive shares of an acquiring corporation or other consideration that holders of shares of common stock are entitled to receive upon certain mergers, consolidations or sales of substantially all of the Company’s assets; the right to receive dividends in the same form as dividends paid on shares of common stock; and redemption rights upon the Company’s liquidation, dissolution or winding up, among others. Holders of Series B convertible preferred stock have no voting rights, and the Company is not obligated to redeem or repurchase any of the Series B convertible preferred stock.

During the three months ended March 31, 2026 and 2025 there were no conversions of Series B convertible preferred stock.

Warrants Outstanding

As of March 31, 2026, no warrants were outstanding. As of March 31, 2025, the following warrants to purchase shares of the Company’s common stock were outstanding:

 

Outstanding
Warrants to
Purchase Shares

 

 

Exercise Price Per Warrant

 

 

Expiration Date

December 2020 warrants

 

 

187,500

 

 

$

1.00

 

 

June 21, 2025

January 2021 warrants

 

 

300,000

 

 

$

1.055

 

 

July 8, 2025

March 2021 warrants

 

 

701,667

 

 

$

2.88

 

 

September 22, 2025

 

 

1,189,167

 

 

 

 

 

 

Warrants Activity

There were no warrant exercises during the three months ended March 31, 2026 and 2025.