Stockholders Equity |
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| Stockholders' Equity | Note 8 – Stockholders’ Equity
Sales of Common Stock Under At-the-Market Offering
On May 7, 2024, we entered into an At-the-Market Offering Agreement (the “ATM Agreement”) with H.C. Wainwright & Co., LLC, pursuant to which we may offer and sell shares of its common stock, par value $0.001 per share, having an aggregate offering price of up to $15.0 million. During the three-month period ended March 31, 2025, we utilized the ATM Agreement and sold 159,431 shares of common stock for gross proceeds of $1.2 million. As of March 31, 2026, approximately $13.8 million remained available for issuance under the ATM Agreement, based on cumulative gross sales of shares under the program to date. Warrants
On September17, 2021, we signed an agreement with a marketing platform and consulting company to provide referral and support services to us for a period of five years. As part of that agreement, we granted a seven year warrant exercisable into 30,000 shares of our common stock, at $7.20 per share, which vests in two tranches when certain performance metrics are achieved. The warrant was valued using the Black Scholes option pricing model at a total of $149,551 based on a seven-year term, an implied volatility of 100%, a risk-free equivalent yield of 1.17%, and a stock price of $7.10. The warrant is classified as equity and will be expensed over the vesting period of each tranche if the performance criteria are achieved. At the period ended March 31, 2026, approximately 19,300 shares have been forfeited and approximately 10,700 shares underlying the warrant have vested.
Earnings per Share
The following table sets forth the computation of basic and diluted earnings (loss) per share (in dollars, except share data):
For the three-month period ended March 31, 2026, we reported net income and accordingly evaluated potentially dilutive securities. Restricted stock units representing 163,313 weighted average shares, using the treasury stock method, were included in the calculation of diluted earnings per share as their effect was dilutive.
Convertible notes issued in January 2026 were excluded from the calculation of diluted earnings per share because their effect would have been anti-dilutive as the conversion price exceeded the average market price of the Company’s common stock during the period. As of March 31, 2026, the convertible note was potentially convertible into a maximum of approximately 806,000 shares of common stock based on the contractual conversion price of $3.10 per share applied to the outstanding principal balance of $2.5 million, using the as if converted method. Additionally, warrants to purchase approximately 10,700 shares of common stock were excluded from the calculation of diluted earnings per share because their effect would have been anti-dilutive.
For the three-month periods ended March 31, 2025, reported a net loss and, as a result, all potentially dilutive securities were anti-dilutive. |
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