SUBSEQUENT EVENTS |
3 Months Ended |
|---|---|
Mar. 31, 2026 | |
| Subsequent Events [Abstract] | |
| SUBSEQUENT EVENTS | SUBSEQUENT EVENTS For its condensed consolidated financial statements as of March 31, 2026 and for the period then ended, the Company evaluated subsequent events through the date on which those condensed consolidated financial statements were issued. Other than the items noted below, there were no subsequent events identified for disclosure as of the date the condensed consolidated financial statements were available to be issued. March 2026 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard, and April 2026 Stock Split — On March 20, 2026, the Company received a notice from Nasdaq, indicating that the Company’s common stock did not meet the Minimum Bid Price Requirement, as the closing bid price for the common stock was below $1.00 per share for thirty (30) consecutive business days. Although issuers are typically provided a 180-calendar-day compliance period to regain compliance with the Minimum Bid Price Requirement, the notice further stated that, pursuant to Nasdaq Listing Rule 5810(c)(3)(A)(iv), the Company is not eligible for any compliance period because the Company effected a reverse stock split within the prior one-year period, specifically a 1-for-20 reverse stock split effected on November 5, 2025. On March 27, 2026 the Company filed with Nasdaq an appeal of the Nasdaq staff’s delisting determination, following which Nasdaq scheduled a hearing on the appeal for April 30, 2026. The Company’s filing of an appeal stays the delisting of the common stock. In anticipation of its filing with Nasdaq of an appeal, on March 20, 2026, the Company filed with the SEC a proxy statement for a special meeting of its stockholders as of record on March 19, 2026, which was held on April 10, 2026 to consider a proposal to authorize a reverse stock split of the common stock at a ratio ranging from 1:3 to 1:20, the actual ratio to be determined by the Board. The proposed reverse stock split was approved by the Company’s stockholders at the special meeting, On April 23, 2026, the Company effectuated a 1-for-20 reverse stock split, which resulted in the stock exceeding the minimum bid price and bringing the Company into compliance. Subsequently, the closing price of the stock stayed above the $1.00 Minimum Bid Price Requirement for the 10 consecutive trading days following the April 23, 2026 reverse split effective date, resulting in the Company regaining compliance with the Nasdaq listing rule. On May 11, 2026, Nasdaq provided the Company with written confirmation of compliance with the Minimum Bid Price Requirement and the matter was closed. Sale of $IP Tokens Under Covered Call Program - On April 10, 2026 the Company entered into a covered call contract for 744,000 $IP Tokens at a price of $0.5057 per token with a strike price of $0.59167. On May 9 and 10, 2026, the $IP Token reached the strike price under the covered call contract and 500,000 of the 744,000 $IP Tokens were liquidated, netting the Company proceeds of $295,835 in USDC, at an average price of $0.59167. The remaining 256,000 $IP Tokens from that tranche were rolled over into a new 30 day contract on May 11, 2026. (See Note 2 - Summary of Significant Accounting Policies - Covered Call Contracts, and Note 6 - Intangible Digital Assets - Sale of Covered Call Contracts on Intangible Digital Assets for more information.) Sale of Restricted $IP Tokens to the Story Foundation - On May 11, 2026 the Company sold to the Story Foundation 5,000,000 $IP Tokens that had significant restrictions on future sales into the market for a period longer than one year. The Company received $405,000 USDC for the sale of these tokens, at a loss of approximately $2.1 million, that will be recorded in the Company’s condensed consolidated financial statements for the quarter ended June 30, 2026.
|