v3.26.1
Note 19 - Subsequent Events
3 Months Ended
Mar. 31, 2026
Notes to Financial Statements  
Subsequent Events [Text Block]

Note 19 Subsequent Events

 

The Company has evaluated subsequent events through the date these consolidated financial statements were issued and has identified the following events for disclosure.

 

Convertible Note Conversion Price Adjustment. On April 16, 2026, pursuant to a unanimous written consent dated April 16, 2026, the Company and the Buyer entered into a Letter Agreement (the “April 2026 Letter Agreement”) reducing the Conversion Price applicable to $500,000 of principal under the October Note to $0.57 per share.

 

Subsequent Convertible Note Conversions. On April 16, 2026, the Buyer submitted Eight Notices of Conversion that aggregated to $1,725,136 of principal and $120,762 of interest converted into 2,557,198 shares of Common Stock. Of the principal converted: (i) $213,084 was converted at the reduced $0.57 conversion price established under the April 2026 Letter Agreement (the first conversion at the reduced price), with approximately $286,916 of capacity remaining at $0.57; (ii) $250,372 of principal under the July Note was converted at the prior $0.75 conversion price; and (iii) $1,261,680 of principal under the October Note was converted at the prior $0.75 conversion price. Following these conversions, the outstanding principal balance was approximately $250,372 on the July Note and approximately $1,863,472 on the October Note, before any further activity through the issuance date of these consolidated financial statements.

 

Subsequent Equity Line of Credit Draws. Between April 6, 2026 and May 7, 2026, the Company submitted four VWAP Purchase Notices under the May 2025 Equity Line of Credit agreement with Tumim Stone Capital, LLC, resulting in the issuance of an aggregate of 640,000 shares of Common Stock for aggregate gross proceeds of approximately $244,408.

 

Revolving Credit Agreement Waiver. On May 18, 2026, the Company received a written waiver from Beacon Bank & Trust of the Company's noncompliance with the minimum Cash Flow Coverage Ratio under the Revolving Credit Agreement as of March 31, 2026. The waiver applies to the noncompliance as of the measurement date and the Company remains subject to the financial covenants of the Revolving Credit Agreement on a forward basis. See Note 10.

 

Facility Consolidation. The Company’s lease at 5141 W. 122nd Street, Alsip, Illinois terminated effective April 30, 2026. The Company entered into a new lease at 18400 76th Avenue, Tinley Park, Illinois, which commenced April 1, 2026 with a term of 62 months through May 31, 2031.