Commitments and Contingencies |
3 Months Ended |
|---|---|
Mar. 31, 2026 | |
| Commitments and Contingencies | |
| Commitments and Contingencies | Note 17- Commitments and Contingencies Legal Matters The Company was previously engaged in discussions with Ellenoff Grossman & Schole LLP (“EGS”) regarding certain outstanding legal fees and litigation initiated by EGS against the Company relating to unpaid legal fees. On May 12, 2026, the Company entered into a Settlement Agreement and General Releases with EGS to resolve the matter. Pursuant to the settlement agreement, the Company agreed to pay EGS an aggregate settlement amount of $360,000, consisting of (i) an initial payment of $100,000, which has been paid, and (ii) three installment payments of approximately $86,667 payable over a one-year period. Upon receipt of the initial payment, EGS agreed to dismiss the pending litigation with prejudice. As of March 31, 2026, the Company had recorded the full amount of the payable within accounts payable. Subsequent to quarter end, the Company entered into a settlement agreement relating to the payable and will record the impact of the settlement in the appropriate reporting period in accordance with the applicable accounting guidance. Revolving Loan Agreement On January 27, 2025, the Company entered into a Revolving Loan Agreement pursuant to which the lender agreed to provide up to $2.0 million in revolving loan advances to the Company. The borrowings accrued interest at a rate of 18% per annum and matured on January 31, 2026. As previously disclosed, the Company received a notice of default related to amounts outstanding under the Revolving Loan Agreement. As of March 31, 2026, amounts outstanding under the agreement remained unpaid and the Company was engaged in discussions with the lender regarding resolution of the outstanding indebtedness. On May 14, 2026, the Company entered into a Debt Settlement and Subscription Agreement with the lender to settle the outstanding obligations under the Revolving Loan Agreement. See Note 22 – Subsequent Events for additional information. Government Grant During 2025, AMPX, a subsidiary of the Company, applied for government grants related to research and development expenditure tax credits in the United Kingdom. During the three months ended March 31, 2026, the Company recognized government grant income of $0.4 million related to these programs, which was included in in the condensed consolidated statements of operations. A corresponding receivable was recorded within other receivables on the condensed consolidated balance sheet as of March 31, 2026. The related receivable was collected in May 2026. |