v3.26.1
Equity
 6 Months Ended
Jun. 30, 2026
Equity [Abstract]  
Equity

10. Equity

 

Private Placement

 

On May 22, 2026, the Company completed a private placement of 3,740,000 shares of its common stock at a price of $0.2290 per share to Streamline, for aggregate gross proceeds of approximately $856,463. Net proceeds after share-issuance costs of approximately $803,744 (gross proceeds of $856,463 less share-issuance costs of $52,719, pertaining to professional and regulatory fees) were recorded as an increase to common stock of $37,400 and additional paid-in capital of $766,344. Share-issuance costs totaled approximately $52,719, of which $7,609 was paid in cash during the period and the remaining $45,110 was unpaid at June 30, 2026 and included in accounts payable and other accrued liabilities.

 

Restricted Stock Grants

 

The following table summarizes the status and activity of the Company’s restricted stock grants at June 30, 2026 and 2025, and the changes during the six months then ended:

 

    Six Months Ended June 30,  
    2026     2025  
          Weighted           Weighted  
          Average           Average  
          Grant Date           Grant Date  
    Number of     Fair Value     Number of     Fair Value  
Restricted Stock Grants   Shares     Per Share     Shares     Per Share  
Outstanding at beginning of period     —     $ —       666     $ 6.00  
Restrictions lifted during the period     —       —       (666 )     6.00  
Outstanding at end of period     —     $ —       —     $ —  

 

Restricted Stock Units

 

The following table summarizes the status and activity of the Company’s total restricted stock units outstanding at June 30, 2026 and 2025, and the changes during the six months then ended:

 

    Six Months Ended June 30,  
    2026     2025  
          Weighted           Weighted  
          Average           Average  
          Grant Date           Grant Date  
    Number of     Fair Value     Number of     Fair Value  
Restricted Stock Units   Shares     Per Share     Shares     Per Share  
Outstanding at beginning of period     2,470,079     $ 1.12       1,070,079     $ 2.36  
Granted during the period     200,000       0.30       1,500,000       0.18  
Restrictions lifted during the period     —     $ —       (100,000 )   $ 0.35  
Outstanding at end of period     2,670,079     $ 1.06       2,470,079     $ 1.12  

 

On February 26, 2026, the Company granted 200,000 RSUs to the Company’s CFO under the equity incentive plan. The RSUs vest in two equal installments, with 50% vesting on the first anniversary of the grant date and the remaining 50% vesting on the second anniversary of the grant date, subject to continued service with the Company.

 

As of June 30, 2026, 2,670,079 restricted stock units were outstanding, comprising 600,000 nonvested units and 2,070,079 units that have vested but for which the underlying common shares have not yet been issued. Vested restricted stock units are settled in common shares upon the holder’s separation from service or a change of control and remain outstanding until settled.

 

As of June 30, 2026, total unrecognized compensation cost related to nonvested restricted stock units was $121,000, which is expected to be recognized over a weighted-average period of 1.1 years.

 

Stock-Based Compensation

 

Stock-based compensation expense for the periods presented is as follows:

 

  

    Three Months Ended
June 30,		     Six Months Ended
June 30,		  
    2026     2025     2026     2025  
    (in thousands)  
Restricted stock grants     —       2       —       3  
Restricted stock units     72       97       145       170  
Total stock-based compensation   $ 72     $ 99     $ 145     $ 173  

 

Common Stock Warrants

 

The following table summarizes the activity of the Company’s common stock warrants for the six months ended June 30, 2026 and 2025.

 

    Six Months Ended June 30,  
    2026     2025  
    Number of
Underlying		     Weighted
Average
Exercise Price		     Number of
Underlying		     Weighted
Average
Exercise Price		  
Common Stock Warrants   Shares     Per Share     Shares     Share  
Outstanding at beginning of period     7,427,587     $ 0.93       10,819,742     $ 1.14  
Issued during the period     —       —       —       —  
Exercised during the period     —       —       —       —  
Expired during the period     —       —       (3,338,155 )     1.52  
Outstanding at end of period     7,427,587     $ 0.93       7,481,587     $ 0.98  

 

The common stock warrants relate to prior registered offerings and private placements of the Company’s stock.

 

Common stock warrants outstanding as of June 30, 2026 are as follows:

 

    Number of     Exercise      
Common Stock Warrants   Warrants     Price     Expiration Date
June 2023 HCW Series A Warrants     1,427,587     $ 1.90     December 26, 2028
November 2023 HCW Series A Warrants     6,000,000     $ 0.70     November 6, 2028
      7,427,587              

 

All outstanding common stock warrants are recorded in equity at June 30, 2026 and December 31, 2025, following the guidance established by ASC Topic 815-40. The Company’s common stock warrants allow for potential settlement in cash if certain extraordinary events are effected by the Company, including a 50% or greater change of control in the Company’s common stock. Since those events have been deemed to be within the Company’s control, the Company continues to apply equity treatment for these common stock warrants.