v3.26.1
Debt
6 Months Ended
Jun. 30, 2026
Debt [Abstract]  
Debt 7. Debt

Interest
rate

Monthly
repayment

Maturity
date

June 30, 2026

December 31, 2025

Senior Notes

18%

Apr 2027

$

$

4,124,000

less: loan origination costs

(637,859)

less: current portion

Long-term debt, net

$

$

3,486,141

Senior Notes

On October 28, 2025, the Company entered into Note Purchase Agreements with certain investors providing for the issuance and sale of senior notes (“Senior Notes”) in an aggregate principal amount of $4.0 million in a private placement transaction. The Senior Notes were unsecured, nonconvertible, bore interest at 18% per annum, and were scheduled to mature 18 months from closing.

On April 7, 2026, the Company entered into securities exchange agreements in a private placement with the holders of the Company’s outstanding Senior Notes, pursuant to which an aggregate of $4.0 million of principal and $316 thousand of accrued and unpaid interest was exchanged for an aggregate of 236,367 shares of the Company’s Series A Convertible preferred stock, par value $0.01 per share, which are convertible into up to 4,727,340 shares of the Company’s Common Stock at the option of the holder.

The Company recognized interest expense of $829 thousand and $0 for the six months ended June 30, 2026 and 2025, respectively, on its interest-bearing debt.