CONVERTIBLE NOTES |
6 Months Ended |
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Jun. 30, 2026 | |
| CONVERTIBLE NOTES | |
| CONVERTIBLE NOTES | 4. CONVERTIBLE NOTES On June 13, 2025, the Company entered into the June Securities Purchase Agreement with certain institutional investors under which the Company agreed to issue and sell in a registered public offering directly to the investors, convertible notes for an aggregate principal amount of $5,000,000, which are convertible into shares of the Company’s Common Stock (the “Series A-1 Convertible Notes”). On August 7, 2025, the Company entered into the August Securities Purchase Agreement with certain institutional investors under which the Company agreed to issue and sell in a registered public offering directly to the investors, convertible notes for an aggregate principal amount of $5,000,000, which are convertible into shares of the Company’s Common Stock (the “Series B-1 Convertible Notes”). The Convertible Notes and shares of Common Stock issuable upon conversion of the Convertible Notes were offered and sold pursuant to prospectus supplements filed on August 7, 2025 and June 13, 2025 as a “takedown” from the Company’s shelf registration statement on Form S-3. The Company elected the Fair Value Option for the Convertible Notes (see Note 5 Fair Value Measurements for more details). For the three and six months ended June 30, 2026, the Company recognized other expense of approximately $0.1 million and other income of approximately $0.2 million, respectively, related to changes in fair values of the Series A-1 Convertible Notes. For the three and six months ended June 30, 2026, the Company recognized other income of approximately $0.3 million and $0.7 million, respectively, related to changes in fair values of the Series B-1 Convertible Notes. For the three and six months ended June 30, 2026, the Company recognized other expense of approximately $0.5 million and $1.6 million, respectively, related to conversions of the Series B-1 Convertible Notes. There were no conversions of the Series A-1 Convertible Notes for the three and six months ended June 30, 2026. Subsequent to June 30, 2026, and upon the satisfaction of certain conditions set forth in the Convertible Notes, the Company voluntarily redeemed the entire outstanding Convertible Notes for approximately $2.4 million in cash.
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