Preferred Stock |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Equity [Abstract] | |
| Preferred Stock | 10. Preferred Stock
The Company’s shareholders authorized shares of preferred stock of which shares were designated as $ par value Series B Preferred Stock with shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively. Series B Preferred Stock shareholders vote with Common Stock shareholders on an as-converted basis and not as a separate class. Cumulative dividends accrue at 8.5% per annum and are due and payable in either cash or common shares at the Company’s discretion on a quarterly basis through December 31, 2026. Series B Preferred Stock converts to common stock on a 1:1 basis, subject to adjustments for stock dividends, splits, combinations and similar events as well as unpaid dividends thereon, solely at the election of the holder at any time.
Upon any liquidation, dissolution or winding up of the Company, whether voluntary or involuntary, the Series B Preferred Stock shareholders maintain priority preference over all other classes of capital stock. A merger or consolidation (other than one in which stockholders of the Company own a majority by voting power of the outstanding shares of the surviving or acquiring corporation) and a sale, lease, transfer, exclusive license or other disposition of all or substantially all of the assets of the Company will be treated as a liquidation event, thereby triggering payment of the liquidation preferences.
Preferred stock dividends of $1,215,264 and $0 were declared and issued as common stock as of June 30, 2026 and December 31, 2025, respectively. Series B Preferred Stock undeclared cumulative dividends totaled $191,503 and $1,025,865 as of June 30, 2026 and December 31, 2025, respectively.
Pursuant to the Company’s Board of Directors declaration of dividends on Series B Preferred Stock to holders of record as of July 21, 2026 and April 21 2026, the Company issued and shares of common stock on July 29, 2026, and April 28, 2026, respectively, based on the 8.5% per annum cumulative dividend rate.
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