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

16. Subsequent Events

 

On April 9, 2026, the Company’s Board of Directors approved the cancelation of 1,319,394 stock options issued under the 2017 Innovative Health Solutions, Inc. Stock Compensation Plan and the grant of an equivalent amount of RSUs with immediate vesting under the NeurAxis, Inc. 2022 Omnibus Securities and Incentive Plan with shareholder approval received on June 10, 2026. The stock option cancelation and RSU grant will be treated as a modification under ASC 718, Compensation—Stock Compensation, whereby the Company will recognize incremental compensation cost as the excess of the fair value of the granted RSUs over the fair value of the stock options upon the exchange which occurred on July 24, 2026. The Company estimates (i) $3,400,000 of incremental stock compensation expense will be recorded upon execution of the stock option cancellation and RSU grant agreements and (ii) $3,000,000 of cash taxes paid related to net share issuance of the RSUs.

 

On July 9, 2026, the Company’s Board of Directors declared a dividend on the Series B Preferred Stock. Holders of record of the Company’s Series B Preferred Stock as of the record date of July 21, 2026, received a stock dividend on July 29, 2026, of the Company’s par value $0.001 common stock for every share of Series B Preferred Stock. The Company issued 80,456 shares of common stock based on the 8.5% per annum cumulative dividend rate.

 

On July 16, 2026, the Company issued 9,250 shares of common stock upon exercise of an equivalent amount of common stock warrants for gross proceeds of $22,015.

 

On August 6, 2026, the Company’s Compensation Committee approved the issuance of 142,345 RSUs to the Board of Directors and 833,958 RSUs to employees when granted pursuant to the NeurAxis, Inc. 2022 Omnibus Securities and Incentive Plan, as amended on August 15, 2024, with varying vesting periods up to three years.

 

The Company has evaluated subsequent events through the filing of this Quarterly Report on Form 10-Q and determined that there have been no other events that have occurred that would require adjustments to our disclosures in the condensed financial statements.