Convertible Debentures |
6 Months Ended |
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Jun. 30, 2026 | |
| Convertible Debentures [Abstract] | |
| Convertible Debentures |
Note 11 – Convertible Debentures
On April 30, 2025, the Company entered into a Securities Purchase Agreement with certain third-party lenders and JGB Collateral
LLC, as collateral agent (the “Securities Purchase Agreement”). Pursuant to the Securities Purchase Agreement, the Company agreed to issue and sell (i) senior secured convertible debentures (“Debentures”) in an aggregate principal amount of $22.2 million which is convertible into shares of the Company’s common stock, according to the terms, conditions, and limitations outlined in the
Securities Purchase Agreement and (ii) warrants to purchase up to 1,000,000 shares of the Company’s common stock, for an exercise price of
$2.52 per share (the “Warrants”), subject to adjustments as set forth in the warrants, for a total purchase price of $20.0 million.
On April 30, 2026, the Company delivered a redemption notice pursuant to which it irrevocably elected to
prepay all of the outstanding principal amount under each of the Debentures, issued pursuant to that certain Securities Purchase Agreement by and among the Company, each of the buyers that are parties thereto and JGB Collateral LLC, a Delaware
limited liability company, as collateral agent, dated as of April 30, 2025, for cash. On June 15, 2026, the Company paid the applicable redemption amount, equal to 103% of the principal amount outstanding plus all accrued and unpaid interest and all other amounts payable thereunder, and, upon such payment, each Debenture was redeemed in full and is of
no further force or effect.
For the three and six months ended June 30, 2026, the Company recognized interest expense of $623,289 and $1,636,779. For the three
and six months ended June 30, 2026, the Company amortized $265,549 and $714,386 of the debt discount, and as of June 30, 2026, had a remaining debt discount balance of $0.
For the three and six months ended June 30, 2025, the Company recognized interest expense of $757,257. For the three and six months ended June 30, 2025, the Company amortized $278,862 of the debt discount, and as of June 30, 2025, had a remaining debt discount balance of $3,778,566.
During the three months ended June 30, 2026, the Company recognized $2,660,781 of interest expense associated with extinguishment of debt recorded under the Debentures.
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