v3.26.1
Subsequent Events
6 Months Ended
Jun. 30, 2026
Subsequent Events [Abstract]  
Subsequent Events SUBSEQUENT EVENTS
Insurance Financing
In July 2026, the Company obtained financing for certain director and officer and other insurance premiums. The total amount financed was approximately $0.5 million, with an annual interest rate of approximately 7.32%. In consideration of the premium payment by the lender to the insurance companies or the agent or broker, the Company unconditionally promised to pay the lender the amount financed plus interest and other charges and the Company assigned to the lender a first priority lien on and a security interest in the financed insurance policies. Monthly installment payments on the financed amount are due through March 20, 2027. The financed amount will be recognized as an insurance financing cost included in other current assets and accrued expenses in the Company's condensed consolidated balance sheets.
Nasdaq Compliance
On July 13, 2026, the Company was notified by the Nasdaq Listing Qualifications Staff (the “Staff”) that, because the Company’s Form 10-Q for the period ended March 31, 2026 reported stockholders’ equity of less than $2.5 million and, as of July 13, 2026, the Company did not meet the alternative requirements of $35 million in market value of listed securities or $500,000 in net income from continuing operations, the Company no longer complies with Nasdaq Listing Rule 5550(b) (the “Rule”) and, as such, the Company’s common stock is subject to delisting from Nasdaq unless the Company timely requests a hearing to address the deficiency before a Nasdaq Hearing Panel (the “Panel”). The Company requested a hearing before the Panel, which request stayed the suspension and delisting of the Company’s common stock at least pending the issuance of the Panel’s decision following the hearing and the expiration of any extension period that may be granted by the Panel. The hearing is scheduled for late August 2026.
There can be no assurance that the Panel will grant the Company’s request for an extension to evidence compliance with the Rule, or if any such extension period is granted, that the Company will regain compliance with the Rule within such extension period, or that the Company will be successful in otherwise maintaining the listing of its common stock on Nasdaq.
Sales of Common Stock
Subsequent to June 30, 2026, the Company sold 120,000 shares of its common stock under its purchase agreement with Lincoln Park for aggregate gross proceeds of approximately $0.2 million, resulting in aggregate proceeds of approximately $0.2 million net of commissions and other offering expenses of approximately $9,400. For a discussion of the purchase agreement, see Note 4, Stockholders' Equity.