| Subsequent Events |
Note 18. Subsequent Events Tenth Amendment to Credit Agreement On July 3, 2026, the Company entered into the Tenth Amendment to the Credit Agreement (the “Tenth Amendment”) by and among the Company, as the borrower, the Lenders and OFA as administrative agent, which included (i) payment in kind of accrued and unpaid interest through and including June 30, 2026, by capitalizing and adding such interest to the outstanding principal amount of the Loans as of such date, (ii) deferral of the payment of principal that was originally due on June 30, 2026 until July 31, 2026, at which point the Company will be obligated to make a payment of $9,017 (constituting the principal and interest that were due and payable on June 30, 2026), plus all accrued interest and fees on such amount through and including July 31, 2026 and (iii) reduction of the Credit Agreement’s minimum liquidity covenant to require minimum cash liquidity of $7,500 (instead of $12,500). In addition, pursuant to the Tenth Amendment: | ● | The Company is required to, on or prior to July 31, 2026, enter into definitive agreements with respect to one or more transactions acceptable to Lenders that (a) would result in the repayment of all loan and other obligations under the Credit Agreement or (b) is an alternative capital solutions transaction on terms and conditions acceptable to the Lenders. |
| ● | The Company agreed to permit any and all transfers or assignments of all or any portion of the loans, commitments, claims or other rights, interests or obligations of any Lender under or in respect of the Credit Agreement to any third party. In addition, the Company agreed to waive or otherwise release any and all restrictions contained in any contract between the Company and a third party on such third party’s ability to receive such assignments or transfers. |
| ● | The Company agreed to establish and maintain a strategic process committee of its board of directors, which committee shall be comprised solely of David Mack (and/or such other independent director acceptable to the Lenders and that is not a member of the Board as of the Tenth Amendment Effective Date), that will have the full and exclusive authority to evaluate, negotiate, oversee, coordinate and implement any sale, restructuring or other material transaction, including any equity raise, sale or business combination transaction, out-of-court restructuring, in-court restructuring, bankruptcy or insolvency filing or similar transaction and any other matters or actions as may be necessary or advisable to effectuate any of the foregoing. |
| ● | The Company agreed to certain additional reporting and information covenants, including a requirement to hold a weekly meeting with the Lenders and the Company’s financial advisors, and a requirement to deliver to the Lenders a 13-week cash flow budget and financial report on a bi-weekly basis. The Company will not be permitted to make disbursements for any two-week period in excess of 115% of the aggregate budgeted amount of disbursements for the applicable period. |
| ● | The Company agreed to certain additional negative covenants applicable following the Tenth Amendment Effective Date, which, among other things, prohibit the Company from, subject to limited exceptions, (i) making any dividend, distribution or repurchase with respect to its equity interests, (ii) making any investments, (iii) disposing of or granting any license in the Company’s assets, (iv) incurring or suffering to exist any indebtedness or liens, and (v) becoming party to or bound by, or canceling, terminating, modifying or amending in any material respect, or waiving any material rights under any material contract. |
| ● | Through July 31, 2026, the Company is prohibited from entering into, terminating, or otherwise modifying any compensation arrangement with its directors, officers or employees, or making any non-ordinary course payments to, or materially increasing the compensation or benefits of, such persons. |
| ● | The Company paid to the Lenders a fee equal to 100 basis points (or 1.00%) of the principal amount of the Loans outstanding as of the effective date of the Tenth Amendment, which was paid in kind by adding such amount to the outstanding principal amount of the Loans on the effective date of the Tenth Amendment. |
Eleventh Amendment to Credit Agreement On July 31, 2026, the Company entered into the Eleventh Amendment to the Credit Agreement (the “Eleventh Amendment”), which amended the Credit Agreement. Pursuant to the Eleventh Amendment, the Lenders agreed to (i) defer the payment of principal that was originally due on June 30, 2026, which was previously deferred to July 31, 2026 pursuant to the Tenth Amendment, until August 31, 2026 at which point the Company is obligated to make a payment of $9,017 (constituting the principal and interest that were due and payable on June 30, 2026) plus all accrued interest and fees through August 31, 2026 and (ii) reduce the Credit Agreement’s minimum liquidity covenant to require minimum cash liquidity of $6,250 (instead of $7,500). In addition, pursuant to the Eleventh Amendment: | ● | The Company is required to, on or prior to August 10, 2026, enter into definitive agreements with respect to one or more transactions acceptable to Lenders that (a) would result in the repayment of all loan and other obligations under the Credit Agreement or (b) is an alternative capital solutions transaction on terms and conditions acceptable to the Lenders. |
| ● | Through August 10, 2026 (extended from July 31, 2026, as was provided under the Tenth Amendment), the Company is prohibited from entering into, terminating, or otherwise modifying any compensation arrangement with its directors, officers or employees, or making any non-ordinary course payments to, or materially increasing the compensation or benefits of, such persons. |
Twelfth Amendment to Credit Agreement On August 10, 2026, the Company entered into the Twelfth Amendment to Credit Agreement (the “Twelfth Amendment”), which amended the Credit Agreement. Pursuant to the Twelfth Amendment, the Company is required to, on or prior to August 21, 2026 (extended from August 10, 2026, as was required under the Eleventh Amendment), enter into definitive agreements with respect to one or more transactions acceptable to Lenders that (A) would result in the repayment of all loan and other obligations under the Credit Agreement or (B) is an alternative capital solutions transaction on terms and conditions acceptable to the Lenders. Pursuant to the Twelfth Amendment, the Lenders also agreed to reduce the Credit Agreement’s minimum liquidity covenant to require minimum cash liquidity of $3,000 (instead of $6,250, as under the Eleventh Amendment).
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