Related Party Transactions |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Related Party Transactions [Abstract] | |
| RELATED PARTY TRANSACTIONS | NOTE 13 – RELATED PARTY TRANSACTIONS
On February 12, 2026, the Company issued a promissory note (“Note 1”) in the principal amount of $410 thousand to the Company’s Chief Executive Officer (the “Holder”). Note 1 accrues interest at a rate of 12.0% per annum (or the maximum amount of interest allowed under the laws of the State of New York, whichever is less) until Note 1 is repaid in full. Note 1 may be prepaid by the Company, in whole or in part, together with all interest then accrued and any other sums then due and payable to the Holder, at any time, without premium or penalty. All payments of outstanding principal, interest and all other amounts due under Note 1 are payable by April 11, 2026 to the Holder, or its successors and assigns. The proceeds of Note 1 will be used by the Company for general working capital purposes. On April 29, 2026, we entered into an amendment agreement with the Holder pursuant to which the maturity date of Note 1 was extended to September 1, 2026.
On March 9, 2026, the Company issued a promissory note (“Note 2”) in the principal amount of $250 thousand to the Company’s Chief Executive Officer. Note 2 accrues interest at a rate of 12.0% per annum (or the maximum amount of interest allowed under the laws of the State of New York, whichever is less) until Note 2 is repaid in full. Note 2 may be prepaid by the Company, in whole or in part, together with all interest then accrued and any other sums then due and payable to the Holder, at any time, without premium or penalty. All payments of outstanding principal, interest and all other amounts due under Note 2 are payable by May 10, 2026 to the Holder, or its successors and assigns. The proceeds of Note 2 will be used by the Company for general working capital purposes. On April 29, 2026, we entered into an amendment agreement with the Holder pursuant to which the maturity date of Note 2 was extended to September 1, 2026.
On June 22, 2026, the Company satisfied all outstanding principal balances related to Note 1 and Note 2 through full repayment to the related party.
In connection with Note 1 and Note 2, accrued interest of $26 thousand is included within due to related party within the accompanying condensed consolidated balance sheets.
For the three and six months ended June 30, 2026, we recorded interest expense of $18 thousand and $26 thousand related to Note 1 and Note 2, respectively.
The Company provides third-party administrator services to an entity whose chief executive officer also serves as the Company’s Head of Sales. Financial arrangements with the related party are subject to approval by the Company’s Board and Chief Financial Officer.
On April 29, 2026, the Company received a $500 thousand advance payment from the related party for future third-party administrator services. The Company recognized $183 thousand of related-party revenue during each of the three and six months ended June 30, 2026. As of June 30, 2026, the remaining $317 thousand was included in deferred revenue in the accompanying unaudited condensed consolidated balance sheet.
On May 13, 2026, the Company received an additional refundable cash advance of $1.0 million from the related party. No revenue was recognized in connection with this advance, and the full amount was included in due to related party in the accompanying unaudited condensed consolidated balance sheet as of June 30, 2026. On July 9, 2026, the Company repaid the $1.0 million advance in full. |