Stockholders' Equity (Deficit) |
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| Stockholders' Equity (Deficit) | Note 11 – Stockholders’ Equity (Deficit) Authorized Capital The Company is authorized to issue 600,000,000 shares of common stock, par value of $0.0001 per share, and 60,000,000 shares of preferred stock, par value of $0.0001 per share. The holders of the Company’s common stock are entitled to one vote per share. The Board of Directors is empowered, without stockholder approval, to issue preferred stock with dividend, liquidation, redemption, voting or other rights. Common Stock Issuances On January 5, 2026, and April 6, 2026, pursuant to Section 3.1 of the Company’s Certificate of Designation of Preferences, Rights and Limitations of Series A Non-Voting Convertible Preferred Stock (as amended, the “Certificate of Designation”), dated June 17, 2025, the Company paid its quarterly dividend payable to the Series A Preferred Stock in 244,518 and 236,318 shares of the Company’s common stock, respectively. In the three months ended June 30, 2026, there were no conversions of Series A Preferred Stock. In the six months ended June 30, 2026, 200,000 shares of Series A Preferred Stock were converted into 600,000 of the Company’s common stock. As of June 30, 2026, 5,235,897 Series A Preferred Stock remain outstanding. On May 7, 2026, the Company closed a public offering of 2,777,778 common shares and received approximately $8.9 million in net proceeds. On May 13, 2026, the Company sold an additional 132,249 shares of the Company’s common stock, resulting in approximately $0.4 million in net proceeds to the Company. At-The-Market Program During the three months ended June 30, 2026 and 2025, the Company received approximately $1.8 million and $2.6 million in proceeds, respectively, net of offering costs of $0.1 million and $0.1 million, respectively from the sale of 492,783 and 1,323,389 shares of its common stock, respectively, under its at-the-market program. During the six months ended June 30, 2026 and 2025, the Company received approximately $8.5 million and $8.2 million in proceeds, respectively, net of offering costs of $0.4 million and $0.3 million, respectively from the sale of 2,352,776 and 2,450,489 shares of its common stock, respectively, under its at-the-market program. Series A Preferred Stock Securities Purchase Agreement On June 17, 2025, the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) with institutional accredited investors whereby the Company offered units consisting of a share of Series A Non-Voting Convertible Preferred Stock (“Series A Preferred Stock”) and a warrant to purchase six shares of common stock. On June 20, 2025, the closing date, the investors were issued an aggregate of 5,128,205 shares of Series A Preferred Stock at a price of $9.75 per share for aggregate consideration of $50,000,000. Each share of Series A Preferred Stock is convertible into three shares of common stock. The Series A Preferred Stock has a par value of $0.0001 per share. Additionally, the investors were issued five-year warrants exercisable into an aggregate of 30,769,230 shares of common stock at an exercise price of $3.25 per share exercisable beginning on December 21, 2025. On June 20, 2025, the Company filed the Certificate of Designation to provide for the designation of 5,435,898 shares of Series A Preferred Stock. The key features of the Series A Preferred Stock are that (a) each share of Series A Preferred Stock is convertible into three shares of common stock; (b) it accrues quarterly cumulative dividends at 6% per annum payable in cash or common stock at the Company’s option; (c) it participates in declared and paid cash common stock dividends; and (d) it is non-voting except for certain protective covenants. The Series A Preferred Stock has a liquidation preference of $50,740,000 as of June 30, 2026, equal to the original purchase price, plus any accrued and unpaid dividends. The Company incurred cash issuance costs of $634,250 in connection with the Purchase Agreement, which was charged against additional paid in capital during the three and six months ended June 30, 2025. In addition, the placement agent, as compensation for its services, received securities valued at $3.0 million, consisting of 307,692 shares of Series A Preferred Stock and five-year warrants to purchase 1,846,153 shares of common stock at an exercise price of $3.25 per share exercisable beginning on December 21, 2025. The Company has determined that the Series A Preferred Stock, plus the investor and placement agent warrants, are qualified to be equity classified. Stock-Based Compensation Expense The Company records stock-based compensation expense related to common stock, stock options and restricted stock units (“RSUs”). For the three and six months ended June 30, 2026 and 2025, the Company recorded stock-based compensation expense allocated as follows:
Warrants During the six months ended June 30, 2026, there were no new issuances, exercises or of warrants. The following table presents information related to warrants as of June 30, 2026:
Restricted Stock Units A summary of the restricted stock units activity during the six months ended June 30, 2026 is presented below:
RSUs have been granted to directors, employees and contractors in accordance with the Company’s Amended and Restated 2018 Omnibus Stock Incentive Plan (the “2018 Omnibus Plan”). Some RSUs are subject to delayed delivery of the shares underlying the vested RSUs until the termination of grantee service. As of June 30, 2026, there was $6.4 million of unrecognized stock-based compensation expense related to RSUs which will be recognized over a weighted average period of 1.8 years. Treasury Stock On December 29, 2025, 82,324 shares were withheld from a delivery of RSUs to the Company’s Chief Executive Officer to cover the Company’s tax obligations, reflected as treasury stock as of December 31, 2025. The Company records repurchases of its own common stock at cost. Repurchased common stock is presented as a reduction of equity in the condensed balance sheets. Gains resulting from differences between the cost of treasury stock and the re-issuance proceeds would be credited to additional paid-in capital. Losses resulting from differences between the cost of treasury stock and the re-issuance proceeds would be debited to additional paid-in capital. On March 20, 2026, the Company’s Board of Directors, pursuant to Section 243 of the Delaware General Corporation Law, approved a resolution whereby shares of the Company’s common stock that are withheld in the future upon vesting of the RSUs or exercise of options to satisfy tax withholding obligations or the exercise price of options, as the case may be, will automatically be retired and such shares will (1) resume the status of authorized but unissued shares of common stock and (2) again become available for issuance pursuant to inducement grants or the 2018 Omnibus Plan, as the case may be. As a result of the retirement, the Company derecognized the treasury shares to additional paid in capital during the six months ended June 30, 2026. There was no treasury stock activity in the three months ended June 30, 2026. |
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