Note 8 - Notes Payable and Convertible Notes |
6 Months Ended |
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Jun. 30, 2026 | |
| Notes to Financial Statements | |
| Debt Disclosure [Text Block] |
8. Notes Payable and Convertible Notes
On July 7, 2025, the Company entered into a Convertible Note Purchase Agreement with a non-affiliated accredited investor (the “Convertible Note Purchaser”). Pursuant to the Convertible Note Purchase Agreement, the Company issued and sold an unsecured convertible promissory note in the principal amount of $250,000 (the “Note”) for gross proceeds of $250,000. The Note is convertible, at the option of the Convertible Note Purchaser, into restricted shares of the Company’s common stock at a conversion price equal to the greater of (i) a floor price of $0.47 (subject to adjustment for stock splits and similar events), and (ii) 80% of the lowest of (A) the 15-day average closing price, (B) the 10-day volume-weighted average price (“VWAP”), or (C) the lowest 3-day VWAP during the 45 trading days immediately prior to the date of the applicable conversion notice. The Note bears interest at a rate of 12% per annum and matures 360 days after the purchase price payment date. The Note contains customary events of default, including non-payment and insolvency-related events. Upon an event of default, the interest rate increases to 18% per annum, and the Convertible Note Purchaser may accelerate the Note and pursue additional remedies. This transaction was previously reported in the Company’s Current Report on Form 8-K filed on July 11, 2025.
As of June 30, 2026, an aggregate of $124,344 of principal and $15,000 of accrued interest under a $250,000 convertible promissory note issued in July 2025 had been converted into 199,510 shares of Common Stock at conversion prices ranging from $0.47 to $0.81 per share. During the three months ended June 30, 2026, $64,714 of principal was converted into 106,686 shares of Common Stock at conversion prices ranging from $0.47 to $0.81 per share. As of June 30, 2026, the remaining principal balance of the note was $125,656.
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