Note 19 - Subsequent Events |
6 Months Ended |
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Jun. 30, 2026 | |
| Notes to Financial Statements | |
| Subsequent Events [Text Block] |
Note 19. Subsequent Events
On July 28, 2026, the Compensation Committee approved equity awards under the Company's equity incentive plan. Awards granted to executive officers consisted of 398,353 restricted stock units ("RSUs"), including 150,000 RSUs granted to the Executive Chairman, 75,000 RSUs granted to the Chief Executive Officer, and 173,353 RSUs granted to the newly appointed Chief Commercial Officer. In addition, an employee was granted stock options to purchase 25,000 shares of the Company's common stock with an exercise price of $3.54 per share, representing the closing price of the Company's common stock on July 28, 2026. All awards vest in equal annual installments on July 28, 2027, July 28, 2028, and July 28, 2029, subject to the recipient's continued service with the Company through each applicable vesting date.
Termination of Kadima Purchase Agreement
On August 12, 2026, HOPE, together with HTX, delivered a notice of termination to Kadima with respect to Kadima Purchase Agreement.
In the notice, Hope and HTX stated that certain conditions precedent to closing under the Kadima Purchase Agreement had not been satisfied and asserted that Kadima had breached certain provisions of the Kadima Purchase Agreement. Hope and HTX further asserted that such alleged breaches constituted an independent basis for termination of the Kadima Purchase Agreement and, accordingly, declared the Kadima Purchase Agreement terminated for cause effective immediately. Hope and HTX stated that they have no obligation to consummate the transactions contemplated by the Kadima Purchase Agreement and expressly reserved all rights and remedies available under the Kadima Purchase Agreement and applicable law.
The matters underlying the termination notice are the subject of ongoing dispute resolution proceedings, including arbitration pursuant to the Kadima Purchase Agreement and related litigation. The Company continues to evaluate the accounting, financial reporting, legal, and operational implications of the termination notice and the related proceedings. As of the date the accompanying condensed consolidated financial statements were issued, the ultimate outcome of these matters cannot be determined.
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