Debt |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Debt [Abstract] | |
| Debt | Note 5. Debt
Convertible Loans
On July 15, 2024, the Company issued an aggregate $1,155,000 in convertible notes bearing interest at 10% per annum. The notes mature on December 31, 2025 and are convertible into the Company’s common stock at a price of $1.43 per share, subject to certain adjustments, at the holder’s request. The noteholders and certain third parties were also granted detachable 5 year warrants to purchase an aggregate of 4,887,118 shares of the Company’s common stock at exercise prices ranging from $1.43 to $1.692 per share. The Company valued the warrants at $6,163,572 using the Black-Scholes pricing model. The Company has allocated the note proceeds based on relative fair value and has recorded the value of the warrants as a discount to the debt in the amount of $973,200. As of December 31, 2025 and June 30, 2026, all principal amounts had been converted into equity.
On January 21, 2025, the Company issued an aggregate $1,500,000 in convertible notes bearing interest at 10% per annum. The notes mature on January 21, 2027 and are convertible into the Company’s common stock at a price of $1.25 per share, subject to certain adjustments, at the holder’s request. The noteholders and certain third parties were also granted detachable 5 year warrants to purchase an aggregate of 7,256,364 shares of the Company’s common stock at exercise prices ranging from $1.25 to $1.65 per share. The Company valued the warrants at $11,422,792 using the Black-Scholes pricing model. The Company has allocated the note proceeds based on relative fair value and has recorded the value of the warrants as a discount to the debt in the amount of $1,186,579, as well as the value of the conversion feature of $198,421. Additionally, the Company recorded debt issuance costs of $115,000 as a discount to the debt. At December 31, 2025, $35,714 of the principal balances remain outstanding and are included on the Company’s consolidated balance sheets net of discounts at $1,539. As of June 30, 2026, all principal amounts had been converted into equity.
The Company has accrued interest for the above notes in the amount of $142,750 and $146,116 as of June 30, 2026 and December 31, 2025, respectively, which is included in accounts payable and accrued liabilities on the Company’s condensed consolidated balance sheets. For the three and six months ended June 30, 2026, amortization of debt discount was $0 and $34,175, respectively. For the three and six months ended June 30, 2025, amortization of debt discounts was $1,379,532 and $1,458,243, respectively. Total interest expense for the three and six months ended June 30, 2026 was $0 and $3,778, respectively. Total interest expense for the three and six months ended June 30, 2025 was $154,922 and $218,517, respectively. |