Equity and Stock-Based Compensation |
6 Months Ended |
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Jun. 30, 2026 | |
| Equity [Abstract] | |
| Equity and Stock-Based Compensation | NOTE 6 – Equity and Stock-Based Compensation
Authorized Capital. The Company has common shares authorized and preferred shares authorized, of which are designated as Series A Convertible Preferred Stock.
Common and Preferred Shares. As of June 30, 2026 and December 31, 2025, the Company had and common shares and and Series A preferred shares issued and outstanding. As of August 13, 2026, the Company had common shares and Series A preferred shares issued and outstanding.
Share Issuances Subsequent to June 30, 2026. On August 6, 2026, the Company issued an aggregate of shares of common stock, consisting of shares issued in connection with the BECKY 3 Master Investment and Co-Production Agreement described in Note 9. Additionally, shares were issued to three holders as described in Note 9. All such shares were issued as restricted securities bearing customary restrictive legends. As of August 13, 2026, the Company had shares of common stock issued and outstanding.
Option grants to SSS Entertainment. The Multi-Film Investment and Compensation Agreement with SSS Entertainment, LLC contemplates the grant of nonqualified stock options to purchase an aggregate of shares of common stock at an exercise price of $ per share to Shaun Sanghani or his designees, assigns or nominees, subject to Board and/or committee approval, availability under the Company’s equity incentive plan, and execution of applicable award documentation. As of June 30, 2026, no such options had been granted, no grant date had been established for accounting purposes, and no compensation cost had been recognized. Effective July 1, 2026, the Board of Directors approved the grant of options to purchase an aggregate of shares to four designees. The remaining options contemplated by the agreement have not been approved or granted. See Note 9.
Stock Options. As of June 30, 2026 and December 31, 2025, and stock options, respectively, remained outstanding and exercisable. On August 6, 2026, the Company granted options to purchase shares of common stock at an exercise price of $ per share, with a term expiring May 26, 2028, in connection with the BECKY 3 Master Investment and Co-Production Agreement described in Note 9. Those options become exercisable only in proportion to the Company’s actual collection of its $360,000 senior equity recoupment entitlement, at a ratio of one option share for each $ collected. No amounts had been collected as of the date of this report, and accordingly none of those options were exercisable.
The Company also granted options to purchase an aggregate of shares of common stock effective July 1, 2026 to designees of SSS Entertainment, LLC. See Note 9.
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