v3.26.1
STOCKHOLDERS’ EQUITY
6 Months Ended
Jun. 30, 2026
Equity [Abstract]  
STOCKHOLDERS’ EQUITY

NOTE 7 – STOCKHOLDERS’ EQUITY

 

PREFERRED STOCK

 

Series A

 

As of June 30, 2026 and December 31, 2025, there were 2,000,000 Series A preferred shares designated and no Series A preferred shares outstanding. The board of directors of the Company (the “Board”) had previously set the voting rights for the Series A preferred stock at 1 share of preferred to 13 common shares.

 

Series B

 

As of June 30, 2026 and December 31, 2025, there was 1 preferred share designated and no preferred shares outstanding.

 

Series C

 

As of June 30, 2026 and December 31, 2025, there were 3,000,000 Series C Preferred Shares (“Series C”) authorized with 502,000 issued and outstanding. The Series C shares have preferential rights above common shares and the Series B Preferred Shares and is entitled to receive a quarterly dividend at a rate of $0.06 per share per annum and have a liquidation preference of $1 per share. Series C shares outstanding are convertible into common stock at the rate of 20 preferred shares to one share of common stock. As of June 30, 2026, the accrued dividends on the Series C Preferred Stock was $241 thousand.

 

The Series C Preferred Stock has a liquidation value and conversion price of $1.00 per share ($20.00 per 20 shares of preferred stock which convert to one share of common stock) and automatically converts into Common Stock at $1.00 per share ($20.00 per 20 shares of preferred stock which convert to one share of common stock) in the event that the Company’s common stock has a closing price of $30 per share for 20 consecutive trading days.

 

During the six months ended June 30, 2026, the Company issued 50,000 shares upon exercise and receipt of funds for stock options. The proceeds received were $3,000.