Note 14 - Related Party Transactions |
6 Months Ended | ||
|---|---|---|---|
Jun. 30, 2026 | |||
| Notes to Financial Statements | |||
| Related Party Transactions Disclosure [Text Block] |
Related Party Notes
On various dates in January, March, and June 2025, the Company borrowed an aggregate of $1.75 million from Fang Family Fund II, LLC (the "FFF-II"), an entity affiliated with one of its executive directors and Interim Chief Executive Officer, under a loan agreement which bears 6% interest per annum. The principal and accrued interest of these notes will be due and payable by the Company in cash at any time before or after twelve months from the date of the transfer of funds (the “Maturity Date”) at the Company’s written election or upon written demand by the Holder. Notwithstanding the foregoing sentence, the Company may, with the written consent of Holder, elect to extend the Maturity Date. Under these notes, the Company unconditionally grants, assigns, and pledges to the Holder a continuing security interest in all of the Company’s right, title, and interest in all currently existing and hereafter acquired or arising Collateral to secure prompt repayment of any and all sums due under this note. In September 2025, the $1.75 million loan plus $0.05 million in interest was paid.
In November 2025, the Company borrowed $1.0 million from Fang Family Fund I, LLC (the "FFF-I"), an entity affiliated with one of its executive directors and Interim Chief Executive Officer, under a loan agreement which bears 6% interest per annum. In January 2026, the Company satisfied the loan payable and the related party receivable by repaying $1.0 million plus $7,025 interest on the November 26, 2025 related party note, offset by $134,712 related party note receivable.
In February 2026, the Company borrowed $0.7 million from FFF-I, an entity affiliated with one of its executive directors, under a loan agreement, which bears 6% interest per annum. The principal and accrued interest of this Note will be due and payable by the Company in cash on February 28, 2027, at the Company’s written election or upon written demand by FF-I.
The term Collateral in the above loans refers to all assets of the Company, including without limitation all of the Company’s right, title, and interest in assets, whether now owned or hereafter acquired or arising and wherever located.
Stock Based Compensation
In May 2026, the Company granted 80,000 stock options with an exercise price of $0.005 and a term of 10 years to Chris Hsieh, a consultant. The May 2026 Options immediately vest and are fully expensed on issuance in the amount of $0.6 million.
|