Subsequent Events |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Subsequent Events [Abstract] | |
| Subsequent Events | (10) Subsequent Events
On July 6, 2026, subsequent to June 30, 2026 and prior to the issuance of these unaudited consolidated condensed financial statements, Solésence, LLC (“Solésence”), a wholly owned subsidiary of Solésence, Inc. (the “Company”), entered into a Settlement Agreement and Release (the “Settlement Agreement”) with Refy Beauty Ltd (“Refy”). The Settlement Agreement resolves disputes relating to certain consumer care products previously sold by Solésence to Refy.
The underlying dispute related to conditions that existed as of June 30, 2026. The Settlement Agreement provided additional evidence regarding the measurement of the Company’s obligation associated with those conditions and, accordingly, was accounted for as a recognized subsequent event under ASC Topic 855, Subsequent Events. As of June 30, 2026, the Company recognized a settlement liability of $938, with the corresponding amount reflected as a settlement expense classified as general and administrative in the unaudited consolidated condensed statements of operations for the three and six months ended June 30, 2026. Of the settlement liability recognized at June 30, 2026, the full amount was classified as short-term and included in the current liabilities section of the unaudited consolidated condensed balance sheet.
The Settlement Agreement provides for an aggregate settlement amount of £700, payable in U.S. dollars using a fixed exchange rate of $1.34 per British pound, resulting in an aggregate U.S. dollar obligation of $938. The first $469 is payable in six monthly installments beginning August 5, 2026 and ending January 4, 2027. The parties also agreed to a six-month exclusivity period during which they will seek to develop a new sun protection factor (“SPF”) product and negotiate a potential commercial agreement for the development and/or supply of the SPF product.
If the parties enter into such a commercial agreement during the exclusivity period, the remaining $469 of the settlement obligation will be applied as credits against purchases under that agreement. If the parties do not enter into a commercial agreement during the exclusivity period, the remaining $469 will be payable in six monthly installments beginning February 3, 2027 and ending July 7, 2027. Because the aggregate settlement obligation is fixed, execution of a new commercial agreement affects only the form in which the final $469 is satisfied rather than the total amount of the obligation.
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