Note 10 - Subsequent Events |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Notes to Financial Statements | |
| Subsequent Events [Text Block] |
NOTE 10 — SUBSEQUENT EVENTS
On October 9, 2026, the Company entered into an unsecured promissory note with a previous investor of the Company for total principal of $1,500,000 (the “2026 Private Notes Payable”). The Private Notes Payable bear interest of 28% or the highest rate allowed under law, and have a stated maturity date of the -year anniversary of the funding (or “closing”) of the Private Notes Payable. The Company has the right to pre-payment without penalty after 12 months from closing. The investors also received 165,000 common stock warrants. Each warrant entitles the holder to purchase three quarters of one share of common stock at a price of $11.50. Each warrant will become exercisable at the date of the Private Notes Payable and is exercisable through the -year anniversary of the Private Notes Payable agreement date. The warrants also grant the holder a -time redemption right to require the Company pay the holder in cash equal to $1 per warrant 24 months following the closing of the Private Notes Payable.
On October 1, 2026, the Company received Letter 2205-L from the Internal Revenue Service notifying the Company that its U.S. federal income tax return on Form 1120 for the tax year ended December 31, 2023 has been selected for examination. The examination is in its preliminary stages and the Internal Revenue Service has not proposed any adjustments. The Company intends to cooperate fully with the examination. The Company is unable at this time to predict the outcome of the examination or to estimate the amount or range of any potential adjustment, and accordingly no amounts have been accrued in the condensed consolidated financial statements as of June 30, 2026.
|