Subsequent Events

9 Months Ended

Sep. 30, 2024

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

The Company evaluated subsequent events through the date the condensed consolidated financial statements were issued, for events requiring adjustment to or disclosure in these condensed consolidated financial statements. Except as discussed below, there are no events that require adjustment to or disclosure in these condensed consolidated financial statements.

Shareholder Litigation

On October 10, 2024, the Delaware Court of Chancery approved the settlement of the Delaware Action, dismissing all claims asserted with prejudice and on October 24, 2024, the Company delivered 167,797 shares to the plaintiff.

DCA Litigation

On October 7, 2024, the Company reached a settlement with DCA to resolve any and all disputes that exist between them for total consideration of $3.0 million of which $1.5 million was paid on October 11, 2024 and the remainder will be paid in installments over the next two years. The Company recognized $2.25 million in estimated loss in accrued litigation settlement liability for the payments that are due within one year from September 30, 2024 and $0.75 million in other liabilities for the installment payments that are due after September 30, 2025 in its condensed consolidated balance sheet as of September 30, 2024, as the lawsuit which gave rise to the DCA settlement occurred prior to September 30, 2024.

See note 10 for further information regarding the Shareholder Litigation and DCA litigation.