Subsequent Events

6 Months Ended

Jun. 30, 2022

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

The Company evaluated subsequent events and transactions that occurred after June 30, 2022, the balance sheet date, up to the date that the unaudited condensed consolidated financial statements were issued and determined there are no additional events to disclose.

Private Placement

On July 27, 2022, the Company entered into a subscription agreement with significant investment coming from Sompo Light Vortex, Inc., a wholly-owned subsidiary of Sompo Holdings (“Sompo Light Vortex, Inc.”), as well as current investors and certain members of the Company’s Board of Directors, pursuant to which the Company agreed to issue and sell in a private placement 11,329,141 of the Company’s Units (as defined below), each consisting of (i) one of the Company’s Common Shares, and (ii) one third of one warrant to purchase one Common Share, exercisable for a period of five years at an exercise price of $1.56 (the “Warrants,” and together with the Common Shares, the “Units”) at a purchase price of $1.40 per Unit (the “PIPE Financing”). The purchase price of $1.40 per Unit satisfied the Minimum Price requirement under NASDAQ rules. The aggregate purchase price for the Units was approximately $15.9 million.

The Warrants may be exercised only during the period commencing on July 29, 2022 (to correspond with the deadline for registration) and terminating at 5:00 p.m., New York City time, five (5) years after the date of the closing of the sale of the Units, subject to certain conditions. The Company intends to use the net proceeds from the PIPE Financing for general corporate purposes. The Company is required to file a resale registration statement with the SEC to register for resale of the Common Shares, the Warrants and the Common Shares issuable upon exercise of the Warrants on or prior to December 31, 2022, at any time the Company is eligible to file a registration statement with the SEC on Form S-3.