Subsequent Events

9 Months Ended

Sep. 30, 2023

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

Seventh Debenture under the Fourth Amendment to Secured Convertible Debenture Purchase Agreement

On October 27, 2023, under the same Fourth Amendment referenced, the Company agreed to a sale of a Secured Convertible Debenture (the “Seventh Debenture”) for a purchase price of $1.3 million. The funding, directly paid to vendors for regulatory purposes, occurs in two tranches with estimated spend of $0.9 million and $0.4 million. The first tranche was honored on October 27, 2023, and the second tranche has yet to be executed. Upon the terms and subject to the conditions contained in the Amended SDPA and Fourth Debenture, the Company promises to pay to YA II PN $1.5 million on January 31, 2024, (a) subject to earlier redemption at the Company’s option (upon payment of a redemption premium of 15% of the principal amount being redeemed or paid), and (b) subject to acceleration at the holder’s option upon an event of default described in the Indenture. The Company will also pay interest on outstanding principal of the Seventh Debenture at an interest rate of eight percent (8%), provided that such interest rate shall be increased to 18% upon an event of default.

Earnest Payment for the Sale of US Hybrid

On November 7, 2023, the Company received a $0.5 million earnest payment to enter in exclusive discussions for the sale of US Hybrid. As of the date of this filing, no definitive agreements have been entered into, and there can be no assurance that definitive agreements will be executed or that the sale will be completed.