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SUBSEQUENT EVENTS
3 Months Ended
Mar. 31, 2026
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS

NOTE 10. SUBSEQUENT EVENTS

 

On April 16, 2026, the Company entered into a securities purchase agreement with certain Investors, pursuant to which the Company agreed to issue and sell to the Investors in a private placement (the “April Private Placement”) (i) 98,000 shares (the “Shares”) of the Company’s common stock (“Common Stock”), (ii) Pre-Funded Warrants to purchase up to an aggregate of 2,124,223 shares of Common Stock (the “Pre-Funded Warrant Shares”), (iii) Series I warrants to purchase up to 2,222,223 shares of Common Stock (the “Series I Warrants,” and the shares issuable upon exercise thereof, the “Series I Warrant Shares”), and (iv) Series J warrants to purchase up to 2,222,223 shares of Common Stock (the “Series J Warrants,” together with the Series I Warrants, the “Warrants”. The Series I and J Warrants, each have an exercise price of $2.00 per share and are exercisable immediately. The Series I Warrants have a term of five years, and the Series J Warrants have a term of 18 months. The Company received net cash proceeds of approximately $4.5 million.

 

The Placement Agent acted as the exclusive placement agent in connection with the April Private Placement. The Company agreed to pay the Placement Agent a cash fee of 7.0% of the aggregate gross proceeds raised in the April Private Placement, plus a management fee equal to 1.0% of the gross proceeds raised in the April Private Placement and reimbursement of certain expenses and legal fees. The Company also issued warrants to designees of the Placement Agent (the “April Placement Agent Warrants”) to purchase up to 7.0% of the aggregate number of shares of Common Stock placed in the April Private Placement, equating to 155,556 shares of Common Stock (the “April Placement Agent Warrants”). The April Placement Agent Warrants have substantially the same terms as the Series I Warrants, except that the Placement Agent Warrants have an exercise price equal to $2.8125 per share.

 

In April 2026, holders exercised an aggregate of 1,330,223 pre-funded warrants. As of the date of this filing, 794,000 pre-funded warrants remain outstanding.

 

Additionally, in April 2026, the Company received aggregate gross proceeds of approximately $1.5 million from the exercise of 366,126 outstanding Series G and Series H common stock purchase warrants.