Note 8 - Notes Payable and Convertible Notes |
6 Months Ended |
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Jun. 30, 2026 | |
| Notes to Financial Statements | |
| Debt Disclosure [Text Block] |
8. Notes Payable and Convertible Notes
On July 7, 2025, the Company entered into a Convertible Note Purchase Agreement with a non-affiliated accredited investor (the “Convertible Note Purchaser”). Pursuant to the Convertible Note Purchase Agreement, the Company issued and sold an unsecured convertible promissory note in the principal amount of $250,000 (the “Note”) for gross proceeds of $250,000. The Note is convertible, at the option of the Convertible Note Purchaser, into restricted shares of the Company’s common stock at a conversion price equal to the greater of (i) a floor price of $0.47 (subject to adjustment for stock splits and similar events), and (ii) 80% of the lowest of (A) the 15-day average closing price, (B) the 10-day volume-weighted average price (“VWAP”), or (C) the lowest 3-day VWAP during the 45 trading days immediately prior to the date of the applicable conversion notice. The Note bears interest at a rate of 12% per annum and matures 360 days after the purchase price payment date. The Note contains customary events of default, including non-payment and insolvency-related events. Upon an event of default, the interest rate increases to 18% per annum, and the Convertible Note Purchaser may accelerate the Note and pursue additional remedies. This transaction was previously reported in the Company’s Current Report on Form 8-K filed on July 11, 2025.
As of June 30, 2026, an aggregate of $124,344 of principal and $15,000 of accrued interest under a $250,000 convertible promissory note issued in July 2025 had been converted into 199,510 shares of Common Stock at conversion prices ranging from $0.47 to $0.81 per share. During the three months ended June 30, 2026, $64,714 of principal was converted into 106,686 shares of Common Stock at conversion prices ranging from $0.47 to $0.81 per share. As of June 30, 2026, the remaining principal balance of the note was $125,656.
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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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- References No definition available.
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