Quarterly report [Sections 13 or 15(d)]

Stockholders??? Equity

v3.26.1
Stockholders’ Equity
 3 Months Ended
Mar. 31, 2026
Stockholders’ Equity [Abstract]  
Stockholders’ Equity

Note 8. Stockholders’ Equity

 

Authorized Shares

 

On December 8, 2025, the Company amended its certificate of incorporation to increase the aggregate number of shares issuable to 155,000,000 consisting of the following:

 

  i. 150,000,000 shares of Common Stock, $0.001 par value per share; and

 

  ii. 5,000,000 shares of Preferred Stock, $0.001 par value per share available for designation

 

The Company currently has 150,000,000 common shares and has 900,000 Series A convertible preferred shares authorized designated with a par value of $0.001 per share.

 

On April 7, 2026, following stockholder approval at the Company’s annual meeting, the Company amended its certificate of incorporation to implement a 1 for 15 reverse split of its common stock. The effect of the reverse stock split was to combine every 15 shares of outstanding common stock into one share of common stock. The reverse stock split was effective at the opening of the trading day on April 10, 2026. The effects of the reverse stock split have been reflected in this Quarterly Report for all periods presented.

 

Common Stock

 

Issuance of Shares for Note Conversions

 

On February 12, 2026, the Company issued an aggregate 8,172 shares of common stock for the conversion of an aggregate $42,857 in principal interest due under the Company’s senior secured convertible notes.

  

Issuance of Shares for Warrant Exercises

 

On February 12, 2026, the Company issued an aggregate 3,334 shares of common stock for the exercise of warrants.

 

Stock Incentive Plan

 

The number of shares of the Company’s common stock that are issuable pursuant to warrant and stock option grants with time-based vesting as of and for the three months ended March 31, 2026 were:

 

    Warrant Grants     Stock Option Grants     Restricted
Stock
Units		  
    Number of
shares
subject to
warrants		     Weighted-
average
exercise
price per
share		     Number of
shares
subject to
options		     Weighted-
average
exercise
price per
share		     Number of
shares
subject to
restricted
stock units		  
Balance at December 31, 2025     3,603,677     $ 4.77           -     $        -       8,147  
Granted     -       -       -       -       -  
Exercised     (3,334 )     4.65       -       -       -  
Cancelled/Expired     (402 )     900.00       -       -       -  
Balance at March 31, 2026     3,599,941     $ 4.67       -     $ -       8,147  
Exercisable at March 31, 2026     2,335,535     $ 4.67       -     $ -       8,147  

 

 

The number of shares of the Company’s common stock that are issuable pursuant to warrant and stock option grants with time-based vesting as of and for the three months ended March 31, 2025 were:

 

    Warrant Grants     Stock Option Grants     Restricted
Stock
Units		  
    Number of
shares
subject to
warrants		     Weighted-
average
exercise
price per
share		     Number of
shares
subject to
options		     Weighted-
average
exercise
price per
share		     Number of
shares
subject to
restricted
stock units		  
Balance at December 31, 2024     594,387     $ 13.80            -     $       -       8,147  
Granted     483,758       20.10       -       -       -  
Exercised     -       -       -       -       -  
Cancelled/Expired     -       -       -       -       -  
Balance at March 31, 2025     1,078,145     $ 16.65       -     $ -       8,147  
Exercisable at March 31, 2025     1,078,145     $ 16.65       -     $ -       8,147  

 

The Company’s outstanding warrants at March 31, 2026 are as follows:

 

Warrants Outstanding   Warrants Exercisable
Exercise Price Range   Number Outstanding     Weighted Average Remaining Contractual Life 
(in years)		     Weighted Average Exercise Price     Number Exercisable   Weighted Average Exercise Price     Intrinsic
Value		  
$4.65 - $7.92     3,599,941       3.55     $ 4.67     2,335,535   $ 4.67     $    -  

 

The Company’s outstanding warrants at March 31, 2025, are as follows:

 

Warrants Outstanding     Warrants Exercisable  
Exercise Price
Range		     Number
Outstanding		     Weighted Average
Remaining
Contractual Life
(in years)		     Weighted
Average
Exercise Price		     Number
Exercisable		     Weighted
Average
Exercise Price		     Intrinsic
Value		  
  $12.90 - $900.00       1,078,145       4.53     $ 16.65       1,078,145     $ 16.65       2,792,060  

 

As of March 31, 2026 and December 31, 2025, there was no unrecognized expense for unvested stock options and restricted stock awards.

 

    For the Three Months Ended  
    March 31,  
    2026     2025  
Stock-based compensation expense   $ 12,404     $ -  

 

Stock-based compensation expense categorized by the equity components for the three months ended March 31, 2026 and 2025 is as follows:

 

    For the Three Months Ended  
    March 31,  
    2026     2025  
Common stock   $ 12,404     $ -  
Total   $ 12,404     $ -  

 

Stock compensation is included in general and administrative expense on the consolidated statements of operations.