Note 14. Subsequent Events

Note conversions

In June through August 2026, in satisfaction of the required monthly payments, the Company and the April 23, 2021 Noteholder entered into exchange agreements, pursuant to which portions of the April 23, 2021 Note were partitioned into new notes with an aggregate principal amount of $3.0 million, which were exchanged concurrently for a total of approximately 13.5 million shares.

Private placement of common stock and warrants through placement agent

In July and August 2026, the Company conducted a private placement of units consisting of common stock and warrants to accredited investors through a placement agent. Each unit sold included a fixed combination of one share of common stock and one warrant to purchase one share of common stock. Each unit has a purchase price of $0.20889, which was equal to 90% of the intraday volume weighted average price of the common stock on August 28, 2026. During July and August 2026, the Company sold a total of approximately 79.0 million units for a total of approximately $16.5 million of proceeds, net of issuance costs. The Company classified the securities issued in the private placement through the placement agent as a liability until the final issuance date. As part of the offering, the Company will issue approximately 79.0 million warrants to investors, with each such warrant having a five-year term and an exercise price of $0.25 per share. The warrants will be immediately exercisable upon issuance. In connection with the above, the Company paid the placement agent a total cash fee of approximately $2.1 million, equal to 13% of the gross proceeds of the offering, as well as a one-time fee for expenses of $5.0 thousand, and will issue a total of approximately 11.9 million warrants with an exercise price of $0.20889 per share and a ten-year term, representing 15% of the total number of shares of common stock sold in the offering, to the placement agent and its designees.