Quarterly report [Sections 13 or 15(d)]

Short-Term Notes Payable

v3.25.2
Short-Term Notes Payable
6 Months Ended
Jun. 30, 2025
Debt Disclosure [Abstract]  
Short-Term Notes Payable

Note 5. Short-Term Notes Payable

 

On March 13, 2025, we issued a $3.0 million promissory note (the “Note”) to a single investor at an original issue discount of 17%. Net proceeds to us were approximately $2.2 million after placement agent fees of $175,000 and legal expenses of $98,437.

 

No interest accrues on the Note unless an event of default occurs, at which time interest will accrue at a rate of 20% per annum. The Note matures upon the earlier of July 14, 2025, or the closing of any subsequent offering by us with net proceeds equal to or in excess of all amounts due under the Note.

 

In connection with the issuance of the Note, we designated and issued 1,000,000 shares of our authorized but unissued Series G Mirroring Preferred Stock. For a description of the Series G terms, see Note 8. We used the net proceeds for working capital and general corporate purposes. Subsequently, in connection with the Reverse Stock Split the shares of Series G Preferred Stock were cancelled. See Note 8.

 

 

Short-term notes payable consisted of the following:

 

    June 30,   December 31,
    2025   2024
Insurance premium financing of $636,972 and $611,109 due in monthly installments of $67,277 and $54,366 which includes principal and annual interest at 9.55% through May 24, 2025, and May 24, 2024, respectively   $        $ 328,528  
$3.0 million non-interest-bearing promissory note due July 14, 2025     3,000,000           
Short term notes payable net of discount   $ 3,000,000     $ 328,528  

 

Subsequent to quarter end, on July 2, 2025, the Company repaid in full the $3.0 million promissory note issued on March 13, 2025. The repayment was made using a portion of the net proceeds from the Company’s July 2, 2025, public offering of Series H Preferred Stock and warrants to purchase additional shares of Series H Preferred Stock.