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Note 9 - Related-party Transactions
12 Months Ended
Sep. 30, 2022
Notes to Financial Statements  
Related Party Transactions Disclosure [Text Block]

9. Related-Party Transactions

 

The Company incurred fees of $109 thousand and $121 thousand during the years ended September 30, 2022 and 2021, respectively, to a law firm whose partner is a director and stockholder of the Company. The Company had liabilities for services to the same law firm of $25 thousand and $16 thousand at September 30, 2022 and 2021, respectively.

 

On  July 20, 2021, the Company entered into a transaction with four investors on identical terms pursuant to which they agreed to purchase, and the Company agreed to issue and sell, an aggregate of 945,946 shares at a price of $3.70 per share (total of $3,500,000). The Company closed on the issuance and sale on  July 27, 2021. The Company and the investors also entered into (i) warrant agreements pursuant to which the investors have the right to purchase 141,892 shares at a price of $5.50 per share on or before  July 20, 2026 and, (ii) registration rights agreements (“Rights Agreement”) whereby the Company agreed to file a registration statement with the U.S. Securities and Exchange Commission (the “Commission”) within six months after the effective date of the Rights Agreement and further agreed to use its commercially reasonable efforts to have the registration statement declared effective and to ensure that the registration statement remains effective throughout the term of the Rights Agreement. The investors above included Mr. Mark Burish, who purchased $1,250,000 of common stock for a total of 337,838 shares and 50,676 warrants. The Company’s special committee of disinterested directors met several times to discuss and negotiate the terms of the above transactions, including the participation of Mr. Burish. The special committee unanimously approved such terms.

 

Mr. Burish beneficially owns more than 37% of the Company’s common stock. Mr. Burish also serves as the Chairman of the Board of Directors. Mr. Andy Burish beneficially owns more than 5% of the Company's common stock and warrants to purchase 232,558 shares of common stock at an exercise price of $2.50 per share. See notes 5 Stockholder's Equity for detail. All transactions with Mr. Burish and Mr. Andy Burish were approved by a Special Committee of Disinterested and Independent Directors.