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Note 14 - Subsequent Events
12 Months Ended
Dec. 31, 2023
Notes to Financial Statements  
Subsequent Events [Text Block]

14. Subsequent Events

 

The Company evaluates subsequent events through March 28, 2024, which is the date the financial statements were issued or available to be issued. There are two types of subsequent events: (1) recognized, or those that provide additional evidence with respect to conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements, and (2) non-recognized, or those that provide evidence with respect to conditions that did not exist at the date of the balance sheet but arose subsequent to that date.

 
During the first quarter of 2024, the Company issued 348,889 shares of its common stock for proceeds of $585,500 to various parties. The weighted average issue price per share of common stock sold was approximately $1.68. The proceeds will be used to fund the Company's operations.
 
The Company also entered into a convertible note agreement for $1,000,000 with an unrelated third-party investor. The origination fee of this note was $99,000. The maturity date of the note is the earlier of the next S- 1 filing or September 30, 2024. The investor is entitled to convert the note into common stock at the greater of $1.50 per share or at 90% of the share price on the maturity date. The investor also has a security interest in the Company's assets in the event of non-payment of the debt.
 
On March 18, 2024, the Company entered into a Sale and Purchase Agreement (the "Agreement") with PlugD Commercial Electric Leasing and Rentals Inc. ("PlugD"), a Texas-based commercial electric vehicle leasing company. Under the terms of the Agreement, the Company will deliver 200 electric high roof vans and trucks to PlugD for a total of approximately $16.2 million. The sale will take place over the next 13 months.