Subsequent Events

9 Months Ended

Sep. 30, 2023

Subsequent Events [Abstract]

Subsequent Events

15. Subsequent Events

Issuance of Class A Common Stock and Warrants to GEM Global

On October 2, 2023, the Company issued 34.0 million shares of Class A common stock and 0.34 million common stock warrants to GEM Global Yield LLC SCS and GEM Yield Bahamas Limited, respectively (together, “GEM Global”). The issuance served as payment of a commitment fee in connection with a stock purchase agreement with GEM Global pursuant to which GEM Global committed to purchase up to $300.0 million in shares of the Company’s Class A common stock. The Company has not sold any shares under the stock purchase agreement to GEM Global under the agreement. See Note 12 – Stock-based Compensation and Common Stock for further information.

Nasdaq Notice

On October 10, 2023, the Company received a notice from Nasdaq stating that the Company did not regain compliance with the minimum bid price requirement within the 180-day period provided and is not eligible for a second 180-day period because it does not comply with the $5 million initial listing requirement for Nasdaq. As a result, Nasdaq determined that, unless the Company timely requested a hearing before the Panel, its Class A common stock would be suspended. The Company timely requested a hearing, and on October 17, 2023, it received formal notice from Nasdaq that such hearing is scheduled to be held on December 14, 2023. The delisting action has been stayed, pending a final written decision by the Panel. At the hearing, the Company will present a plan to the Panel that includes a discussion of the events that it believes will enable it to regain compliance.

Public Offering

On October 23, 2023, the Company completed a public offering of 86.0 million shares of its Class A common stock at an offering price of $0.035 per share. Proceeds from the offering, before offering costs, were approximately $3.0 million.

Contract Settlement

On October 27, 2023, the Company entered into a settlement agreement with a vendor related to a dispute over a failed software implementation. The Company has agreed to pay a $0.70 million termination fee over the next 21 months which will resolve the dispute. See Note 11 – Commitments and Contingencies for further information. 

August 2023 Warrants Amendments

On November 6, 2023, the Company and certain holders of the August 2023 Warrants agreed to amend the terms of the original warrant agreement to remove a feature that precludes the warrants from being considered indexed to the Company’s own stock. No other changes were made to the agreement.