SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2023

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

NOTE 19. SUBSEQUENT EVENTS

The Company evaluates events that have occurred after the balance sheet date but before the financial statements are issued.

Nasdaq Minimum Bid Price Requirement

On January 5, 2023, the Company received a deficiency letter from the Listing Qualifications Department (the “Staff”) of The Nasdaq Stock Market (“Nasdaq”) notifying the Company that, for the last 30 consecutive business days, the closing bid price for the Company’s common stock had been below the minimum $1.00 per share requirement for continued inclusion on The Nasdaq Capital Market (the “Capital Market”) pursuant to Nasdaq Listing Rule 5550(a)(2) (the “Minimum Bid Price Requirement”). At that time, the Company was granted a period of 180 calendar days, or until July 5, 2023, to regain compliance with the Minimum Bid Price Requirement.

On July 6, 2023, the Company received a determination letter from the Staff notifying the Company that it had not regained compliance with the Minimum Bid Price Requirement as of July 5, 2023 in compliance with Nasdaq Listing Rule 5550(a)(2). The Company requested a hearing before the Panel to appeal the Staff’s determination and present a plan to regain compliance with the Minimum Bid Price Requirement. As part of the Company’s compliance plan to regain compliance with the Minimum Bid Price Requirement, the Company implemented a reverse stock split.

On July 11, 2023, the Company effected a one-for-ten reverse stock split (“Reverse Stock Split”) of the Company’s common stock.

On July 31, 2023, the Company received a letter from the Nasdaq Office of General Counsel notifying the Company that the previously reported bid price deficiency had been cured and that the Company was in compliance with all applicable Nasdaq listing standards. Accordingly, the previously reported hearing request by the Company before a Nasdaq Hearings Panel was cancelled, and the Company’s common stock will continue to be listed and traded on The Nasdaq Capital Market.

Conversion of 5.00% Notes into Common Stock

Starting July 7, 2023, certain holders of the 5.00% Notes exercised their right, to convert a portion of their 5.00% Notes at an initial conversion rate of 138.88889 shares of common stock per $1,000 principal amount of the 5.00% Notes, pursuant to the terms outlined in Note 9, Convertible Notes, further described as the Conversion Option. The various holders of the Company’s 5.00% Notes converted an aggregate principal amount of $0.7 million, for approximately 0.1 million shares of common stock.