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Subsequent Event
6 Months Ended
Jun. 30, 2023
Subsequent Events [Abstract]  
Subsequent Event

12. Subsequent Event

 

On August 2, 2023, the Company entered into a Forbearance Agreement with Streeterville which was subsequently amended on August 7, 2023. The Forbearance Agreement and amendment extend the maturity dates for each Note by 12 months. In addition, Streeterville waived their right to redeem any portion of either Note for 180 days from the date on which the Company closes on a fully marketed public offering for aggregate proceeds, net of fees, of not less than $5,000,000, so long as the Qualified IPO occurs on or before October 1, 2023 (the “Standstill”). If a Qualified IPO does not occur by October 1, 2023, the Standstill shall not take effect. Upon the expiration of the Standstill, redemption obligations under the notes would resume, in addition to weekly cash payments to Streeterville in the amount of $50,000 due in the aggregate under the notes via ACH withdrawal. In consideration of the standstill and the extension of the maturity dates, the Company entered into a Security Agreement with Streeterville, dated August 2, 2023 (the “Security Agreement”), under which Streeterville was granted a first-position security interest in all assets of the Company.

 

On August 11, 2023, the Company filed a preliminary registration statement on Form S-1 under the Securities Act of 1933 to raise up to $8.5 million in gross proceeds, or $7.5 million net of fees, through issuance of common stock or a pre-funded warrant to purchase common stock and a warrant to purchase common stock.