Item 2. Unregistered Sales of Equity Securities
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
On January 31, 2024, we entered
into the AL SPA with Ault Lending for the purchase of up to 6,000 shares of Series B convertible preferred stock and warrants to purchase
shares of the Company’s Common Stock. The AL SPA provides that Ault Lending may purchase up to $6 million of Series B Convertible
Preferred Stock in one or more closings.
On January 31, 2024, we sold
1,220 shares of Series B Convertible Preferred Stock and Warrants to purchase 1,220,000 shares of Common Stock with an exercise price
of $1.20, for a total purchase price of $1.22 million. The purchase price was paid by the cancellation
of $1.15 million of cash advances made by Ault Lending to us between November 9, 2023 and January 31, 2024 and a subscription receivable
of $70,000.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
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