Item 2. Unregistered Sales of Equity Securities
Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds
In February 2021, upon the closing of
our IPO, all of our outstanding pre-IPO equity and convertible debt securities automatically converted into 7,300,010 shares of common
stock. The issuance of such common stock was exempt from the registration requirements of the Securities Act, pursuant to Section 3(a)(9)
of the Securities Act, involving an exchange of securities exchanged by the issuer with its existing security holders exclusively where
no commission or other remuneration is paid or given directly or indirectly for soliciting such exchange. No underwriters were involved
in this issuance of shares.
Use of Proceeds
On February 16, 2021, the U.S. Securities and
Exchange Commission declared effective our registration statement on Form S-1 (File No. 333-235891), as amended, filed in connection with
our IPO. There has been no material change in the planned use of proceeds from our IPO from that described in the related prospectus dated
February 16, 2021, filed with the SEC pursuant to Rule 424(b)(4) under the Securities Act. As described in such IPO prospectus, we have
used IPO proceeds to reduce our bank debt by $4.0 million, to fund a $2.0 million cash reserve to serve as collateral for our remaining
$2.0 million of bank debt that replaced collateral previously provided by a related party, to pay down a significant percentage of our
accounts payable as of December 31, 2020, and to pay deferred compensation owed to a related party.
In July 2021, certain holders of our publicly
traded Series A Warrants exercised approximately 1.1 million warrants for approximately 1.1 million shares of common stock at the cash
exercise price of $4.5375 per share and as a result, we received additional cash proceeds of approximately $5.0 million. In addition,
we paid the remaining $2.0 million, out of our restricted cash, to pay off and terminate our line of credit.
Issuer Purchases of Equity Securities
We did not repurchase any of our equity securities
during the six months ended June 30, 2022.
Item 3.
Defaults Upon Senior Securities
None.
Item 4.
Mine Safety Disclosures
None.
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