LEGAL PROCEEDINGS
−Removed: The information required by this item is included under Note 12 ~ Commitments and Contingencies of the Notes to the Consolidated Financial Statements of the Company’s Form 10-Q for the three months ended March 31, 2023, which is hereby incorporated by reference.
+Added: The information required by this item is included under Note 12 ~ Commitments and Contingencies of the Notes to the Consolidated Financial Statements of the Company’s Form 10-Q for the six months ended June 30, 2023, which is hereby incorporated by reference.
R ISK FACTORS
+Added: On August 8, 2023, the Company closed on the issuance of new public debt (the “New Notes”) both through an exchange offering of the existing debt as well as an offering to new participants.
+Added: This new public debt has substantially the same terms as the existing Notes other than the new interest rate is at 9.75% and the new maturity is September 30, 2028.
+Added: The Company raised $7.2 million net of $691,000 of debt issuance costs.
+Added: The $24.4 million existing Notes come due on September 30, 2023.
+Added: Net of the $7.2 million raised, above, plus another $5.0 million that the company has on hand that is available to pay down the existing Notes, as of the filing of this 10-Q, the Company needs to raise an additional $12.2 million to be able to pay down the existing Notes.
+Added: In order to alleviate any concern as to whether the Company will have enough funds to pay off the existing Notes, certain members of the Company’s board of directors have pledged to fund up to $12.5 million in capital which would be applied directly to paying down the existing Notes.
+Added: Management also has other initiatives, including asset sales, refinancing of other existing debt or private capital raises that may produce sufficient cash to pay off all or a portion of the existing Notes.
+Added: The success of any such other initiatives may reduce the amount required to be funded by the board members.
+Added: See Note 7 ~ Debt for further details.
+Added: There is a risk the Company will not be able to repay the Notes in full before they mature on September 30, 2023.
There were no material changes to the risk factors disclosed in our Annual Report on Form 10-K (“Item 1A Risk Factors”) filed with the SEC on March 27, 2023.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.