| Delaware (State or other jurisdiction of incorporation or organization) | | | 2834 (Primary Standard Industrial Classification Code Number) | | | 87-0652870 (I.R.S. Employer Identification Number) | |
William R. Rohrlich, II Winstead PC 600 Travis Street Suite 5200 Houston, Texas 77002 Tel. (281) 681-5912 Fax (281) 681-5901 |
| Large accelerated filer ☐ | | | Accelerated filer ☐ | |
| Non-accelerated filer ☒ | | | Smaller reporting company ☒ | |
| Emerging growth company ☐ | | | | |
| Prospectus | | ||||||
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Selling Stockholders | | | Number of Shares Beneficially Owned Prior to the Offering | | | Percent | | | Maximum Number Offered by Selling Stockholder(12) | | | Number of Shares Beneficially Owned After Completion of Offering(13) | | | Percent(13) | | |||||||||||||||
Intracoastal Capital LLC(1) | | | | | 225,720(2) | | | | | | 12.79% | | | | | | 200,000 | | | | | | 25,720 | | | | | | 1.26% | | |
Anson Investments Master Fund LP(3) | | | | | 125,000(4) | | | | | | 7.40% | | | | | | 125,000 | | | | | | 0 | | | | | | * | | |
Armistice Capital Master Fund Ltd.(5) | | | | | 159,000(6) | | | | | | 9.41% | | | | | | 125,000 | | | | | | 34,000 | | | | | | 1.66% | | |
Craig Schwabe(7) | | | | | 1,139(8) | | | | | | * | | | | | | 1,139 | | | | | | 0 | | | | | | * | | |
Noam Rubinstein(7) | | | | | 11,396(9) | | | | | | * | | | | | | 10,632 | | | | | | 764 | | | | | | * | | |
Michael Vasinkevich(7) | | | | | 23,206(10) | | | | | | 1.46% | | | | | | 21,642 | | | | | | 1,564 | | | | | | * | | |
Charles Worthman(7) | | | | | 362(11) | | | | | | * | | | | | | 337 | | | | | | 25 | | | | | | * | | |
| Assumed combined offering price per share and Common Warrant (assuming no sale of Pre-Funded Warrants) | | | | | | | | | | $ | 0.41 | | |
| Historical net tangible book value per share as of September 30, 2023 | | | | $ | 0.22 | | | | | | | | |
| Increase in net tangible book value per share attributable to new investors | | | | $ | 0.10 | | | | | | | | |
| As adjusted net tangible book value per share after this offering | | | | | | | | | | $ | 0.32 | | |
| Dilution per share to new investors | | | | | | | | | | $ | 0.09 | | |
Name and Principal Position | | | Year | | | Salary ($) | | | Bonus ($) | | | Option Awards ($)(1) | | | All Other Compensation ($) | | | Total ($) | | ||||||||||||||||||
Peter H. Nielsen, CEO, | | | | | 2023 | | | | | $ | 575,000(2) | | | | | $ | 110,000(3) | | | | | $ | 130,880 | | | | | $ | 11,237(4) | | | | | $ | 827,117 | | |
CFO, President, Chairman, Director | | | | | 2022 | | | | | $ | 555,000 | | | | | $ | 150,000 | | | | | $ | 288,669 | | | | | $ | 17,678(5) | | | | | $ | 1,011,347 | | |
| | | Estimated Future Payouts Under Non-Equity Incentive Plan Awards | | | All Other Stock Awards: Number of Shares of Stock or Units (#) | | | All Other Option Awards: Number of Securities Underlying Options (#) | | | Exercise or Base Price of Option Awards ($/Sh) | | | Grant Date Fair Value of Stock Awards ($)(2) | | |||||||||||||||||||||
Name | | | Grant Date | | | Threshold ($) | | | Target ($) | | | Maximum ($) | | ||||||||||||||||||||||||
Mr. Nielsen(1) | | | | | 5/2/2023 | | | | | | | | | | | | | | | | | | 105,000 | | | | | $ | 1.39 | | | | | $ | 1.25 | | |
Name | | | Number of Securities Underlying Unexercised Options Exercisable (#) | | | Number of Securities Underlying Unexercised Options Unexercisable (#) | | | Equity Incentive Plan Awards: Number of Securities Underlying Unexercised Unearned Options (#) | | | Option Exercise Price ($) | | | Option Expiration Date | | ||||||||||||
Mr. Nielsen(1) | | | | | 2,761 | | | | | | — | | | | | | — | | | | | $ | 550.00 | | | | April 2026 | |
Mr. Nielsen(1) | | | | | 6,500 | | | | | | — | | | | | | — | | | | | $ | 36.80 | | | | April 2028 | |
Mr. Nielsen(1) | | | | | 15,000 | | | | | | — | | | | | | — | | | | | $ | 18.40 | | | | March 2029 | |
Mr. Nielsen(2) | | | | | 14,063 | | | | | | 937 | | | | | | — | | | | | $ | 3.25 | | | | March 2030 | |
Mr. Nielsen(3) | | | | | 74,375 | | | | | | 10,625 | | | | | | — | | | | | $ | 5.21 | | | | June 2030 | |
Mr. Nielsen(4) | | | | | 68,750 | | | | | | 31,250 | | | | | | — | | | | | $ | 7.02 | | | | March 2031 | |
Mr. Nielsen(5) | | | | | 39,375 | | | | | | 50,625 | | | | | | — | | | | | $ | 3.61 | | | | March 2032 | |
Mr. Nielsen(6) | | | | | — | | | | | | 105,000 | | | | | | — | | | | | $ | 1.39 | | | | May 2033 | |
| | | | | | Triggering Event | | |||||||||
Name | | | Benefit | | | Termination without Cause or Resignation for Good Reason ($) | | | Termination without Cause or Resignation for Good Reason within 3 Months Before or 12 Months Following a Change in Control ($) | | ||||||
Peter H. Nielsen | | | Market Value of Stock Vesting | | | | $ | — | | | | | $ | —(1) | | |
| | | Accrued Vacation Days | | | | | 36,923 | | | | | | 36,923 | | |
| | | Three Months’ Base Salary | | | | | 100,000 | | | | | | 100,000 | | |
| | | Continuation of Benefits | | | | | 1,667 | | | | | | 3,334 | | |
| | | Total | | | | $ | 138,590 | | | | | $ | 140,257 | | |
Name | | | Fees Earned or Paid in Cash | | | Option Awards | | | All Other Compensation | | | Total | | ||||||||||||
Heath W. Cleaver | | | | $ | 73,000(1) | | | | | $ | 12,306(2) | | | | | $ | — | | | | | $ | 85,306 | | |
Paul D. Aubert | | | | $ | 61,500(1) | | | | | $ | 12,306(2) | | | | | $ | — | | | | | $ | 73,806 | | |
Aline B. Sherwood | | | | $ | 64,500(1) | | | | | $ | 12,306(2) | | | | | $ | — | | | | | $ | 76,806 | | |
Douglas P. Morris(3) | | | | $ | — | | | | | $ | 16,235(4) | | | | | $ | 73,744(5) | | | | | $ | 89,979 | | |
| | AMOUNT | | | AMOUNT | | ||||||||
SEC registration fee | | | $ | 3,505.50 | | | | | $ | 242.77 | | | ||
FINRA Filing Fee | | | $ | 5,000 | | | ||||||||
Printing and related expenses | | | $ | 2,500 | | | | | $ | 2,500 | | | ||
Legal fees and expenses | | | $ | 80,000 | | | | | $ | 20,000 | | | ||
Transfer agent and registrar fees and expenses | | | $ | 10,000 | | | ||||||||
Accounting fees and expenses | | | $ | 10,000 | | | | | $ | 10,000 | | | ||
Miscellaneous expenses | | | $ | 1,000 | | | | | $ | 1,000 | | | ||
Total | | | $ | 112,005.50 | | | | | $ | 33,742.77 | | |
| /s/ Peter H. Nielsen Peter H. Nielsen President, Chief Executive Officer (Principal Executive Officer), Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) and Director | | | | |
| Heath W. Cleaver Director | | | | |
| Paul D. Aubert Director | | | | |
| Aline Sherwood Director | | | | |
| Douglas P. Morris Director and Secretary | | | ||
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