Quarterly report pursuant to Section 13 or 15(d)

Note 20 - Related Party Transactions

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Note 20 - Related Party Transactions
 9 Months Ended
Sep. 30, 2024
Notes to Financial Statements  
Related Party Transactions Disclosure [Text Block]

NOTE 20 – RELATED PARTY TRANSACTIONS

 

All related party transactions are monitored quarterly by the Company and approved by the Audit Committee of the Company's board of directors.

 

Refer to “Note 12 – Notes Payable" for related party transactions and balances during the current period.

 

During the three and nine months ended September 30, 2024, the Company incurred a total of $0.60 million and $1.20 million in fees pursuant to the engagement letter with Adnant, LLC ("Adnant") dated August 12, 2022, as subsequently amended, for executive level consulting and related business support services (the "Engagement"). Effective April 1, 2023, Adnant is entitled to receive monthly fees of $0.20 million as compensation for Adnant’s continued services during the term of the Engagement. The Engagement, as amended, provides Adnant with the option to convert accrued and unpaid service fees into shares of common stock of the Company. In addition to the monthly fee described above, a performance based award of $2.50 million shall be payable to Adnant in shares of common stock based upon the achievement of the performance bonus award objectives set forth in the A&R Engagement Letter and the continued performance of Adnant towards obtaining such performance bonus award objectives. A transaction bonus award of $1.25 million is also available to Adnant subject to a change of control event approved by the Board of Directors with a value equal to or greater than $40.00 million in the aggregate. No shares were issued during the three and nine months ended September 30, 2024 under the Engagement.