XML 25 R15.htm IDEA: XBRL DOCUMENT
v3.23.3

Subsequent Event – Nasdaq Compliance | 9 Months Ended
--- | ---
Sep. 30, 2023
Subsequent Events [Abstract] |
Subsequent Event – Nasdaq Compliance | Note 10. Subsequent Event – Nasdaq Compliance On May 5, 2023, the Company received a notice letter from the Listing Qualifications Staff of The Nasdaq Stock Market, LLC (“Nasdaq”) notifying the Company that it was not in compliance with the Listing Rule 5550(b) (the “Rule”), which requires listed companies to maintain a minimum $2,500,000 stockholders’ equity, $35,000,000 market value of listed securities, or $500,000 net income from continuing operations. In its quarterly report for the period ended March 31, 2023, the Company reported stockholders’ equity of $1,845,000, and as a result, did not satisfy the Rule. On June 14, 2023, the Company received a letter from Nasdaq granting the Company an extension through October 30, 2023 to regain compliance with the Rule. On October 23, 2023, the Company issued convertible notes in the amount of $1,390,000 pursuant to the subscription agreements described in Note 6. Note balances of $1,207,000 were immediately converted into approximately 820,000 shares of common stock. A pro-forma balance sheet giving effect to the transactions is presented below: Schedule of Pro-forma Balance Sheet
|  | September 30, 2023 (unaudited) |  |  | Convertible Debt Drawdown |  |  | Conversion of Debt to Equity |  |  | September 30, 2023 (proforma, unaudited) |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash |  | $ | 1,011,000 |  |  | $ | 1,390,000 |  |  | $ | - |  |  | $ | 2,401,000 |
Trade accounts receivable, net |  |  | 1,159,000 |  |  |  |  |  |  |  |  |  |  |  | 1,159,000 |
Other receivables |  |  | 116,000 |  |  |  |  |  |  |  |  |  |  |  | 116,000 |
Inventory, net |  |  | 748,000 |  |  |  |  |  |  |  |  |  |  |  | 748,000 |
Prepaid expenses and other current assets |  |  | 167,000 |  |  |  |  |  |  |  |  |  |  |  | 167,000 |
Total current assets |  |  | 3,201,000 |  |  |  | 1,390,000 |  |  |  | - |  |  |  | 4,591,000 |
Property, plant and equipment, net of depreciation |  |  | 487,000 |  |  |  |  |  |  |  |  |  |  |  | 487,000 |
Intangible assets, net of amortization |  |  | 258,000 |  |  |  |  |  |  |  |  |  |  |  | 258,000 |
Deposits |  |  | 7,000 |  |  |  |  |  |  |  |  |  |  |  | 7,000 |
Total assets |  | $ | 3,953,000 |  |  | $ | 1,390,000 |  |  | $ | - |  |  | $ | 5,343,000 |
Liabilities and Stockholders’ Equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Accounts payable |  | $ | 1,692,000 |  |  | $ | - |  |  | $ | - |  |  | $ | 1,692,000 |
Disputed co-manufacturer accounts payable |  |  | 499,000 |  |  |  |  |  |  |  |  |  |  |  | 499,000 |
Accrued expenses |  |  | 229,000 |  |  |  |  |  |  |  |  |  |  |  | 229,000 |
Accrued payroll and employee related |  |  | 240,000 |  |  |  |  |  |  |  |  |  |  |  | 240,000 |
Convertible notes payable |  |  | - |  |  |  | 1,390,000 |  |  |  | (1,207,000 | ) |  |  | 183,000 |
Total current liabilities |  |  | 2,660,000 |  |  |  | 1,390,000 |  |  |  | (1,207,000 | ) |  |  | 2,843,000 |
Total liabilities |  |  | 2,660,000 |  |  |  | 1,390,000 |  |  |  | (1,207,000 | ) |  |  | 2,843,000 |
Stockholders’ equity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Common stock |  |  | - |  |  |  |  |  |  |  |  |  |  |  | - |
Additional paid in capital |  |  | 61,388,000 |  |  |  |  |  |  |  |  |  |  |  | 61,388,000 |
Accumulated deficit |  |  | (60,095,000 | ) |  |  |  |  |  |  | 1,207,000 |  |  |  | (58,888,000 | )
Total stockholders’ equity |  |  | 1,293,000 |  |  |  | - |  |  |  | 1,207,000 |  |  |  | 2,500,000 |
Total liabilities and stockholders’ equity |  | $ | 3,953,000 |  |  | $ | 1,390,000 |  |  | $ | - |  |  | $ | 5,343,000 |
Management believes that taking into consideration the October 23, 2023 note issuance and conversion, the Company satisfies the stockholders’ equity requirement on a pro-forma basis as of September 30, 2023 and as of October 26, 2023. Nasdaq will continue to monitor the Company’s ongoing compliance with the Rule and, if at the time of its next periodic report the Company does not evidence compliance, it may be subject to delisting.

X
- References No definition available. + Details
Name: | us-gaap_SubsequentEventsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 855 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//855/tableOfContent Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 855 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147483399/855-10-50-2 + Details
Name: | us-gaap_SubsequentEventsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration