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Note 6 - Stockholders' Equity
 3 Months Ended
Sep. 30, 2024
Notes to Financial Statements  
Equity [Text Block]

(6) Stockholders’ Equity

 

Preferred Stock

 

The Company has issued 280,898 shares of Series D convertible preferred stock (“Series D Preferred Shares”), all of which are issued and outstanding. Series D Preferred Shares are convertible to common stock on a one-to-one basis. Series D Preferred Shares are not callable by the Company. The holder of the preferred stock is entitled to receive, and we shall pay, dividends on shares equal to and in the same form as dividends actually paid on shares of common stock when, and if, such dividends are paid on shares of common stock. No other dividends are paid on the preferred shares. Preferred shares have no voting rights. Upon liquidation, dissolution, or winding-up of the Company, whether voluntary or involuntary, the preferred shares have preference over common stock. The holder of Series D Preferred Shares has the option to convert said shares to common stock at the holder’s discretion.

 

The holder of the preferred stock previously agreed with the Company that they would not convert the preferred stock until such time as the amendment to the Certificate of Incorporation (the “2020 Certificate Amendment”) was accepted for filing with the state of Delaware, which occurred in October 2021.

 

Common Stock

 

The Company has issued 1,712,045 shares of common stock and has outstanding shares of common stock of 1,701,729 as of September 30, 2024. Treasury shares of 10,316 are the difference between issued and outstanding shares.

 

We did not issue common stock during the three months ended September 30, 2024.

 

Rights Plan

 

On December 21, 2022, the Company’s Board of Directors adopted a limited duration stockholder rights plan (the “Rights Plan”) initially expiring December 20, 2023 and declared a dividend of one preferred share purchase right for each outstanding share of common stock to stockholders of record on January 5, 2023 to purchase from the Company one one-thousandth of a share of Series A Junior Participating Preferred Stock, par value $0.001 per share, of the Company for an exercise price of $58.00 once the rights become exercisable, subject to the terms of and adjustment as provided in the related rights agreement.  

 

On December 18, 2023, the Company entered into Amendment No. 1 to Rights Agreement between the Company and Equiniti Trust Company, as Rights Agent (the "Amendment"), which extends the Final Expiration Date (as defined in the Rights Plan) to December 20, 2024, unless the Final Expiration Date is further extended by the Company or the rights subject to the Rights Plan are earlier redeemed or exchanged by the Company in accordance with the terms of the Rights Plan.  All other terms and conditions of the Rights Plan remain unchanged.

 

Warrants

 

A summary of the common stock warrant activity for the three months ended September 30, 2024, is presented below:

 

   

Number of Shares Underlying Warrants (In thousands)

    

Weighted Average Exercise Price

    

Aggregate Fair Market Value at Issuance (In thousands)

    

Weighted Average Remaining Contractual Term (Years)

  

Outstanding June 30, 2024

     80     $ 72.10     $ 3,747       1.60  

Warrants issued

     —       —       —       —  

Warrants exercised

     —       —       —       —  

Warrants expired

     —       —       —       —  

Outstanding September 30, 2024

     80     $ 72.10     $ 3,747       1.35