The Registrants amended and restated bylaws provide that the Registrant may purchase
and maintain insurance, at its expense, to protect itself and any director, officer, employee or agent of the Registrant or another corporation, partnership, joint venture, trust or other enterprise (including, without limitation, any employee
benefit plan) against any liability, expense or loss incurred by him or her in any such capacity, or arising out of his or her status as such, whether or not the Registrant would have the power to indemnify such person against such expense,
liability or loss under the DGCL. The Registrant has obtained insurance under which, subject to the limitations of the insurance policies, coverage is provided to the Registrants directors and executive officers against loss arising from
claims made by reason of breach of fiduciary duty or other wrongful acts as a director or executive officer, including claims related to various liabilities arising under the Securities Act of 1933, as amended, and the Securities Exchange Act of
1934, as amended, and to the Registrant with respect to payments that may be made by the Registrant to these directors and executive officers pursuant to the Registrants indemnification obligations or otherwise as a matter of law.
Item 15. Recent Sales of Unregistered Securities.
In the three years preceding the filing of this registration statement, the Registrant has issued the following unregistered securities:
On July 11, 2024, the Registrant entered into a securities purchase agreement (the 2024 Purchase Agreement) in connection
with a private placement (the 2024 PIPE Private Placement) with certain accredited investors. Pursuant to the 2024 Purchase Agreement, the Registrant agreed to offer and sell in the 2024 PIPE Private Placement 12,385,883 shares of common
stock at an offering price of $1.24 per share.
The Registrants controlling stockholder, Telegraph Hill Partners Management Company
LLC, through its affiliates Telegraph Hill Partners V, L.P. and THP V Affiliates Fund LLC, the Registrants President and Chief Executive Officer and a member of the Registrants board of directors, Stephen Gunstream, and the
Registrants Chief Financial Officer, Matthew Lowell, participated in the 2024 PIPE Private Placement and purchased an aggregate of 12,217,740 shares of common stock on the same terms as the other investors.
The Registrant received aggregate gross proceeds of $15,358,494.92 from the 2024 PIPE Private Placement, before deducting offering expenses
payable by the Registrant.
On September 15, 2023, the Registrant entered into a securities purchase agreement (the 2023
Purchase Agreement) in connection with a private placement (the 2023 PIPE Private Placement) with certain accredited investors and qualified institutional buyers. Pursuant to the 2023 Purchase Agreement, the Registrant agreed to
offer and sell in the 2023 PIPE Private Placement 11,299,993 shares of common stock at an offering price of $1.85 per share.
The
Registrants controlling stockholder, Telegraph Hill Partners Management Company LLC, through its affiliates Telegraph Hill Partners IV, L.P. and THP IV Affiliates Fund, LLC, the Registrants President and Chief Executive Officer and a
member of the Registrants board of directors, Stephen Gunstream, the Registrants Chief Financial Officer, Matthew Lowell, and the Registrants General Counsel and Chief Compliance Officer, Damon Terrill, and the Mackowski Family
Trust, which is affiliated with J. Matthew Mackowski, a member of the Registrants board of directors, participated in the 2023 PIPE Private Placement and purchased an aggregate of 9,054,052 shares of common stock on the same terms as the other
investors.
The Registrant received aggregate gross proceeds of $20,904,987.05 from the 2023 PIPE Private Placement, before deducting
offering expenses payable by the Registrant.
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