Note 14 - Subsequent Events
|6 Months Ended|
Jun. 30, 2023
|Notes to Financial Statements|
|Subsequent Events [Text Block]||
14. Subsequent events
On July 18, 2023, the Company entered into a Securities Purchase Agreement (the “Yulho SPA”), with Yulho Co, Ltd., a Korean-based company engaged in the recycling of lithium-ion batteries (“Yulho”), pursuant to which the Company agreed to sell and issue to Yulho in a registered direct offering (the “Yulho Offering”) 4,545,455 shares (“Yulho Shares”) of Company common stock, at an offering price of $ 1.10 per share, for the gross proceeds of $5 million before selling commissions and other offering expenses payable by the Company. The transaction under the Yulho SPA closed on August 4, 2023.
In addition to the capital investment, the Company entered into an Agreement to Execute a License Agreement (“Yulho Agreement”) with Yulho pursuant to which each party has agreed to use their good faith best efforts to negotiate and execute a definitive license agreement (“Yulho License Agreement”) within the 75 days following execution of the Yulho Agreement. Pursuant to the proposed Yulho License Agreement, the Company will grant Yulho a license to our AquaRefining technology for Yulho’s use in recycling lithium-ion batteries in the Republic of Korea. Under the proposed Yulho License Agreement, Yulho will pay the Company a royalty on net sales. The Company will agree to support and assist Yulho in business development efforts in establishing offtake partnerships for the Yulho recycled metals. The Company will also work with Yulho to engage with potential partners to foster and expand business opportunities. The Yulho License Agreement is expected to contain customary representations, warranties and covenants for agreements of such nature.
On July 21, 2023, the Company completed a public offering of 18,193,000 shares of Company common stock, at the public offering price of $1.10 per share. After the deduction of the underwriter’s discount and the underwriter expenses payable by us, we received net proceeds of $18.5 million.
The Company has evaluated subsequent events through the date which the condensed consolidated financial statements were available to be issued. Based upon this review, the Company did not identify any subsequent events that would have required adjustment or disclosure.
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.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef