9. SUBSEQUENT EVENT

September 2023 Private Placement Approval

The Company held a Special Meeting of Stockholders on October 25, 2023, for the purpose of presenting three proposals to the stockholders for approval. The first proposal was to request the stockholders approve the potential issuance in excess of 19.99% of currently outstanding common stock upon the conversion of the Series E preferred stock at less than the “minimum price” under Nasdaq Listing Rule 5635(d), and which may be deemed a “change of control” under Nasdaq Listing Rule 5635(b). The second proposal was to request the stockholders approve an increase in the Company’s authorized common stock from 160,000,000 to 170,000,000. The third proposal was to support the adjournment of the meeting in the event additional votes needed to be solicited. The stockholders approved all three proposals at the meeting.

Stockholder approval for the September 2023 Private Placement automatically causes the Series E-1 preferred stock to convert into either Series E-2 preferred stock or common stock. This eliminates the liquidation preference and redemption rights associated with the Series E-1 preferred stock.