Note 15. Subsequent Events

Increase in Authorized Number of Shares of Common Stock

On July 9, 2024, at our Annual Meeting of Stockholders (“Annual Meeting”), our stockholders approved an amendment and restatement of our certificate of incorporation to increase the number of authorized shares of our common stock from 200,000,000 shares to 600,000,000 shares (“Share Increase Proposal”).

Increase in Number of Shares of Common Stock Issuable under 2020 Incentive Plan

Additionally, at the Annual Meeting, our stockholders approved a proposal to increase the number of shares of our common stock available for issuance under our 2020 Incentive Plan by 7,000,000 shares.

Dividend Warrant Transaction

On July 12, 2024, following approval by our stockholders of the Share Increase Proposal, we completed a distribution of warrants to purchase shares of common stock (“Dividend Warrants”) to stockholders, holders of Pre-Funded Warrants, and holders of Convertible Notes, in each case as of the record date of May 13, 2024.

Each holder of record of our common stock as of the record date received one Dividend Warrant for every three shares of our common stock held as of the record date, rounded down to the nearest whole number for any fractional Dividend Warrant. Other eligible recipients that held Convertible Notes or Pre-Funded Warrants as of the record date received Dividend Warrants based on the same ratio in the manner determined by the agreements governing such securities and the warrant agreement. In connection with this transaction, a total of 46,756,215 Dividend Warrants were distributed to our stockholders, Convertible Note holders, and Pre-Funded Warrant holders.

Each Dividend Warrant entitles the holder to purchase one share of our common stock plus, if applicable, a bonus share fraction of one-half of one share of our common stock, at an initial exercise price of $5.00 per Dividend Warrant. The Dividend Warrants trade on the OTCQX market. In addition to Dividend Warrants being exercisable for cash, beginning on July 26, 2024, and subject to the terms and conditions of the warrant agreement, holders of Dividend Warrants could also exercise their Dividend Warrants with Convertible Notes at face value, meaning that one Convertible Note having a principal amount of $1,000 may be surrendered as consideration to exercise 200 Dividend Warrants. Convertible Notes surrendered to pay the exercise price for Dividend Warrants will be retired.

As of August 8, 2024, we have retired $6.1 million of our 3.25% Convertible Notes.