Private Investment in Public Equity (PIPE) Financing |
9 Months Ended |
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Dec. 31, 2025 | |
| Stockholders' Equity Note [Abstract] | |
| Private Investment in Public Equity ("PIPE") Financing |
12. Private Investment in Public Equity (“PIPE”) Financing Overview On November 24, 2025, the Company entered into a Securities Purchase Agreement with certain accredited investors pursuant to which the Company agreed to issue and sell (i) 3,980,000 shares of its common stock at a purchase price of $2.00 per share and (ii) 3,520,000 pre-funded warrants to purchase shares of common stock at a purchase price per pre-funded warrant equal to the common stock purchase price minus $0.001. The pre-funded warrants have an exercise price of $0.001 per share. The transaction closed on November 25, 2025, and generated gross proceeds of approximately $15.0 million before deducting placement agent fees and other offering costs. At December 31, 2025, all of the 3,520,000 pre-funded warrants remained outstanding. The Company paid the placement agent a cash fee of 7.0% of the gross proceeds received from investors that were not directors or executive officers of the Company and reimbursed up to $100,000 of legal and out-of-pocket expenses, resulting in total offering costs of approximately $1.2 million, which were recorded as a reduction of additional paid-in capital in accordance with ASC Topic 505, Accounting for Distributions to Shareholders with Components of Stock and Cash. Net proceeds from the offering were approximately $13.8 million. The Company used approximately $8.3 million of the net proceeds to repay outstanding indebtedness maturing December 7, 2025, and intends to use the remaining proceeds for working capital and general corporate purposes. Pre-Funded Warrants Each pre-funded warrant is exercisable at any time after the issuance date and until exercised in full, subject to certain beneficial ownership limitations that restrict the holder from exercising the warrant if such exercise would result in the holder beneficially owning more than 4.99% (or, at the holder’s election, up to 9.99% after 61 days’ notice) of the Company’s outstanding common stock. The pre-funded warrants are exercisable into a fixed number of shares for a fixed exercise price and do not contain cash settlement features outside the Company’s control. Accordingly, the pre-funded warrants were classified in equity in accordance with ASC Topic 480, Distinguishing Liabilities from Equity and ASC Topic 815 Derivatives and Hedging. The proceeds allocated to the pre-funded warrants were recorded in additional paid-in capital. Registration Rights In connection with the offering, the Company entered into a Registration Rights Agreement requiring it to file a resale registration statement covering the shares and the shares underlying the pre-funded warrants within 30 days after the signing date and to use commercially reasonable efforts to cause the registration statement to become effective within specified timeframes. The Registration Rights Agreement does not require cash penalties for failure to meet the filing or effectiveness deadlines; therefore, no liability was recorded in connection with these obligations. As of December 31, 2025, the registration statement has been filed.
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