16. Subsequent Events

February 2023 Public Offering

On February 10, 2023, the Company closed on a public offering of 2,150,000 units, with each unit consisting of one share of common stock, or one pre-funded warrant to purchase one share of its common stock, one Class C Warrant with each warrant to purchase one share of common stock, and one half of one Class D Warrant with each whole warrant to purchase one share of common stock. Each unit was sold at a public offering price of $5.60. The Class C and Class D Warrants in the units are immediately exercisable at a price of $5.60 per share. The Class C Warrants expire five years from the date of issuance and the Class D Warrants expire three years from the date of issuance. The shares of common stock (or pre-funded warrants in lieu thereof) and accompanying warrants were only purchasable together in this offering but were issued separately and were immediately separable upon issuance. In addition, the company issued a total of 86,000 common stock warrants to the placement agent, Maxim Group, and Ascendiant Capital. Gross proceeds, before deducting placement agent fees and other offering expenses, were approximately $12.0 million, ($10.9 million net). All proceeds were allocated to a derivative liability.

Amendment to Equity Distribution Agreement

On January 10, 2023, The Company entered into an amendment to our Equity Distribution Agreement (the “Distribution Agreement”) with Maxim, pursuant to which the expiration date of the Distribution Agreement was extended to the earlier of: (i) the sale of shares having an aggregate offering price of $15.0 million, (ii) the termination by either Maxim or the Company upon the provision of fifteen (15) days written notice, or (iii) February 25, 2024. No other changes were made to the terms of the Distribution Agreement. Because the company’s public float is less than $75 million, we may not sell securities over a 12 month period in an amount greater than one-third of our public, or approximately $3.27 million, based on a share price of $2.68 on March 3, 2023.

NASDAQ Compliance

On January 6, 2023, the Company received notification from the NASDAQ Listing Qualifications Staff notifying the Company that it has regained compliance with NASDAQ’s minimum bid price requirements for continued listing on the Nasdaq Capital Market. The notification indicated that because the closing bid price of the Company’s common stock having been at $1.00 per share or greater for at least ten consecutive business days, from December 20, 2022 to January 4, 2023, the Company has regained compliance with Listing Rule 5550(a)(2) and the matter is now closed.

SINTX Armor Facility

On February 28, 2023, the Company announced that equipment installation along with key renovations and upgrades to its SINTX Armor facility in Salt Lake City are complete.