11. Subsequent Events

Lease Amendment

On October 5, 2023, the Company entered into a Second Amendment to Centrepointe Business Park Lease Agreement (the “2nd Amendment”), for its Salt Lake City, UT facility. The 2nd Amendment extends the term of lease to October 31, 2031 and expands the rental square feet by 1,230 rental square feet. The Company also has one five-year extension option and a right of first offer on additional lease space that may become available during the term of the lease.

Equipment Failure

On October 6, 2023, a furnace used in the Armor manufacturing operations overheated and is no longer functional. Management continues to evaluate the extent of the damage to the furnace. In addition, management is coordinating with the Company’s insurance carrier and has filed a claim to cover the cost of either repairing or replacing the furnace. Further, management is working with third parties to temporarily outsource the sintering process and, therefore, does not expect a significant decrease in long-term production capacity. No assurance can be given that the Company’s insurance carrier will cover the cost of repairing or replacing the furnace or that the Company will be successful in temporarily outsourcing the sintering process. Failure to obtain insurance proceeds to cover the claim or to outsource the sintering process could have an adverse effect on the operations of our armor business.

National Institutes of Health Grant

On October 11, 2023, the Company was awarded a Phase II grant of approximately $2.0 million by the National Institutes of Health (NIH) to develop a 3D printed composite silicon nitride – polyetheretherketone (SN-PEEK) spinal implant. The approximate $2.0 million award is to be used over two years to support research and development objectives. This represents the fourth NIH grant awarded to SINTX since the Phase I award for this project was received in September of 2021.

S-3 Registration Statement

On October 12, 2023, the Company filed a shelf registration statement on Form S-3 (the “Shelf Registration Statement”) with the SEC registering the sale, from time-to-time of up to $75 million of our securities. In connection with the Shelf Registration Statement, the Company amended our equity distribution agreement with Maxim and filed a prospectus covering the offering, issuance and sale of up to a maximum of $1.7 million shares of our common stock. The Company is under no obligation to sell any securities under the Shelf Registration Statement or the equity distribution agreement with Maxim.

NASDAQ Notification

On October 20, 2023, the Company received a notice from Nasdaq Listing Qualifications department (the “Staff”) of the Nasdaq Stock Market LLC (“Nasdaq”) stating that the bid price of the Company’s common stock for the last 30 consecutive trading days had closed below the minimum $1.00 per share required for continued listing under Listing Rule 5550(a)(2).

The Nasdaq notification letter does not result in the immediate delisting of the Company’s common stock, and the stock will continue to trade uninterrupted on the The Nasdaq Capital Market under the symbol “SINT”.

If the Company does not regain compliance with Rule 5550(a)(2) by April 17, 2024, the Company may be eligible for additional time. To qualify, the Company will be required to meet the continued listing requirement for market value of publicly held shares and all other initial listing standards for The Nasdaq Capital Market, with the exception of the bid price requirement, and will need to provide written notice of its intention to cure the deficiency during the second compliance period, by effecting a reverse stock split, if necessary. If the Company meets these requirements, the Staff will inform the Company that it has been granted an additional 180 calendar days. However, if it appears to the Staff that the Company will not be able to cure the deficiency, or if the Company is otherwise not eligible, the Staff will provide notice that its securities will be subject to delisting.

The Company intends to actively monitor the closing bid price for its common stock and will consider available options to resolve the deficiency and regain compliance with Nasdaq Listing Rule 5550(a)(2).

Registered Offering on Form S-1 Registration Statement

On October 23, 2023, the Company filed a registration statement on Form S-1 with the SEC registering the offering, on a best-efforts basis, of up to 8,904,719 units (the “Units”), each consisting of one share of common stock and one Class E Warrant to purchase one share of common stock (the “Class E Warrants”), at an assumed public offering price of $0.5615 per Unit, equal to the closing price of our common stock on the Nasdaq Capital Market, or Nasdaq, on October 19, 2023. The public offering price for the Units in this offering will be determined at the time of pricing, and may be at a discount to the then current market price. Therefore, the assumed combined public offering price may not be indicative of the final offering price. We have engaged Maxim Group LLC as our exclusive placement agent (“Maxim” or the “placement agent”) to use its reasonable best efforts to solicit offers to purchase our securities in this offering.

The foregoing description does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor will there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.