Related Party Transactions |
9 Months Ended |
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Jun. 30, 2026 | |
| Related Party Transactions | |
| Related Party Transactions |
16. Related Party Transactions
On January 3, 2025, the Company entered into an employment agreement with the former CEO and one of the former shareholders of Hornet. As part of the Purchase Agreement, the Company issued Promissory Notes to the former CEO and his spouse, the other shareholder, in the amounts of $160 and $240, representing their respective portions of this purchase consideration based on their percentage of Hornet’s stock ownership prior to the acquisition. Payments on the Promissory Notes were to be made annually in two equal installments on the first and second anniversaries of the issuance date. Amounts payable under the Promissory Notes were contingent upon the achievement of minimum average gross profit (“AGP”) requirements by Hornet, as disclosed in more detail under Note 2.
The first installments of the Promissory Notes were entirely eliminated as of December 31, 2025 due to the minimum AGP requirements not being met. The second installments of the Promissory Notes were entirely eliminated as of June 30, 2026 due to determination that the minimum AGP requirements can no longer be met under the terms of the Purchase Agreement. No payments are required to be made to Hornet’s former shareholders on the Promissory Notes, accordingly. |
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- References No definition available.
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- Definition The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates. Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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