12. SUBSEQUENT EVENTS

The Company has evaluated subsequent events from the balance sheet date through the date at which the condensed consolidated and combined financial statements were available to be issued, and there are no other items requiring disclosure except the following:

In July 2021 the Company entered into an at-will amended and restated employment agreement with its President, which extended the term of his employment agreement to June 2024.

In August 2021, the Company adopted the 2021 Inducement Plan (“the Plan”). Under the 2021 Inducement Plan, the Company can grant stock options and stock awards. There are 500,000 shares of common stock reserved for issuance under the Plan. During August 2021, the Company issued 50,000 unrestricted shares of common stock; fully vested five-year stock options to purchase 150,000 shares at an exercise price of $2.50 per share; and five-year stock options to purchase an aggregate of 300,000 shares, 100,000 of which are exercisable at $0.56 per share, 100,000 of which are exercisable at $0.81 per share and 100,000 of which are exercisable at $1.08 per share.