NOTE 9: ELO TRANSACTION

It was determined that the Company possesses the ability to exercise significant influence over the operating and financial policies of Elo, an independent entity as of December 2021. Accordingly, the Company accounts for its investment in Elo under the equity method.

The Company owned approximately 26% of Elo’s voting shares outstanding as of December 31, 2024. In February 2025, Elo raised additional funding from its Series A-2 financing. The Company recognized a $2.3 million gain on dilution under the equity method during the three months ended March 31, 2025. The Company owned approximately 22% of Elo’s voting shares outstanding as of March 31, 2025. The Company’s proportionate share of Elo’s net loss for the three months ended March 31, 2025 and 2024 was $0.9 million and $1.0 million, respectively.

Note Receivable

The Company received common stock in Elo and a $10.0 million promissory note payable from Elo (the “Note Receivable”) which matures on the earlier of (i) December 1, 2028 or (ii) a Deemed Liquidation Event (as defined in the Elo’s Amended and Restated Certificate of Incorporation). As of March 31, 2025, the carrying value of the Note Receivable was $6.2 million including a $0.9 million decrease in the carrying value as a result of equity method investment losses. The remaining $3.8 million discount on the Note Receivable will be amortized to interest income over the life of the Note Receivable.