| Restatement of Previously Issued Unaudited Condensed Consolidated Financial Statements |
Note 2. Restatement of Previously Issued Unaudited Condensed Consolidated Financial Statements During the preparation of the Company’s financial close for the quarter and year ended December 31, 2025, management identified errors in revenue recognition for certain network design and installation contracts accounted for under ASC 606 using the percentage‑of‑completion (“POC”) cost‑to‑cost input method. Nature of the Errors The errors resulted in an overstatement of revenue and a corresponding overstatement of unbilled receivables (a component of accounts receivable) in the periods presented. The aggregate overstatement was $1.4 million for the nine months ended September 30, 2025 ($0.5 million for the three months ended September 30, 2025). These errors did not affect the Company’s cash or cash flows from operations, and did not involve any intentional misconduct by the Company, its management, or its employees. Impact of the Restatement The following tables summarize the impact of the restatement on the Company’s previously issued unaudited condensed consolidated financial statements (in thousands, except share and per share data): Condensed Consolidated Balance Sheet as of September 30, 2025 (Excerpt) | | | | | | | | | | | | As Previously | | | | | | | | | Reported | | Adjustment | | As Restated | Accounts receivable | | $ | 4,564 | | $ | (1,391) | | $ | 3,173 | Total current assets | | $ | 7,593 | | $ | (1,391) | | $ | 6,202 | Total assets | | $ | 9,086 | | $ | (1,391) | | $ | 7,695 | Accumulated deficit | | $ | (10,912) | | $ | (1,391) | | $ | (12,303) | Total stockholders’ deficit | | $ | (5,053) | | $ | (1,391) | | $ | (6,444) | Total liabilities and stockholders’ deficit | | $ | 9,086 | | $ | (1,391) | | $ | 7,695 |
Condensed Consolidated Statement of Operations — Three Months Ended September 30, 2025 (Excerpt) | | | | | | | | | | | | As Previously | | | | | | | | | Reported | | Adjustment | | As Restated | Revenues | | $ | 5,248 | | $ | (471) | | $ | 4,777 | Network design and installation | | $ | 4,454 | | $ | (471) | | $ | 3,983 | Gross profit | | $ | 1,888 | | $ | (471) | | $ | 1,417 | Operating income (loss) | | $ | 118 | | $ | (471) | | $ | (353) | Loss from operations before income taxes | | $ | (167) | | $ | (471) | | $ | (638) | Net loss | | $ | (168) | | $ | (471) | | $ | (639) | Net loss per share, basic and diluted | | $ | (0.03) | | $ | (0.10) | | $ | (0.13) |
Condensed Consolidated Statement of Mezzanine Equity and Stockholders’ Deficit — Three Months Ended September 30, 2025 (Excerpt) | | | | | | | | | | | | As Previously | | | | | | | | | Reported | | Adjustment | | As Restated | Net loss | | $ | (168) | | $ | (471) | | $ | (639) | Accumulated deficit | | $ | (10,912) | | $ | (1,391) | | $ | (12,303) | Total stockholders’ deficit | | $ | (5,053) | | $ | (1,391) | | $ | (6,444) |
Condensed Consolidated Statement of Operations — Nine Months Ended September 30, 2025 (Excerpt) | | | | | | | | | | | | As Previously | | | | | | | | | Reported | | Adjustment | | As Restated | Revenues | | $ | 16,939 | | $ | (1,391) | | $ | 15,548 | Network design and installation | | $ | 14,990 | | $ | (1,391) | | $ | 13,599 | Gross profit | | $ | 4,872 | | $ | (1,391) | | $ | 3,481 | Operating loss | | $ | (71) | | $ | (1,391) | | $ | (1,462) | Loss from operations before income taxes | | $ | (542) | | $ | (1,391) | | $ | (1,933) | Net loss | | $ | (547) | | $ | (1,391) | | $ | (1,938) | Net loss per share, basic and diluted | | $ | (0.11) | | $ | (0.28) | | $ | (0.39) |
Condensed Consolidated Statement of Mezzanine Equity and Stockholders’ Deficit — Nine Months Ended September 30, 2025 (Excerpt) | | | | | | | | | | | | As Previously | | | | | | | | | Reported | | Adjustment | | As Restated | Net loss | | $ | (547) | | $ | (1,391) | | $ | (1,938) | Accumulated deficit | | $ | (10,912) | | $ | (1,391) | | $ | (12,303) | Total stockholders’ deficit | | $ | (5,053) | | $ | (1,391) | | $ | (6,444) |
Condensed Consolidated Statement of Cash Flows — Nine Months Ended September 30, 2025 (Excerpt) | | | | | | | | | | | | As Previously | | | | | | | | | Reported | | Adjustment | | As Restated | Net loss | | $ | (547) | | $ | (1,391) | | $ | (1,938) | Accounts receivable | | $ | (113) | | $ | 1,391 | | $ | 1,278 | Net cash used in operating activities | | $ | (1,308) | | $ | — | | $ | (1,308) |
Supplemental Quarterly Financial Information (Unaudited) The following tables present the impact of the restatement on the Company’s unaudited condensed consolidated statements of operations, changes in stockholders’ deficit, and cash flows for the three months ended March 31, 2025 (“Q1”), the three months ended June 30, 2025 (“Q2”), and the six months ended June 30, 2025 (“H1”). The following information is supplementally provided for completeness and to facilitate comparative analysis in future periodic reports. Condensed Consolidated Balance Sheet as of March 31, 2025 (Excerpt) | | | | | | | | | | | | As Previously | | | | | | | | | Reported | | Adjustment | | As Restated | Accounts receivable | | $ | 6,142 | | $ | (171) | | $ | 5,971 | Total current assets | | $ | 8,077 | | $ | (171) | | $ | 7,906 | Total assets | | $ | 9,526 | | $ | (171) | | $ | 9,355 | Accumulated deficit | | $ | (10,636) | | $ | (171) | | $ | (10,807) | Total stockholders’ deficit | | $ | (4,777) | | $ | (171) | | $ | (4,948) | Total liabilities and stockholders’ deficit | | $ | 9,526 | | $ | (171) | | $ | 9,355 |
Condensed Consolidated Statement of Operations — Three Months Ended March 31, 2025 (Q1) (Excerpt) | | | | | | | | | | | | As Previously | | | | | | | | | Reported | | Adjustment | | As Restated | Revenues | | $ | 5,617 | | $ | (171) | | $ | 5,446 | Network design and installation | | $ | 5,142 | | $ | (171) | | $ | 4,971 | Gross profit | | $ | 1,430 | | $ | (171) | | $ | 1,259 | Operating loss | | $ | (198) | | $ | (171) | | $ | (369) | Net loss | | $ | (271) | | $ | (171) | | $ | (442) | Net loss per share, basic and diluted | | $ | (0.05) | | $ | (0.04) | | $ | (0.09) |
Condensed Consolidated Statement of Mezzanine Equity and Stockholders’ Deficit — Three Months Ended March 31, 2025 (Q1) (Excerpt) | | | | | | | | | | | | As Previously | | | | | | | | | Reported | | Adjustment | | As Restated | Net loss | | $ | (271) | | $ | (171) | | $ | (442) | Accumulated deficit | | $ | (10,636) | | $ | (171) | | $ | (10,807) | Total stockholders’ deficit | | $ | (4,777) | | $ | (171) | | $ | (4,948) |
Condensed Consolidated Statement of Cash Flows — Three Months Ended March 31, 2025 (Q1) (Excerpt) | | | | | | | | | | | | As Previously | | | | | | | | | Reported | | Adjustment | | As Restated | Net loss | | $ | (271) | | $ | (171) | | $ | (442) | Accounts receivable | | $ | (1,691) | | $ | 171 | | $ | (1,520) | Net cash used in operating activities | | $ | (1,536) | | $ | — | | $ | (1,536) |
Condensed Consolidated Balance Sheet as of June 30, 2025 (Excerpt) | | | | | | | | | | | | As Previously | | | | | | | | | Reported | | Adjustment | | As Restated | Accounts receivable | | $ | 6,953 | | $ | (920) | | $ | 6,033 | Total current assets | | $ | 9,051 | | $ | (920) | | $ | 8,131 | Total assets | | $ | 10,545 | | $ | (920) | | $ | 9,625 | Accumulated deficit | | $ | (10,744) | | $ | (920) | | $ | (11,664) | Total stockholders’ deficit | | $ | (4,885) | | $ | (920) | | $ | (5,805) | Total liabilities and stockholders’ deficit | | $ | 10,545 | | $ | (920) | | $ | 9,625 |
Condensed Consolidated Statement of Operations — Three Months Ended June 30, 2025 (Q2) (Excerpt) | | | | | | | | | | | | As Previously | | | | | | | | | Reported | | Adjustment | | As Restated | Revenues | | $ | 6,074 | | $ | (748) | | $ | 5,326 | Network design and installation | | $ | 5,394 | | $ | (748) | | $ | 4,646 | Gross profit | | $ | 1,554 | | $ | (748) | | $ | 806 | Operating income (loss) | | $ | 9 | | $ | (748) | | $ | (739) | Net loss | | $ | (108) | | $ | (748) | | $ | (857) | Net loss per share, basic and diluted | | $ | (0.02) | | $ | (0.15) | | $ | (0.17) |
Condensed Consolidated Statement of Mezzanine Equity and Stockholders’ Deficit — Three Months Ended June 30, 2025 (Q2) (Excerpt) | | | | | | | | | | | | As Previously | | | | | | | | | Reported | | Adjustment | | As Restated | Net loss | | $ | (108) | | $ | (748) | | $ | (857) | Accumulated deficit | | $ | (10,744) | | $ | (920) | | $ | (11,664) | Total stockholders’ deficit | | $ | (4,885) | | $ | (920) | | $ | (5,805) |
Condensed Consolidated Statement of Operations — Six Months Ended June 30, 2025 (H1) (Excerpt) | | | | | | | | | | | | As Previously | | | | | | | | | Reported | | Adjustment | | As Restated | Revenues | | $ | 11,691 | | $ | (920) | | $ | 10,771 | Network design and installation | | $ | 10,536 | | $ | (920) | | $ | 9,616 | Gross profit | | $ | 2,984 | | $ | (920) | | $ | 2,064 | Operating loss | | $ | (189) | | $ | (920) | | $ | (1,109) | Net loss | | $ | (379) | | $ | (920) | | $ | (1,299) | Net loss per share, basic and diluted | | $ | (0.08) | | $ | (0.18) | | $ | (0.26) |
Condensed Consolidated Statement of Mezzanine Equity and Stockholders’ Deficit — Six Months Ended June 30, 2025 (H1) (Excerpt) | | | | | | | | | | | | As Previously | | | | | | | | | Reported | | Adjustment | | As Restated | Net loss | | $ | (379) | | $ | (920) | | $ | (1,299) | Accumulated deficit | | $ | (10,744) | | $ | (920) | | $ | (11,664) | Total stockholders’ deficit | | $ | (4,885) | | $ | (920) | | $ | (5,805) |
Condensed Consolidated Statement of Cash Flows — Six Months Ended June 30, 2025 (H1) (Excerpt) | | | | | | | | | | | | As Previously | | | | | | | | | Reported | | Adjustment | | As Restated | Net loss | | $ | (379) | | $ | (920) | | $ | (1,299) | Accounts receivable | | $ | (2,502) | | $ | 920 | | $ | (1,582) | Net cash used in operating activities | | $ | (1,450) | | $ | — | | $ | (1,450) |
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