Note 15 – Common Stock Warrants

The Company evaluated the warrants under ASC 815 and determined that they meet the criteria for equity classification.

Issuance of Warrants

On November 14, 2025, the Company issued warrants to purchase 41,384 shares of its common stock in connection with an underwritten offering of common stock. The warrants fully vest on May 13, 2026. The warrants are exercisable at an exercise price of $3.00 per share and expire on November 14, 2030. The warrants are classified as equity and were recorded to additional paid-in capital at their estimated fair value on the issuance date, determined using the Black-Scholes option pricing model.

The issuance of these warrants did not result in the receipt of additional cash proceeds beyond those received in the related financing transaction. Refer to Note 13 – Changes in Stockholders’ Equity, for additional information on the offering relating to the issuance of these warrants.

Exercise of Warrants

During the year ended December 31, 2025, warrants to purchase 1,504,844 shares were exercised, resulting in aggregate cash proceeds of $1,500,799.

The aggregate intrinsic value of warrants exercised during 2025 was $1,756,000.

On June 4, 2025, Kaufman Kapital exercised warrants to purchase 1,000,000 shares of the Company’s common stock at an exercise price of $1.00 per share, resulting in cash proceeds of $1,000,000. These warrants were originally issued in connection with the Kaufman Kapital Senior Secured Convertible Note.

Warrants from other series were exercised for the purchase of an aggregate of 504,844 shares of the Company’s common stock at exercise prices ranging from $0.96 to $1.00 per share, resulting in aggregate cash proceeds of $500,799. These exercises included 362,500 shares related to the Eagle Vision Senior Secured Note at an exercise price of $1.00 per share and 101,128 shares related to underwriter warrants issued in connection with a secondary offering at an exercise price of $0.96 per share.

In total, warrants were exercised at a weighted-average exercise price of approximately $1.00 per share during the year ended December 31, 2025.

Refer to Note 12 – Debt for additional information regarding the Kaufman Kapital Senior Secured Convertible Note and Eagle Vision Senior Secured Note.

Modified Warrant

On June 4, 2025, the Company amended certain warrants to extend their contractual term. The modification was accounted for as an equity-classified warrant modification, and the incremental fair value of $32,099 resulting from the extension was recognized as an increase to additional paid-in capital. No other material terms, including exercise price or number of shares issuable, were changed as part of the amendment.

 Schedule of Warrant Activity

The remaining contractual life of outstanding warrants ranges from 1 to 8.7 years.