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10-K true 2025-12-31 --12-31 false 000-52140 TURNONGREEN, INC. NV 90-1104713 2030 Ringwood Ave. San Jose CA 95035 510 657-2635 No No Yes Yes Non-accelerated Filer true false false false false 987805 183983122 None Information Security Program <span class="xdx_phnt_RGlzY2xvc3VyZSAtIEN5YmVyc2VjdXJpdHkgUmlzayBNYW5hZ2VtZW50IGFuZCBTdHJhdGVneSBEaXNjbG9zdXJlAA__" id="xdx_904_ecyd--CybersecurityRiskManagementProcessesIntegratedFlag_dbT_c20250101__20251231_zSVa9nPmQ62h"><span class="xdx_phnt_RGlzY2xvc3VyZSAtIEN5YmVyc2VjdXJpdHkgUmlzayBNYW5hZ2VtZW50IGFuZCBTdHJhdGVneSBEaXNjbG9zdXJlAA__" id="xdx_90B_ecyd--CybersecurityRiskManagementProcessesIntegratedTextBlock_c20250101__20251231_zRxS2hA7tPb7">Our information security organization safeguards the confidentiality, integrity, and availability of our systems, services, and data. We employ internal and external security and technology professionals and continue to invest in resources to address evolving cybersecurity threats. Oversight of our cybersecurity program is provided by designated management personnel and, where appropriate, reported to our board of directors or relevant committees. Cybersecurity Risk Management and Strategy We maintain a cybersecurity risk management program designed to identify, assess, and manage risks to our critical systems, data, and operations. Our program incorporates elements of recognized industry frameworks, including guidance from the National Institute of Standards and Technology (“NIST”), which we use as a reference in evaluating and enhancing our cybersecurity practices. Our cybersecurity risk management processes include: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"> <td style="width: 0.25in"></td><td style="width: 0.25in">·</td><td style="text-align: justify">Risk Identification: Ongoing identification of potential cybersecurity threats across our systems, operations, personnel, and third-party service providers, informed by threat intelligence and industry trends.</td></tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"> <td style="width: 0.25in"></td><td style="width: 0.25in">·</td><td style="text-align: justify">Risk Assessment: Periodic evaluation of our exposure to identified risks and the effectiveness of existing controls.</td></tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"> <td style="width: 0.25in"></td><td style="width: 0.25in">·</td><td style="text-align: justify">Risk Mitigation and Response: Implementation of security measures and remediation plans to address identified risks, including tracking and resolution of vulnerabilities.</td></tr></table> We also consider cybersecurity risks associated with third-party vendors and service providers as part of our overall risk management framework. To date, cybersecurity risks have not materially affected our business strategy, results of operations, or financial condition. However, due to the evolving nature of cybersecurity threats, we may in the future experience incidents that could materially adversely affect our business, results of operations, or financial condition. true Our information security organization safeguards the confidentiality, integrity, and availability of our systems, services, and data. We employ internal and external security and technology professionals and continue to invest in resources to address evolving cybersecurity threats. Cybersecurity Governance <span class="xdx_phnt_RGlzY2xvc3VyZSAtIEN5YmVyc2VjdXJpdHkgUmlzayBNYW5hZ2VtZW50IGFuZCBTdHJhdGVneSBEaXNjbG9zdXJlAA__" id="xdx_90F_ecyd--CybersecurityRiskManagementPositionsOrCommitteesResponsibleFlag_dbT_c20250101__20251231_zPDxezfHsite"><span class="xdx_phnt_RGlzY2xvc3VyZSAtIEN5YmVyc2VjdXJpdHkgUmlzayBNYW5hZ2VtZW50IGFuZCBTdHJhdGVneSBEaXNjbG9zdXJlAA__" id="xdx_90C_ecyd--CybersecurityRiskManagementPositionsOrCommitteesResponsibleTextBlock_c20250101__20251231_zvLT6qKWPNa6">Management is responsible for the Company’s cybersecurity risk management program including the identification, assessment, mitigation, and remediation of cybersecurity risks. <span class="xdx_phnt_RGlzY2xvc3VyZSAtIEN5YmVyc2VjdXJpdHkgUmlzayBNYW5hZ2VtZW50IGFuZCBTdHJhdGVneSBEaXNjbG9zdXJlAA__" id="xdx_902_ecyd--CybersecurityRiskProcessForInformingBoardCommitteeOrSubcommitteeResponsibleForOversightTextBlock_c20250101__20251231_zO9ITrMUOWJh">Oversight of the Company’s cybersecurity program is led by the CEO, who is responsible for cybersecurity strategy, policies, standards, architecture, and processes. <span class="xdx_phnt_RGlzY2xvc3VyZSAtIEN5YmVyc2VjdXJpdHkgUmlzayBNYW5hZ2VtZW50IGFuZCBTdHJhdGVneSBEaXNjbG9zdXJlAA__" id="xdx_90E_ecyd--CybersecurityRiskBoardCommitteeOrSubcommitteeResponsibleForOversightTextBlock_c20250101__20251231_zGxQbp6LJ6J7">The Company’s board of directors has oversight responsibility for cybersecurity risk and receives periodic reports from the CEO regarding cybersecurity risks, threat trends, and initiatives to strengthen the Company’s information security systems. <span class="xdx_phnt_RGlzY2xvc3VyZSAtIEN5YmVyc2VjdXJpdHkgUmlzayBNYW5hZ2VtZW50IGFuZCBTdHJhdGVneSBEaXNjbG9zdXJlAA__" id="xdx_904_ecyd--CybersecurityRiskMateriallyAffectedOrReasonablyLikelyToMateriallyAffectRegistrantFlag_dbT_c20250101__20251231_zoOy9HooGuWb"><span class="xdx_phnt_RGlzY2xvc3VyZSAtIEN5YmVyc2VjdXJpdHkgUmlzayBNYW5hZ2VtZW50IGFuZCBTdHJhdGVneSBEaXNjbG9zdXJlAA__" id="xdx_90A_ecyd--CybersecurityRiskMateriallyAffectedOrReasonablyLikelyToMateriallyAffectRegistrantTextBlock_c20250101__20251231_zKdu0LIhIv5d">The board of directors is also informed of material cybersecurity incidents in accordance with the Company’s incident response procedures and receives updates, as appropriate, on incidents that may have a lesser impact. The Company maintains a cybersecurity incident response plan designed to facilitate timely identification, escalation, and management of cybersecurity incidents. In addition, the Company provides regular cybersecurity and data protection training to its employees, covering topics such as phishing, social engineering, password security, protection of confidential information, and secure use of company systems. These programs are intended to promote awareness of cybersecurity risks and reinforce the importance of timely reporting of potential incidents true Management is responsible for the Company’s cybersecurity risk management program including the identification, assessment, mitigation, and remediation of cybersecurity risks. Oversight of the Company’s cybersecurity program is led by the CEO, who is responsible for cybersecurity strategy, policies, standards, architecture, and processes. The Company’s board of directors has oversight responsibility for cybersecurity risk and receives periodic reports from the CEO regarding cybersecurity risks, threat trends, and initiatives to strengthen the Company’s information security systems. true The board of directors is also informed of material cybersecurity incidents in accordance with the Company’s incident response procedures and receives updates, as appropriate, on incidents that may have a lesser impact. 199 688 CBIZ CPAs P.C. New York, NY Marcum llp New York, NY

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1. DESCRIPTION OF BUSINESS Overview TurnOnGreen, Inc., a Nevada corporation (“TOG”), through its wholly owned subsidiaries Digital Power Corporation (“Digital Power”) and TOG Technologies Inc. (“TOGT,” and together with Digital Power, the “Company”), is an emerging provider of premium power electronic and electric vehicle (“EV”) charging solutions. The Company designs, develops, manufactures, and sells highly engineered, feature-rich, high-grade power conversion systems and power solutions for mission-critical, life-sustaining, and lifesaving applications across a variety of sectors, particularly those operating in demanding and harsh environments. We serve a broad range of markets, including defense and aerospace, medical and healthcare, industrial applications, telecommunications, e-Mobility, and OEM solutions. Our products are highly adaptive, featuring customized firmware meticulously configured to meet the specific requirements and challenges of our customers’ applications. In addition, we provide comprehensive EV charging infrastructure and subscription-based charging network management services for residential, fleet, hospitality, workplace, healthcare, municipal, and educational environments including universities and schools.

2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying consolidated financial statements are presented in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). References to GAAP issued by the Financial Accounting Standards Board (“FASB”) in these notes to the consolidated financial statements are to the FASB Accounting Standards Codification (“ASC”). The consolidated financial statements include the accounts of the Company and its subsidiaries, and all intercompany transactions have been eliminated in consolidation. All significant intercompany accounts have been eliminated in consolidation. Accounting Estimates The preparation of financial statements, in conformity with GAAP, requires management to make estimates, judgments and assumptions. The Company’s management believes that the estimates, judgments, and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. Key estimates include net realizable inventory value and useful lives of asset. Revenue Recognition The Company recognizes revenue under ASC 606, Revenue from Contracts with Customers. The core principle of the revenue standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The following five steps are applied to achieve that core principle: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"> <td style="width: 0.25in"></td><td style="width: 0.25in">·</td><td style="text-align: justify">Step 1: Identify the contract with the customer,</td></tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"> <td style="width: 0.25in"></td><td style="width: 0.25in">·</td><td style="text-align: justify">Step 2: Identify the performance obligations in the contract,</td></tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"> <td style="width: 0.25in"></td><td style="width: 0.25in">·</td><td style="text-align: justify">Step 3: Determine the transaction price,</td></tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"> <td style="width: 0.25in"></td><td style="width: 0.25in">·</td><td style="text-align: justify">Step 4: Allocate the transaction price to the performance obligations in the contract, and</td></tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"> <td style="width: 0.25in"></td><td style="width: 0.25in">·</td><td style="text-align: justify">Step 5: Recognize revenue when the company satisfies a performance obligation.</td></tr></table> The Company recognizes revenue primarily from four different types of contracts: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"> <td style="width: 0.25in"></td><td style="width: 0.25in">·</td><td style="text-align: justify">Product sales and installation - The Company generates revenues from the sale of its products through a direct and indirect sales force and primarily receives fixed consideration for sales of products. Some contracts contain a combination of product sales with a service such as installation of the products, which is expected to be performed in the near term. Such services are distinct and accounted for as separate performance obligations. For sales, the Company’s performance obligations to deliver products are satisfied at the point in time when products are shipped to the customer, which is when the customer obtains control over the goods. The installation service on these types of contracts is usually completed within six to twelve weeks.</td></tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"> <td style="width: 0.25in"></td><td style="width: 0.25in">·</td><td style="text-align: justify">The Company recognizes installation service revenue over time using the cost-to-cost measure of progress, which measures an installation obligation’s progress toward completion based on the ratio of actual contract costs incurred to date to the Company’s estimated costs at completion. Significant judgment may be required by management in the cost estimation process for these contracts, which is based on the knowledge and experience of the Company’s project managers, subcontractors and financial professionals. Total estimated costs to complete projects include direct labor, material, permits and subcontractor costs.</td></tr></table> The Company also provides standard assurance warranties on product functionality, which are not separately priced or considered material. Some of the Company’s contracts with distributors include stock rotation rights after six months for slow-moving inventory, which represents variable consideration. The Company uses an expected value method to estimate variable consideration and constrains revenue for estimated stock rotations until it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur. To date, returns have been insignificant. Because the Company’s product sales agreements have an expected duration of one year or less, the Company has elected to adopt the practical expedient in ASC 606-10-50-14(a) of not disclosing information about its remaining performance obligations. Sales Tax Collected from Customers As a part of the Company’s normal course of business, sales taxes are collected from customers in accordance with local regulations. Sales taxes collected are remitted, in a timely manner, to the appropriate governmental tax authority on behalf of the customer. The Company’s policy is to present revenue and costs net of sales taxes. Deferred Revenue Deferred revenue consists of billings on contracts where performance has commenced, and payments have been received in advance of revenue recognition. Deferred revenue is recognized in revenue as the related revenue recognition criteria are met. Cash and Cash Equivalents The Company’s cash is maintained in checking accounts with reputable financial institutions. These balances may, at times, exceed the U.S. Federal Deposit Insurance Corporation insurance limits. As of December 31, 2025, the Company had cash of $65,000. The Company has not experienced any losses on deposits of cash and cash equivalents. Accounts Receivable and Allowance for Credit Losses The Company’s receivables are recorded when invoiced and represent claims against third parties that will be settled in cash. The Company records accounts receivable at the invoiced amount less an allowance for any potentially uncollectible accounts under the current expected credit loss impairment model and discloses the net amount of the financial instrument expected to be collected. The Company estimates the allowance for credit losses based on an ongoing review of existing economic conditions, the financial conditions of the customers, historical trends in credit losses, and the amount and age of past due accounts. Past-due receivable balances are written off when the Company’s internal collection efforts have been unsuccessful in collecting the amount due. Leases The Company accounts for its leases under ASC 842, Leases. Under this guidance, arrangements meeting the definition of a lease are classified as operating or financing leases. Operating leases are recognized as Right-of-use (“ROU”) assets, Operating lease liability, current, and Operating lease liability, non-current on the consolidated balance sheets. Lease assets and liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of the leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. In certain of the lease agreements, the Company receives rent holidays and other incentives. The Company recognizes lease costs on a straight-line basis over the lease term without regard to deferred payment terms, such as rent holidays, that defer the commencement date of required payments. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Leasehold improvements are capitalized at cost and amortized over the lesser of their expected useful life or the life of the lease, without assuming renewal features, if any, are exercised. The Company elected the practical expedient in ASC 842 and does not separate lease and non-lease components for any of its leases. Inventory Inventories, inclusive of raw materials and finished goods, are valued at the lower cost or net realizable value after using the first-in, first-out method. Management compares the cost of inventory with the net realizable value and adjustments are made for writing down inventory to net realizable value, if lower. The Company periodically assesses its inventories valuation with respect to obsolete items by reviewing revenue forecasts and technological obsolescence and moving such items into a reserve for obsolescence. When inventories on hand exceed the foreseeable demand or become obsolete, the value of excess inventory, which at the time of the review was not expected to be sold, is written off. Property and Equipment, Net Property and equipment are stated at cost, net of accumulated depreciation. Major additions and improvements are capitalized, while replacements, maintenance and repairs, which do not improve or extend the life of the respective assets, are expensed as incurred. When property and equipment is retired or otherwise disposed of the cost and accumulated depreciation are removed from the related accounts and any resulting gain or loss is included in the results of operations for the respective period. Warranty The Company offers a warranty period for all its manufactured products to function free from defects in material and workmanship under normal use and service for one to two years on most products and up to five years for rugged power products for the defense and aerospace markets. For the Company’s electric vehicle supply equipment product line, the Company offers up to a three-year extended warranty beyond the manufacturing warranty period, although not considered material to its revenue stream. The Company also provides end user technical support for up to fifteen (15) years on many of its products that have long lifetimes. The Company estimates the costs that may be incurred under its warranty and records a liability in the amount of such costs at the time product revenue is recognized. Factors that affect the Company’s warranty liability include the number of units sold, the sector product being used, historical rates of warranty claims, and cost per claim. The Company periodically assesses the adequacy of its recorded warranty liability. Litigation The Company records an undiscounted liability for contingent losses, including future legal costs, settlements and judgments, when it considers it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Income Taxes The Company determines its income taxes under the asset and liability method in accordance with ASC No. 740, Income Taxes, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are based on the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the fiscal year in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more likely than not that the assets will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the fiscal years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the Consolidated Statements of Operations in the period that includes the enactment date. The Company accounts for uncertain tax positions in accordance with ASC No. 740-10-25. ASC No. 740-10-25 addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under ASC No. 740-10-25, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefit to be recognized is measured as the largest amount of benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. To the extent that the final tax outcome of these matters is different than the amount recorded, such differences impact income tax expense in the period in which such determination is made. Interest and penalties, if any, related to accrued liabilities for potential tax assessments are included in income tax expense. ASC No. 740-10-25 also requires management to evaluate tax positions taken by the Company and recognize a liability if the Company has taken uncertain tax positions that more likely than not would not be sustained upon examination by applicable taxing authorities. Management of the Company has evaluated tax positions taken by the Company and has concluded that as of December 31, 2025, and December 31, 2024, there were no uncertain tax positions taken, or expected to be taken, that would require recognition of a liability that would require disclosure in the financial statements. Impairment of Long-lived Assets The Company analyzes its long-lived assets for potential impairment at least annually or when changes in circumstances indicate a possibility of impairment. Impairment losses are recorded on long-lived assets when indicators of impairment are present. When the carrying value of an asset exceeds the associated undiscounted expected future cash flows, it is considered to be impaired and is written down to fair value. Segments The Company determined that its two primary brands constitute its two operating segments. However, the Company’s operating segments continue to be aggregated into one reportable segment based on the similarity in economic characteristics, other qualitative factors and the objectives and principles of ASC 280, Segment Reporting. Receivables and Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and trade receivables. Trade receivables of the Company and its subsidiaries are mainly derived from sales to customers located primarily in the U.S. The Company performs ongoing credit evaluations of its customers and to date has not experienced any material losses. Preferred Shares The Company applies the accounting standards for distinguishing liabilities from equity when determining the classification and measurement of its preferred stock. Preferred shares subject to mandatory redemption are classified as liability instruments and are measured at fair value. Conditionally redeemable preferred shares (including preferred shares that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control) are classified as temporary equity. New Accounting Guidance – Recently Adopted On November 27, 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. ASU 2023-07 is designed to improve the reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses that are regularly provided to the chief operating decision maker. The new standard is effective for the Company for the fiscal year beginning after 15 December 2023, and interim periods within fiscal years beginning after 15 December 2024. The Company adopted ASU No. 2023-07 during the fiscal year ended December 31, 2024, and the adoption did not result in any material changes to the consolidated financial statements. On December 14, 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09 requires entities to disclose specific rate reconciliations, amount of income taxes separated by federal and individual jurisdiction, and the amount of income (loss) from continuing operations before income tax expense (benefit) disaggregated between federal, state, and foreign. The Company retrospectively adopted ASU 2023-09 as required for the year ending December 31, 2025. The adoption of ASU 2023-09 did not have a material impact on the Company’s consolidated financial position, results of operations, or cash flows, as the standard primarily expands disclosure requirements. Recent Accounting Pronouncements not yet Adopted The Company continually assesses any new accounting pronouncements to determine their applicability. When it is determined that a new accounting pronouncement may affect the Company’s financial reporting, the Company undertakes an analysis to determine any required changes to its Consolidated Financial Statements. In December 2024, the FASB issued ASU No. 2024-03, Income Statement - Reporting Comprehensive Income- Expense Disaggregation Disclosures (ASU 2024-03). ASU 2024-03 requires disclosure of specific information about certain costs and expenses in the notes to its financial statements for interim and annual reporting periods. The objective of the disclosure requirements is to provide disaggregated information to help financial statement users (a) better understand the Company’s performance, (b) better assess the Company’s prospects for future cash flows, and (c) compare the Company’s performance over time and with that of other entities. ASU 2024-03 is effective for annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. We are currently evaluating the impact that this guidance will have on our consolidated financial statements.

Basis of Presentation The accompanying consolidated financial statements are presented in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). References to GAAP issued by the Financial Accounting Standards Board (“FASB”) in these notes to the consolidated financial statements are to the FASB Accounting Standards Codification (“ASC”). The consolidated financial statements include the accounts of the Company and its subsidiaries, and all intercompany transactions have been eliminated in consolidation. All significant intercompany accounts have been eliminated in consolidation.

Accounting Estimates The preparation of financial statements, in conformity with GAAP, requires management to make estimates, judgments and assumptions. The Company’s management believes that the estimates, judgments, and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. Key estimates include net realizable inventory value and useful lives of asset.

Revenue Recognition The Company recognizes revenue under ASC 606, Revenue from Contracts with Customers. The core principle of the revenue standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The following five steps are applied to achieve that core principle: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"> <td style="width: 0.25in"></td><td style="width: 0.25in">·</td><td style="text-align: justify">Step 1: Identify the contract with the customer,</td></tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"> <td style="width: 0.25in"></td><td style="width: 0.25in">·</td><td style="text-align: justify">Step 2: Identify the performance obligations in the contract,</td></tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"> <td style="width: 0.25in"></td><td style="width: 0.25in">·</td><td style="text-align: justify">Step 3: Determine the transaction price,</td></tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"> <td style="width: 0.25in"></td><td style="width: 0.25in">·</td><td style="text-align: justify">Step 4: Allocate the transaction price to the performance obligations in the contract, and</td></tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"> <td style="width: 0.25in"></td><td style="width: 0.25in">·</td><td style="text-align: justify">Step 5: Recognize revenue when the company satisfies a performance obligation.</td></tr></table> The Company recognizes revenue primarily from four different types of contracts: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"> <td style="width: 0.25in"></td><td style="width: 0.25in">·</td><td style="text-align: justify">Product sales and installation - The Company generates revenues from the sale of its products through a direct and indirect sales force and primarily receives fixed consideration for sales of products. Some contracts contain a combination of product sales with a service such as installation of the products, which is expected to be performed in the near term. Such services are distinct and accounted for as separate performance obligations. For sales, the Company’s performance obligations to deliver products are satisfied at the point in time when products are shipped to the customer, which is when the customer obtains control over the goods. The installation service on these types of contracts is usually completed within six to twelve weeks.</td></tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"> <td style="width: 0.25in"></td><td style="width: 0.25in">·</td><td style="text-align: justify">The Company recognizes installation service revenue over time using the cost-to-cost measure of progress, which measures an installation obligation’s progress toward completion based on the ratio of actual contract costs incurred to date to the Company’s estimated costs at completion. Significant judgment may be required by management in the cost estimation process for these contracts, which is based on the knowledge and experience of the Company’s project managers, subcontractors and financial professionals. Total estimated costs to complete projects include direct labor, material, permits and subcontractor costs.</td></tr></table> The Company also provides standard assurance warranties on product functionality, which are not separately priced or considered material. Some of the Company’s contracts with distributors include stock rotation rights after six months for slow-moving inventory, which represents variable consideration. The Company uses an expected value method to estimate variable consideration and constrains revenue for estimated stock rotations until it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur. To date, returns have been insignificant. Because the Company’s product sales agreements have an expected duration of one year or less, the Company has elected to adopt the practical expedient in ASC 606-10-50-14(a) of not disclosing information about its remaining performance obligations.

Sales Tax Collected from Customers As a part of the Company’s normal course of business, sales taxes are collected from customers in accordance with local regulations. Sales taxes collected are remitted, in a timely manner, to the appropriate governmental tax authority on behalf of the customer. The Company’s policy is to present revenue and costs net of sales taxes.

Deferred Revenue Deferred revenue consists of billings on contracts where performance has commenced, and payments have been received in advance of revenue recognition. Deferred revenue is recognized in revenue as the related revenue recognition criteria are met.

Cash and Cash Equivalents The Company’s cash is maintained in checking accounts with reputable financial institutions. These balances may, at times, exceed the U.S. Federal Deposit Insurance Corporation insurance limits. As of December 31, 2025, the Company had cash of $65,000. The Company has not experienced any losses on deposits of cash and cash equivalents.

65000

Accounts Receivable and Allowance for Credit Losses The Company’s receivables are recorded when invoiced and represent claims against third parties that will be settled in cash. The Company records accounts receivable at the invoiced amount less an allowance for any potentially uncollectible accounts under the current expected credit loss impairment model and discloses the net amount of the financial instrument expected to be collected. The Company estimates the allowance for credit losses based on an ongoing review of existing economic conditions, the financial conditions of the customers, historical trends in credit losses, and the amount and age of past due accounts. Past-due receivable balances are written off when the Company’s internal collection efforts have been unsuccessful in collecting the amount due.

Leases The Company accounts for its leases under ASC 842, Leases. Under this guidance, arrangements meeting the definition of a lease are classified as operating or financing leases. Operating leases are recognized as Right-of-use (“ROU”) assets, Operating lease liability, current, and Operating lease liability, non-current on the consolidated balance sheets. Lease assets and liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of the leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. In certain of the lease agreements, the Company receives rent holidays and other incentives. The Company recognizes lease costs on a straight-line basis over the lease term without regard to deferred payment terms, such as rent holidays, that defer the commencement date of required payments. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Leasehold improvements are capitalized at cost and amortized over the lesser of their expected useful life or the life of the lease, without assuming renewal features, if any, are exercised. The Company elected the practical expedient in ASC 842 and does not separate lease and non-lease components for any of its leases.

Inventory Inventories, inclusive of raw materials and finished goods, are valued at the lower cost or net realizable value after using the first-in, first-out method. Management compares the cost of inventory with the net realizable value and adjustments are made for writing down inventory to net realizable value, if lower. The Company periodically assesses its inventories valuation with respect to obsolete items by reviewing revenue forecasts and technological obsolescence and moving such items into a reserve for obsolescence. When inventories on hand exceed the foreseeable demand or become obsolete, the value of excess inventory, which at the time of the review was not expected to be sold, is written off.

Property and Equipment, Net Property and equipment are stated at cost, net of accumulated depreciation. Major additions and improvements are capitalized, while replacements, maintenance and repairs, which do not improve or extend the life of the respective assets, are expensed as incurred. When property and equipment is retired or otherwise disposed of the cost and accumulated depreciation are removed from the related accounts and any resulting gain or loss is included in the results of operations for the respective period.

Warranty The Company offers a warranty period for all its manufactured products to function free from defects in material and workmanship under normal use and service for one to two years on most products and up to five years for rugged power products for the defense and aerospace markets. For the Company’s electric vehicle supply equipment product line, the Company offers up to a three-year extended warranty beyond the manufacturing warranty period, although not considered material to its revenue stream. The Company also provides end user technical support for up to fifteen (15) years on many of its products that have long lifetimes. The Company estimates the costs that may be incurred under its warranty and records a liability in the amount of such costs at the time product revenue is recognized. Factors that affect the Company’s warranty liability include the number of units sold, the sector product being used, historical rates of warranty claims, and cost per claim. The Company periodically assesses the adequacy of its recorded warranty liability.

Litigation The Company records an undiscounted liability for contingent losses, including future legal costs, settlements and judgments, when it considers it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated.

Income Taxes The Company determines its income taxes under the asset and liability method in accordance with ASC No. 740, Income Taxes, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are based on the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the fiscal year in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more likely than not that the assets will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the fiscal years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the Consolidated Statements of Operations in the period that includes the enactment date. The Company accounts for uncertain tax positions in accordance with ASC No. 740-10-25. ASC No. 740-10-25 addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under ASC No. 740-10-25, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefit to be recognized is measured as the largest amount of benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. To the extent that the final tax outcome of these matters is different than the amount recorded, such differences impact income tax expense in the period in which such determination is made. Interest and penalties, if any, related to accrued liabilities for potential tax assessments are included in income tax expense. ASC No. 740-10-25 also requires management to evaluate tax positions taken by the Company and recognize a liability if the Company has taken uncertain tax positions that more likely than not would not be sustained upon examination by applicable taxing authorities. Management of the Company has evaluated tax positions taken by the Company and has concluded that as of December 31, 2025, and December 31, 2024, there were no uncertain tax positions taken, or expected to be taken, that would require recognition of a liability that would require disclosure in the financial statements.

Impairment of Long-lived Assets The Company analyzes its long-lived assets for potential impairment at least annually or when changes in circumstances indicate a possibility of impairment. Impairment losses are recorded on long-lived assets when indicators of impairment are present. When the carrying value of an asset exceeds the associated undiscounted expected future cash flows, it is considered to be impaired and is written down to fair value.

Segments The Company determined that its two primary brands constitute its two operating segments. However, the Company’s operating segments continue to be aggregated into one reportable segment based on the similarity in economic characteristics, other qualitative factors and the objectives and principles of ASC 280, Segment Reporting.

Receivables and Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and trade receivables. Trade receivables of the Company and its subsidiaries are mainly derived from sales to customers located primarily in the U.S. The Company performs ongoing credit evaluations of its customers and to date has not experienced any material losses.

Preferred Shares The Company applies the accounting standards for distinguishing liabilities from equity when determining the classification and measurement of its preferred stock. Preferred shares subject to mandatory redemption are classified as liability instruments and are measured at fair value. Conditionally redeemable preferred shares (including preferred shares that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control) are classified as temporary equity.

New Accounting Guidance – Recently Adopted On November 27, 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. ASU 2023-07 is designed to improve the reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses that are regularly provided to the chief operating decision maker. The new standard is effective for the Company for the fiscal year beginning after 15 December 2023, and interim periods within fiscal years beginning after 15 December 2024. The Company adopted ASU No. 2023-07 during the fiscal year ended December 31, 2024, and the adoption did not result in any material changes to the consolidated financial statements. On December 14, 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09 requires entities to disclose specific rate reconciliations, amount of income taxes separated by federal and individual jurisdiction, and the amount of income (loss) from continuing operations before income tax expense (benefit) disaggregated between federal, state, and foreign. The Company retrospectively adopted ASU 2023-09 as required for the year ending December 31, 2025. The adoption of ASU 2023-09 did not have a material impact on the Company’s consolidated financial position, results of operations, or cash flows, as the standard primarily expands disclosure requirements.

Recent Accounting Pronouncements not yet Adopted The Company continually assesses any new accounting pronouncements to determine their applicability. When it is determined that a new accounting pronouncement may affect the Company’s financial reporting, the Company undertakes an analysis to determine any required changes to its Consolidated Financial Statements. In December 2024, the FASB issued ASU No. 2024-03, Income Statement - Reporting Comprehensive Income- Expense Disaggregation Disclosures (ASU 2024-03). ASU 2024-03 requires disclosure of specific information about certain costs and expenses in the notes to its financial statements for interim and annual reporting periods. The objective of the disclosure requirements is to provide disaggregated information to help financial statement users (a) better understand the Company’s performance, (b) better assess the Company’s prospects for future cash flows, and (c) compare the Company’s performance over time and with that of other entities. ASU 2024-03 is effective for annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. We are currently evaluating the impact that this guidance will have on our consolidated financial statements.

3. GOING CONCERN The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The Company has incurred recurring net losses and operations have not provided sufficient cash flows. The Company believes that it will continue to incur operating and net losses each quarter until at least the time it begins significant deliveries of its products. The Company’s inability to continue as a going concern could have a negative impact on the Company, including its ability to obtain needed financing, and could adversely affect the trading price of the Company’s common stock. These factors create substantial doubt about the Company’s ability to continue as a going concern for at least one year after the date that the Company’s audited consolidated Financial Statements are issued. The Company intends to finance its future development activities and its working capital needs largely through the sale of equity securities with some additional funding from other sources, including term notes until such time as funds provided by operations are sufficient to fund working capital requirements. The consolidated financial statements of the Company do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern.

4. REVENUE DISAGGREGATION The Company’s disaggregated revenues consisted of the following: <table cellpadding="0" cellspacing="0" id="xdx_896_eus-gaap--DisaggregationOfRevenueTableTextBlock_zTC1rxFlWzKj" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - REVENUE DISAGGREGATION (Details)"> <tr style="vertical-align: bottom"> <td style="font-weight: bold; text-align: left">Schedule of disaggregated revenues</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center">For the Year Ended December 31,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="font-weight: bold; text-align: left">Primary Geographical Markets</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">North America</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 15%; text-align: right">6,793,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 15%; text-align: right">4,839,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">Other</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">435,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">73,000</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-align: left; padding-bottom: 2.5pt">Total Revenue</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">7,228,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">4,912,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Major Goods</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Power supply units</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">6,025,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">4,501,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">EV chargers</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,203,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">411,000</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 9pt; text-align: left; padding-bottom: 2.5pt">Total Revenue</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">7,228,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">4,912,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left">Timing of Revenue Recognition</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Goods transferred at a point in time</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">7,151,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">4,865,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Revenue recognized over time</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">77,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">47,000</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-align: left; padding-bottom: 2.5pt">Total Revenue</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">7,228,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">4,912,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> Customer advances We defer revenues when cash payments are received in advance of our performance obligation required under the guidelines of ASC 606. The revenue is recognized upon completion of our related performance obligations, typically within twelve months following receipt of the customer advances. Customer advances are recorded in the accounts payable, accrued expenses and other current liabilities line of the consolidated balance sheets. Customer advances consisted of the following: <table cellpadding="0" cellspacing="0" id="xdx_89E_ecustom--ScheduleOFCustomerAdvancesConsistedTableTextBlock_zh1wnTOVU7od" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse" summary="xdx: Disclosure - REVENUE DISAGGREGATION (Details 1)"> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Schedule of customer advances</td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center">Customer advances</td> <td style="white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 82%; text-align: justify">Balance, December 31, 2024</td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 15%; text-align: right">125,000</td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Advances received</td> <td> </td> <td> </td> <td style="text-align: right">1,403,000</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Revenue recognized</td> <td> </td> <td> </td> <td style="text-align: right">(1,018,000</td> <td>)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Advances refunded</td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(305,000</td> <td>)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Balance, December 31, 2025</td> <td> </td> <td style="border-bottom: black 2.25pt double">$</td> <td style="border-bottom: black 2.25pt double; text-align: right">205,000</td> <td> </td></tr> </table> The Company’s related party sales consisted of the following: <table cellpadding="0" cellspacing="0" id="xdx_894_ecustom--ScheduleOfRelatedPartySalesTableTextBlock_zhPcPTV2rbj2" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse" summary="xdx: Disclosure - REVENUE DISAGGREGATION (Details 2)"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">Schedule of related party sales</td> <td> </td> <td colspan="2" style="white-space: nowrap; text-align: right"> </td> <td> </td> <td> </td> <td colspan="2" style="white-space: nowrap; text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="6" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center">For the Year Ended December 31,</td> <td style="white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center">2025</td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center">2024</td> <td style="white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">Related Party</td> <td> </td> <td colspan="2" style="white-space: nowrap; text-align: right"> </td> <td> </td> <td> </td> <td colspan="2" style="white-space: nowrap; text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%">Subsidiaries of Hyperscale</td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 15%; text-align: right">-</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 15%; text-align: right">28,000</td> <td style="width: 1%"> </td></tr> <tr style="background-color: White"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> </table> The following table provides the percentage of total revenue attributable to a single customer from which 10% or more of total revenue is derived: <table cellpadding="0" cellspacing="0" id="xdx_89D_eus-gaap--ReconciliationOfRevenueFromSegmentsToConsolidatedTextBlock_zfwGqEoSGpJh" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse" summary="xdx: Disclosure - REVENUE DISAGGREGATION (Details 3)"> <tr style="vertical-align: bottom; background-color: White"> <td>Schedule of concentration</td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="6" style="white-space: nowrap; text-align: center">For the Year Ended</td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="6" style="white-space: nowrap; text-align: center">For the Year Ended</td> <td style="white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt; white-space: nowrap"> </td> <td style="padding-bottom: 1pt; white-space: nowrap"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; white-space: nowrap; text-align: center">December 31, 2025</td> <td style="padding-bottom: 1pt; white-space: nowrap"> </td> <td style="padding-bottom: 1pt; white-space: nowrap"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; white-space: nowrap; text-align: center">December 31, 2024</td> <td style="padding-bottom: 1pt; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="white-space: nowrap; text-align: center">Total Revenue</td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="white-space: nowrap; text-align: center">Percentage of</td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="white-space: nowrap; text-align: center">Total Revenue</td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="white-space: nowrap; text-align: center">Percentage of</td> <td style="white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="white-space: nowrap; text-align: center">by Major</td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="white-space: nowrap; text-align: center">Total Company</td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="white-space: nowrap; text-align: center">by Major</td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="white-space: nowrap; text-align: center">Total Company</td> <td style="white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt; white-space: nowrap"> </td> <td style="padding-bottom: 1pt; white-space: nowrap"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; white-space: nowrap; text-align: center">Customers</td> <td style="padding-bottom: 1pt; white-space: nowrap"> </td> <td style="padding-bottom: 1pt; white-space: nowrap"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; white-space: nowrap; text-align: center">Revenue</td> <td style="padding-bottom: 1pt; white-space: nowrap"> </td> <td style="padding-bottom: 1pt; white-space: nowrap"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; white-space: nowrap; text-align: center">Customer</td> <td style="padding-bottom: 1pt; white-space: nowrap"> </td> <td style="padding-bottom: 1pt; white-space: nowrap"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; white-space: nowrap; text-align: center">Revenue</td> <td style="padding-bottom: 1pt; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%">Customer A</td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 12%; text-align: right">1,709,000</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 12%; text-align: right"><span id="xdx_90C_eus-gaap--ConcentrationRiskPercentage1_dp_c20250101__20251231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerAMember_zfcwRsxJt4M8" title="Concentration risk, percentage">24</td> <td style="width: 1%">%</td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 12%; text-align: right">1,721,000 </td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 12%; text-align: right"><span id="xdx_90A_eus-gaap--ConcentrationRiskPercentage1_dp_c20240101__20241231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerAMember_zLmPLz8W1lS3" title="Concentration risk, percentage">35</td> <td style="width: 1%">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Customer B</td> <td> </td> <td>$</td> <td style="text-align: right">1,107,000</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"><span id="xdx_902_eus-gaap--ConcentrationRiskPercentage1_dp_c20250101__20251231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerBMember_zpDKiAg6HXXc" title="Concentration risk, percentage">15</td> <td>%</td> <td> </td> <td>$</td> <td style="text-align: right"> - </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"><span id="xdx_90C_eus-gaap--ConcentrationRiskPercentage1_dp_c20240101__20241231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerBMember_zAkMWTN953qi" title="Concentration risk, percentage">-</td> <td>%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Customer C</td> <td> </td> <td>$</td> <td style="text-align: right">865,000</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"><span id="xdx_902_eus-gaap--ConcentrationRiskPercentage1_dp_c20250101__20251231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerCMember_zVLOZ24MWOVj" title="Concentration risk, percentage">12</td> <td>%</td> <td> </td> <td>$</td> <td style="text-align: right">-</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"><span id="xdx_906_eus-gaap--ConcentrationRiskPercentage1_dp_c20240101__20241231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerCMember_zhsJr47BUrz2" title="Concentration risk, percentage">-</td> <td>%</td></tr> </table>

<table cellpadding="0" cellspacing="0" id="xdx_896_eus-gaap--DisaggregationOfRevenueTableTextBlock_zTC1rxFlWzKj" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - REVENUE DISAGGREGATION (Details)"> <tr style="vertical-align: bottom"> <td style="font-weight: bold; text-align: left">Schedule of disaggregated revenues</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center">For the Year Ended December 31,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="font-weight: bold; text-align: left">Primary Geographical Markets</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">North America</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 15%; text-align: right">6,793,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 15%; text-align: right">4,839,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">Other</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">435,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">73,000</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-align: left; padding-bottom: 2.5pt">Total Revenue</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">7,228,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">4,912,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Major Goods</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Power supply units</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">6,025,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">4,501,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">EV chargers</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,203,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">411,000</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 9pt; text-align: left; padding-bottom: 2.5pt">Total Revenue</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">7,228,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">4,912,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left">Timing of Revenue Recognition</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Goods transferred at a point in time</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">7,151,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">4,865,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Revenue recognized over time</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">77,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">47,000</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-align: left; padding-bottom: 2.5pt">Total Revenue</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">7,228,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">4,912,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

6793000

4839000

435000

73000

7228000

4912000

6025000

4501000

1203000

411000

7228000

4912000

7151000

4865000

77000

47000

7228000

4912000

<table cellpadding="0" cellspacing="0" id="xdx_89E_ecustom--ScheduleOFCustomerAdvancesConsistedTableTextBlock_zh1wnTOVU7od" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse" summary="xdx: Disclosure - REVENUE DISAGGREGATION (Details 1)"> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Schedule of customer advances</td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center">Customer advances</td> <td style="white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 82%; text-align: justify">Balance, December 31, 2024</td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 15%; text-align: right">125,000</td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Advances received</td> <td> </td> <td> </td> <td style="text-align: right">1,403,000</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Revenue recognized</td> <td> </td> <td> </td> <td style="text-align: right">(1,018,000</td> <td>)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Advances refunded</td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(305,000</td> <td>)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Balance, December 31, 2025</td> <td> </td> <td style="border-bottom: black 2.25pt double">$</td> <td style="border-bottom: black 2.25pt double; text-align: right">205,000</td> <td> </td></tr> </table> 125000 1403000 -1018000 -305000 205000 <table cellpadding="0" cellspacing="0" id="xdx_894_ecustom--ScheduleOfRelatedPartySalesTableTextBlock_zhPcPTV2rbj2" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse" summary="xdx: Disclosure - REVENUE DISAGGREGATION (Details 2)"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">Schedule of related party sales</td> <td> </td> <td colspan="2" style="white-space: nowrap; text-align: right"> </td> <td> </td> <td> </td> <td colspan="2" style="white-space: nowrap; text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="6" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center">For the Year Ended December 31,</td> <td style="white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center">2025</td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center">2024</td> <td style="white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">Related Party</td> <td> </td> <td colspan="2" style="white-space: nowrap; text-align: right"> </td> <td> </td> <td> </td> <td colspan="2" style="white-space: nowrap; text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%">Subsidiaries of Hyperscale</td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 15%; text-align: right">-</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 15%; text-align: right">28,000</td> <td style="width: 1%"> </td></tr> <tr style="background-color: White"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> </table> 28000

<table cellpadding="0" cellspacing="0" id="xdx_89D_eus-gaap--ReconciliationOfRevenueFromSegmentsToConsolidatedTextBlock_zfwGqEoSGpJh" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse" summary="xdx: Disclosure - REVENUE DISAGGREGATION (Details 3)"> <tr style="vertical-align: bottom; background-color: White"> <td>Schedule of concentration</td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="6" style="white-space: nowrap; text-align: center">For the Year Ended</td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="6" style="white-space: nowrap; text-align: center">For the Year Ended</td> <td style="white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt; white-space: nowrap"> </td> <td style="padding-bottom: 1pt; white-space: nowrap"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; white-space: nowrap; text-align: center">December 31, 2025</td> <td style="padding-bottom: 1pt; white-space: nowrap"> </td> <td style="padding-bottom: 1pt; white-space: nowrap"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; white-space: nowrap; text-align: center">December 31, 2024</td> <td style="padding-bottom: 1pt; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="white-space: nowrap; text-align: center">Total Revenue</td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="white-space: nowrap; text-align: center">Percentage of</td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="white-space: nowrap; text-align: center">Total Revenue</td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="white-space: nowrap; text-align: center">Percentage of</td> <td style="white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="white-space: nowrap; text-align: center">by Major</td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="white-space: nowrap; text-align: center">Total Company</td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="white-space: nowrap; text-align: center">by Major</td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="white-space: nowrap; text-align: center">Total Company</td> <td style="white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt; white-space: nowrap"> </td> <td style="padding-bottom: 1pt; white-space: nowrap"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; white-space: nowrap; text-align: center">Customers</td> <td style="padding-bottom: 1pt; white-space: nowrap"> </td> <td style="padding-bottom: 1pt; white-space: nowrap"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; white-space: nowrap; text-align: center">Revenue</td> <td style="padding-bottom: 1pt; white-space: nowrap"> </td> <td style="padding-bottom: 1pt; white-space: nowrap"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; white-space: nowrap; text-align: center">Customer</td> <td style="padding-bottom: 1pt; white-space: nowrap"> </td> <td style="padding-bottom: 1pt; white-space: nowrap"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; white-space: nowrap; text-align: center">Revenue</td> <td style="padding-bottom: 1pt; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%">Customer A</td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 12%; text-align: right">1,709,000</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 12%; text-align: right"><span id="xdx_90C_eus-gaap--ConcentrationRiskPercentage1_dp_c20250101__20251231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerAMember_zfcwRsxJt4M8" title="Concentration risk, percentage">24</td> <td style="width: 1%">%</td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 12%; text-align: right">1,721,000 </td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 12%; text-align: right"><span id="xdx_90A_eus-gaap--ConcentrationRiskPercentage1_dp_c20240101__20241231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerAMember_zLmPLz8W1lS3" title="Concentration risk, percentage">35</td> <td style="width: 1%">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Customer B</td> <td> </td> <td>$</td> <td style="text-align: right">1,107,000</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"><span id="xdx_902_eus-gaap--ConcentrationRiskPercentage1_dp_c20250101__20251231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerBMember_zpDKiAg6HXXc" title="Concentration risk, percentage">15</td> <td>%</td> <td> </td> <td>$</td> <td style="text-align: right"> - </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"><span id="xdx_90C_eus-gaap--ConcentrationRiskPercentage1_dp_c20240101__20241231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerBMember_zAkMWTN953qi" title="Concentration risk, percentage">-</td> <td>%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Customer C</td> <td> </td> <td>$</td> <td style="text-align: right">865,000</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"><span id="xdx_902_eus-gaap--ConcentrationRiskPercentage1_dp_c20250101__20251231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerCMember_zVLOZ24MWOVj" title="Concentration risk, percentage">12</td> <td>%</td> <td> </td> <td>$</td> <td style="text-align: right">-</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"><span id="xdx_906_eus-gaap--ConcentrationRiskPercentage1_dp_c20240101__20241231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerCMember_zhsJr47BUrz2" title="Concentration risk, percentage">-</td> <td>%</td></tr> </table>

1709000

0.24

1721000

0.35

1107000

0.15

865000

0.12

5. FAIR VALUE OF FINANCIAL INSTRUMENTS The following table sets forth the Company’s financial instruments that were measured at fair value on a recurring basis by level within the fair value hierarchy at December 31, 2025 (no material financial instruments were measured at fair value on a recurring basis at December 31, 2024): <table cellpadding="0" cellspacing="0" id="xdx_89C_eus-gaap--FairValueAssetsMeasuredOnRecurringBasisTextBlock_z1xYmfmtFtCb" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - FAIR VALUE OF FINANCIAL INSTRUMENTS (Details)"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">Schedule of fair value, assets measured on recurring basis</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center"> </td><td style="white-space: nowrap; padding-bottom: 1pt; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center"> </td><td style="white-space: nowrap; padding-bottom: 1pt; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center"> </td><td style="white-space: nowrap; padding-bottom: 1pt; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center"> </td><td style="white-space: nowrap; padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="14" style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center">Fair Value Measurement at December 31, 2025</td><td style="white-space: nowrap; padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center">Total</td><td style="border-bottom: Black 1pt solid; white-space: nowrap; padding-bottom: 1pt; font-weight: bold"> </td><td style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center">Level 1</td><td style="border-bottom: Black 1pt solid; white-space: nowrap; padding-bottom: 1pt; font-weight: bold"> </td><td style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center">Level 2</td><td style="border-bottom: Black 1pt solid; white-space: nowrap; padding-bottom: 1pt; font-weight: bold"> </td><td style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center">Level 3</td><td style="white-space: nowrap; padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%; text-align: left">Embedded conversion feature liabilities</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">150,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right"><span id="xdx_902_ecustom--EmbeddedConversionFeatureLiabilities_c20250101__20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_pp0p0" title="Embedded conversion feature liabilities">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right"><span id="xdx_903_ecustom--EmbeddedConversionFeatureLiabilities_c20250101__20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member_pp0p0" title="Embedded conversion feature liabilities">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right"><span id="xdx_900_ecustom--EmbeddedConversionFeatureLiabilities_c20250101__20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_pp0p0" title="Embedded conversion feature liabilities">150,000</td><td style="width: 1%; text-align: left"> </td></tr> </table> The embedded conversion feature liabilities are included in the convertible notes payable line of the consolidated balance sheets. The Company assesses the inputs used to measure fair value using the three-tier hierarchy based on the extent to which inputs used in measuring fair value are observable in the market. For investments where little or no public market exists, management’s determination of fair value is based on the best available information which may incorporate management’s own assumptions and involves a significant degree of judgment, taking into consideration various factors including earnings history, financial condition, recent sales prices of the issuer’s securities and liquidity risks. The changes in Level 3 fair value hierarchy during the year ended December 31, 2025, were as follows: <table cellpadding="0" cellspacing="0" id="xdx_89F_eus-gaap--FairValueLiabilitiesMeasuredOnRecurringBasisTextBlock_ztHXrCYrR087" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - FAIR VALUE OF FINANCIAL INSTRUMENTS (Details 1)"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">Schedule of fair value, liabilities measured on recurring basis</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center"> </td><td style="white-space: nowrap; padding-bottom: 1pt; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center"> </td><td style="white-space: nowrap; padding-bottom: 1pt; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center"> </td><td style="white-space: nowrap; padding-bottom: 1pt; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center"> </td><td style="white-space: nowrap; padding-bottom: 1pt; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center"> </td><td style="white-space: nowrap; padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center">Level 3 Balance at Beginning of Year</td><td style="white-space: nowrap; padding-bottom: 1pt; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center">Fair Value Adjustments</td><td style="white-space: nowrap; padding-bottom: 1pt; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center">Sales and Settlement</td><td style="white-space: nowrap; padding-bottom: 1pt; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center">Grants</td><td style="white-space: nowrap; padding-bottom: 1pt; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center">Level 3 Balance at End of Year</td><td style="white-space: nowrap; padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%; text-align: left"> Embedded conversion feature liabilities</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><span id="xdx_90F_ecustom--EmbeddedConversionFeatureLiabilily_iS_pp0p0_c20250101__20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_ziWlMhqbj8D6" title="Embedded conversion feature liabilities, beginning balance">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">36,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><span id="xdx_907_eus-gaap--FairValueNetDerivativeAssetLiabilityMeasuredOnRecurringBasisUnobservableInputsReconciliationPurchasesSalesIssuesSettlements_c20250101__20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_pp0p0" title="Sales and Settlement">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><span id="xdx_90B_eus-gaap--FairValueNetDerivativeAssetLiabilityMeasuredOnRecurringBasisUnobservableInputsReconciliationIssues_c20250101__20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_pp0p0" title="Grants">114,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><span id="xdx_906_ecustom--EmbeddedConversionFeatureLiabilily_iE_pp0p0_c20250101__20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_zB7kHiZTc9M2" title="Embedded conversion feature liabilities, ending balance">150,000</td><td style="width: 1%; text-align: left"> </td></tr> </table>

<table cellpadding="0" cellspacing="0" id="xdx_89C_eus-gaap--FairValueAssetsMeasuredOnRecurringBasisTextBlock_z1xYmfmtFtCb" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - FAIR VALUE OF FINANCIAL INSTRUMENTS (Details)"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">Schedule of fair value, assets measured on recurring basis</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center"> </td><td style="white-space: nowrap; padding-bottom: 1pt; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center"> </td><td style="white-space: nowrap; padding-bottom: 1pt; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center"> </td><td style="white-space: nowrap; padding-bottom: 1pt; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center"> </td><td style="white-space: nowrap; padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="14" style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center">Fair Value Measurement at December 31, 2025</td><td style="white-space: nowrap; padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center">Total</td><td style="border-bottom: Black 1pt solid; white-space: nowrap; padding-bottom: 1pt; font-weight: bold"> </td><td style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center">Level 1</td><td style="border-bottom: Black 1pt solid; white-space: nowrap; padding-bottom: 1pt; font-weight: bold"> </td><td style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center">Level 2</td><td style="border-bottom: Black 1pt solid; white-space: nowrap; padding-bottom: 1pt; font-weight: bold"> </td><td style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center">Level 3</td><td style="white-space: nowrap; padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%; text-align: left">Embedded conversion feature liabilities</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">150,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right"><span id="xdx_902_ecustom--EmbeddedConversionFeatureLiabilities_c20250101__20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_pp0p0" title="Embedded conversion feature liabilities">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right"><span id="xdx_903_ecustom--EmbeddedConversionFeatureLiabilities_c20250101__20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member_pp0p0" title="Embedded conversion feature liabilities">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right"><span id="xdx_900_ecustom--EmbeddedConversionFeatureLiabilities_c20250101__20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_pp0p0" title="Embedded conversion feature liabilities">150,000</td><td style="width: 1%; text-align: left"> </td></tr> </table>

150000 150000

<table cellpadding="0" cellspacing="0" id="xdx_89F_eus-gaap--FairValueLiabilitiesMeasuredOnRecurringBasisTextBlock_ztHXrCYrR087" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - FAIR VALUE OF FINANCIAL INSTRUMENTS (Details 1)"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">Schedule of fair value, liabilities measured on recurring basis</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center"> </td><td style="white-space: nowrap; padding-bottom: 1pt; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center"> </td><td style="white-space: nowrap; padding-bottom: 1pt; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center"> </td><td style="white-space: nowrap; padding-bottom: 1pt; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center"> </td><td style="white-space: nowrap; padding-bottom: 1pt; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center"> </td><td style="white-space: nowrap; padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center">Level 3 Balance at Beginning of Year</td><td style="white-space: nowrap; padding-bottom: 1pt; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center">Fair Value Adjustments</td><td style="white-space: nowrap; padding-bottom: 1pt; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center">Sales and Settlement</td><td style="white-space: nowrap; padding-bottom: 1pt; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center">Grants</td><td style="white-space: nowrap; padding-bottom: 1pt; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center">Level 3 Balance at End of Year</td><td style="white-space: nowrap; padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%; text-align: left"> Embedded conversion feature liabilities</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><span id="xdx_90F_ecustom--EmbeddedConversionFeatureLiabilily_iS_pp0p0_c20250101__20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_ziWlMhqbj8D6" title="Embedded conversion feature liabilities, beginning balance">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">36,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><span id="xdx_907_eus-gaap--FairValueNetDerivativeAssetLiabilityMeasuredOnRecurringBasisUnobservableInputsReconciliationPurchasesSalesIssuesSettlements_c20250101__20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_pp0p0" title="Sales and Settlement">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><span id="xdx_90B_eus-gaap--FairValueNetDerivativeAssetLiabilityMeasuredOnRecurringBasisUnobservableInputsReconciliationIssues_c20250101__20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_pp0p0" title="Grants">114,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><span id="xdx_906_ecustom--EmbeddedConversionFeatureLiabilily_iE_pp0p0_c20250101__20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_zB7kHiZTc9M2" title="Embedded conversion feature liabilities, ending balance">150,000</td><td style="width: 1%; text-align: left"> </td></tr> </table>

36000

114000

150000

6. TRADE RECEIVABLES The following table provides the percentage of total trade receivables attributable to a single customer that accounted for 10% or more of the Company’s outstanding receivables: <table cellpadding="0" cellspacing="0" id="xdx_88A_ecustom--SchedulePercentageOfTotalTradeReceivablesTableTextBlock_zLKi2Sf4qBRf" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse" summary="xdx: Disclosure - TRADE RECEIVABLES (Details)"> <tr style="background-color: White"> <td style="vertical-align: bottom">Schedule percentage of total trade receivables</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: top; text-align: right"> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="6" style="white-space: nowrap; text-align: center">For the Year Ended</td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="6" style="white-space: nowrap; text-align: center">For the Year Ended</td> <td style="white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt; white-space: nowrap"> </td> <td style="padding-bottom: 1pt; white-space: nowrap"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; white-space: nowrap; text-align: center">December 31, 2025</td> <td style="padding-bottom: 1pt; white-space: nowrap"> </td> <td style="padding-bottom: 1pt; white-space: nowrap"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; white-space: nowrap; text-align: center">December 31, 2024</td> <td style="padding-bottom: 1pt; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="white-space: nowrap; text-align: center">Trade Receivables</td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="white-space: nowrap; text-align: center">Percentage of</td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="white-space: nowrap; text-align: center">Total Receivables</td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="white-space: nowrap; text-align: center">Percentage of</td> <td style="white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="white-space: nowrap; text-align: center">by Major</td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="white-space: nowrap; text-align: center">Total Trade</td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="white-space: nowrap; text-align: center">by Major</td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="white-space: nowrap; text-align: center">Total Trade</td> <td style="white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt; white-space: nowrap"> </td> <td style="padding-bottom: 1pt; white-space: nowrap"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; white-space: nowrap; text-align: center">Customer</td> <td style="padding-bottom: 1pt; white-space: nowrap"> </td> <td style="padding-bottom: 1pt; white-space: nowrap"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; white-space: nowrap; text-align: center">Receivables</td> <td style="padding-bottom: 1pt; white-space: nowrap"> </td> <td style="padding-bottom: 1pt; white-space: nowrap"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; white-space: nowrap; text-align: center">Customer</td> <td style="padding-bottom: 1pt; white-space: nowrap"> </td> <td style="padding-bottom: 1pt; white-space: nowrap"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; white-space: nowrap; text-align: center">Receivables</td> <td style="padding-bottom: 1pt; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 37%">Customer A</td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 14%; text-align: right">501,000</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 12%; text-align: right">35</td> <td style="width: 1%">%</td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 13%; text-align: right">346,000</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 12%; text-align: right">47</td> <td style="width: 1%">%</td></tr> <tr style="background-color: White"> <td style="vertical-align: bottom">Customer B</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom">$</td> <td style="vertical-align: bottom; text-align: right">244,000</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: right">17</td> <td style="vertical-align: bottom">%</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: right">-</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: right">-</td> <td style="vertical-align: top; text-align: right">%</td></tr> <tr style="background-color: rgb(204,238,255)"> <td style="vertical-align: bottom">Customer C</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom">$</td> <td style="vertical-align: bottom; text-align: right">-</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: right">-</td> <td style="vertical-align: bottom">%</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom">$</td> <td style="vertical-align: bottom; text-align: right">91,000</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: right">12</td> <td style="vertical-align: top; text-align: right">%</td></tr> </table> Related party receivables As of December 31, 2025, and 2024, the Company had related party receivables of $- and $17,000, respectively.

<table cellpadding="0" cellspacing="0" id="xdx_88A_ecustom--SchedulePercentageOfTotalTradeReceivablesTableTextBlock_zLKi2Sf4qBRf" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse" summary="xdx: Disclosure - TRADE RECEIVABLES (Details)"> <tr style="background-color: White"> <td style="vertical-align: bottom">Schedule percentage of total trade receivables</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: top; text-align: right"> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="6" style="white-space: nowrap; text-align: center">For the Year Ended</td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="6" style="white-space: nowrap; text-align: center">For the Year Ended</td> <td style="white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt; white-space: nowrap"> </td> <td style="padding-bottom: 1pt; white-space: nowrap"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; white-space: nowrap; text-align: center">December 31, 2025</td> <td style="padding-bottom: 1pt; white-space: nowrap"> </td> <td style="padding-bottom: 1pt; white-space: nowrap"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; white-space: nowrap; text-align: center">December 31, 2024</td> <td style="padding-bottom: 1pt; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="white-space: nowrap; text-align: center">Trade Receivables</td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="white-space: nowrap; text-align: center">Percentage of</td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="white-space: nowrap; text-align: center">Total Receivables</td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="white-space: nowrap; text-align: center">Percentage of</td> <td style="white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="white-space: nowrap; text-align: center">by Major</td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="white-space: nowrap; text-align: center">Total Trade</td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="white-space: nowrap; text-align: center">by Major</td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="white-space: nowrap; text-align: center">Total Trade</td> <td style="white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt; white-space: nowrap"> </td> <td style="padding-bottom: 1pt; white-space: nowrap"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; white-space: nowrap; text-align: center">Customer</td> <td style="padding-bottom: 1pt; white-space: nowrap"> </td> <td style="padding-bottom: 1pt; white-space: nowrap"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; white-space: nowrap; text-align: center">Receivables</td> <td style="padding-bottom: 1pt; white-space: nowrap"> </td> <td style="padding-bottom: 1pt; white-space: nowrap"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; white-space: nowrap; text-align: center">Customer</td> <td style="padding-bottom: 1pt; white-space: nowrap"> </td> <td style="padding-bottom: 1pt; white-space: nowrap"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; white-space: nowrap; text-align: center">Receivables</td> <td style="padding-bottom: 1pt; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 37%">Customer A</td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 14%; text-align: right">501,000</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 12%; text-align: right">35</td> <td style="width: 1%">%</td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 13%; text-align: right">346,000</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 12%; text-align: right">47</td> <td style="width: 1%">%</td></tr> <tr style="background-color: White"> <td style="vertical-align: bottom">Customer B</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom">$</td> <td style="vertical-align: bottom; text-align: right">244,000</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: right">17</td> <td style="vertical-align: bottom">%</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: right">-</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: right">-</td> <td style="vertical-align: top; text-align: right">%</td></tr> <tr style="background-color: rgb(204,238,255)"> <td style="vertical-align: bottom">Customer C</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom">$</td> <td style="vertical-align: bottom; text-align: right">-</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: right">-</td> <td style="vertical-align: bottom">%</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom">$</td> <td style="vertical-align: bottom; text-align: right">91,000</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: right">12</td> <td style="vertical-align: top; text-align: right">%</td></tr> </table>

501000

0.35

346000

0.47

244000

0.17

91000

0.12 -0 17000 7. WRITE OFF EV-RELATED ASSETS During the year ended December 31, 2024, the Company performed a review of the carrying value of assets associated with its EV charging business based on current demand trends and sales activity. As a result of this assessment, the Company recorded a write-off of approximately $763,000 related primarily to certain prepaid and fixed assets. 763000

8. PROPERTY AND EQUIPMENT As of December 31, 2025, and 2024, property and equipment consisted of the following: <table cellpadding="0" cellspacing="0" id="xdx_891_eus-gaap--PropertyPlantAndEquipmentTextBlock_zekANKFU8sT5" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse" summary="xdx: Disclosure - PROPERTY AND EQUIPMENT (Details)"> <tr style="vertical-align: bottom; background-color: White"> <td>Schedule of property and equipment</td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center">December 31, 2025</td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center">December 31, 2024</td> <td style="white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%">Machinery and equipment</td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 15%; text-align: right">648,000</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 15%; text-align: right">648,000</td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Leasehold improvements, furniture and equipment</td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">304,000</td> <td> </td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">221,000</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td> <td> </td> <td> </td> <td style="text-align: right">952,000</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">869,000</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Less: accumulated depreciation and amortization</td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(793,000</td> <td>)</td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(715,000</td> <td>)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Property and equipment, net</td> <td> </td> <td style="border-bottom: black 2.25pt double">$</td> <td style="border-bottom: black 2.25pt double; text-align: right">159,000</td> <td> </td> <td> </td> <td style="border-bottom: black 2.25pt double">$</td> <td style="border-bottom: black 2.25pt double; text-align: right">154,000</td> <td> </td></tr> </table> Depreciation and amortization expense related to property and equipment was $56,000 and $94,000 for the years ended December 31, 2025, and 2024, respectively. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets, at the following rates: <table cellpadding="0" cellspacing="0" id="xdx_895_eus-gaap--ScheduleOfPropertySubjectToOrAvailableForOperatingLeaseTextBlock_zIXnPAxYCs4l" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse" summary="xdx: Disclosure - PROPERTY AND EQUIPMENT (Details 1)"> <tr style="vertical-align: bottom; background-color: White"> <td>Schedule of estimated useful lives of the assets</td> <td> </td> <td style="text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; width: 47%"> </td> <td style="white-space: nowrap; width: 1%"> </td> <td style="white-space: nowrap; width: 52%; text-align: center">Useful Lives</td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: black 1pt solid; white-space: nowrap">Asset</td> <td style="white-space: nowrap"> </td> <td style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center">(In Years)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Computer software and office and computer equipment</td> <td> </td> <td style="text-align: center"><span id="xdx_90A_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20251231__srt--RangeAxis__srt--MinimumMember__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--ComputerEquipmentMember_zYHZU6POTqs6" title="Property, plant and equipment, useful life">3 – <span id="xdx_904_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20251231__srt--RangeAxis__srt--MaximumMember__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--ComputerEquipmentMember_zMEiVzdCTruc" title="Property, plant and equipment, useful life">5</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Machinery and equipment, automobiles, furniture, and fixtures</td> <td> </td> <td style="text-align: center"><span id="xdx_902_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20251231__srt--RangeAxis__srt--MinimumMember__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--MachineryAndEquipmentMember_zSfg2OhNYQb2" title="Property, plant and equipment, useful life">3 – <span id="xdx_90D_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20251231__srt--RangeAxis__srt--MaximumMember__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--MachineryAndEquipmentMember_zweocAQAIrva" title="Property, plant and equipment, useful life">15</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Leasehold improvements</td> <td> </td> <td style="text-align: center"><span id="xdx_908_ecustom--PropertyPlantAndEquipmentEstimatedUsefulLive_c20250101__20251231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember" title="Description of leasehold improvements">Over the term of the lease or the life of the asset, whichever is shorter</td></tr> </table>

<table cellpadding="0" cellspacing="0" id="xdx_891_eus-gaap--PropertyPlantAndEquipmentTextBlock_zekANKFU8sT5" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse" summary="xdx: Disclosure - PROPERTY AND EQUIPMENT (Details)"> <tr style="vertical-align: bottom; background-color: White"> <td>Schedule of property and equipment</td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center">December 31, 2025</td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center">December 31, 2024</td> <td style="white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%">Machinery and equipment</td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 15%; text-align: right">648,000</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 15%; text-align: right">648,000</td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Leasehold improvements, furniture and equipment</td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">304,000</td> <td> </td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">221,000</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td> <td> </td> <td> </td> <td style="text-align: right">952,000</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">869,000</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Less: accumulated depreciation and amortization</td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(793,000</td> <td>)</td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(715,000</td> <td>)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Property and equipment, net</td> <td> </td> <td style="border-bottom: black 2.25pt double">$</td> <td style="border-bottom: black 2.25pt double; text-align: right">159,000</td> <td> </td> <td> </td> <td style="border-bottom: black 2.25pt double">$</td> <td style="border-bottom: black 2.25pt double; text-align: right">154,000</td> <td> </td></tr> </table>

648000

304000

221000

952000

869000

793000

715000

159000

154000

56000

94000

<table cellpadding="0" cellspacing="0" id="xdx_895_eus-gaap--ScheduleOfPropertySubjectToOrAvailableForOperatingLeaseTextBlock_zIXnPAxYCs4l" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse" summary="xdx: Disclosure - PROPERTY AND EQUIPMENT (Details 1)"> <tr style="vertical-align: bottom; background-color: White"> <td>Schedule of estimated useful lives of the assets</td> <td> </td> <td style="text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; width: 47%"> </td> <td style="white-space: nowrap; width: 1%"> </td> <td style="white-space: nowrap; width: 52%; text-align: center">Useful Lives</td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: black 1pt solid; white-space: nowrap">Asset</td> <td style="white-space: nowrap"> </td> <td style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center">(In Years)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Computer software and office and computer equipment</td> <td> </td> <td style="text-align: center"><span id="xdx_90A_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20251231__srt--RangeAxis__srt--MinimumMember__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--ComputerEquipmentMember_zYHZU6POTqs6" title="Property, plant and equipment, useful life">3 – <span id="xdx_904_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20251231__srt--RangeAxis__srt--MaximumMember__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--ComputerEquipmentMember_zMEiVzdCTruc" title="Property, plant and equipment, useful life">5</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Machinery and equipment, automobiles, furniture, and fixtures</td> <td> </td> <td style="text-align: center"><span id="xdx_902_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20251231__srt--RangeAxis__srt--MinimumMember__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--MachineryAndEquipmentMember_zSfg2OhNYQb2" title="Property, plant and equipment, useful life">3 – <span id="xdx_90D_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20251231__srt--RangeAxis__srt--MaximumMember__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--MachineryAndEquipmentMember_zweocAQAIrva" title="Property, plant and equipment, useful life">15</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Leasehold improvements</td> <td> </td> <td style="text-align: center"><span id="xdx_908_ecustom--PropertyPlantAndEquipmentEstimatedUsefulLive_c20250101__20251231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember" title="Description of leasehold improvements">Over the term of the lease or the life of the asset, whichever is shorter</td></tr> </table>

P3Y

P5Y

P3Y

P15Y

Over the term of the lease or the life of the asset, whichever is shorter

9. INVENTORIES As of December 31, 2025, and 2024, inventories consisted of: <table cellpadding="0" cellspacing="0" id="xdx_88B_eus-gaap--ScheduleOfInventoryCurrentTableTextBlock_ztCeTvRMLyW1" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse" summary="xdx: Disclosure - INVENTORIES (Details)"> <tr style="vertical-align: bottom; background-color: White"> <td>Schedule of inventories</td> <td> </td> <td> </td> <td id="xdx_499_20251231_zKxIi17ZbAU8" style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td id="xdx_490_20241231" style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center">December 31, 2025</td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center">December 31, 2024</td> <td style="white-space: nowrap"> </td></tr> <tr id="xdx_407_eus-gaap--InventoryFinishedGoods_iI_pp0p0_maINzuNJ_zEAAJrW1Iogk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%">Finished products</td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 15%; text-align: right">296,000</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 15%; text-align: right">416,000</td> <td style="width: 1%"> </td></tr> <tr id="xdx_401_eus-gaap--InventoryRawMaterialsAndSupplies_iI_pp0p0_maINzuNJ_zNqrUiGLZoMe" style="vertical-align: bottom; background-color: White"> <td>Raw materials, parts and supplies</td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">688,000</td> <td> </td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">474,000</td> <td> </td></tr> <tr id="xdx_40D_eus-gaap--InventoryNet_iTI_pp0p0_mtINzuNJ_z2kqJqAxS7Sf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Total inventories</td> <td> </td> <td style="border-bottom: black 2.25pt double">$</td> <td style="border-bottom: black 2.25pt double; text-align: right">984,000</td> <td> </td> <td> </td> <td style="border-bottom: black 2.25pt double">$</td> <td style="border-bottom: black 2.25pt double; text-align: right">890,000</td> <td> </td></tr> </table>

<table cellpadding="0" cellspacing="0" id="xdx_88B_eus-gaap--ScheduleOfInventoryCurrentTableTextBlock_ztCeTvRMLyW1" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse" summary="xdx: Disclosure - INVENTORIES (Details)"> <tr style="vertical-align: bottom; background-color: White"> <td>Schedule of inventories</td> <td> </td> <td> </td> <td id="xdx_499_20251231_zKxIi17ZbAU8" style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td id="xdx_490_20241231" style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center">December 31, 2025</td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center">December 31, 2024</td> <td style="white-space: nowrap"> </td></tr> <tr id="xdx_407_eus-gaap--InventoryFinishedGoods_iI_pp0p0_maINzuNJ_zEAAJrW1Iogk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%">Finished products</td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 15%; text-align: right">296,000</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 15%; text-align: right">416,000</td> <td style="width: 1%"> </td></tr> <tr id="xdx_401_eus-gaap--InventoryRawMaterialsAndSupplies_iI_pp0p0_maINzuNJ_zNqrUiGLZoMe" style="vertical-align: bottom; background-color: White"> <td>Raw materials, parts and supplies</td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">688,000</td> <td> </td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">474,000</td> <td> </td></tr> <tr id="xdx_40D_eus-gaap--InventoryNet_iTI_pp0p0_mtINzuNJ_z2kqJqAxS7Sf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Total inventories</td> <td> </td> <td style="border-bottom: black 2.25pt double">$</td> <td style="border-bottom: black 2.25pt double; text-align: right">984,000</td> <td> </td> <td> </td> <td style="border-bottom: black 2.25pt double">$</td> <td style="border-bottom: black 2.25pt double; text-align: right">890,000</td> <td> </td></tr> </table>

296000

416000

688000

474000

984000

890000

10. CONVERTIBLE NOTES PAYABLE Convertible notes payable were comprised of the following: <table cellpadding="0" cellspacing="0" id="xdx_892_eus-gaap--ConvertibleDebtTableTextBlock_zPn7P6CAi3fk" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - CONVERTIBLE NOTES PAYABLE (Details)"> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Schedule of convertible notes payable</td><td> </td> <td> </td><td> </td> <td> </td><td> </td> <td> </td><td> </td> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center">Conversion price per share</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center">Interest rate</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center">Effective rate(1)</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center">Due date</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center">December 31, 2025</td><td style="white-space: nowrap; padding-bottom: 1pt; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center">December 31, 2024</td><td style="white-space: nowrap; padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 28%; text-align: left">SJC convertible promissory note</td><td style="width: 1%"> </td> <td style="width: 11%; text-align: center">80% of 10-day VWAP</td><td style="width: 1%"> </td> <td style="width: 11%; text-align: center">12%</td><td style="width: 1%"> </td> <td style="width: 11%; text-align: center"><span id="xdx_903_eus-gaap--DebtInstrumentInterestRateEffectivePercentage_iI_dp_c20251231__us-gaap--LongtermDebtTypeAxis__custom--SJCConvertiblePromissoryNoteMember_fKDEp_zyeuBvwZbkX9" title="Effective rate">21%</td><td style="width: 1%"> </td> <td style="width: 11%; text-align: center"><span id="xdx_902_eus-gaap--DebtConversionConvertedInstrumentExpirationOrDueDateDayMonthAndYear_dd_c20250101__20251231__us-gaap--LongtermDebtTypeAxis__custom--SJCConvertiblePromissoryNoteMember_zYPKZvkqXUb9" title="Due date">October 29,2026</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><span id="xdx_907_eus-gaap--ConvertibleNotesPayable_c20251231__us-gaap--LongtermDebtTypeAxis__custom--SJCConvertiblePromissoryNoteMember_pp0p0" title="Total convertible notes payable, net of financing cost, long-term">440,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><span id="xdx_900_eus-gaap--ConvertibleNotesPayable_c20241231__us-gaap--LongtermDebtTypeAxis__custom--SJCConvertiblePromissoryNoteMember_pp0p0" title="Total convertible notes payable, net of financing cost, long-term">-</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Fair value of embedded conversion options</td><td> </td> <td> </td><td> </td> <td> </td><td> </td> <td> </td><td> </td> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">150,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Less: unamortized debt discounts</td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">33,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Total convertible notes payable, net of financing cost, long-term</td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">557,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Less: current portion</td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">557,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Convertible notes payable, net of financing cost – long-term portion</td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"> <td style="width: 0.25in"></td><td id="xdx_F0B_zxDIzBNrqwre" style="width: 0.25in">(1)</td><td id="xdx_F10_zlOF3DqlUXO5" style="text-align: justify">Includes OID costs that are amortized to interest expense over the life of the notes.</td></tr></table> SJC Convertible Promissory Note On October 29, 2025, the Company entered into a Securities Purchase Agreement (“Agreement”) with SJC Lending LLC ("SJC"), pursuant to which the Company agreed to sell to SJC convertible promissory notes in the aggregate principal amount of up to $ 1,650,000 (the "Convertible Notes") for a total purchase price of up to $ 1.5 million (the "Loan"). The Agreement provides that the Loan shall be conducted through seven (7) separate tranche closings, provided, that SJC has the ability, exercisable in its sole discretion, to accelerate its purchases of Convertible Notes prior to the dates of the tranche closings provided for in the Agreement (See Note 17). Pursuant to the Agreement, the initial tranche closing, which occurred on October 29,2025, consisted of the issuance of a Convertible Note to SJC in the principal face amount of $<span id="xdx_90F_eus-gaap--DebtInstrumentFaceAmount_iI_pp0p0_c20251029__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__srt--CounterpartyNameAxis__custom--SJCLendingLLCMember_zqabXjPCs4M3" title="Principal amount">440,000 for a purchase price of $<span id="xdx_909_eus-gaap--DebtInstrumentRepurchaseAmount_iI_pp0p0_c20251029__srt--CounterpartyNameAxis__custom--SJCLendingLLCMember__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember_zN1bMRKc816b" title="Purchase price">400,000. The Convertible Note accrues interest at <span id="xdx_907_eus-gaap--DebtInstrumentInterestRateDuringPeriod_dp_c20251001__20251029__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__srt--CounterpartyNameAxis__custom--SJCLendingLLCMember_zcY9NuQMt4Jl" title="Interest rate">12% per annum and will mature <span id="xdx_909_eus-gaap--DebtInstrumentMaturityDate_c20251001__20251029__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__srt--CounterpartyNameAxis__custom--SJCLendingLLCMember_z7wOCnhgrX8c" title="Maturity date">October 28, 2026. The note was issued with an original issue discount of <span id="xdx_905_ecustom--OriginalIssueDiscount_iI_dp_c20251029__srt--CounterpartyNameAxis__custom--SJCLendingLLCMember__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember_zuoB8ifC6tZ4" title="Original issue discount">10%. SJC entered into various collateral agreements in support of the convertible notes including (i) an intellectual property security agreement pursuant to which the Company and its subsidiaries granted SJC a continuing security interest in certain trademarks, copyrights, patents and mask works (ii) a security agreement pursuant to which the Company and its subsidiaries granted SJC a security interest in substantially all of their respective assets as collateral for repayment of the convertible notes and (iii) a pledge agreement pursuant to which the Company pledged the capital stock of the Company’s subsidiaries as additional collateral. Embedded Derivative The Company identified embedded derivative features within certain convertible promissory notes issued on October 29, 2025, that required bifurcation and separate accounting as derivative liabilities under Accounting Standards Codification (“ASC”) 815, Derivatives and Hedging Activities. Specifically, the embedded conversion options associated with the SJC convertible promissory note was determined to meet the criteria for derivative classification. The fair value of the embedded derivative liabilities was estimated using a Monte Carlo simulation model. The model incorporates key assumptions including the Company’s stock price, risk-free interest rate, expected volatility, credit-risk adjusted discount rate, and the specific terms of each conversion feature (including floor price, cap, and VWAP-based pricing). Due to the significant use of unobservable inputs, these derivative liabilities are classified within Level 3 of the fair value hierarchy. The following table summarizes the key inputs used in the valuation of the embedded derivatives at inception and on December 31, 2025: <table cellpadding="0" cellspacing="0" id="xdx_89C_eus-gaap--SummaryOfValuationAllowanceTextBlock_zf2n8b3PoHD4" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - CONVERTIBLE NOTES PAYABLE (Details 1)"> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Schedule of summary of valuation allowance</td><td> </td> <td style="text-align: left"> </td><td id="xdx_496_20251001__20251029__us-gaap--ValuationTechniqueAxis__custom--MonteCarloSimulationMember_zA95TkGcZcj7" style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_494_20250101__20251231__us-gaap--ValuationTechniqueAxis__custom--MonteCarloSimulationMember_zIdNZ90N5Ryf" style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold">Assumption</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center">October 29, 2025</td><td style="white-space: nowrap; padding-bottom: 1pt; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center">December 31, 2025</td><td style="white-space: nowrap; padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> Valuation technique</td><td> </td> <td colspan="2" style="text-align: center">Monte Carlo Simulation</td><td style="text-align: left"> </td><td> </td> <td colspan="2" style="text-align: center">Monte Carlo Simulation</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_dp_zdqfC5i1jsuf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left"> Risk-free interest rate (cont. comp.)</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 15%; text-align: right">4</td><td style="width: 1%; text-align: left">%</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 15%; text-align: right">3</td><td style="width: 1%; text-align: left">%</td></tr> <tr id="xdx_404_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_dp_zyxIdTQk21xi" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"> Expected volatility</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">95</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">105</td><td style="text-align: left">%</td></tr> <tr id="xdx_40F_ecustom--CreditriskAdjustedRate_dp_zuf2kiyhBtRf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"> Credit-risk adjusted rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">22</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">26</td><td style="text-align: left">%</td></tr> <tr id="xdx_402_ecustom--TimeToMaturity_dtY_zPLfdBdR6hb7" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"> Time to maturity (years)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">0.83</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_ecustom--StockPriceAtValuationDate_dd_zlSsUwVLuQP2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"> Stock price at valuation date</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.05</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.07</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_dp_z3HAR9PalsY3" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"> Dividend yield</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">0.00</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">0.00</td><td style="text-align: left">%</td></tr> </table> The Monte Carlo simulation utilized 100,000 iterations and incorporated conversion mechanics, including the floor price and the VWAP-based conversion price as defined in the agreement. The incremental value attributable to the conversion feature was isolated to determine its impact on the overall fair value of the embedded option.

<table cellpadding="0" cellspacing="0" id="xdx_892_eus-gaap--ConvertibleDebtTableTextBlock_zPn7P6CAi3fk" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - CONVERTIBLE NOTES PAYABLE (Details)"> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Schedule of convertible notes payable</td><td> </td> <td> </td><td> </td> <td> </td><td> </td> <td> </td><td> </td> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center">Conversion price per share</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center">Interest rate</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center">Effective rate(1)</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center">Due date</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center">December 31, 2025</td><td style="white-space: nowrap; padding-bottom: 1pt; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center">December 31, 2024</td><td style="white-space: nowrap; padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 28%; text-align: left">SJC convertible promissory note</td><td style="width: 1%"> </td> <td style="width: 11%; text-align: center">80% of 10-day VWAP</td><td style="width: 1%"> </td> <td style="width: 11%; text-align: center">12%</td><td style="width: 1%"> </td> <td style="width: 11%; text-align: center"><span id="xdx_903_eus-gaap--DebtInstrumentInterestRateEffectivePercentage_iI_dp_c20251231__us-gaap--LongtermDebtTypeAxis__custom--SJCConvertiblePromissoryNoteMember_fKDEp_zyeuBvwZbkX9" title="Effective rate">21%</td><td style="width: 1%"> </td> <td style="width: 11%; text-align: center"><span id="xdx_902_eus-gaap--DebtConversionConvertedInstrumentExpirationOrDueDateDayMonthAndYear_dd_c20250101__20251231__us-gaap--LongtermDebtTypeAxis__custom--SJCConvertiblePromissoryNoteMember_zYPKZvkqXUb9" title="Due date">October 29,2026</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><span id="xdx_907_eus-gaap--ConvertibleNotesPayable_c20251231__us-gaap--LongtermDebtTypeAxis__custom--SJCConvertiblePromissoryNoteMember_pp0p0" title="Total convertible notes payable, net of financing cost, long-term">440,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><span id="xdx_900_eus-gaap--ConvertibleNotesPayable_c20241231__us-gaap--LongtermDebtTypeAxis__custom--SJCConvertiblePromissoryNoteMember_pp0p0" title="Total convertible notes payable, net of financing cost, long-term">-</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Fair value of embedded conversion options</td><td> </td> <td> </td><td> </td> <td> </td><td> </td> <td> </td><td> </td> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">150,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Less: unamortized debt discounts</td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">33,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Total convertible notes payable, net of financing cost, long-term</td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">557,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Less: current portion</td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">557,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Convertible notes payable, net of financing cost – long-term portion</td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"> <td style="width: 0.25in"></td><td id="xdx_F0B_zxDIzBNrqwre" style="width: 0.25in">(1)</td><td id="xdx_F10_zlOF3DqlUXO5" style="text-align: justify">Includes OID costs that are amortized to interest expense over the life of the notes.</td></tr></table>

80% of 10-day VWAP

0.12

0.21

2026-10-29

440000

150000

33000

557000

1650000

1500000

440000

400000

0.12

2026-10-28

0.10

<table cellpadding="0" cellspacing="0" id="xdx_89C_eus-gaap--SummaryOfValuationAllowanceTextBlock_zf2n8b3PoHD4" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - CONVERTIBLE NOTES PAYABLE (Details 1)"> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Schedule of summary of valuation allowance</td><td> </td> <td style="text-align: left"> </td><td id="xdx_496_20251001__20251029__us-gaap--ValuationTechniqueAxis__custom--MonteCarloSimulationMember_zA95TkGcZcj7" style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_494_20250101__20251231__us-gaap--ValuationTechniqueAxis__custom--MonteCarloSimulationMember_zIdNZ90N5Ryf" style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold">Assumption</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center">October 29, 2025</td><td style="white-space: nowrap; padding-bottom: 1pt; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center">December 31, 2025</td><td style="white-space: nowrap; padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> Valuation technique</td><td> </td> <td colspan="2" style="text-align: center">Monte Carlo Simulation</td><td style="text-align: left"> </td><td> </td> <td colspan="2" style="text-align: center">Monte Carlo Simulation</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_dp_zdqfC5i1jsuf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left"> Risk-free interest rate (cont. comp.)</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 15%; text-align: right">4</td><td style="width: 1%; text-align: left">%</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 15%; text-align: right">3</td><td style="width: 1%; text-align: left">%</td></tr> <tr id="xdx_404_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_dp_zyxIdTQk21xi" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"> Expected volatility</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">95</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">105</td><td style="text-align: left">%</td></tr> <tr id="xdx_40F_ecustom--CreditriskAdjustedRate_dp_zuf2kiyhBtRf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"> Credit-risk adjusted rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">22</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">26</td><td style="text-align: left">%</td></tr> <tr id="xdx_402_ecustom--TimeToMaturity_dtY_zPLfdBdR6hb7" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"> Time to maturity (years)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">0.83</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_ecustom--StockPriceAtValuationDate_dd_zlSsUwVLuQP2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"> Stock price at valuation date</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.05</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.07</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_dp_z3HAR9PalsY3" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"> Dividend yield</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">0.00</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">0.00</td><td style="text-align: left">%</td></tr> </table>

0.04

0.03

0.95

1.05

0.22 0.26 P1Y P0Y9M29D 0.05 0.07

0.0000

11. LAWSUIT LIABILITY Gordon v. Digital Power Corporation On or about November 21, 2019, the plaintiff-William Gordon, filed a complaint against defendant, DPC, alleging wrongful termination and disability discrimination. The arbitration was conducted during October 2022. Aside from the opening and responding trial briefs, the arbitrator requested additional briefing on two subjects, undisclosed principal liability, and disclosed principal liability, both of which were submitted. In May 2023 the arbitrator entered a final award against the Company and in favor of Mr. Gordon in the amount of $1.1 million inclusive of interest, legal fees, administrative fees and expenses. Interest accrues at 10% per annum. The Company has recorded a lawsuit liability of $1.1 million for this judgement as of December 31, 2025, and 2024 in the consolidated balance sheets. Interest expense related to the liability was $29,000 and $56,000 for the years ended December 31, 2025, and 2024, respectively. 1100000 1100000 1100000

29000

56000

12. LEASES Office and Warehouse Leases During the year ended December 31, 2024, the Company was a lessee as well as a sublessor for a certain office space lease. No residual value guarantees had been provided by the sublessee. For the year ended December 31, 2024, the Company recognized income related to the sublease of $91,000. The sublease expired November 30, 2024. Fixed sublease payments received were recognized on a straight-line basis over the sublease term and netted against operating lease expenses. The Company leases offices and warehouse space under an operating lease requiring periodic payments. The following table provides a summary of leases by balance sheet category as of December 31, 2025, and 2024: <table cellpadding="0" cellspacing="0" id="xdx_89F_ecustom--SummaryOfLeasesByBalanceSheetCategoryTableTextBlock_zcfceCw80XGk" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse" summary="xdx: Disclosure - LEASES (Details)"> <tr style="vertical-align: bottom; background-color: White"> <td>Summary of leases by balance sheet category</td> <td> </td> <td> </td> <td id="xdx_494_20251231_zOyWmIZzh1Oa" style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td id="xdx_498_20241231_zESh0sJce5y9" style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center">December 31, 2025</td> <td style="border-bottom: black 1pt solid; white-space: nowrap"> </td> <td style="border-bottom: black 1pt solid; white-space: nowrap"> </td> <td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center">December 31, 2024</td> <td style="white-space: nowrap"> </td></tr> <tr id="xdx_40E_eus-gaap--OperatingLeaseRightOfUseAsset_iI_pp0p0" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%">Operating right-of-use assets</td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 15%; text-align: right">45,000</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 15%; text-align: right">567,000</td> <td style="width: 1%"> </td></tr> <tr id="xdx_407_eus-gaap--OperatingLeaseLiabilityCurrent_iI_pp0p0" style="vertical-align: bottom; background-color: White"> <td>Operating lease liability – current</td> <td> </td> <td> </td> <td style="text-align: right">51,000</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">581,000</td> <td> </td></tr> <tr id="xdx_407_ecustom--OperatingLeasesLiabilityNoncurrent_iI_pp0p0" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Operating lease liability – non-current</td> <td> </td> <td> </td> <td style="text-align: right">-</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">50,000</td> <td> </td></tr> </table> The components of lease expenses recorded within operating expenses on the Company’s consolidated statements of operations for the years ended December 31, 2025, and 2024, were as follows: <table cellpadding="0" cellspacing="0" id="xdx_894_eus-gaap--LeaseCostTableTextBlock_zhZO4P1imlml" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse" summary="xdx: Disclosure - LEASES (Details 1)"> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 9pt">Schedule of lease cost</td> <td> </td> <td> </td> <td id="xdx_493_20250101__20251231_zd3CRklffzt6" style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td id="xdx_49E_20240101__20241231_z4cd0GN1rM3k" style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="6" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center">December 31,</td> <td style="white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center">2025</td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center">2024</td> <td style="white-space: nowrap"> </td></tr> <tr id="xdx_404_eus-gaap--OperatingCostsAndExpenses_maLCzJXr_zaDW97rJ27o7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%">Operating lease costs</td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 15%; text-align: right">550,000</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 15%; text-align: right">649,000</td> <td style="width: 1%"> </td></tr> <tr id="xdx_408_eus-gaap--SubleaseIncome_iN_pp0p0_di_msLCzJXr_zJ7AgtH9y0od" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 9pt">Less: Sublease income</td> <td> </td> <td> </td> <td style="text-align: right">-</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">(91,000)</td> <td> </td></tr> <tr id="xdx_40F_eus-gaap--LeaseCost_iT_pp0p0_mtLCzJXr_zzepjtVxqyPk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt">Total</td> <td> </td> <td style="border-bottom: black 2.25pt double">$</td> <td style="border-bottom: black 2.25pt double; text-align: right">550,000</td> <td> </td> <td> </td> <td style="border-bottom: black 2.25pt double">$</td> <td style="border-bottom: black 2.25pt double; text-align: right">558,000</td> <td> </td></tr> </table> The following tables provides a summary of other information related to leases for the year ended December 31, 2025: <table cellpadding="0" cellspacing="0" id="xdx_89B_ecustom--SummaryOfOtherInformationRelatedToLeasesTableTextBlock_zh1Xx292g7tj" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse" summary="xdx: Disclosure - LEASES (Details 2)"> <tr style="vertical-align: bottom; background-color: White"> <td>Summary of other information related to leases</td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center">December 31, 2025</td> <td style="white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom"> <td>Cash paid for amounts included in the measurement of lease liabilities:</td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 83%">Operating cash flows related to operating leases</td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 14%; text-align: right">609,000</td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Right-of-use assets obtained in exchange for new operating lease liabilities</td> <td> </td> <td> </td> <td style="text-align: right">-</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Weighted-average remaining lease term – operating leases</td> <td> </td> <td> </td> <td style="text-align: right">.1 years</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Weighted-average discount rate – operating leases</td> <td> </td> <td> </td> <td style="text-align: right">8</td> <td>%</td></tr> </table> Payments due by period of lease liabilities under the Company’s non-cancellable operating lease as of December 31, 2025, were as follows: <table cellpadding="0" cellspacing="0" id="xdx_892_ecustom--NonCancellableOperatingLeasesTableTextBlock_zvGmNYrXPow9" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse" summary="xdx: Disclosure - LEASES (Details 3)"> <tr style="vertical-align: bottom; background-color: White"> <td>Schedule of non cancellable operating leases</td> <td> </td> <td> </td> <td id="xdx_492_20251231_zipb707cIqU" style="text-align: right"> </td> <td> </td></tr> <tr id="xdx_40A_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths_iI_pp0p0_maLOLLPzdNm_zybu1Ahfkfv6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; width: 82%">2026</td> <td style="padding-bottom: 1pt; width: 1%"> </td> <td style="border-bottom: Black 1pt solid; width: 1%">$</td> <td style="border-bottom: Black 1pt solid; text-align: right; width: 15%">51,000</td> <td style="padding-bottom: 1pt; width: 1%"> </td></tr> <tr id="xdx_40D_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_iTI_pp0p0_mtLOLLPzdNm_maOLLzaF6_zBqZThADLfd9" style="vertical-align: bottom; background-color: White"> <td>Total lease payments</td> <td> </td> <td> </td> <td style="text-align: right">51,000</td> <td> </td></tr> <tr id="xdx_403_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iNI_pp0p0_maOLLzaF6_zHdP6BUIGDVi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Less interest</td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td> </td></tr> <tr id="xdx_406_eus-gaap--OperatingLeaseLiability_iI_pp0p0_zNTX7nnpVe47" style="vertical-align: bottom; background-color: White"> <td>Present value of lease liabilities</td> <td> </td> <td style="border-bottom: black 2.25pt double">$</td> <td style="border-bottom: black 2.25pt double; text-align: right">51,000</td> <td> </td></tr> </table>

91000

<table cellpadding="0" cellspacing="0" id="xdx_89F_ecustom--SummaryOfLeasesByBalanceSheetCategoryTableTextBlock_zcfceCw80XGk" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse" summary="xdx: Disclosure - LEASES (Details)"> <tr style="vertical-align: bottom; background-color: White"> <td>Summary of leases by balance sheet category</td> <td> </td> <td> </td> <td id="xdx_494_20251231_zOyWmIZzh1Oa" style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td id="xdx_498_20241231_zESh0sJce5y9" style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center">December 31, 2025</td> <td style="border-bottom: black 1pt solid; white-space: nowrap"> </td> <td style="border-bottom: black 1pt solid; white-space: nowrap"> </td> <td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center">December 31, 2024</td> <td style="white-space: nowrap"> </td></tr> <tr id="xdx_40E_eus-gaap--OperatingLeaseRightOfUseAsset_iI_pp0p0" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%">Operating right-of-use assets</td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 15%; text-align: right">45,000</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 15%; text-align: right">567,000</td> <td style="width: 1%"> </td></tr> <tr id="xdx_407_eus-gaap--OperatingLeaseLiabilityCurrent_iI_pp0p0" style="vertical-align: bottom; background-color: White"> <td>Operating lease liability – current</td> <td> </td> <td> </td> <td style="text-align: right">51,000</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">581,000</td> <td> </td></tr> <tr id="xdx_407_ecustom--OperatingLeasesLiabilityNoncurrent_iI_pp0p0" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Operating lease liability – non-current</td> <td> </td> <td> </td> <td style="text-align: right">-</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">50,000</td> <td> </td></tr> </table>

45000

567000

51000

581000

50000

<table cellpadding="0" cellspacing="0" id="xdx_894_eus-gaap--LeaseCostTableTextBlock_zhZO4P1imlml" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse" summary="xdx: Disclosure - LEASES (Details 1)"> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 9pt">Schedule of lease cost</td> <td> </td> <td> </td> <td id="xdx_493_20250101__20251231_zd3CRklffzt6" style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td id="xdx_49E_20240101__20241231_z4cd0GN1rM3k" style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="6" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center">December 31,</td> <td style="white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center">2025</td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center">2024</td> <td style="white-space: nowrap"> </td></tr> <tr id="xdx_404_eus-gaap--OperatingCostsAndExpenses_maLCzJXr_zaDW97rJ27o7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%">Operating lease costs</td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 15%; text-align: right">550,000</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 15%; text-align: right">649,000</td> <td style="width: 1%"> </td></tr> <tr id="xdx_408_eus-gaap--SubleaseIncome_iN_pp0p0_di_msLCzJXr_zJ7AgtH9y0od" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 9pt">Less: Sublease income</td> <td> </td> <td> </td> <td style="text-align: right">-</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">(91,000)</td> <td> </td></tr> <tr id="xdx_40F_eus-gaap--LeaseCost_iT_pp0p0_mtLCzJXr_zzepjtVxqyPk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt">Total</td> <td> </td> <td style="border-bottom: black 2.25pt double">$</td> <td style="border-bottom: black 2.25pt double; text-align: right">550,000</td> <td> </td> <td> </td> <td style="border-bottom: black 2.25pt double">$</td> <td style="border-bottom: black 2.25pt double; text-align: right">558,000</td> <td> </td></tr> </table>

550000

649000

91000

550000

558000

<table cellpadding="0" cellspacing="0" id="xdx_89B_ecustom--SummaryOfOtherInformationRelatedToLeasesTableTextBlock_zh1Xx292g7tj" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse" summary="xdx: Disclosure - LEASES (Details 2)"> <tr style="vertical-align: bottom; background-color: White"> <td>Summary of other information related to leases</td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center">December 31, 2025</td> <td style="white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom"> <td>Cash paid for amounts included in the measurement of lease liabilities:</td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 83%">Operating cash flows related to operating leases</td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 14%; text-align: right">609,000</td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Right-of-use assets obtained in exchange for new operating lease liabilities</td> <td> </td> <td> </td> <td style="text-align: right">-</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Weighted-average remaining lease term – operating leases</td> <td> </td> <td> </td> <td style="text-align: right">.1 years</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Weighted-average discount rate – operating leases</td> <td> </td> <td> </td> <td style="text-align: right">8</td> <td>%</td></tr> </table>

609000

P1Y

0.08

<table cellpadding="0" cellspacing="0" id="xdx_892_ecustom--NonCancellableOperatingLeasesTableTextBlock_zvGmNYrXPow9" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse" summary="xdx: Disclosure - LEASES (Details 3)"> <tr style="vertical-align: bottom; background-color: White"> <td>Schedule of non cancellable operating leases</td> <td> </td> <td> </td> <td id="xdx_492_20251231_zipb707cIqU" style="text-align: right"> </td> <td> </td></tr> <tr id="xdx_40A_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths_iI_pp0p0_maLOLLPzdNm_zybu1Ahfkfv6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; width: 82%">2026</td> <td style="padding-bottom: 1pt; width: 1%"> </td> <td style="border-bottom: Black 1pt solid; width: 1%">$</td> <td style="border-bottom: Black 1pt solid; text-align: right; width: 15%">51,000</td> <td style="padding-bottom: 1pt; width: 1%"> </td></tr> <tr id="xdx_40D_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_iTI_pp0p0_mtLOLLPzdNm_maOLLzaF6_zBqZThADLfd9" style="vertical-align: bottom; background-color: White"> <td>Total lease payments</td> <td> </td> <td> </td> <td style="text-align: right">51,000</td> <td> </td></tr> <tr id="xdx_403_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iNI_pp0p0_maOLLzaF6_zHdP6BUIGDVi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Less interest</td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td> </td></tr> <tr id="xdx_406_eus-gaap--OperatingLeaseLiability_iI_pp0p0_zNTX7nnpVe47" style="vertical-align: bottom; background-color: White"> <td>Present value of lease liabilities</td> <td> </td> <td style="border-bottom: black 2.25pt double">$</td> <td style="border-bottom: black 2.25pt double; text-align: right">51,000</td> <td> </td></tr> </table>

51000

13. RELATED PARTY TRANSACTIONS The Company is an indirect subsidiary of Hyperscale Data, Inc. (“Hyperscale”), and as a result Hyperscale is deemed a related party. Allocation of General Corporate Expenses Hyperscale provides human resources, accounting and other services to the Company, which are included as allocations of these expenses. The allocation method calculates an appropriate share of overhead costs by using Company revenue as a percentage of total revenue. This method is reasonable and consistently applied. Costs incurred in connection with the allocation of these costs are reflected in selling, general and administrative of $196,000 and $401,000 for the fiscal year end December 31, 2025, and 2024, respectively and were recorded in Hyperscale advance payable. Related Party Notes and Advances Payable Related party notes and advances payable were used for working capital purposes and were comprised of the following: <table cellpadding="0" cellspacing="0" id="xdx_881_ecustom--ScheduleOfRelatedPartyNotesAndAdvancesPayable_zC6CYxPScCw8" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse" summary="xdx: Disclosure - RELATED PARTY TRANSACTIONS (Details)"> <tr style="vertical-align: bottom; background-color: White"> <td>Schedule of related party notes and advances payable</td> <td> </td> <td style="text-align: center"> </td> <td> </td> <td style="text-align: center"> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center">Interest rate</td> <td style="white-space: nowrap"> </td> <td style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center">Due date</td> <td style="white-space: nowrap"> </td> <td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center">December 31, 2025</td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center">December 31, 2024</td> <td style="white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 44%">Hyperscale advance payable</td> <td style="width: 1%"> </td> <td style="width: 12%; text-align: center"><span id="xdx_907_eus-gaap--RelatedPartyTransactionRate_dp_c20250101__20251231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--HyperscaleAdvancePayableMember_zCkBZ9yDmJIj" title="Interest rate">10%</td> <td style="width: 1%"> </td> <td style="width: 12%; text-align: center">-</td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 12%; text-align: right"><span id="xdx_906_ecustom--RelatedPartyNotesAndAdvancePayable_c20251231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--HyperscaleAdvancePayableMember_pp0p0" title="Total related party notes and advances payable">7,803,000</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 12%; text-align: right"><span id="xdx_907_ecustom--RelatedPartyNotesAndAdvancePayable_c20241231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--HyperscaleAdvancePayableMember_pp0p0" title="Total related party notes and advances payable">5,118,000</td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Chief Executive Officer</td> <td> </td> <td style="text-align: center"><span id="xdx_90C_eus-gaap--RelatedPartyTransactionRate_dp_c20250101__20251231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__srt--ChiefExecutiveOfficerMember__srt--RangeAxis__srt--MinimumMember_zZTLAjBhYB85" title="Interest rate">14% and <span id="xdx_90B_eus-gaap--RelatedPartyTransactionRate_dp_c20250101__20251231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__srt--ChiefExecutiveOfficerMember__srt--RangeAxis__srt--MaximumMember_zpQxVCFmK1pb" title="Interest rate">22%</td> <td> </td> <td style="text-align: center">Default</td> <td> </td> <td> </td> <td style="text-align: right"><span id="xdx_90D_ecustom--RelatedPartyNotesAndAdvancePayable_c20251231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__srt--ChiefExecutiveOfficerMember_pp0p0" title="Total related party notes and advances payable">51,000</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"><span id="xdx_90E_ecustom--RelatedPartyNotesAndAdvancePayable_c20241231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__srt--ChiefExecutiveOfficerMember_pp0p0" title="Total related party notes and advances payable">46,000</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt">Non-officer advance payable</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: center">-</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: center">-</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><span id="xdx_90B_ecustom--RelatedPartyNotesAndAdvancePayable_c20251231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--NonOfficerAdvancePayableMember_pp0p0" title="Total related party notes and advances payable">-</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><span id="xdx_908_ecustom--RelatedPartyNotesAndAdvancePayable_c20241231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--NonOfficerAdvancePayableMember_pp0p0" title="Total related party notes and advances payable">21,000</td> <td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 9pt">Total related party notes and advances payable</td> <td> </td> <td style="text-align: center"> </td> <td> </td> <td style="text-align: center"> </td> <td> </td> <td style="border-bottom: black 2.25pt double">$</td> <td style="border-bottom: black 2.25pt double; text-align: right">7,854,000</td> <td> </td> <td> </td> <td style="border-bottom: black 2.25pt double">$</td> <td style="border-bottom: black 2.25pt double; text-align: right">5,185,000</td> <td> </td></tr> </table> On September 26, 2024, the Company entered into an Amendment to the Loan and Security Agreement (the “Amendment”) with Hyperscale dated August 15, 2023 (the “Credit Agreement”). The Credit Agreement provided for a secured, non-revolving credit facility with an aggregate principal amount of up to $2,000,000 (the “Credit Limit”) through December 31, 2023 (the “Credit Termination Date”). All loans under the Credit Agreement (collectively, the “Advances”) were payable within five business days of a request by Hyperscale, and Hyperscale was not obligated to provide any further Advances after the Credit Termination Date. Pursuant to the Amendment, the Company and Hyperscale have agreed to, among other things, amend the Credit Agreement to increase the Credit Limit to $8,000,000, extend the Credit Termination Date to December 31, 2026, and provide for additional loans made in excess of the initial Credit Limit to become Advances. The Company recorded related party interest expense of $583,000 and $368,000 for the years ended December 31, 2025, and 2024, respectively in interest expense, related party.

196000

401000

<table cellpadding="0" cellspacing="0" id="xdx_881_ecustom--ScheduleOfRelatedPartyNotesAndAdvancesPayable_zC6CYxPScCw8" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse" summary="xdx: Disclosure - RELATED PARTY TRANSACTIONS (Details)"> <tr style="vertical-align: bottom; background-color: White"> <td>Schedule of related party notes and advances payable</td> <td> </td> <td style="text-align: center"> </td> <td> </td> <td style="text-align: center"> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center">Interest rate</td> <td style="white-space: nowrap"> </td> <td style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center">Due date</td> <td style="white-space: nowrap"> </td> <td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center">December 31, 2025</td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center">December 31, 2024</td> <td style="white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 44%">Hyperscale advance payable</td> <td style="width: 1%"> </td> <td style="width: 12%; text-align: center"><span id="xdx_907_eus-gaap--RelatedPartyTransactionRate_dp_c20250101__20251231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--HyperscaleAdvancePayableMember_zCkBZ9yDmJIj" title="Interest rate">10%</td> <td style="width: 1%"> </td> <td style="width: 12%; text-align: center">-</td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 12%; text-align: right"><span id="xdx_906_ecustom--RelatedPartyNotesAndAdvancePayable_c20251231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--HyperscaleAdvancePayableMember_pp0p0" title="Total related party notes and advances payable">7,803,000</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 12%; text-align: right"><span id="xdx_907_ecustom--RelatedPartyNotesAndAdvancePayable_c20241231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--HyperscaleAdvancePayableMember_pp0p0" title="Total related party notes and advances payable">5,118,000</td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Chief Executive Officer</td> <td> </td> <td style="text-align: center"><span id="xdx_90C_eus-gaap--RelatedPartyTransactionRate_dp_c20250101__20251231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__srt--ChiefExecutiveOfficerMember__srt--RangeAxis__srt--MinimumMember_zZTLAjBhYB85" title="Interest rate">14% and <span id="xdx_90B_eus-gaap--RelatedPartyTransactionRate_dp_c20250101__20251231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__srt--ChiefExecutiveOfficerMember__srt--RangeAxis__srt--MaximumMember_zpQxVCFmK1pb" title="Interest rate">22%</td> <td> </td> <td style="text-align: center">Default</td> <td> </td> <td> </td> <td style="text-align: right"><span id="xdx_90D_ecustom--RelatedPartyNotesAndAdvancePayable_c20251231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__srt--ChiefExecutiveOfficerMember_pp0p0" title="Total related party notes and advances payable">51,000</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"><span id="xdx_90E_ecustom--RelatedPartyNotesAndAdvancePayable_c20241231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__srt--ChiefExecutiveOfficerMember_pp0p0" title="Total related party notes and advances payable">46,000</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt">Non-officer advance payable</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: center">-</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: center">-</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><span id="xdx_90B_ecustom--RelatedPartyNotesAndAdvancePayable_c20251231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--NonOfficerAdvancePayableMember_pp0p0" title="Total related party notes and advances payable">-</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><span id="xdx_908_ecustom--RelatedPartyNotesAndAdvancePayable_c20241231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--NonOfficerAdvancePayableMember_pp0p0" title="Total related party notes and advances payable">21,000</td> <td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 9pt">Total related party notes and advances payable</td> <td> </td> <td style="text-align: center"> </td> <td> </td> <td style="text-align: center"> </td> <td> </td> <td style="border-bottom: black 2.25pt double">$</td> <td style="border-bottom: black 2.25pt double; text-align: right">7,854,000</td> <td> </td> <td> </td> <td style="border-bottom: black 2.25pt double">$</td> <td style="border-bottom: black 2.25pt double; text-align: right">5,185,000</td> <td> </td></tr> </table>

0.10

7803000 5118000

0.14

0.22

51000 46000 21000 7854000 5185000

2000000

8000000

2026-12-31

583000 368000

14. INCOME TAXES The following is a geographical breakdown of loss before the provision for income tax, for the years ended December 31, 2025, and 2024. <table cellpadding="0" cellspacing="0" id="xdx_89A_eus-gaap--ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock_zthvEcvBmZ98" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse" summary="xdx: Disclosure - INCOME TAXES (Details)"> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: 10pt">Schedule of loss before provision for income tax</td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center">2025</td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center">2024</td> <td style="white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">Pre-tax loss</td> <td> </td> <td colspan="2" style="white-space: nowrap; text-align: right"> </td> <td> </td> <td> </td> <td colspan="2" style="white-space: nowrap; text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-indent: 10pt">U.S. Federal</td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 15%; text-align: right">(2,111,000</td> <td style="width: 1%">)</td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 15%; text-align: right">(3,968,000</td> <td style="width: 1%">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: 10pt">Foreign</td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right"><span id="xdx_908_ecustom--LossBeforeProvisionForIncomeTax_pp0p0_c20250101__20251231__us-gaap--IncomeTaxAuthorityAxis__us-gaap--ForeignCountryMember_zVsCSIAiF6qb" title="Loss before provision for income tax">-</td> <td> </td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Total</td> <td> </td> <td style="border-bottom: black 2.25pt double">$</td> <td style="border-bottom: black 2.25pt double; text-align: right">(2,111,000</td> <td>)</td> <td> </td> <td style="border-bottom: black 2.25pt double">$</td> <td style="border-bottom: black 2.25pt double; text-align: right">(3,968,000</td> <td>)</td></tr> </table> The federal and state income tax (provision) benefit is summarized as: <table cellpadding="0" cellspacing="0" id="xdx_89F_eus-gaap--ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock_zYscWpTsviW7" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse" summary="xdx: Disclosure - INCOME TAXES (Details 1)"> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: 10pt">Schedule of federal and state income tax (provision) benefit</td> <td> </td> <td> </td> <td id="xdx_49F_20250101__20251231_zZgJSnU0gd3d" style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td id="xdx_490_20240101__20241231_zdswa9l9FOYj" style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center">2025</td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center">2024</td> <td style="white-space: nowrap"> </td></tr> <tr id="xdx_403_eus-gaap--CurrentFederalStateAndLocalTaxExpenseBenefitAbstract_iB" style="vertical-align: bottom"> <td style="white-space: nowrap">Current</td> <td> </td> <td colspan="2" style="white-space: nowrap; text-align: right"> </td> <td> </td> <td> </td> <td colspan="2" style="white-space: nowrap; text-align: right"> </td> <td> </td></tr> <tr id="xdx_40C_eus-gaap--CurrentFederalTaxExpenseBenefit_i01_pp0p0_maCITEBzfQt_zYacjQyz7jn6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-indent: 10pt">U.S. Federal</td> <td> </td> <td>$</td> <td style="text-align: right">-</td> <td> </td> <td> </td> <td>$</td> <td style="text-align: right">-</td> <td> </td></tr> <tr id="xdx_40E_eus-gaap--CurrentStateAndLocalTaxExpenseBenefit_i01_pp0p0_maCITEBzfQt_zEI40vMAVCj" style="vertical-align: bottom; background-color: White"> <td style="text-indent: 10pt">U.S. State</td> <td> </td> <td> </td> <td style="text-align: right">2,000</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">5,000</td> <td> </td></tr> <tr id="xdx_40B_eus-gaap--CurrentForeignTaxExpenseBenefit_i01_pp0p0_maCITEBzfQt_zRv4O4rixH54" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-indent: 10pt">Foreign</td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td> </td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td> </td></tr> <tr id="xdx_407_eus-gaap--CurrentIncomeTaxExpenseBenefit_i01T_pp0p0_mtCITEBzfQt_maITEBzYoj_zzyD9aPbC9Bl" style="vertical-align: bottom; background-color: White"> <td>Total current provision</td> <td> </td> <td> </td> <td style="text-align: right">2,000</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">5,000</td> <td> </td></tr> <tr id="xdx_401_eus-gaap--DeferredIncomeTaxesAbstract_iB" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Deferred</td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr id="xdx_40A_eus-gaap--DeferredFederalIncomeTaxExpenseBenefit_i01_pp0p0_maDITEBz15c_zsaiz7n1Llz1" style="vertical-align: bottom; background-color: White"> <td style="text-indent: 10pt">U.S. Federal</td> <td> </td> <td> </td> <td style="text-align: right">-</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">-</td> <td> </td></tr> <tr id="xdx_40D_eus-gaap--DeferredStateAndLocalIncomeTaxExpenseBenefit_i01_pp0p0_maDITEBz15c_zJn3AsQybOcf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-indent: 10pt">U.S. State</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 15%; text-align: right"> </td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 15%; text-align: right">-</td> <td style="width: 1%"> </td></tr> <tr id="xdx_409_eus-gaap--DeferredForeignIncomeTaxExpenseBenefit_i01_pp0p0_maDITEBz15c_z36NTbr57Lzd" style="vertical-align: bottom; background-color: White"> <td style="text-indent: 10pt">Foreign</td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td> </td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td> </td></tr> <tr id="xdx_400_eus-gaap--DeferredIncomeTaxExpenseBenefit_i01T_pp0p0_mtDITEBz15c_maITEBzYoj_zjJSyQgIvSDc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Total deferred provision (benefit)</td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td> </td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td> </td></tr> <tr id="xdx_40F_eus-gaap--IncomeTaxExpenseBenefit_i01T_pp0p0_mtITEBzYoj_zS8Ut3b32q6h" style="vertical-align: bottom; background-color: White"> <td style="text-indent: 20pt">Total provision (benefit) for income taxes</td> <td> </td> <td style="border-bottom: black 2.25pt double">$</td> <td style="border-bottom: black 2.25pt double; text-align: right">2,000</td> <td> </td> <td> </td> <td style="border-bottom: black 2.25pt double">$</td> <td style="border-bottom: black 2.25pt double; text-align: right">5,000</td> <td> </td></tr> </table> Deferred income taxes reflect the net tax effects of (a) temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and income tax purposes and (b) operating losses and tax credit carryforwards. Significant components of the Company’s deferred taxes as of December 31 were as follows: <table cellpadding="0" cellspacing="0" id="xdx_89D_eus-gaap--ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock_zHB2gYnHdHc9" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse" summary="xdx: Disclosure - INCOME TAXES (Details 2)"> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 9pt">Schedule of deferred tax assets and liabilities</td> <td> </td> <td> </td> <td id="xdx_49E_20251231_zGglwNF6ekek" style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td id="xdx_49A_20241231_zhmKJllAaKfk" style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center">2025</td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center">2024</td> <td style="white-space: nowrap"> </td></tr> <tr id="xdx_40A_eus-gaap--DeferredTaxAssetsGrossAbstract_iB" style="vertical-align: bottom"> <td>Deferred tax asset:</td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr id="xdx_40C_eus-gaap--DeferredTaxAssetsOperatingLossCarryforwards_i01I_pp0p0_maDTAGzVN4_zJjTHBIcDzJ5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; width: 64%">Net operating loss</td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 15%; text-align: right">7,829,000</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 15%; text-align: right">7,396,000 </td> <td style="width: 1%"> </td></tr> <tr id="xdx_406_eus-gaap--DeferredTaxAssetsGoodwillAndIntangibleAssets_i01I_pp0p0_maDTAGzVN4_zBteXsH5m4nk" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 9pt">Intangible asset basis</td> <td> </td> <td> </td> <td style="text-align: right">99,000</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">113,000 </td> <td> </td></tr> <tr id="xdx_401_ecustom--DeferredTaxAssetsDeferredRentLiability_i01I_pp0p0_maDTAGzVN4_zoXJ6UZHp07d" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt">Deferred rent liability</td> <td> </td> <td> </td> <td style="text-align: right">14,000</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">177,000 </td> <td> </td></tr> <tr id="xdx_406_eus-gaap--DeferredTaxAssetsInventory_i01I_pp0p0_maDTAGzVN4_zPSarPUmmD79" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 9pt">Inventory adjustments</td> <td> </td> <td> </td> <td style="text-align: right">380,000</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">375,000 </td> <td> </td></tr> <tr id="xdx_40A_eus-gaap--DeferredTaxAssetsInProcessResearchAndDevelopment_i01I_pp0p0_maDTAGzVN4_zj3jvuZKcfmf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt">R&D capitalization</td> <td> </td> <td> </td> <td style="text-align: right">70,000</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">102,000 </td> <td> </td></tr> <tr id="xdx_40D_eus-gaap--DeferredTaxAssetsTaxDeferredExpenseReservesAndAccrualsAssetRetirementObligations_i01I_pp0p0_maDTAGzVN4_zEH53wXMKzP2" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 9pt">Asset retirement obligation</td> <td> </td> <td> </td> <td style="text-align: right">8,000</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">7,000 </td> <td> </td></tr> <tr id="xdx_400_ecustom--DeferredTaxAssetSettlementLiability_i01I_pp0p0_maDTAGzVN4_zqD2EG4d7ZSi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt">Settlement liability</td> <td> </td> <td> </td> <td style="text-align: right">298,000 </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">298,000 </td> <td> </td></tr> <tr id="xdx_406_eus-gaap--DeferredTaxAssetsTaxDeferredExpenseReservesAndAccrualsWarrantyReserves_i01I_pp0p0_maDTAGzVN4_zOtq41daUlY8" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 9pt">Accrued warranty</td> <td> </td> <td> </td> <td style="text-align: right">13,000</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">13,000 </td> <td> </td></tr> <tr id="xdx_402_eus-gaap--DeferredTaxAssetsTaxDeferredExpenseReservesAndAccrualsOther_i01I_pp0p0_maDTAGzVN4_zRgvCB0kHOPf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt">Accrued salaries</td> <td> </td> <td> </td> <td style="text-align: right">90,000</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">69,000 </td> <td> </td></tr> <tr id="xdx_40D_ecustom--DeferredTaxAssetsTaxDeferredRevenue_i01I_pp0p0_maDTAGzVN4_ziSsI1koCLTf" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 9pt">Deferred revenue</td> <td> </td> <td> </td> <td style="text-align: right">75,000</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">35,000 </td> <td> </td></tr> <tr id="xdx_409_ecustom--AccruedInterest_i01I_pp0p0_maDTAGzVN4_zsQxuOPSv0j4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> Accrued interest</td> <td> </td> <td> </td> <td style="text-align: right">281,000</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">122,000</td> <td> </td></tr> <tr id="xdx_40B_ecustom--ChangeInFairValueOfDerivatives_i01I_pp0p0_maDTAGzVN4_zjTBYvQ4pHig" style="vertical-align: bottom; background-color: White"> <td> Change in fair value of derivatives</td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">10,000</td> <td> </td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td> </td></tr> <tr id="xdx_402_eus-gaap--DeferredTaxAssetsGross_i01TI_pp0p0_mtDTAGzVN4_maNDITAzBM7_z7mZpJ9Rupy1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Total deferred tax asset</td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">9,167,000</td> <td> </td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">8,707,000 </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr id="xdx_40F_eus-gaap--DeferredTaxLiabilitiesAbstract_iB" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="white-space: nowrap">Deferred tax liability:</td> <td> </td> <td colspan="2" style="white-space: nowrap; text-align: right"> </td> <td> </td> <td> </td> <td colspan="2" style="white-space: nowrap; text-align: right"> </td> <td> </td></tr> <tr id="xdx_405_eus-gaap--DeferredTaxLiabilityIntraEntityTransferAssetOtherThanInventory_i01NI_pp0p0_di_maDITLzaQT_zONW7UEK0fjg" style="background-color: White"> <td style="padding-left: 9pt; vertical-align: bottom">ROU assets</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: top; text-align: right">(8,000)</td> <td style="vertical-align: top"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: right">(159,000 </td> <td style="vertical-align: bottom">)</td></tr> <tr id="xdx_400_eus-gaap--DeferredTaxLiabilitiesPropertyPlantAndEquipment_i01NI_pp0p0_di_maDITLzaQT_z7kDhvKYtSi9" style="background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; vertical-align: bottom">Fixed asset basis</td> <td style="vertical-align: bottom"> </td> <td style="border-bottom: black 1pt solid; vertical-align: bottom"> </td> <td style="border-bottom: black 1pt solid; vertical-align: top; text-align: right"> (13,000)</td> <td style="vertical-align: top"> </td> <td style="vertical-align: bottom"> </td> <td style="border-bottom: black 1pt solid; vertical-align: bottom"> </td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right">(90,000 </td> <td style="vertical-align: bottom">)</td></tr> <tr id="xdx_408_eus-gaap--DeferredIncomeTaxLiabilities_i01NTI_pp0p0_di_mtDITLzaQT_msNDITAzBM7_zmz70oGuVmfc" style="vertical-align: bottom; background-color: White"> <td>Total deferred income tax liabilities</td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(21,000)</td> <td> </td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(249,000 </td> <td>)</td></tr> <tr id="xdx_401_ecustom--NetDeferredIncomeTaxAssets_i01TI_pp0p0_maDTANzvs2_mtNDITAzBM7_zNlhmMOLOXea" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Net deferred income tax assets</td> <td> </td> <td> </td> <td style="text-align: right">9,146,000</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">8,458,000 </td> <td> </td></tr> <tr id="xdx_40E_eus-gaap--DeferredTaxAssetsValuationAllowance_i01NI_pp0p0_di_msDTANzvs2_zY3pLHjWkebb" style="vertical-align: bottom; background-color: White"> <td>Valuation allowance</td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(9,146,000)</td> <td> </td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(8,458,000 </td> <td>)</td></tr> <tr id="xdx_40F_eus-gaap--DeferredTaxAssetsNet_iTI_pp0p0_mtDTANzvs2_zoJUkhXzEA1f" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Deferred tax asset (liability), net</td> <td> </td> <td style="border-bottom: black 2.25pt double">$</td> <td style="border-bottom: black 2.25pt double; text-align: right">-</td> <td> </td> <td> </td> <td style="border-bottom: black 2.25pt double">$</td> <td style="border-bottom: black 2.25pt double; text-align: right">-</td> <td> </td></tr> </table> Events which may restrict utilization of a company’s net operating loss and credit carryforwards include, but are not limited to, certain ownership change limitations as defined in Internal Revenue Code Section 382 and similar state provisions. In the event the Company has had a change of ownership, utilization of carryforwards could be restricted to an annual limitation. The annual limitation may result in the expiration of net operating loss carryforwards before utilization. The Company has not undertaken a study to determine if its net operating losses are limited. In the event the Company previously experienced an ownership change, or should experience an ownership change in the future, the amount of net operating loss carryovers available in any taxable year could be limited and may expire unutilized. The impact of any such limitations or expirations would not have a material impact on the financials since all the deferred tax assets for the Company’s attributes are fully offset by a valuation allowance. ASC 740 requires that the tax benefit of net operating losses, temporary differences and credit carryforwards be recorded as an asset to the extent that management assesses that realization is “more likely than not.” Realization of the future tax benefits is dependent on the Company’s ability to generate sufficient taxable income within the carryforward period. Because of the Company’s recent history of operating losses, management believes that recognition of the deferred tax assets arising from the above-mentioned future tax benefits is currently not likely to be realized and, accordingly, has provided a valuation allowance. The valuation allowance increased by $688,000, and $929,000 during the years ended December 31, 2025, and 2024, respectively. Net operating losses and tax credit carryforwards as of December 31, 2025, and 2024 were as follows: <table cellpadding="0" cellspacing="0" id="xdx_898_eus-gaap--SummaryOfOperatingLossCarryforwardsTextBlock_zsNFZYMSW7d6" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse" summary="xdx: Disclosure - INCOME TAXES (Details 3)"> <tr style="vertical-align: bottom; background-color: White"> <td>Schedule of net operating losses and tax credit carryforwards</td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td style="text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center">2025 Amount</td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center">Expiration Years</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 65%">Net operating losses, federal (Post December 31, 2017)</td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 15%; text-align: right">19,189,000</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 16%; text-align: center">Do Not Expire</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Net operating losses, federal (Pre-January 1, 2018)</td> <td> </td> <td> </td> <td style="text-align: right">8,058,000</td> <td> </td> <td> </td> <td style="text-align: center">2026 to 2037</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Net operating losses, state</td> <td> </td> <td> </td> <td style="text-align: right">30,180,000</td> <td> </td> <td> </td> <td style="text-align: center">2029 to 2044</td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center">2024 Amount</td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center">Expiration Years</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 65%">Net operating losses, federal (Post December 31, 2017)</td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 15%; text-align: right">16,415,000</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 16%; text-align: center">Do Not Expire</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Net operating losses, federal (Pre-January 1, 2018)</td> <td> </td> <td> </td> <td style="text-align: right">9,263,000 </td> <td> </td> <td> </td> <td style="text-align: center">2025 to 2037</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Net operating losses, state</td> <td> </td> <td> </td> <td style="text-align: right">28,697,000</td> <td> </td> <td> </td> <td style="text-align: center">2029 to 2043</td></tr> </table> The effective tax rate of the Company’s provision (benefit) for income taxes as of December 31, differed from the federal statutory rate as follows: <table cellpadding="0" cellspacing="0" id="xdx_89C_eus-gaap--ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock_zVVmHSckDfa1" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - INCOME TAXES (Details 4)"> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Schedule of effective income tax rate reconciliation</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center">2025</td><td style="border-bottom: Black 1pt solid; padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center">2024</td><td style="border-bottom: Black 1pt solid; padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%; text-align: left">Tax computed at the federal statutory rate</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">(443,000</td><td style="width: 1%; text-align: left">)</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right">21.00</td><td style="width: 1%; text-align: left">%</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">(772,000</td><td style="width: 1%; text-align: left">)</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right">21.00</td><td style="width: 1%; text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">State and local income tax (net of FBOS)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">41,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-1.94</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">72,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-1.97</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Change in Valuation Allowance</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">466,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-22.09</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">553,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-15.04</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Nontaxable or nondeductible items</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-0.09</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-0.05</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">NOL Expiration</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">0.00</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">190,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-5.17</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Prior Year True-Up</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(63,000</td><td style="border-bottom: Black 1pt solid; text-align: left">)</td><td style="border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">3.00</td><td style="border-bottom: Black 1pt solid; text-align: left">%</td><td style="border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(41,000</td><td style="border-bottom: Black 1pt solid; text-align: left">)</td><td style="border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1.11</td><td style="border-bottom: Black 1pt solid; padding-bottom: 1pt; text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,000</td><td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">-0.11</td><td style="border-bottom: Black 2.5pt double; text-align: left">%</td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">5,000</td><td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">-0.13</td><td style="border-bottom: Black 2.5pt double; text-align: right">%</td></tr> </table> The Company’s statute of limitations remains open for various taxable years in various U.S. federal and California jurisdictions. On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was enacted, restoring the immediate deductibility of domestic Section 174 research and experimental expenditures for tax years beginning in 2025 and reinstating 100% bonus depreciation. The Company evaluated the impact of the legislation and determined it does not have a material effect on its consolidated financial statements. The Company elected to continue amortizing Section 174 costs capitalized in 2022 through 2024 over their remaining amortization periods rather than taking a full deduction in 2025.

<table cellpadding="0" cellspacing="0" id="xdx_89A_eus-gaap--ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock_zthvEcvBmZ98" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse" summary="xdx: Disclosure - INCOME TAXES (Details)"> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: 10pt">Schedule of loss before provision for income tax</td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center">2025</td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center">2024</td> <td style="white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">Pre-tax loss</td> <td> </td> <td colspan="2" style="white-space: nowrap; text-align: right"> </td> <td> </td> <td> </td> <td colspan="2" style="white-space: nowrap; text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-indent: 10pt">U.S. Federal</td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 15%; text-align: right">(2,111,000</td> <td style="width: 1%">)</td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 15%; text-align: right">(3,968,000</td> <td style="width: 1%">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: 10pt">Foreign</td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right"><span id="xdx_908_ecustom--LossBeforeProvisionForIncomeTax_pp0p0_c20250101__20251231__us-gaap--IncomeTaxAuthorityAxis__us-gaap--ForeignCountryMember_zVsCSIAiF6qb" title="Loss before provision for income tax">-</td> <td> </td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Total</td> <td> </td> <td style="border-bottom: black 2.25pt double">$</td> <td style="border-bottom: black 2.25pt double; text-align: right">(2,111,000</td> <td>)</td> <td> </td> <td style="border-bottom: black 2.25pt double">$</td> <td style="border-bottom: black 2.25pt double; text-align: right">(3,968,000</td> <td>)</td></tr> </table>

-2111000 -3968000 2111000 3968000

<table cellpadding="0" cellspacing="0" id="xdx_89F_eus-gaap--ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock_zYscWpTsviW7" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse" summary="xdx: Disclosure - INCOME TAXES (Details 1)"> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: 10pt">Schedule of federal and state income tax (provision) benefit</td> <td> </td> <td> </td> <td id="xdx_49F_20250101__20251231_zZgJSnU0gd3d" style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td id="xdx_490_20240101__20241231_zdswa9l9FOYj" style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center">2025</td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center">2024</td> <td style="white-space: nowrap"> </td></tr> <tr id="xdx_403_eus-gaap--CurrentFederalStateAndLocalTaxExpenseBenefitAbstract_iB" style="vertical-align: bottom"> <td style="white-space: nowrap">Current</td> <td> </td> <td colspan="2" style="white-space: nowrap; text-align: right"> </td> <td> </td> <td> </td> <td colspan="2" style="white-space: nowrap; text-align: right"> </td> <td> </td></tr> <tr id="xdx_40C_eus-gaap--CurrentFederalTaxExpenseBenefit_i01_pp0p0_maCITEBzfQt_zYacjQyz7jn6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-indent: 10pt">U.S. Federal</td> <td> </td> <td>$</td> <td style="text-align: right">-</td> <td> </td> <td> </td> <td>$</td> <td style="text-align: right">-</td> <td> </td></tr> <tr id="xdx_40E_eus-gaap--CurrentStateAndLocalTaxExpenseBenefit_i01_pp0p0_maCITEBzfQt_zEI40vMAVCj" style="vertical-align: bottom; background-color: White"> <td style="text-indent: 10pt">U.S. State</td> <td> </td> <td> </td> <td style="text-align: right">2,000</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">5,000</td> <td> </td></tr> <tr id="xdx_40B_eus-gaap--CurrentForeignTaxExpenseBenefit_i01_pp0p0_maCITEBzfQt_zRv4O4rixH54" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-indent: 10pt">Foreign</td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td> </td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td> </td></tr> <tr id="xdx_407_eus-gaap--CurrentIncomeTaxExpenseBenefit_i01T_pp0p0_mtCITEBzfQt_maITEBzYoj_zzyD9aPbC9Bl" style="vertical-align: bottom; background-color: White"> <td>Total current provision</td> <td> </td> <td> </td> <td style="text-align: right">2,000</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">5,000</td> <td> </td></tr> <tr id="xdx_401_eus-gaap--DeferredIncomeTaxesAbstract_iB" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Deferred</td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr id="xdx_40A_eus-gaap--DeferredFederalIncomeTaxExpenseBenefit_i01_pp0p0_maDITEBz15c_zsaiz7n1Llz1" style="vertical-align: bottom; background-color: White"> <td style="text-indent: 10pt">U.S. Federal</td> <td> </td> <td> </td> <td style="text-align: right">-</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">-</td> <td> </td></tr> <tr id="xdx_40D_eus-gaap--DeferredStateAndLocalIncomeTaxExpenseBenefit_i01_pp0p0_maDITEBz15c_zJn3AsQybOcf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-indent: 10pt">U.S. State</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 15%; text-align: right"> </td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 15%; text-align: right">-</td> <td style="width: 1%"> </td></tr> <tr id="xdx_409_eus-gaap--DeferredForeignIncomeTaxExpenseBenefit_i01_pp0p0_maDITEBz15c_z36NTbr57Lzd" style="vertical-align: bottom; background-color: White"> <td style="text-indent: 10pt">Foreign</td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td> </td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td> </td></tr> <tr id="xdx_400_eus-gaap--DeferredIncomeTaxExpenseBenefit_i01T_pp0p0_mtDITEBz15c_maITEBzYoj_zjJSyQgIvSDc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Total deferred provision (benefit)</td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td> </td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td> </td></tr> <tr id="xdx_40F_eus-gaap--IncomeTaxExpenseBenefit_i01T_pp0p0_mtITEBzYoj_zS8Ut3b32q6h" style="vertical-align: bottom; background-color: White"> <td style="text-indent: 20pt">Total provision (benefit) for income taxes</td> <td> </td> <td style="border-bottom: black 2.25pt double">$</td> <td style="border-bottom: black 2.25pt double; text-align: right">2,000</td> <td> </td> <td> </td> <td style="border-bottom: black 2.25pt double">$</td> <td style="border-bottom: black 2.25pt double; text-align: right">5,000</td> <td> </td></tr> </table>

2000

5000

2000

5000

2000

5000

<table cellpadding="0" cellspacing="0" id="xdx_89D_eus-gaap--ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock_zHB2gYnHdHc9" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse" summary="xdx: Disclosure - INCOME TAXES (Details 2)"> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 9pt">Schedule of deferred tax assets and liabilities</td> <td> </td> <td> </td> <td id="xdx_49E_20251231_zGglwNF6ekek" style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td id="xdx_49A_20241231_zhmKJllAaKfk" style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center">2025</td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center">2024</td> <td style="white-space: nowrap"> </td></tr> <tr id="xdx_40A_eus-gaap--DeferredTaxAssetsGrossAbstract_iB" style="vertical-align: bottom"> <td>Deferred tax asset:</td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr id="xdx_40C_eus-gaap--DeferredTaxAssetsOperatingLossCarryforwards_i01I_pp0p0_maDTAGzVN4_zJjTHBIcDzJ5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; width: 64%">Net operating loss</td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 15%; text-align: right">7,829,000</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 15%; text-align: right">7,396,000 </td> <td style="width: 1%"> </td></tr> <tr id="xdx_406_eus-gaap--DeferredTaxAssetsGoodwillAndIntangibleAssets_i01I_pp0p0_maDTAGzVN4_zBteXsH5m4nk" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 9pt">Intangible asset basis</td> <td> </td> <td> </td> <td style="text-align: right">99,000</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">113,000 </td> <td> </td></tr> <tr id="xdx_401_ecustom--DeferredTaxAssetsDeferredRentLiability_i01I_pp0p0_maDTAGzVN4_zoXJ6UZHp07d" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt">Deferred rent liability</td> <td> </td> <td> </td> <td style="text-align: right">14,000</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">177,000 </td> <td> </td></tr> <tr id="xdx_406_eus-gaap--DeferredTaxAssetsInventory_i01I_pp0p0_maDTAGzVN4_zPSarPUmmD79" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 9pt">Inventory adjustments</td> <td> </td> <td> </td> <td style="text-align: right">380,000</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">375,000 </td> <td> </td></tr> <tr id="xdx_40A_eus-gaap--DeferredTaxAssetsInProcessResearchAndDevelopment_i01I_pp0p0_maDTAGzVN4_zj3jvuZKcfmf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt">R&D capitalization</td> <td> </td> <td> </td> <td style="text-align: right">70,000</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">102,000 </td> <td> </td></tr> <tr id="xdx_40D_eus-gaap--DeferredTaxAssetsTaxDeferredExpenseReservesAndAccrualsAssetRetirementObligations_i01I_pp0p0_maDTAGzVN4_zEH53wXMKzP2" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 9pt">Asset retirement obligation</td> <td> </td> <td> </td> <td style="text-align: right">8,000</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">7,000 </td> <td> </td></tr> <tr id="xdx_400_ecustom--DeferredTaxAssetSettlementLiability_i01I_pp0p0_maDTAGzVN4_zqD2EG4d7ZSi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt">Settlement liability</td> <td> </td> <td> </td> <td style="text-align: right">298,000 </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">298,000 </td> <td> </td></tr> <tr id="xdx_406_eus-gaap--DeferredTaxAssetsTaxDeferredExpenseReservesAndAccrualsWarrantyReserves_i01I_pp0p0_maDTAGzVN4_zOtq41daUlY8" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 9pt">Accrued warranty</td> <td> </td> <td> </td> <td style="text-align: right">13,000</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">13,000 </td> <td> </td></tr> <tr id="xdx_402_eus-gaap--DeferredTaxAssetsTaxDeferredExpenseReservesAndAccrualsOther_i01I_pp0p0_maDTAGzVN4_zRgvCB0kHOPf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt">Accrued salaries</td> <td> </td> <td> </td> <td style="text-align: right">90,000</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">69,000 </td> <td> </td></tr> <tr id="xdx_40D_ecustom--DeferredTaxAssetsTaxDeferredRevenue_i01I_pp0p0_maDTAGzVN4_ziSsI1koCLTf" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 9pt">Deferred revenue</td> <td> </td> <td> </td> <td style="text-align: right">75,000</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">35,000 </td> <td> </td></tr> <tr id="xdx_409_ecustom--AccruedInterest_i01I_pp0p0_maDTAGzVN4_zsQxuOPSv0j4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> Accrued interest</td> <td> </td> <td> </td> <td style="text-align: right">281,000</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">122,000</td> <td> </td></tr> <tr id="xdx_40B_ecustom--ChangeInFairValueOfDerivatives_i01I_pp0p0_maDTAGzVN4_zjTBYvQ4pHig" style="vertical-align: bottom; background-color: White"> <td> Change in fair value of derivatives</td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">10,000</td> <td> </td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td> </td></tr> <tr id="xdx_402_eus-gaap--DeferredTaxAssetsGross_i01TI_pp0p0_mtDTAGzVN4_maNDITAzBM7_z7mZpJ9Rupy1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Total deferred tax asset</td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">9,167,000</td> <td> </td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">8,707,000 </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr id="xdx_40F_eus-gaap--DeferredTaxLiabilitiesAbstract_iB" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="white-space: nowrap">Deferred tax liability:</td> <td> </td> <td colspan="2" style="white-space: nowrap; text-align: right"> </td> <td> </td> <td> </td> <td colspan="2" style="white-space: nowrap; text-align: right"> </td> <td> </td></tr> <tr id="xdx_405_eus-gaap--DeferredTaxLiabilityIntraEntityTransferAssetOtherThanInventory_i01NI_pp0p0_di_maDITLzaQT_zONW7UEK0fjg" style="background-color: White"> <td style="padding-left: 9pt; vertical-align: bottom">ROU assets</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: top; text-align: right">(8,000)</td> <td style="vertical-align: top"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: right">(159,000 </td> <td style="vertical-align: bottom">)</td></tr> <tr id="xdx_400_eus-gaap--DeferredTaxLiabilitiesPropertyPlantAndEquipment_i01NI_pp0p0_di_maDITLzaQT_z7kDhvKYtSi9" style="background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; vertical-align: bottom">Fixed asset basis</td> <td style="vertical-align: bottom"> </td> <td style="border-bottom: black 1pt solid; vertical-align: bottom"> </td> <td style="border-bottom: black 1pt solid; vertical-align: top; text-align: right"> (13,000)</td> <td style="vertical-align: top"> </td> <td style="vertical-align: bottom"> </td> <td style="border-bottom: black 1pt solid; vertical-align: bottom"> </td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right">(90,000 </td> <td style="vertical-align: bottom">)</td></tr> <tr id="xdx_408_eus-gaap--DeferredIncomeTaxLiabilities_i01NTI_pp0p0_di_mtDITLzaQT_msNDITAzBM7_zmz70oGuVmfc" style="vertical-align: bottom; background-color: White"> <td>Total deferred income tax liabilities</td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(21,000)</td> <td> </td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(249,000 </td> <td>)</td></tr> <tr id="xdx_401_ecustom--NetDeferredIncomeTaxAssets_i01TI_pp0p0_maDTANzvs2_mtNDITAzBM7_zNlhmMOLOXea" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Net deferred income tax assets</td> <td> </td> <td> </td> <td style="text-align: right">9,146,000</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">8,458,000 </td> <td> </td></tr> <tr id="xdx_40E_eus-gaap--DeferredTaxAssetsValuationAllowance_i01NI_pp0p0_di_msDTANzvs2_zY3pLHjWkebb" style="vertical-align: bottom; background-color: White"> <td>Valuation allowance</td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(9,146,000)</td> <td> </td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(8,458,000 </td> <td>)</td></tr> <tr id="xdx_40F_eus-gaap--DeferredTaxAssetsNet_iTI_pp0p0_mtDTANzvs2_zoJUkhXzEA1f" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Deferred tax asset (liability), net</td> <td> </td> <td style="border-bottom: black 2.25pt double">$</td> <td style="border-bottom: black 2.25pt double; text-align: right">-</td> <td> </td> <td> </td> <td style="border-bottom: black 2.25pt double">$</td> <td style="border-bottom: black 2.25pt double; text-align: right">-</td> <td> </td></tr> </table>

7829000

7396000

99000

113000

14000 177000

380000

375000

70000

102000

8000

7000

298000 298000

13000

90000

69000

75000 35000 281000 122000 10000

9167000

8707000

8000

159000

13000

90000

21000

249000

9146000 8458000

9146000

8458000

688000 929000

<table cellpadding="0" cellspacing="0" id="xdx_898_eus-gaap--SummaryOfOperatingLossCarryforwardsTextBlock_zsNFZYMSW7d6" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse" summary="xdx: Disclosure - INCOME TAXES (Details 3)"> <tr style="vertical-align: bottom; background-color: White"> <td>Schedule of net operating losses and tax credit carryforwards</td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td style="text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center">2025 Amount</td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center">Expiration Years</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 65%">Net operating losses, federal (Post December 31, 2017)</td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 15%; text-align: right">19,189,000</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 16%; text-align: center">Do Not Expire</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Net operating losses, federal (Pre-January 1, 2018)</td> <td> </td> <td> </td> <td style="text-align: right">8,058,000</td> <td> </td> <td> </td> <td style="text-align: center">2026 to 2037</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Net operating losses, state</td> <td> </td> <td> </td> <td style="text-align: right">30,180,000</td> <td> </td> <td> </td> <td style="text-align: center">2029 to 2044</td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center">2024 Amount</td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center">Expiration Years</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 65%">Net operating losses, federal (Post December 31, 2017)</td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 15%; text-align: right">16,415,000</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 16%; text-align: center">Do Not Expire</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Net operating losses, federal (Pre-January 1, 2018)</td> <td> </td> <td> </td> <td style="text-align: right">9,263,000 </td> <td> </td> <td> </td> <td style="text-align: center">2025 to 2037</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Net operating losses, state</td> <td> </td> <td> </td> <td style="text-align: right">28,697,000</td> <td> </td> <td> </td> <td style="text-align: center">2029 to 2043</td></tr> </table>

19189000 Do Not Expire 8058000 2026 to 2037 30180000 2029 to 2044 16415000 Do Not Expire 9263000 2025 to 2037 28697000 2029 to 2043

<table cellpadding="0" cellspacing="0" id="xdx_89C_eus-gaap--ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock_zVVmHSckDfa1" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - INCOME TAXES (Details 4)"> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Schedule of effective income tax rate reconciliation</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center">2025</td><td style="border-bottom: Black 1pt solid; padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center">2024</td><td style="border-bottom: Black 1pt solid; padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%; text-align: left">Tax computed at the federal statutory rate</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">(443,000</td><td style="width: 1%; text-align: left">)</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right">21.00</td><td style="width: 1%; text-align: left">%</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">(772,000</td><td style="width: 1%; text-align: left">)</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right">21.00</td><td style="width: 1%; text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">State and local income tax (net of FBOS)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">41,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-1.94</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">72,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-1.97</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Change in Valuation Allowance</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">466,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-22.09</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">553,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-15.04</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Nontaxable or nondeductible items</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-0.09</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-0.05</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">NOL Expiration</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">0.00</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">190,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-5.17</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Prior Year True-Up</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(63,000</td><td style="border-bottom: Black 1pt solid; text-align: left">)</td><td style="border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">3.00</td><td style="border-bottom: Black 1pt solid; text-align: left">%</td><td style="border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(41,000</td><td style="border-bottom: Black 1pt solid; text-align: left">)</td><td style="border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1.11</td><td style="border-bottom: Black 1pt solid; padding-bottom: 1pt; text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,000</td><td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">-0.11</td><td style="border-bottom: Black 2.5pt double; text-align: left">%</td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">5,000</td><td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">-0.13</td><td style="border-bottom: Black 2.5pt double; text-align: right">%</td></tr> </table>

-443000

0.2100

-772000

0.2100

41000

-0.0194

72000

-0.0197

466000

-0.2209

553000

-0.1504

1000

-0.0009

3000

-0.0005

0.0000

190000

-0.0517

-63000 0.0300 -41000 0.0111

2000

-0.0011

5000

-0.0013

15. LOSS PER SHARE In accordance with ASC 260, Earnings Per Share, the basic loss per common share is computed by dividing the net loss available to common shareholders by the weighted average number of common stock outstanding. Diluted loss per common share is computed similar to basic loss per common share except that the denominator is increased to include the number of additional shares of common stock that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. The Company excluded the potential common stock equivalents outstanding from the calculation of diluted weighted average net loss per share for each of the years ended December 31, 2025, and 2024, which would be anti-dilutive due to the net loss from continuing operations in those periods. Anti-dilutive securities, which are convertible into or exercisable for the Company’s common stock, consisted of the following as of December 31, 2025, and 2024: <table cellpadding="0" cellspacing="0" id="xdx_883_eus-gaap--ScheduleOfAntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareTextBlock_ziqQIuK5a9cj" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse" summary="xdx: Disclosure - LOSS PER SHARE (Details)"> <tr style="vertical-align: bottom; background-color: White"> <td>Schedule of anti dilutive securities excluded from computation of earnings per share</td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="6" style="white-space: nowrap; text-align: center">December 31,</td> <td style="white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center">2025</td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center">2024</td> <td style="white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%">Warrants</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 15%; text-align: right"><span id="xdx_902_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20250101__20251231__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--WarrantsMember_pdd" title="Total">140,923,000 </td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 15%; text-align: right"><span id="xdx_900_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20240101__20241231__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--WarrantsMember_pdd" title="Total">140,956,000 </td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Convertible notes payable</td> <td> </td> <td> </td> <td style="text-align: right"><span id="xdx_90E_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20250101__20251231__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--ConvertibleNotesMember_pdd" title="Total">10,659,000</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"><span id="xdx_90C_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20240101__20241231__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--ConvertibleNotesMember_pdd" title="Total">-</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Convertible preferred stock</td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right"><span id="xdx_90F_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20250101__20251231__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--ConvertiblePreferredStockMember_pdd" title="Total">1,250,000,000</td> <td> </td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right"><span id="xdx_909_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20240101__20241231__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--ConvertiblePreferredStockMember_pdd" title="Total">1,250,000,000</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Total</td> <td> </td> <td style="border-bottom: black 2.25pt double"> </td> <td style="border-bottom: black 2.25pt double; text-align: right">1,401,582,000</td> <td> </td> <td> </td> <td style="border-bottom: black 2.25pt double"> </td> <td style="border-bottom: black 2.25pt double; text-align: right">1,390,956,000</td> <td> </td></tr> </table>

<table cellpadding="0" cellspacing="0" id="xdx_883_eus-gaap--ScheduleOfAntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareTextBlock_ziqQIuK5a9cj" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse" summary="xdx: Disclosure - LOSS PER SHARE (Details)"> <tr style="vertical-align: bottom; background-color: White"> <td>Schedule of anti dilutive securities excluded from computation of earnings per share</td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="6" style="white-space: nowrap; text-align: center">December 31,</td> <td style="white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center">2025</td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center">2024</td> <td style="white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%">Warrants</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 15%; text-align: right"><span id="xdx_902_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20250101__20251231__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--WarrantsMember_pdd" title="Total">140,923,000 </td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 15%; text-align: right"><span id="xdx_900_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20240101__20241231__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--WarrantsMember_pdd" title="Total">140,956,000 </td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Convertible notes payable</td> <td> </td> <td> </td> <td style="text-align: right"><span id="xdx_90E_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20250101__20251231__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--ConvertibleNotesMember_pdd" title="Total">10,659,000</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"><span id="xdx_90C_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20240101__20241231__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--ConvertibleNotesMember_pdd" title="Total">-</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Convertible preferred stock</td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right"><span id="xdx_90F_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20250101__20251231__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--ConvertiblePreferredStockMember_pdd" title="Total">1,250,000,000</td> <td> </td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right"><span id="xdx_909_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20240101__20241231__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--ConvertiblePreferredStockMember_pdd" title="Total">1,250,000,000</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Total</td> <td> </td> <td style="border-bottom: black 2.25pt double"> </td> <td style="border-bottom: black 2.25pt double; text-align: right">1,401,582,000</td> <td> </td> <td> </td> <td style="border-bottom: black 2.25pt double"> </td> <td style="border-bottom: black 2.25pt double; text-align: right">1,390,956,000</td> <td> </td></tr> </table>

140923000

140956000

10659000

1250000000

1401582000

1390956000

16. COMMITMENTS AND CONTINGENCIES Litigation Matters The Company is involved in litigation arising from other matters in the ordinary course of business. The Company is regularly subject to claims, suits, regulatory and government investigations, and other proceedings involving labor and employment, commercial disputes, and other matters. Such claims, suits, regulatory and government investigations, and other proceedings could result in fines, civil penalties, or other adverse consequences. Certain of these outstanding matters include speculative, substantial or indeterminate monetary amounts. The Company records an undiscounted liability for contingent losses, including future legal costs, settlements and judgments, when we consider it is probable that a liability has been incurred, and the amount of the loss can be reasonably estimated. If the Company determines that a loss is reasonably possible and the loss or range of loss can be estimated, the Company discloses the reasonably possible loss. The Company evaluates developments in its legal matters that could affect the amount of liability that has been previously accrued, and the matters and related reasonably possible losses disclosed, and makes adjustments as additional information becomes available. Significant judgment is required to determine both the likelihood of there being a loss, and the estimated amount of a loss related to such matters. With respect to the Company’s outstanding litigation matters, based on the Company’s current knowledge, the Company believes that the amount or range of reasonably possible loss will not, either individually or in aggregate, have a material adverse effect on the Company’s business, consolidated financial position, results of operations, or cash flows. However, the outcome of such matters is inherently unpredictable and subject to significant uncertainties. Non-cancelable Obligations In the normal course of business, the Company enters non-cancelable obligations with certain parties to purchase services, such as technology equipment and subscription-based cloud service arrangements. As of December 31, 2025, and 2024, the Company had outstanding non-cancelable purchase obligations with terms of one year or longer aggregating $0 and $18,000, respectively.

0 18000

17. SHAREHOLDERS’ DEFICIT Authorized Capital The Company is authorized to issue 2 billion (2,000,000,000) shares of common stock, par value $0.001 per share and fifty million (50,000,000) shares of preferred stock, par value $0.001 per share, of which twenty-five thousand shares (25,000) have been designated as Series A Convertible Redeemable Preferred Stock, par value $0.001 per share and the remaining authorized shares of preferred stock are “blank check” shares, which can be issued with various rights as determined by the Board. The number of authorized shares of any class or classes of stock may be increased or decreased (but not below the number of shares thereof then outstanding) by the affirmative vote of the holders of at least a majority of the voting power of the issued and outstanding shares of common stock of the Corporation, voting together as a single class. Common Stock The holders of the Company’s Common Stock have equal ratable rights to dividends from funds legally available therefore, when, as and if declared by the Company’s board of directors (the “Board”). Holders of Common Stock are also entitled to share ratably in all of the Company’s assets available for distribution to holders of Common Stock upon liquidation, dissolution or winding up of the Company’s affairs. Except as otherwise required by law or as may be provided by the resolutions of the Board authorizing the issuance of Common Stock, all rights to vote and all voting power shall be vested in the holders of Common Stock. Each share of Common Stock shall entitle the holder thereof to one vote. Upon any liquidation, dissolution or winding-up of the corporation, whether voluntary or involuntary, the remaining net assets of the Company shall be distributed pro rata to the holders of the Common Stock.

The Company is authorized to issue 2 billion (2,000,000,000) shares of common stock, par value $0.001 per share and fifty million (50,000,000) shares of preferred stock, par value $0.001 per share, of which twenty-five thousand shares (25,000) have been designated as Series A Convertible Redeemable Preferred Stock, par value $0.001 per share 18. REDEEMABLE SERIES A PREFERRED STOCK – RELATED PARTY Series A Preferred Stock There are 25,000 shares of Series A Preferred Stock issued and outstanding. Each share of Series A Preferred Stock has a stated value of $<span id="xdx_906_eus-gaap--PreferredStockRedemptionAmountFutureRedeemableSecurities_c20251231__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_pp0p0" title="Preferred stock, stated value">1,000, for an aggregate value of $<span id="xdx_904_eus-gaap--PreferredStockDividendsAndOtherAdjustments_pn3n3_dm_c20250101__20251231__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zN4UZ9tFapae" title="Preferred stock, aggregate value">25 million. On August 9, 2024, the Company amended and restated its certificate of designations of rights and preferences of the Series A Convertible Redeemable Preferred Stock (“Preferred Stock”). Pursuant to the Series A Amendment, the holder of the preferred stock, which is a related party, waived all accrued and future dividends in exchange for an increase in the liquidation preference to 125%. This modification of the Preferred Stock resulted in a non-cash decrease in accrued dividends and a corresponding increase in additional paid in capital of $2,667,000. On April 22, 2024, the Company amended its articles of incorporation. Pursuant to the Series A Amendment, the conversion price, for purposes of determining the number of votes the holder of Series A Preferred Stock is entitled to cast, shall not be lower than $0.072. Further, the price at which the Series A Preferred Stock shall become convertible into shares of common stock of the Company shall be equal to the greater of (i) $0.02 per share or (ii) eighty (80%) percent of the Market Price as at the Conversion Date. Each holder shall be entitled to vote on an “as converted” basis with holders of outstanding shares of our common stock, voting together as a single class, with respect to any and all matters presented to the shareholders for their action or consideration. For so long as the holder shall continue to hold any shares of Series A Preferred Stock originally issued to it, the holder shall be entitled to elect a number of directors to the Board equal to a percentage determined by the number of Series A Preferred Stock beneficially owned by the holders, determined on an “as converted” basis, divided by the sum of the number of shares of Common Stock outstanding plus the number of Series A Preferred Stock outstanding on an “as converted” basis, provided, that the number of directors that the holders are entitled to elect shall never be less than a majority of our Board. Beginning January 1, 2026, the shares of Series A Preferred Stock shall be subject to redemption in cash at the option of the holder in an amount per share equal to the stated value plus all accrued and unpaid dividends thereon. In accordance with FASB ASC Topic 480, “Distinguishing Liabilities from Equity”, paragraph 10-S99, redemption provisions not solely within the control of a company require ordinary shares subject to redemption to be classified outside of permanent equity. Accordingly, all of the shares of Series A Preferred Stock are presented as temporary equity, outside of the shareholders’ deficit section of the Company’s balance sheets.

25000

1000

25000000

2667000

19. WARRANTS A summary of warrant activity for the years ended December 31, 2025, and 2024 is presented below: <table cellpadding="0" cellspacing="0" id="xdx_880_eus-gaap--ScheduleOfGuaranteeObligationsTextBlock_zKU8ovN1CTXd" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - WARRANTS (Details)"> <tr style="vertical-align: bottom; background-color: White"> <td>Schedule of warrant activity</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center">Warrants</td><td style="white-space: nowrap; padding-bottom: 1pt; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center">Weighted- Average Exercise Price</td><td style="white-space: nowrap; padding-bottom: 1pt; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center">Weighted- Average Remaining Contractual Life (Years)</td><td style="white-space: nowrap; padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 55%">Outstanding on December 31, 2023</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right"><span id="xdx_90D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_c20240101__20241231__us-gaap--AwardTypeAxis__us-gaap--WarrantMember_z0erYU5PF2Al" title="Number of warrants outstanding, beginning">116,010,720</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right"><span id="xdx_900_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_c20240101__20241231__us-gaap--AwardTypeAxis__us-gaap--WarrantMember_zbDpYOvPNt8d" title="Weighted-average exercise price, warrants outstanding beginning">0.1</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right"><span id="xdx_90C_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1_dtY_c20230101__20231231__us-gaap--AwardTypeAxis__us-gaap--WarrantMember_zlJjTA6PYy3" title="Weighted average remaining contractual term (years) warrants">4.6</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Granted</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_902_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriod_c20240101__20241231__us-gaap--AwardTypeAxis__us-gaap--WarrantMember_pdd" title="Number of warrants, granted">24,954,170</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_903_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_c20240101__20241231__us-gaap--AwardTypeAxis__us-gaap--WarrantMember_pdd" title="Weighted-average exercise price, warrants granted">0.1</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt">Exercised</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(9,161</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span id="xdx_900_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_c20240101__20241231__us-gaap--AwardTypeAxis__us-gaap--WarrantMember_pdd" title="Weighted-average exercise price, exercised">0.1</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Outstanding on December 31, 2024</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_c20250101__20251231__us-gaap--AwardTypeAxis__us-gaap--WarrantMember_z2jdUmUzw5Aj" title="Number of warrants outstanding, beginning">140,955,729</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_903_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_c20250101__20251231__us-gaap--AwardTypeAxis__us-gaap--WarrantMember_zj7EIa8l1nFj" title="Weighted-average exercise price, warrants outstanding beginning">0.1</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90C_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1_dtY_c20240101__20241231__us-gaap--AwardTypeAxis__us-gaap--WarrantMember_zUKci0Dwcki7" title="Weighted average remaining contractual term (years) warrants">3.7</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Granted</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_900_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriod_c20250101__20251231__us-gaap--AwardTypeAxis__us-gaap--WarrantMember_pdd" title="Number of warrants, granted">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90C_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_c20250101__20251231__us-gaap--AwardTypeAxis__us-gaap--WarrantMember_pdd" title="Weighted-average exercise price, warrants granted">0.1</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">Exercised</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(33,199</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span id="xdx_906_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_c20250101__20251231__us-gaap--AwardTypeAxis__us-gaap--WarrantMember_pdd" title="Weighted-average exercise price, exercised">0.1</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Outstanding on December 31, 2025</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right"><span id="xdx_90E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_c20250101__20251231__us-gaap--AwardTypeAxis__us-gaap--WarrantMember_zsGGskpJJPof" title="Number of warrant outstanding, ending">140,922,530</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right"><span id="xdx_907_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_c20250101__20251231__us-gaap--AwardTypeAxis__us-gaap--WarrantMember_zomaQ19g5GWl" title="Weighted-average exercise price, ending">0.1</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right"><span id="xdx_901_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1_dtY_c20250101__20251231__us-gaap--AwardTypeAxis__us-gaap--WarrantMember_z3mkrFTbFYhb" title="Weighted average remaining contractual term (years) warrants">2.7</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> The following summarizes information about common stock warrants outstanding on December 31, 2025, and 2024: Warrants held by related parties consisted of 13,235,252, and 13,235,252 as of December 31, 2025, and 2024 respectively. Commitment Fee; Warrant On July 25, 2024, the Company entered into a purchase agreement (the “ELOC Purchase Agreement”) with GCEF Opportunity Fund, LLC (“GCEF”), which provides that, upon the terms and subject to the conditions and limitations set forth therein, the Company has the right to direct GCEF to purchase up to an aggregate of $25.0 million of shares of the Company’s common stock, par value $0.001 per share (the “Common Stock”) over the 36-month term of the ELOC Purchase Agreement and the Company will execute a warrant to purchase shares of Common Stock (“ELOC Warrant”), granting the GCEF the right to purchase Common Stock issuable upon the exercise of the ELOC Warrants, with an expiration date that is the third anniversary of the First Trading Day (as defined ELOC Purchase Agreement). Under the ELOC Warrant, GCEF has the right to buy up to 2% of our outstanding Common Stock within three business days after our Common Stock is publicly listed for trading on a U.S. national securities exchange or other trading platform. In consideration for GCEF’s execution of the ELOC Purchase Agreement, the Company is required to issue to GCEF, as a commitment fee, a number of Common Stock equivalent to 2.0% of the Aggregate Limit or $0.5 million (“Commitment Fee Shares”), payable either in cash or freely tradeable Common Stock on the first trading day after 30 consecutive trading days commencing with the first trading day designated in each draw down notice. The draw down notice shall specify the draw down amount requested, set the threshold price for such draw down and designate the first trading day of the draw down pricing period that the Company wishes to grant to the purchaser during the draw down pricing period.

<table cellpadding="0" cellspacing="0" id="xdx_880_eus-gaap--ScheduleOfGuaranteeObligationsTextBlock_zKU8ovN1CTXd" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - WARRANTS (Details)"> <tr style="vertical-align: bottom; background-color: White"> <td>Schedule of warrant activity</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center">Warrants</td><td style="white-space: nowrap; padding-bottom: 1pt; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center">Weighted- Average Exercise Price</td><td style="white-space: nowrap; padding-bottom: 1pt; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center">Weighted- Average Remaining Contractual Life (Years)</td><td style="white-space: nowrap; padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 55%">Outstanding on December 31, 2023</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right"><span id="xdx_90D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_c20240101__20241231__us-gaap--AwardTypeAxis__us-gaap--WarrantMember_z0erYU5PF2Al" title="Number of warrants outstanding, beginning">116,010,720</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right"><span id="xdx_900_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_c20240101__20241231__us-gaap--AwardTypeAxis__us-gaap--WarrantMember_zbDpYOvPNt8d" title="Weighted-average exercise price, warrants outstanding beginning">0.1</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right"><span id="xdx_90C_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1_dtY_c20230101__20231231__us-gaap--AwardTypeAxis__us-gaap--WarrantMember_zlJjTA6PYy3" title="Weighted average remaining contractual term (years) warrants">4.6</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Granted</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_902_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriod_c20240101__20241231__us-gaap--AwardTypeAxis__us-gaap--WarrantMember_pdd" title="Number of warrants, granted">24,954,170</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_903_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_c20240101__20241231__us-gaap--AwardTypeAxis__us-gaap--WarrantMember_pdd" title="Weighted-average exercise price, warrants granted">0.1</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt">Exercised</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(9,161</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span id="xdx_900_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_c20240101__20241231__us-gaap--AwardTypeAxis__us-gaap--WarrantMember_pdd" title="Weighted-average exercise price, exercised">0.1</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Outstanding on December 31, 2024</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_c20250101__20251231__us-gaap--AwardTypeAxis__us-gaap--WarrantMember_z2jdUmUzw5Aj" title="Number of warrants outstanding, beginning">140,955,729</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_903_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_c20250101__20251231__us-gaap--AwardTypeAxis__us-gaap--WarrantMember_zj7EIa8l1nFj" title="Weighted-average exercise price, warrants outstanding beginning">0.1</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90C_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1_dtY_c20240101__20241231__us-gaap--AwardTypeAxis__us-gaap--WarrantMember_zUKci0Dwcki7" title="Weighted average remaining contractual term (years) warrants">3.7</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Granted</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_900_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriod_c20250101__20251231__us-gaap--AwardTypeAxis__us-gaap--WarrantMember_pdd" title="Number of warrants, granted">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90C_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_c20250101__20251231__us-gaap--AwardTypeAxis__us-gaap--WarrantMember_pdd" title="Weighted-average exercise price, warrants granted">0.1</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">Exercised</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(33,199</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span id="xdx_906_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_c20250101__20251231__us-gaap--AwardTypeAxis__us-gaap--WarrantMember_pdd" title="Weighted-average exercise price, exercised">0.1</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Outstanding on December 31, 2025</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right"><span id="xdx_90E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_c20250101__20251231__us-gaap--AwardTypeAxis__us-gaap--WarrantMember_zsGGskpJJPof" title="Number of warrant outstanding, ending">140,922,530</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right"><span id="xdx_907_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_c20250101__20251231__us-gaap--AwardTypeAxis__us-gaap--WarrantMember_zomaQ19g5GWl" title="Weighted-average exercise price, ending">0.1</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right"><span id="xdx_901_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1_dtY_c20250101__20251231__us-gaap--AwardTypeAxis__us-gaap--WarrantMember_z3mkrFTbFYhb" title="Weighted average remaining contractual term (years) warrants">2.7</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

116010720

0.1

P4Y7M6D

24954170

0.1

9161

0.1

140955729

0.1

P3Y8M12D

0.1

33199

0.1

140922530

0.1

P2Y8M12D

13235252

20. SEGMENT INFORMATION ASC Topic 280, “Segment Reporting,” establishes standards for companies to report in their financial statement information about operating segments, products, services, geographic areas, and major customers. Operating segments are defined as components of an enterprise that engage in business activities from which it may recognize revenues and incur expenses, and for which separate financial information is available that is regularly evaluated by the Company’s Chief Operating Decision Maker (“CODM”), or group, in deciding how to allocate resources and assess performance. The Company’s CODM has been identified as the Chief Executive and Financial Officer, who reviews the assets, operating results, and financial metrics for the Company to make decisions about allocating resources and assessing financial performance. Accordingly, management has determined that there is only one reportable segment. The CODM assesses performance for the single segment and decides how to allocate resources based on gross profit and net loss that are also reported on the statement of operations as net income or loss. The measure of segment assets is reported on the balance sheet as total assets. When evaluating the Company’s performance and making key decisions regarding resource allocation, the CODM reviews several key metrics included in net loss, which include the following: <table cellpadding="0" cellspacing="0" id="xdx_885_eus-gaap--ScheduleOfSegmentReportingInformationBySegmentTextBlock_zrwto5LDfdk4" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - SEGMENT INFORMATION (Details)"> <tr style="vertical-align: bottom; background-color: White"> <td>Schedule of segment reporting</td><td> </td> <td style="text-align: left"> </td><td id="xdx_499_20250101__20251231_zoiTdUrrAPN" style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_490_20240101__20241231_z3BVViTie3Y5" style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td><td style="white-space: nowrap; font-weight: bold"> </td> <td colspan="6" style="white-space: nowrap; font-weight: bold; text-align: center">Years ended December 31,</td><td style="white-space: nowrap; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center">2025</td><td style="white-space: nowrap; padding-bottom: 1pt; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center">2024</td><td style="white-space: nowrap; padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_401_eus-gaap--Revenues_i_pp0p0" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%">Revenue</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 15%; text-align: right">7,228,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 15%; text-align: right">4,912,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--CostOfRevenueAbstract_iB" style="vertical-align: bottom; background-color: White"> <td>Cost of revenue</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-align: left">Manufacturing costs</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,553,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,524,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 9pt; text-align: left">Distribution costs</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">358,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">481,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-align: left">Inventory adjustment</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">270,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 9pt; text-align: left">EV chargers</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">801,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">206,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-align: left">Other</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">197,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">309,000</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">Cost of revenue</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">3,909,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">2,790,000</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Gross profit</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">3,319,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">2,122,000</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--OperatingExpensesAbstract_iB" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Operating expenses:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--ResearchAndDevelopmentAbstract_iB" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Research and development:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 9pt; text-align: left">Payroll and benefits</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">253,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">238,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-align: left">Occupancy costs</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">98,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">93,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 9pt; text-align: left">Other research and development</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">93,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">76,000</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 27pt; text-align: left; padding-bottom: 1pt">Total research and development</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">444,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">407,000</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--SellingAndMarketingExpenseAbstract_iB" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Selling and marketing:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-align: left">Payroll and benefits</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">742,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">972,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 9pt; text-align: left">Occupancy costs</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">110,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">164,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-align: left">Other selling and marketing</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">203,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">157,000</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 27pt; text-align: left; padding-bottom: 1pt">Total selling and marketing</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,055,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,293,000</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--GeneralAndAdministrativeExpenseAbstract_iB" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">General and administrative</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 9pt; text-align: left">Payroll and benefits</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,389,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,209,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-align: left">Professional fees and outside services</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_904_eus-gaap--GeneralAndAdministrativeExpense_c20250101__20251231__us-gaap--StatementBusinessSegmentsAxis__custom--ProfessionalFeesAndOutsideServicesMember_pp0p0" title="Total general and administrative">370,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_906_eus-gaap--GeneralAndAdministrativeExpense_c20240101__20241231__us-gaap--StatementBusinessSegmentsAxis__custom--ProfessionalFeesAndOutsideServicesMember_pp0p0" title="Total general and administrative">422,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 9pt; text-align: left">Write off EV related assets</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">763,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-align: left">Occupancy costs</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">695,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">660,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 9pt; text-align: left">Other general and administrative</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span id="xdx_904_eus-gaap--GeneralAndAdministrativeExpense_c20250101__20251231__us-gaap--StatementBusinessSegmentsAxis__custom--OtherGeneralAndAdministrativeMember_pp0p0" title="Total general and administrative">700,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span id="xdx_90D_eus-gaap--GeneralAndAdministrativeExpense_c20240101__20241231__us-gaap--StatementBusinessSegmentsAxis__custom--OtherGeneralAndAdministrativeMember_pp0p0" title="Total general and administrative">862,000</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 27pt; text-align: left; padding-bottom: 1pt">Total general and administrative</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">3,154,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">3,966,000</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Total operating expenses</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">4,653,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">5,666,000</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Operating loss</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(1,334,000</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(3,544,000</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr> </table>

<table cellpadding="0" cellspacing="0" id="xdx_885_eus-gaap--ScheduleOfSegmentReportingInformationBySegmentTextBlock_zrwto5LDfdk4" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - SEGMENT INFORMATION (Details)"> <tr style="vertical-align: bottom; background-color: White"> <td>Schedule of segment reporting</td><td> </td> <td style="text-align: left"> </td><td id="xdx_499_20250101__20251231_zoiTdUrrAPN" style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_490_20240101__20241231_z3BVViTie3Y5" style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td><td style="white-space: nowrap; font-weight: bold"> </td> <td colspan="6" style="white-space: nowrap; font-weight: bold; text-align: center">Years ended December 31,</td><td style="white-space: nowrap; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center">2025</td><td style="white-space: nowrap; padding-bottom: 1pt; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center">2024</td><td style="white-space: nowrap; padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_401_eus-gaap--Revenues_i_pp0p0" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%">Revenue</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 15%; text-align: right">7,228,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 15%; text-align: right">4,912,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--CostOfRevenueAbstract_iB" style="vertical-align: bottom; background-color: White"> <td>Cost of revenue</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-align: left">Manufacturing costs</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,553,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,524,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 9pt; text-align: left">Distribution costs</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">358,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">481,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-align: left">Inventory adjustment</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">270,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 9pt; text-align: left">EV chargers</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">801,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">206,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-align: left">Other</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">197,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">309,000</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">Cost of revenue</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">3,909,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">2,790,000</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Gross profit</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">3,319,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">2,122,000</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--OperatingExpensesAbstract_iB" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Operating expenses:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--ResearchAndDevelopmentAbstract_iB" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Research and development:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 9pt; text-align: left">Payroll and benefits</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">253,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">238,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-align: left">Occupancy costs</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">98,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">93,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 9pt; text-align: left">Other research and development</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">93,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">76,000</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 27pt; text-align: left; padding-bottom: 1pt">Total research and development</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">444,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">407,000</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--SellingAndMarketingExpenseAbstract_iB" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Selling and marketing:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-align: left">Payroll and benefits</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">742,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">972,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 9pt; text-align: left">Occupancy costs</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">110,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">164,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-align: left">Other selling and marketing</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">203,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">157,000</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 27pt; text-align: left; padding-bottom: 1pt">Total selling and marketing</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,055,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,293,000</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--GeneralAndAdministrativeExpenseAbstract_iB" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">General and administrative</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 9pt; text-align: left">Payroll and benefits</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,389,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,209,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-align: left">Professional fees and outside services</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_904_eus-gaap--GeneralAndAdministrativeExpense_c20250101__20251231__us-gaap--StatementBusinessSegmentsAxis__custom--ProfessionalFeesAndOutsideServicesMember_pp0p0" title="Total general and administrative">370,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_906_eus-gaap--GeneralAndAdministrativeExpense_c20240101__20241231__us-gaap--StatementBusinessSegmentsAxis__custom--ProfessionalFeesAndOutsideServicesMember_pp0p0" title="Total general and administrative">422,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 9pt; text-align: left">Write off EV related assets</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">763,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-align: left">Occupancy costs</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">695,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">660,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 9pt; text-align: left">Other general and administrative</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span id="xdx_904_eus-gaap--GeneralAndAdministrativeExpense_c20250101__20251231__us-gaap--StatementBusinessSegmentsAxis__custom--OtherGeneralAndAdministrativeMember_pp0p0" title="Total general and administrative">700,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span id="xdx_90D_eus-gaap--GeneralAndAdministrativeExpense_c20240101__20241231__us-gaap--StatementBusinessSegmentsAxis__custom--OtherGeneralAndAdministrativeMember_pp0p0" title="Total general and administrative">862,000</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 27pt; text-align: left; padding-bottom: 1pt">Total general and administrative</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">3,154,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">3,966,000</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Total operating expenses</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">4,653,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">5,666,000</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Operating loss</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(1,334,000</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(3,544,000</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr> </table>

7228000

4912000

2553000

1524000

358000

481000

270000

801000

206000

197000

309000

3909000

2790000

3319000

2122000

253000

238000

98000

93000

76000

444000

407000

742000

972000

110000

164000

203000

157000

1055000

1293000

1389000

1209000

370000

422000

763000

695000

660000

700000

862000

3154000

3966000

4653000

5666000

-1334000

-3544000

21. SUBSEQUENT EVENTS New Operating lease The Company entered into a 5-year operating lease beginning January 1, 2026, for new office and warehouse space with annual lease payments of approximately $.5 million. The total estimated lease commitment is approximately $2.4 million. This lease agreement begins subsequent to December 31, 2025, and accordingly, no amounts related to this lease are reflected in the accompanying balance sheet. Convertible debt issued pursuant to the SPA The Agreement provides that the Loan shall be conducted through seven (7) separate tranche closings, provided, that SJC has the ability, exercisable in its sole discretion, to purchase any principal face amounts of convertible notes prior to the dates of the tranche closings provided for in the Agreement. Four additional tranches closed prior to the filing of our 2025 Form 10K as described below. Pursuant to the Agreement, the second tranche closed on January 9, 2026, the third tranche closed on January 30,2026, and the fourth and fifth tranches on March 27, 2026. These closings consisted of the issuance of Convertible Notes to SJC in the total principal face amount of $<span id="xdx_90A_eus-gaap--DebtInstrumentFaceAmount_iI_pp0p0_c20260327__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__srt--CounterpartyNameAxis__custom--SJCLendingLLCMember_zuaGQ4AmLF7" title="Principal amount">880,000, for a total purchase price of $<span id="xdx_90F_eus-gaap--DebtInstrumentRepurchaseAmount_iI_pp0p0_c20260327__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__srt--CounterpartyNameAxis__custom--SJCLendingLLCMember_zcfmkJ5fhoB7" title="Purchase price">800,000. The convertible notes accrue interest at <span id="xdx_900_eus-gaap--DebtInstrumentInterestRateDuringPeriod_dp_c20260301__20260327__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__srt--CounterpartyNameAxis__custom--SJCLendingLLCMember_zR2Hs1iHzhcb" title="Interest rate">12% per annum and will mature one year from issuance of the notes. The convertible notes are convertible into shares of the Company’s common stock at any time at a conversion price equal to the greater of (i) $0.035 per share, which shall not be adjusted for stock dividends, stock splits, stock combinations and other similar transactions and (ii) 20% discount to the Company’s lowest VWAP (as defined in the convertible notes) of the common stock during the ten trading days immediately prior to the date of conversion into shares of common stock.

5000000

2400000

880000

800000

0.12

false false false false Includes OID costs that are amortized to interest expense over the life of the notes.